Term insurance is the most important and the cheapest protection a family can buy. If the earning member is not there, the insurer pays a large lump sum so the family can repay loans, run the home and still reach goals like a child's education. Yet many families in Mira Road and Mumbai are either uninsured or covered for far too little.
What is term insurance?
A pure term plan pays the cover amount (sum assured) to your nominee if you die during the policy term. There is no maturity amount in a basic plan, which is why the premium is low and the cover is high. Some plans offer a "return of premium" option at a higher cost.
How much cover do you need?
A quick starting point is 10 to 15 times your yearly income, plus all outstanding loans. A better way is to add up what your family would need:
- Home loan, car loan and other debts still to be repaid
- Household expenses for the years until your children are earning
- Children's education and marriage goals
- Minus your existing savings and life cover
Work out your own number in two minutes with our free Life Insurance Calculator.
How long should the cover run?
Choose a term that lasts until your loans are repaid and your children are independent, usually up to age 60 to 65. Longer cover costs a little more, but buying a new policy at 55 costs far more.
Riders worth considering
- Accidental death benefit: an extra payout if death is due to an accident.
- Waiver of premium on critical illness or disability: future premiums are waived and the cover continues.
- Increasing cover at life stages: some plans let you raise cover on marriage, a home loan or the birth of a child.
7 mistakes to avoid
- Depending only on company group cover. It ends when you change or lose the job, and is usually too small.
- Buying too little. ₹25 lakh sounds big today but may not cover a home loan and 15 years of expenses.
- Waiting to buy. Premiums rise with age, and a health condition later can raise the price or lead to rejection.
- Hiding health or smoking history. Non-disclosure is a common reason for claim rejection. Always declare everything.
- Choosing a short term. Cover that ends at 50 leaves your family exposed during the years loans are still running.
- Mixing insurance with investment. Keep term insurance for protection and invest separately for growth.
- Not updating the nominee. Review the nominee after marriage or the birth of a child.
Term plans we help with
We compare plans from leading insurers, including HDFC Life Click 2 Protect Supreme Plus (cover that can grow at life stages, lower premiums for women) and LIC Yuva Term (₹50 lakh to ₹5 crore for ages 18–45). We also help your family at claim time.
Premiums may qualify for a tax deduction under section 80C under the old tax regime, as per prevailing tax laws. Insurance is the subject matter of solicitation. For details on benefits, exclusions and terms, read the sales brochure carefully before concluding a sale.
