Life Insurance
Term life insurance, in plain words
Term life insurance pays your family a large lump sum if you pass away during the policy period. It is the cheapest, simplest way to make sure your family can manage without your income.
Who it's for
Anyone whose family depends on their income — especially if you have a home loan, children, or parents to support. If no one relies on your earnings, you may not need it.
The words, in plain English
- Sum assured (cover amount)
- The amount your family receives if you pass away. A common rule: 10–15 times your yearly income.
- Policy term
- How many years the cover lasts — usually until you retire (age 60–65), when your family no longer needs your income.
- Premium
- What you pay (yearly, or monthly) to keep the cover active. Buy young and it stays low for the whole term.
- Claim settlement ratio
- Out of 100 claims, how many the insurer paid. Higher is better — pick insurers above 98%.
- Nominee
- The family member who receives the money. Name them correctly and tell them the policy exists.
- Payout option
- How your family gets the money — one lump sum, a monthly income, or a mix. Monthly income helps families who can't manage a large sum at once.
- Rider (add-on)
- Extra protection you can add, like a payout if a critical illness is diagnosed, or waiver of future premiums after a disability.
- Free-look period
- 15–30 days after buying to review the policy and cancel for a refund if it isn't right for you.
Before you buy — check these
- Buy a cover of at least 10–15× your annual income — a small cover defeats the purpose.
- Choose a term that runs until you retire; cover you no longer need wastes premium.
- Pick an insurer with a high claim settlement ratio (98%+) and a fast claim turnaround.
- Declare your income, health and habits (like smoking) honestly — wrong information is the top reason term claims get rejected.
- Term plans return nothing if you survive — that's normal and why they're cheap. 'Return of premium' versions cost much more.
Questions people ask
How much cover should I take?
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Enough to clear your loans and replace your income for years — usually 10–15× your annual income. The Cover Calculator gives you a number for your situation.
Term or a plan that returns money?
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For pure protection, term is best — far more cover for far less premium. Mixing insurance with savings usually gives you too little of both.
What if I have a health condition?
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You can still get cover; the premium may be a little higher. Declare everything honestly so the claim is safe later.
Still have questions?
Pia is our AI advisor, trained by IRDAI-licensed experts. Ask anything — she'll explain it simply, then help you find the right cover if you want it.