Term insurance has one job: if you are not there, it replaces your income for your family. The right amount depends on what your family would need.
A simple starting point A common guideline is 10 to 20 times your annual income. Younger people usually need a higher multiple because they have more earning years to replace.
Then adjust for your situation - Add your outstanding loans, such as a home loan, so your family is not left with EMIs. - Add big future goals, like your children’s education. - Subtract existing life cover and savings your family could use.
Example Karan, 34, earns ₹10 lakh a year and has a ₹30 lakh home loan. Using 15 times income: ₹1.5 crore, plus ₹30 lakh loan, minus ₹10 lakh of savings, is about ₹1.7 crore. He might choose ₹1.75 crore or ₹2 crore of cover.
Other things to get right - Policy term: until your planned retirement age, typically 60 to 65. - Honest disclosure: always declare smoking, illnesses and income correctly. Non-disclosure is a common reason for claim rejection. - Nominee: name your nominee and tell them about the policy.
Try our term cover calculator for a quick estimate, then talk to an advisor to fine-tune it.
Need advice for your situation?
This guide is general information, not advice for a specific policy. Policy terms vary by insurer. Talk to an advisor for free.
