In a term policy, your premium is a price you pay for buying a life cover. So if your premium is Rs 10,000 a year for a one-crore cover, this is the price you pay to the insurance company for taking the risk of you dying an untimely death. When you buy this policy, you understand that if you live beyond the policy term (usually till you reach retirement age – more of this in the chapter on retirement), you get nothing back.
