Term Insurance in 2026: Choosing the Right Cover for Your Family

By Hari Kotian, IRDAI-Certified Insurance Advisor · 2026

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.

The right cover amount

A common guideline is 15-20 times annual income, then adjust: add outstanding loans, children's education costs, and years of family expenses; subtract existing savings and investments.

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.