How much life cover does your family really need?
Enter your family's monthly needs, loans and goals. See the cover they'd need if you weren't there, and your gap if your employer's cover ends.
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Life Insurance Calculator
Other points to check before taking a policy
The right amount is only half the job. These decide whether your family actually receives it, and how well it serves them.
| Point | What it means | What to look for |
|---|---|---|
| Term vs bundled plans | A term plan pays only on death but gives the most cover per rupee. Endowment, money-back and ULIP plans mix insurance with investment and give far less cover for the same premium. | Pure term plan for protection; invest separately |
| Policy term | How many years the cover lasts. | Until your loans are repaid and children are independent, usually till 60–65 |
| Honest disclosure | Claims can be rejected if health, smoking, alcohol or income details were hidden in the proposal form. | Disclose everything; keep a copy of the filled form |
| MWPA option | A policy taken under the Married Women's Property Act goes only to your spouse and children. Lenders and creditors cannot claim it. | Choose MWPA if you have loans or run a business |
| Riders | Add-ons such as accidental death, critical illness and waiver of premium. | Waiver of premium on disability or critical illness |
| Life-stage increase | Some plans let you raise cover at marriage, childbirth or a new home loan. | Option to increase cover later |
| Payout option | The family can receive a lump sum, a monthly income, or a mix. | A mix: lump sum for loans and goals, monthly income for expenses |
| Nominee | Who receives the money, and whether they know the policy exists. | Updated nominee; family told where the policy papers are |
| Claim settlement ratios | Check two numbers: claims settled out of claims received, and amount paid out of amount claimed. | High on both, over several years. A high first number with a low second means big claims get rejected or trimmed. |
Questions people ask before buying a term plan
Plain answers to what most buyers want to know. This is general information, so always read the policy document before you buy.
How much term cover should I buy?
Many people use a rough rule of 10 to 15 times their annual income. A better way is to start from what your family would actually need: their monthly expenses, your loans and goals like education, minus the savings and cover you already have. The calculator above does this in a minute. Review the number when your income, loans or family situation changes.
Until what age should my term plan run?
Long enough to cover the years your family depends on your income, which means until your loans are repaid and your children are independent. For most people that is around age 60 to 65, or until retirement. Many plans let you choose a longer term, but a longer term usually costs more.
What do I get back if I outlive the policy?
With a pure term plan, nothing. The premium is the price of the protection. Return-of-premium plans give back what you paid, but the premium is noticeably higher for the same cover, so many people choose a pure term plan and invest the difference separately.
Is the payout taxable, and can I claim a tax deduction on the premium?
In most cases the death benefit your family receives is tax-free. The premium can qualify for a deduction within the overall ₹1.5 lakh limit, but only if you choose the old tax regime. It is not available under the default new regime. Tax rules change, so confirm with a tax professional.
Do I need a medical test, and can I buy a term plan with a health condition like diabetes or BP?
Whether you need medical tests depends on your age, the cover amount and your answers on the proposal form. Many people with conditions such as diabetes or high BP can still get a policy, but the insurer may charge a higher premium, add conditions or, in some cases, decline. Always disclose your condition. Hiding it can put your family's claim at risk.
Can the insurer reject my family's claim?
Yes, it can. Claims are most often disputed over wrong or hidden information in the proposal form, such as health, smoking, alcohol or income. In the first three years the insurer can question these details. After three years, the Insurance Act generally limits its right to question the policy, but the three years start again if you revive a lapsed policy. Answer every question honestly, keep your nominee updated and tell your family where the papers are.
What does a term plan not cover?
Exclusions vary by plan, so read the policy document before you buy. The main one is suicide within the first year, when the payout is limited. A term plan pays on death from most causes, including illness and accidents. Extra benefits, such as an additional payout on accidental death or cover for critical illness, usually come through paid add-ons called riders.
How do I choose an insurer?
Look at the claim settlement ratio over several years, both by number of claims and by amount paid. A high first number with a low second can mean big claims get trimmed or rejected. Also compare what the plan covers, which riders are offered and how easy the claim process is. Choosing on the lowest premium alone can cost your family later.
Will my premium change, and is it cheaper to buy early?
In most term plans the premium stays the same for the whole term, and it is set by your age and health when you buy. So buying earlier locks in a lower premium, and waiting usually costs more. Smokers pay noticeably more than non-smokers, so answer that question truthfully.
What happens if I miss a premium?
You get a grace period, usually 30 days for yearly, half-yearly and quarterly payments and 15 days for monthly payments. If you don't pay by then, the policy lapses and your family has no cover. A lapsed term plan can usually be revived within five years by paying the dues, but after the grace period the insurer may ask for a health declaration or medical tests. Setting up auto-pay avoids the problem.
Not sure your current policies are enough?
Send us your numbers or policy details on WhatsApp and we'll talk you through them using this checklist.
- A plain-language walk-through of your existing policies: what type they are and how much cover they really give
- How much cover could close your gap, and for how many years
- How the MWPA option can protect the payout from loans and creditors
- Choosing a payout mix: lump sum plus monthly income
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