You already know that term insurance is a life insurance plan designed to offer you financial protection and safeguard the financial future of your dependents. These plans offer a promised sum of money in the event of the insured's sudden death during the policy term due to a situation covered under it. Term plans are considered to be the most cost-effective life insurance plans which enable you to take care of your family's financial stability even when you are not around.

Typically,  you will note that a higher sum assured proves more effective in building a safety net against financial obligations. It allows the dependents of the insured to meet their needs and expenses and settle future obligations without dipping into emergency funds. This is why most people would advise you to opt for a higher sum assured. However, you should note that such a policy plan would be effective only if you are comfortable with its tenure and premium amount. This is because the two variables tend to impact the sum assured and your paying capacity.