Term insurance essentially protects your income. It acts as your financial replica and comes into effect when you pass away. In the event of your demise, the insurance company pays out a large sum of money to your family or loved ones. This can range from 1 crore to 5 crore or even 10 crore. Ideally, this money should replace your financial contributions and support your family when you are no longer the breadwinner. Provided you have not deliberately misled the insurer while purchasing the policy, they will pay out the full amount upon your passing

Here are some important points to know before buying term insurance:

• Coverage Amount: Determine the right coverage amount based on your family's financial needs, outstanding debts, and future expenses.
• Policy Term: Choose a policy term that aligns with your financial goals and the duration for which your family would need financial protection.
• Premium Payments: Understand the premium payment structure - whether it's level, increasing, or decreasing over time.
• Rider Options: Consider adding riders like accidental death, critical illness, or disability benefits to enhance the coverage.
• Claim Process: Familiarize yourself with the claim settlement process to ensure your family faces minimal hassle in the event of a claim.
• Financial Stability of Insurer: Opt for a financially stable and reputable insurance company with a good track record of claim settlement.
• Exclusions: Review the policy exclusions carefully to understand what scenarios may not be covered.
• Nomination: Ensure you have nominated the right beneficiaries to receive the death benefit. Renewal Process: Understand the renewal process and any changes in premium or coverage upon renewal.
• Tax Benefits: Avail of the tax benefits associated with term insurance premiums and payouts as per the prevailing tax laws..