TERM INSURANCE:

The simplest and cheapest form of life cover, which pays the sum assured on death. This is useful to simply provide for a family’s survival in the unfortunate demise of the bread winner. This can also be used to cover repayment of any debt of a policy holder by simply assigning the policy to the creditor. Upon maturity or claim on the policy, the proceeds are paid to the creditor. Loan Cover policies vary where the sum assured keeps reducing in line with the loan balance.