← GlossaryPersonal Finance
Term Insurance
Term insurance pays a lump sum to your family if you die during the policy term, in exchange for a relatively small annual premium. It has no savings component, which is why it is far cheaper than other life policies for the same cover.
Why It Matters
Anyone whose family depends on their income needs term insurance more than almost any investment.
In India
A healthy 25-year-old can often buy ₹1 crore of term cover for around ₹10,000 a year. Since September 2025, individual life insurance premiums are exempt from GST.