Technically, term plans can be described as a contract between the person insured and the insurance company wherein the company agrees to payout the lump - sum amount, referred to as the Sum Assured if the policy holder
expires during the term of the plan.
A variety
of permanent life insurance
plan (which doesn't
expire, unlike
term life insurance), this sort
of policy covers your family if you die
during your working years, but also has the ability to build savings that can be drawn upon later in life.