Think of term insurance like having a “money twin” of yourself. Of course, it can’t replace you as a person, but it can replace your income for your family if something happens to you.
Here’s how it works: You pay a small amount of money every year (premium) to the insurance company. If you pass away during the policy period, the company will give a big amount of money (like ₹1 crore, ₹5 crore, or even ₹10 crore) to your family. This money can help them live their life, pay bills, and cover expenses when you are no longer there to earn for them.
The insurance company must pay this amount unless:
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You give them false information when buying the policy (and they find it within 3 years)
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You pass away within 1 year due to suicide
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You die while committing a crime
Other than these situations, your family will get the money without any problem.
It’s a simple way to protect your loved ones from financial trouble if something unexpected happens to you.