New Delhi, Oct. 21 -- Many people buy term insurance to ensure their families remain financially secure in the event of their untimely death. A term insurance policy is an agreement between the insurance company and the policyholder for a fixed period, typically ranging from 10 to 40 years, during which the insurer pays the death benefit to the beneficiaries if the policyholder passes away.

For example, a person with a Rs.50 lakh home loan, Rs.30 lakh car loan and future expenses such as their children's education may opt for a term insurance policy with a Rs.2 crore cover. This can help ensure that their family has the financial support to handle outstanding debts and expenses in their absence.

While term insurance sounds like an appea...