Term Life Cover Explained: Sum Assured, Riders, and Claim Ratios
Term insurance is protection, not an investment - the family is covered if something happens, which is the entire point. Cheapest is not best; claim behavior matters more. Delaying purchase makes premiums costlier and underwriting stricter.
Tax benefits
Premiums deduct under Section 80C up to Rs 1.5 lakh, and the death benefit is tax-free under Section 10(10D) - among the most tax-efficient protections available to Indian families.
Matching the term
The policy term should cover the years your family depends on your income - typically until children are independent and loans are retired. A 30-year-old should usually buy 30-40 years; a 50-year-old should match liabilities only.
The right cover amount
A common guideline is 15-20 times annual income, then adjust: add outstanding loans, children's education costs, and years of family expenses; subtract existing savings and investments.