What is Term Insurance?
Term insurance is pure life cover without any investment component. It pays the sum assured to nominees if the insured dies during the policy term. It's the most affordable way to get high life coverage.
How Much Cover Do You Need?
Consider these methods:
- Income Replacement: 10-15 times annual income
- Human Life Value: Present value of future earnings
- Needs Analysis: Sum of all financial obligations + goals
Sample Premium Rates (₹1 Cr Cover)
| Age | Non-Smoker | Smoker |
|---|---|---|
| 25 years | ₹6,000-8,000/yr | ₹9,000-12,000/yr |
| 35 years | ₹10,000-14,000/yr | ₹16,000-22,000/yr |
| 45 years | ₹22,000-30,000/yr | ₹35,000-48,000/yr |
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Important
Disclose all health conditions honestly. Non-disclosure can lead to claim rejection. Get adequate cover while you're young and healthy.
Features to Look For
- High claim settlement ratio (> 98%)
- Critical illness rider option
- Waiver of premium on disability
- Easy online purchase with discount
- Flexible payout options for nominees