How Much Term Insurance Do You Really Need? A Practical Method
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.
Misconceptions
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.
Riders worth adding
Critical illness riders pay a lump sum on diagnosis, accidental death benefits add coverage, and premium waiver protects the policy if you are disabled. Riders are cheap layers of real protection.
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.