Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Term insurance provides pure life cover for a fixed period, paying sum assured to nominees on death with no maturity benefit if survived.
Term plan is cheap life insurance — if something happens to you, family gets a big payout; if you survive, no money back.
Premium based on age, health, sum assured, and tenure. No investment component keeps cost low. Riders add critical illness, accidental death, waiver. Claim requires nominee intimation with death certificate and policy documents.
30-year-old buys ₹1 crore cover for 30 years at ₹12,000 annual premium. Nominees receive ₹1 crore tax-free on death during term; no payout if policyholder survives.
Common rule: 10–15 times annual income plus outstanding loans minus existing assets. Adjust for spouse income and goals.
Yes under Section 80C up to overall ₹1.5 lakh limit along with other eligible investments.
Cover till planned retirement or financial independence age — often 60–65 — when dependents no longer rely on your income.