Term Life Cover Explained: Sum Assured, Riders, and Claim Ratios
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.
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.
A proper needs analysis - not a sales pitch - should drive your cover amount; a free policy audit settles it. See the IRDAI-certified term insurance advisor for free guidance.