Basic coverage is made up of Term and Life Insurance plans. Insurance coverage for a term can be defined as a pure risk cover that takes care of risk to the insured. This plan is available for a fixed period of time like 5.10 or 20 years. Any insurance premium covering life that is payable for such a fixed period is called term insurance. The premium for this coverage is higher than other types of coverage and they increase gradually over a period of time. In case of any eventuality to the policy holder, the nominees or the beneficiaries would receive the sum insured. If the policy holder survives the term of the policy, then he receives nothing.

Term and life insurance plans are particularly designed for younger persons who have dependents. Term and life insurance does not call for standard premiums. An individual can decide the amount to be paid on the basis of his requirements in terms of coverage, and affordability in terms of finance. The insured has the option of renewing the policy for another term, but at a higher rate.

Most of the Life policies contracts fall into two major categories – one is protection the other is investment.

Protection - This provides a benefit to the designated beneficiary or nominee, in the event of an insured event - the death of the policy holder, in the form of a lump sum payment.

The family’s financial future is safeguarded through Protection plans even if you are not around. You are also protected from heavy economic losses, thereby; the impact of financial risk on you and your dependents is reduced.

Investment - Here the main objective is to promote the growth of capital through regular or single insurance premiums. The common forms are whole life, as well as variable life policies.