🛡️ What is Term Insurance?
Pure life insurance that pays money to your family if you die during the policy term.
Key Feature:
High coverage at low premium - no investment component
💰 How Much Coverage?
Formula: Annual Income × 10-15
Income: ₹10 lakhs/year
Coverage needed: ₹1-1.5 crores
Consider:
- Outstanding loans
- Children's education
- Family expenses
- Inflation
🏢 Best Term Insurance Plans
HDFC Life Click 2 Protect
Low premium, online plan
ICICI Pru iProtect Smart
Return of premium option
Max Life Smart Secure Plus
Increasing cover option
📝 How to Buy?
1. Calculate Coverage
Use income multiplier method
2. Compare Plans
Premium, claim ratio, features
3. Medical Tests
Age/amount based requirements
4. Fill Proposal
Honest disclosure important
5. Pay Premium
Get policy document
💡 Premium Factors
Lower Premium:
✓ Younger age
✓ Good health
✓ Non-smoker
✓ Online purchase
✓ Shorter term
Higher Premium:
✗ Older age
✗ Health issues
✗ Smoking/drinking
✗ Risky occupation
⚠️ Important Tips
✓ Buy early for low premium
✓ Disclose all health issues
✓ Choose adequate coverage
✓ Review annually
✓ Inform nominees
💰 Premium Examples
Age 25, ₹1 Cr Cover
Male: ₹12,000/year
Female: ₹10,000/year
Best time to buy
Age 35, ₹1 Cr Cover
Male: ₹18,000/year
Female: ₹15,000/year
Still affordable
Age 45, ₹1 Cr Cover
Male: ₹35,000/year
Female: ₹28,000/year
Getting expensive
❓ Frequently Asked Questions
When should I buy term insurance?
As soon as you have dependents or financial responsibilities. Earlier is better.
Can I increase coverage later?
Some plans allow increase without medical tests for life events like marriage, childbirth.
What if I stop paying premium?
Policy lapses and coverage stops. No money back in pure term plans.