Term Insurance Guide India

Term insurance is the simplest and most affordable form of life insurance. It provides a death benefit to your nominees if you pass away during the policy term. Unlike endowment or ULIP plans, term insurance has no maturity benefit \u2014 which is exactly what makes it so affordable.

For example, a 30-year-old non-smoker can get \u20B91 Crore coverage for as little as \u20B910,000-12,000 per year. This makes term insurance the cornerstone of any financial plan.

Key principle: Buy term insurance, invest the rest. Instead of expensive endowment plans, buy a pure term plan and invest the premium difference in mutual funds for wealth creation.

The Claim Settlement Ratio (CSR) indicates how reliable an insurer is when it comes to paying claims. IRDAI publishes this data annually. Always prefer insurers with CSR above 95%.