Term Insurance — The Most Important Policy You Need
Term insurance is pure life insurance that pays your family a large sum if you die during the policy term. It's the cheapest and most essential form of life cover.
How It Works
You pay a small annual premium. If you die during the term, your nominee gets the sum assured (₹50L-₹2Cr typically). If you survive, you get nothing back — that's why it's so affordable.
How Much Cover?
Rule of thumb: 10-15x your annual income. A 30-year-old earning ₹10L/year needs ₹1-1.5 Cr cover. Factor in loans, children's education, and spouse's needs.
Typical Premiums
A 30-year-old non-smoker can get ₹1 Cr cover for ~₹8,000-₹12,000/year. Premiums increase significantly after age 35-40, so buy early.