Term Life Insurance: 5 Common Questions Answered for 2025

The best term insurance coverage is popular in India, increasingly gaining acceptance among young professionals and homemakers. Fresh surveys have shown that two out of five homemakers are stepping onto the ladder of term life insurance, which reflects the growing consciousness among individuals towards finances. ?

Here, you can find answers to the top five questions most asked by people:

What is Term Life Insurance?

 This is a policy under which your family gets a particular sum assured for a specific time. In case of your death during this term, your beneficiaries will receive the sum assured amount. Unlike the others, it does not offer any maturity benefit, except if you have chosen a return of premium plan.

How Much Coverage Do I Need?

Usually, this is about 10-15 times annual income; for example, a policy of about ?1-1.5 crore might be considered for those who earn about ?10 lakh annually. This covers a family's requirements in case of any eventualities.

Will My Premiums Increase Over Time?

Posts are usually held constant for the duration of the policy. However, if you develop health issues or start habits like smoking after buying the policy, the insurance company might make adjustments to the premiums.

What Happens If I Outlive My Policy?

Standard term plans do not give you any payout if you survive the defined period of the policy. However, some of these plans, which have return of premium options, do repay the premiums you paid minus taxes and other charges.

Are All Deaths Covered?

Most term plans cover natural causes, diseases, and accidents. However, it might not include deaths from suicide within the first year or certain