Term Life Cover Explained: Sum Assured, Riders, and Claim Ratios
A common guideline is 15-20 times annual income, then adjust: add outstanding loans, children's education costs, and years of family expenses; subtract existing savings and investments.
Misconceptions
Term insurance is protection, not an investment - the family is covered if something happens, which is the entire point. Cheapest is not best; claim behavior matters more. Delaying purchase makes premiums costlier and underwriting stricter.
Claim settlement ratio
Check the insurer's claim settlement ratio - the share of death claims actually paid, published annually by IRDAI. A 99% ratio means nearly every valid claim is paid; that matters more than brand recall.
A proper needs analysis - not a sales pitch - should drive your cover amount; a free policy audit settles it. See the IRDAI-certified term insurance advisor for free guidance.