Term Insurance in 2026: Choosing the Right Cover for Your Family
Premiums deduct under Section 80C up to Rs 1.5 lakh, and the death benefit is tax-free under Section 10(10D) - among the most tax-efficient protections available to Indian families.
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.
The right cover amount
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.
Riders worth adding
Critical illness riders pay a lump sum on diagnosis, accidental death benefits add coverage, and premium waiver protects the policy if you are disabled. Riders are cheap layers of real protection.