Term Life Cover Explained: Sum Assured, Riders, and Claim Ratios
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.
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.
Matching the term
The policy term should cover the years your family depends on your income - typically until children are independent and loans are retired. A 30-year-old should usually buy 30-40 years; a 50-year-old should match liabilities only.
Tax benefits
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.