Term Life Insurance: 
Term life insurance is a type of life insurance policy that provides financial protection to your loved ones in case of your untimely death during the policy term. You simply pay premiums for a set period (the term), and if you pass away during this time, your beneficiary receives the pre-determined sum assured. There is no maturity benefit with term life insurance. 

Benefits of Term Life Insurance: 

• Focus: Pure life cover. Provides a death benefit to your beneficiaries if you pass away during the policy term. 

• Maturity benefit: None. If you survive the policy term, you don't receive any payout. 

• Premiums: Generally lower than endowment plans, as there's no savings component. 

• Suitability: Ideal for those primarily looking for affordable life insurance protection for their loved ones, especially young individuals with dependents. 

Features of Term Life Insurance: 

• High coverage: You can avail yourself of high coverage amounts for relatively low premiums, providing significant financial security for your dependents in case of your unexpected demise. 

• Flexible terms: Term life insurance in Nepal typically offers terms ranging from 5 to 30 years, allowing you to customize coverage based on your needs and budget. 

• Non-participating plans: Most term life insurance plans in Nepal are non-participating, meaning you won't receive any bonuses or dividends from the insurance company.  

• Low premiums: The main advantage of term life insurance is its affordability.   

Things to Consider When Choosing Term Life Insurance in Nepal: 

• Desired coverage amount: Determine the financial needs of your dependents in case of your demise and choose a coverage amount that adequately meets those needs. 

• Policy term: Select a term length that aligns with your financial needs and life goals. Consider your current age, financial security, and future plans. 

• Premium affordability: Ensure the premiums are comfortable for your current and future financial situation. 

Posted By: Aasma Bhusal