Term insurance pays a fixed sum to your family if you die during the policy term. It pays nothing if you outlive the term. That is why it costs far less than an endowment or money-back plan for the same cover.
This page explains how to think about the cover amount, what to read in a policy, and how we help you compare.
Anyone whose income other people depend on. That could be a spouse, children, parents, or a home loan that would fall on the family.
A young single person with no dependants and no loans may not need much cover yet. A retired person whose children are earning and whose loans are paid off may not need it at all. Term insurance is protection, not a savings plan.
There is no single right number. A practical way to start is to add up three things: the loans outstanding, the money your family would need to run the house until the children are earning, and large future costs such as education or a wedding. Then subtract what you already have in savings, investments and existing life cover.
Rules of thumb like "10 to 15 times your annual income" are a rough check, not an answer. Review the figure when your life changes: marriage, a child, a new home loan.
Remember inflation. At 6% a year, household costs of ₹50,000 a month today become about ₹1.6 lakh a month in 20 years. Cover that looks large now will buy less later.
The premium depends on your age, the cover amount, the policy term, tobacco use, your health and medical history, your income and the insurer. Most term premiums stay level for the whole term, so buying while you are young and healthy keeps the cost lower for decades.
We don't quote a standard price, because quotes vary widely from person to person. The insurer's quote after medical underwriting is the real number.
Most claim disputes begin at the proposal form. Declare every illness, past surgery, tobacco habit and existing policy honestly, even if it raises the premium. A claim can be rejected for non-disclosure.
Insurers publish claim settlement figures, and IRDAI's annual report carries the industry data. A high settlement ratio is a good sign but not the only one. Also look at how long claims take.
Tell your nominee the policy exists and where the papers are kept. Many claims are delayed simply because the family didn't know about the policy.
After you buy, IRDAI's rules give you a 30-day free-look period. If the terms don't suit you, you can cancel and get the premium back, less a few permitted deductions.
Under the old tax regime, life insurance premiums count towards the ₹1.5 lakh deduction limit (Section 80C in the old Act). The death benefit paid to a nominee is generally tax-free. The new regime does not allow the premium deduction. Check the current position on the Income Tax Department website.
We sit with you to work out a cover figure from your loans, expenses and existing savings. We go through the policy wording in Hindi or English, put quotes from different insurers side by side, and point out where the riders and exclusions differ. If a savings-type plan is being sold to you when what you need is protection, we will say so.
Later, if a claim has to be made, we explain which documents the insurer will ask for.
The office is at Khatri House, Behind S.B.I. Bank, O/s Jalori Gate, Jodhpur. You can walk in Mon–Sat, 10 am – 7 pm, or call first so we can keep the forms ready.
A plain term policy does not. Return-of-premium versions refund premiums at the end of the term, but they cost noticeably more.
Add up your loans, your family's living costs for the years they would depend on your income, and big future costs like education. Subtract your savings and existing cover. We can work through the numbers with you.
For some families it is more than enough, and for others too little. It depends on your income, loans and dependants, not on a round number.
Often yes, after medical tests, sometimes at a higher premium or with conditions. Always declare it on the proposal form.
No. Policies are issued by insurance companies. We help you understand and compare them before you decide.
Nick Investment, Khatri House, Behind S.B.I. Bank, O/s Jalori Gate, Jodhpur, Rajasthan 342001. Mon–Sat, 10 am – 7 pm. Call +91 94141 28970 or WhatsApp. Call +91 94141 28970 · WhatsApp us
Nick Investment is an AMFI-registered Mutual Fund Distributor (ARN-112296). We are not a SEBI Registered Investment Adviser. We distribute regular plans and receive trail commission from the asset management companies, which is included in the scheme's expense ratio.