How it works & FAQs
The math behind the numbers, plus answers to the questions we hear most often.
How much term cover do I really need?
The thumb rule is 15–20× annual income plus outstanding loans, minus liquid assets. The Human Life Value (HLV) method refines this by discounting future income to present value — particularly useful for younger earners with long careers ahead.
Term insurance vs ULIP vs endowment — which is better?
Always buy term and invest separately. Term gives maximum protection at minimum cost (₹9k–₹42k/yr for ₹1 Cr cover vs ₹80k+ for endowments). ULIPs and endowments bundle insurance with investment at poor rates on both fronts. Buy term + invest in mutual funds for better returns and better protection.
How long should the policy term be?
At minimum, cover yourself until age 60–65 to protect your prime earning years. Very long terms (80+) provide marginal additional benefit at significantly higher cost. A 30-year policy starting at 30 hits the sweet spot. Match the term to your loan tenures at a minimum.
What documents do I need to apply?
Standard requirements: PAN card, Aadhaar, address proof, income proof (Form 16 or salary slips), and recent bank statements. A medical examination is typically required for sum assured above ₹50 lakh or for applicants above 45 years.
Can I claim a tax deduction on term premiums?
Yes — premiums are deductible under Section 80C up to ₹1.5 lakh per year. The death benefit paid to nominees is fully tax-free under Section 10(10D). Maturity/survival benefits (for return-of-premium variants) may be taxable.