How to Choose the Right Term Life Insurance in 2026

Term life insurance is the cheapest form of life cover available in India. For a healthy 30-year-old non-smoker, a ₹1 crore pure term policy till age 65 costs around ₹900–1,200 per month — less than an average dinner for two. Yet most Indians are underinsured by 3–5×.

1. The right cover = income × 15–20

The thumb rule: if your annual income is ₹10 lakh, you need at least a ₹1.5–2 crore cover. This accounts for inflation, your family's living expenses, children's education, outstanding loans and retirement support for your spouse.

2. Tenure: match it to your family's dependency

A good default is "until your youngest dependent becomes financially independent + buffer". For most people that lands between 60 and 65 years of age. Lifelong term plans exist but are not always necessary or cost-efficient.

3. Claim settlement ratio matters, but so does claim rejection ratio

A 99% CSR sounds great, but look at both the claim settlement ratio and the complaints disposal rate. A good Vityam advisor will pull these numbers directly from IRDAI's annual report for you.

4. Riders worth adding

• Accidental Death Benefit (ADB) — doubles payout in case of accidental death
• Critical Illness rider — lump sum on diagnosis of major illnesses
• Waiver of Premium (WOP) — premiums waived on disability

5. Disclose everything — always

The #1 reason term insurance claims get rejected is non-disclosure of material facts — pre-existing illness, smoking, alcohol habits, family history. Full, honest disclosure at the time of buying is the single most important determinant of a successful claim.