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Life insurance · Term
The most protection for each rupee of premium.
Term insurance pays a fixed sum to your family if you die during the policy term. Nothing is paid if you outlive it — which is exactly why it costs so much less than other life insurance.
Reviewed
In short
- Pure protection: a sum assured paid to your nominee on death during the term.
- Ten to fifteen times yearly income is a starting point, adjusted for loans and savings.
- Set the term to run until the people who depend on your income no longer would.
How much cover
Work out what your household would need each year and for how many years, add outstanding loans and large known costs such as education, then subtract savings and existing cover. The estimate below gives a starting range.
How long it should run
Until the youngest dependant is earning or the last loan is cleared, whichever is later. Cover that ends before the loan does leaves your family with both.
Options that change the price
Return-of-premium versions refund the premiums if you survive, at a much higher premium. Riders add critical illness, accidental death or waiver of premium, each with its own terms. Limited-pay options shorten the years you pay without shortening the cover.
Keeping the payout for your family
A policy taken under the Married Women’s Property Act, 1874 is held in trust for your spouse and children, so its proceeds cannot be claimed by creditors.
Life cover need
A starting range to discuss₹70,00,000 to ₹1,00,00,000
Talk to us about life coverA common rule of thumb, 10 to 15 times yearly income plus loans less cover already held, to start a conversation and not a recommendation. The right amount depends on your family’s needs, and cover is subject to the insurer’s underwriting and the policy terms.
What to check
These decide whether cover is real when you claim. Read them before the premium.
Disclosure
Health, habits, income, occupation and other policies must be stated exactly. Non-disclosure is the commonest reason a life claim is refused.
The insurer’s claim figures
Read the insurer’s published claim settlement figures with their period and basis. Neither the number of claims paid nor the amount guarantees an individual claim.
Medical examination
A policy issued after a medical is harder to dispute later.
Riders
Each has its own definitions, waiting periods and exclusions.
Nomination
Keep it current after a marriage, a birth or a death.
Grace period
Thirty days for yearly, half-yearly and quarterly premiums, fifteen for monthly. Cover stops if the premium is still unpaid after it.
Questions people ask
General guidance. Your policy wording decides the specifics.
Is term insurance worth it if nothing comes back?
It is protection, like any insurance you hope never to claim. For the same cover it costs a fraction of a savings plan, which leaves money free for other goals.
Can non-resident Indians buy term insurance in India?
Many insurers offer term plans to non-resident Indians, with medical and documentation requirements that vary. Ask about the process for your country of residence.
What happens if I stop paying?
After the grace period the policy lapses and the cover stops. A lapsed policy can usually be revived within a period the policy sets, subject to arrears and fresh health checks.
How is a claim made?
The nominee tells the insurer and sends the claim form, death certificate, policy document and identity proof; the insurer may ask for medical records. After three years, Section 45 of the Insurance Act bars the insurer from questioning the policy except for proven fraud.
Insurance is the subject matter of solicitation. Benefits depend on the policy terms and the insurer’s decision; read the policy wording before buying.