India, Nov. 12 -- A term insurance plan is a simple life insurance product that offers pure protection. You pay a regular premium, and in return, your family receives a fixed life cover (sum assured) if you are no longer around during the policy term. There is usually no maturity benefit if you outlive the term, which is why term insurance rates are typically more affordable than many other life insurance plans.

Your premium is not random. It is based on how much risk the insurer believes it is taking to provide your coverage. The insurer looks at a range of factors such as your age, lifestyle, health, income, and the cover amount you choose. The higher the risk of an early claim, the higher your life insurance premiums are likely to be....