India, Feb. 19 -- justify;">A term plan is a life insurance policy that provides financial support to the nominee if the policyholder passes away during the policy period. Its purpose is income protection. It does not offer maturity value or savings benefits. The value of a term plan lies in how well it is structured.

A sound term plan decision rests on three elements. The amount of coverage chosen,the factors that determine the premium and the duration for which the policy remains active. These elements work together and should be evaluated as a whole.

Coverage refers to the sum assured payable to the nominee. It should be sufficient to manage ongoing expenses, repay liabilities and support future financial needs.

Coverage is linked t...