Before signing any term insurance policy, go through these 10 checks. Getting these right at purchase time is the difference between a claim that gets paid instantly and one that gets contested.
Sum assured is 10–15× annual income minimum
Use the FD method for a more precise number. Add outstanding loans.
Policy runs until at least age 65
For a 30-year-old, this means a 35-year term. Don't underestimate longevity.
Claim Settlement Ratio above 97%
Check IRDAI's annual report for individual death claim settlement ratio.
Online/direct purchase (no agent)
Removes commission overhead. Same policy, lower premium from insurer's website.
Waiver of Premium rider included
If you become disabled and can't earn, premiums are waived. Essential.
Disclose everything honestly
All health conditions, smoking status, occupation. Non-disclosure is the #1 rejection cause.
Nominee details are updated and correct
Add a contingent nominee (backup). Update after marriage, birth of children.
Regular term, not ROP or endowment
Return of Premium plans cost 2-3× more for the same cover — rarely worth it.
Premium payment: single vs regular vs limited
Regular pay is usually best. Limited pay (10-12 years) gives flexibility later.
Leave instructions for your nominee
Policy document location, insurer contact, sum assured — in a sealed letter or will.
Still confused? Talk to a licensed advisor — free.
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