Do I Actually Need Term Insurance?

3 min read · Free guide

The honest answer: not everyone needs term insurance. But if anyone depends on your income — a spouse, children, aging parents, or someone you support — you almost certainly do.

You need term insurance if…

  • You have dependants who rely on your income
  • You have outstanding loans (home loan, car loan, education loan)
  • Your family could not maintain their current lifestyle without your salary
  • You are the only earning member of the household

You may not need it if…

  • You have no dependants and no liabilities
  • You have already built enough wealth to replace your income permanently
  • Your spouse earns equally and can sustain the family independently

The ₹10,000/year question

A ₹1 crore term plan costs roughly ₹8,000–12,000 per year for a 30-year-old non-smoker. That is about ₹800/month — less than most broadband bills. For most working Indians with a family, it is the highest-ROI financial product available.

What happens if you skip it?

If you die without adequate life cover, your family may be forced to sell assets, pull children out of school, or take on debt to survive. A home loan without term insurance is a particular risk — the bank will recover the property.

How much cover do you actually need?

A common rule: 10–15× your annual gross income. Adjust upward if you have large outstanding loans or young children with long education horizons.

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