Key takeaways
- Term insurance = pure protection: big cover for a small premium, no maturity payout.
- It's the foundation of a financial plan — buy it before you invest.
- Cover of 10–15× income and honest disclosures are the two things that matter most.
The one-line version
Term insurance pays your family a large sum (the 'sum assured') if you pass away during the policy period. If you outlive the term, there's usually no payout — and that's exactly why it's so cheap.
Think of it as pure protection: you're not investing, you're buying peace of mind for a small yearly premium.
Not sure how this applies to you? A free call with Vijay Singh Rana sorts it out in minutes — book here.
Why it's the foundation of a financial plan
If anyone depends on your income — a spouse, children, parents — term insurance replaces that income if you're gone. A ₹1 crore cover can cost a healthy 30-year-old a surprisingly small premium.
It should almost always come before investments. Protect the downside first, then grow your money.
What to look for
- A high enough sum assured (a common rule of thumb is 10–15× your annual income)
- A claim settlement ratio you can trust
- Cover that lasts until you'd retire or your dependents are independent
- Honest disclosures — never hide health or lifestyle facts, or claims can be rejected
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Vijay Singh Rana — HDFC Financial Advisor · IRDAI & AMFI Registered
Frequently asked questions
How much term cover do I need?
A common guide is 10–15 times your annual income, adjusted for loans and goals. An advisor can calculate the right number for you.
Is term insurance an investment?
No — it's pure protection and usually has no maturity payout. That's why it's cheap. Keep insurance and investment separate.
When should I buy it?
As early as possible. Premiums are lower when you're young and healthy, and they stay locked for the policy term.