- September 25, 2025
Insurance confuses many people. Too many options. Too much jargon. Too many agents are saying different things.
Let’s make it simple. Really simple.
So, what is term life insurance exactly? Think of it like car insurance. But for your life instead of your car.
You pay some money every year. If you die during the policy period, your family gets a large amount. Maybe 50 lakhs. Maybe 1 crore.
If you survive the policy period, you paid premiums but get nothing back. Policy ends.
That’s it. No savings. No investment. No returns. Just pure protection.
Your family won’t struggle financially if something happens to you. That’s the deal.
Because it covers you for a fixed term. A specific time period.
You buy it for 20 years. Or 25 years. Or till you’re 60 years old.
During this term, you’re protected. After this term ends, protection stops.
Unlike other insurance that continues for life, term insurance has a defined period.
That’s why it’s cheaper. The company’s risk is limited to those specific years.
Anyone earning money should have term life insurance.
Do you have a family depending on you? Need it. You have loans in your name? Need it. You want your kids educated even if you’re gone? Need it.
Even single people with dependent parents should consider it.
If anyone’s financial life depends on your income, you need coverage.
When considering a term insurance comparison, remember that regular insurance policies mix insurance with savings or investments. You get money back even if you survive.
Sounds good? But the premium is 5-10 times higher.
Term insurance does one job only – protect your family. Nothing else.
This single focus makes it affordable. Most middle-class families can buy good coverage.
That’s its biggest advantage.
How much coverage to buy? Simple calculation helps.
Add these up:
That total is your coverage amount.
Someone earning 10 lakhs yearly usually needs 1-1.5 crore coverage minimum.
Don’t guess this. Calculate properly based on your actual situation.
Looking at the premium is obvious. But check other things too.
Make a simple chart. Fill in the details for each company. Comparison becomes easy.
Buying online usually costs less. No agent commission means lower premiums.
You might save 2,000-3,000 yearly by going online.
But you handle everything yourself. Forms, documents, tracking.
Agents charge more but provide guidance. Help with paperwork. Assist with claims.
Your comfort with digital processes decides which route to pick.
For any decent coverage, medical tests are mandatory.
Basic tests include blood work, urine test, and ECG.
Higher coverage means more tests. Maybe a chest X-ray or a stress test.
Tests cost 3,000-5,000 rupees typically. You pay for them.
Don’t worry about tests. Just be honest. Hiding health issues causes claim rejection later.
Mistake 1: Buying too little coverage to save money. Bad idea. Your family suffers later.
Mistake 2: Hiding health problems during the application. The claim gets rejected when the family needs it most.
Mistake 3: Not reading exclusions. Every policy excludes certain things. Know them.
Mistake 4: Choosing the shortest term to pay less. But you might need longer protection.
Avoid these. They waste your money and leave your family unprotected.
The premium you pay qualifies for a tax deduction. Section 80C allows up to 1.5 lakhs yearly.
For 15,000 premium, you save about 4,500 in taxes if you’re in a 30% bracket.
Nice bonus. But buy term life insurance for protection, not for tax savings.
Tax is an extra benefit. Family security is main goal.
Got married? Need more coverage now. Had a child? Increase protection. Took home loan? Add that to the coverage calculation.
Most companies allow an increase in the sum assured. But you’ll need fresh medical tests. Better to buy adequate coverage from the start. Saves hassle.
What is term life insurance? It’s the most affordable way to protect your family financially. You work hard for them today. This ensures your efforts continue even when you can’t. Not depressing. Just practical. Like having home insurance or health insurance.
Your family depends on you. Make sure they’ll be okay no matter what. Term life insurance does exactly that. Simply. Affordably. Effectively. Stop delaying. Start comparing today. Protect your family today.
