Term Insurance

Term insurance is pure life cover for a fixed period. You pay a premium every year, and if you die during the policy term the insurer pays your nominee the sum assured. If you outlive the term, a plain term plan pays nothing, which is why its premium is low. Read our term insurance guide for the types and buying tips.

Enough to replace your income for your dependants and clear your loans. A common starting point is 10 to 15 times your annual income, plus big future goals, minus existing cover and savings. Keep the cover running until your loans are cleared and your children are independent. Work it out step by step in our cover sizing guide.

For most buyers, usually not. A return of premium plan refunds your base premiums if you survive the term, but it costs much more than a plain term plan for the same cover, and the refund carries no interest. Investing the difference yourself often leaves you with more by the end of the term. See the trade-off in our TROP guide.

Not under the default new regime. The premium deduction, earlier section 80C and now section 123 of the Income-tax Act, 2025, is available only if you opt for the old regime, within the overall ₹1.5 lakh limit. Health-related rider premiums fall under a separate rule, so check them with your tax adviser. The death benefit paid to your nominee stays tax-free under either regime. Read the full rules on our Life Insurance hub.

Start with your own needs, not a list. Pick a cover amount and a cover-till age that match your loans and dependants. Then check the insurer's claim settlement record in the latest IRDAI annual report, and add only the riders you need. Above all, disclose your health and habits honestly, because non-disclosure is a common reason claims get rejected. Our buying online guide covers documents and medicals.