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Term insurance pays your family a lump sum if you die during the policy period. It is the purest and cheapest form of life insurance. A Rs 1 crore cover for a 30-year-old non-smoker costs approximately Rs 800-1,000 per month — less than a restaurant dinner. Coverage rule: 10 to 15 times your annual income. If you earn Rs 8 lakh per year, get Rs 80 lakh to Rs 1.2 crore cover. Buy only pure term plans — avoid ULIPs and endowment plans which mix insurance with poor returns. Buy early — premiums increase significantly with age. Top insurers: LIC eTerm, HDFC Life Click2Protect, ICICI Prulife iProtect Smart.
Key Takeaway
Buy pure term insurance equal to 10-15x annual income. Buy young — every year you delay increases the premium significantly.