Term Life Insurance: What should be your ideal coverage?

financialexpress.com:

With term insurance, you can choose to have protection for a fixed period of time. In the event of death or total and permanent disability, the insurer pays the policyholder’s dependents. Typically, in term life insurance, no benefit is payable if the policyholder survives the insurance term.

A term life insurance is different from an endowment policy. An endowment policy is a savings-linked insurance policy with a specific maturity date. In the event of an unfortunate event such as death or disability during the period, the sum assured will be paid to your beneficiaries. Upon surviving the term, the maturity proceeds on the policy become payable.

Term life insurance is a perfect way to ensure financial security for your loved ones. However, making informed decisions while buying term insurance is very important. One should keep some important points in mind like avoiding delays, getting adequate coverage, considering the long-term costs and benefits, and keeping family informed. By being cautious and well-informed, you can choose a term insurance policy that provides your family peace of mind and financial protection.

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Low premiums often mean limited coverage. It is essential to have sufficient money to cover your family’s financial needs, such as mortgage payments, children’s education and living expenses.

“One’s term insurance amount should be at least 15-20 times of the annual income. For instance, if you’re earning 3 lakh per year, your coverage should be around 60 lahks,” according to Rahul Malodia, a chartered accountant and Founder & CEO, Malodia Business Coaching.

“Selecting the wrong term insurance