Term insurance is the most important financial product — yet most Indians don't have it.
Why Term Insurance?
₹1 Cr cover for ₹8,000-₹12,000/year (age 30). Endowment for same cover: ₹80,000-₹1,50,000/year. 10x more coverage at 1/10th the cost. See our [Term vs Whole Life Insurance comparison](/compare/term-vs-whole-life-insurance).
How Much Cover?
Rule of thumb: 10-15x annual income. Example: ₹15L salary → ₹1.5-2 Cr cover. Add outstanding loans (home loan, car loan). Subtract existing assets (investments, insurance). Cover should replace your income until your youngest child is financially independent.
When to Buy
As early as possible — premiums are lowest at younger ages. Must-buy before: Marriage, first child, or any dependents relying on your income. 30-year-old paying ₹10K/year vs 40-year-old paying ₹25K/year for same cover.
Key Features
Critical illness rider (adds ₹1,500-₹3,000). Accidental death benefit. Waiver of premium on disability. Return of premium variants exist but aren't cost-effective — invest the saved premium instead.
The Math
₹1 Cr term plan at ₹10K/year + ₹90K saved (vs endowment) invested in SIP at 12% for 30 years = ₹3.2 Cr. The endowment would give you back maybe ₹50-80L. No contest.