Key Takeaway
A 30-year-old non-smoker can get ₹1 crore term life cover for just ₹700–₹900/month. The recommended coverage is 10–15x your annual income, ensuring your family maintains their lifestyle if you're not around.
This target cover ensures that in your absence, your family can maintain their standard of living, pay off all loans, and fund child milestones.
Insurance Cover Need Breakdown
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Frequently Asked Questions
How much term insurance cover do I need?
A common rule is 10-15× your annual income, or use the Human Life Value method: calculate the present value of your future earnings minus personal expenses. Factor in outstanding loans, children's education, and spouse's financial needs.
Is term insurance better than endowment plans?
Yes, for pure protection. A ₹1 Crore term plan costs ₹10,000-15,000/year for a 30-year-old, while an endowment plan for the same cover would cost ₹5-8 Lakhs/year with much lower returns (4-5% vs equity's 12%).
Until what age should I keep term insurance?
Until your financial dependents no longer need your income , typically until your children are financially independent and your spouse has sufficient retirement corpus. Usually age 60-65.
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