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Will term insurance policy serve your need?

Thinking of buying a term insurance policy? Check these pros and cons to see if it fits your bill.


  • Simple and easy to understand.
  • Pricing is very competitive.
  • Most term policies are “renewable” and “convertible”.
  • More tax benefit under section 80C.


  • Steeply increasing premiums with increasing age.
  • Difficult to buy term insurance above the age of 65 or 70.
  • Nothing is payable to you as there is no savings.
  • Will not provide money for education of child, marriage, retirement needs.
  • No loans available from term policies.
  • No income or capital corpus for your family.
  • No hedge against inflation.
  • Wealth creation is not possible.