If you have dependents — a spouse, children, parents — term life insurance isn't optional. It's one of the most important financial decisions you can make.
What is Term Insurance?
Term insurance is pure life protection. You pay a premium for a defined term (e.g., 30 years). If you pass away during the term, your nominee receives the sum assured. If you survive, there's no maturity benefit.
This simplicity is its strength — very high coverage at very low cost.
How Much Cover Do You Need?
A simple rule of thumb: 15–20x your annual income. A 30-year-old earning ₹10 lakhs per year should have ₹1.5–2 crores in life cover. A ₹1 crore term plan for a healthy 30-year-old costs approximately ₹8,000–12,000 per year.
Why Most Indians Are Underinsured
Many people buy traditional endowment or ULIP plans thinking they're getting both insurance and investment. The insurance component in these is typically inadequate. A ₹5 lakh sum assured is almost worthless to a family trying to replace the income of the breadwinner.
Separate your insurance from your investments. Buy term for protection and invest separately in mutual funds or other instruments.
Key Features to Look For
- **Flexibility**: Choose a policy term that covers you until retirement or until your dependents are financially independent
- **Claim settlement ratio**: Buy from an insurer with >97% CSR
- **Critical illness rider**: Adds a lump-sum payout on diagnosis of listed conditions
- **Waiver of premium**: If you become disabled and can't pay premiums, the policy continues
Tax Benefits
Premiums paid for term insurance are deductible under Section 80C up to ₹1.5 lakhs per year. The death benefit is fully tax-free under Section 10(10D).
Talk to VIRAM's advisors to find the right term plan for your age, income and family situation.