What is Term Insurance?

Term insurance is pure life insurance — you pay annual premium for a fixed term (10-40 years), nominee receives sum assured if you die during term. No maturity benefit (cheaper than endowment policies). India: typical premium for 30-year-old non-smoker, ₹1 crore cover, 30-year term: ₹8,000-15,000/year. Best protection value per rupee.

Tips

• Cover should be 15-20x annual income
• Buy at young age — premiums increase with age
• Online policies cheaper than agent-sold
• Non-smokers get 30-40% discount over smokers
• Include critical illness, accidental death riders if affordable
• Section 80C tax deduction on premium

FAQs

How much cover needed?

15-20x annual income minimum. More if young family, home loan, child education obligations.

What if I outlive the term?

Pure term insurance: no payout. You've paid for risk protection during prime years. Some return-of-premium variants exist but expensive.

Single or joint policy?

Individual policies usually better — flexibility, separate coverage for each spouse.