The Long Read

Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)

No. it’s a myth. Term insurance is actually quite affordable. 


For as low as around ₹ 500* per month (which costs less than a weekend dinner at a fancy restaurant), you can get a term insurance plan with a life cover of ₹ 1 crore* that can help you secure your family’s financial future even in your absence.


(*Numbers are indicative)

However, it is important to note that your term insurance premium may increase depending on certain factors. Find out the factors impacting your term insurance premium

Yes, absolutely! 


First of all, term insurance is quite affordable but it pays a significantly large life cover to your family if you pass away unexpectedly. It will help them stay financially secure, maintain their standard of living and pay for important expenses like child’s education, elderly care, household management, medical treatments, debt repayment and so on. The cost of a term plan is a small price to pay for your family’s future financial security, if you pass away unexpectedly. 


And even if your family ends up not needing it, your term plan can give you a much-needed peace of mind, because you know your family will be financially protected even if you are no more. 


Read more to understand if term insurance is worth its cost.

Yes, there is. 


When you are buying term insurance, your insurer will assess a lot of factors before offering you a term plan. Depending on their assessment, they can offer you a premium amount that can be different from the applied premium. This process is called underwriting in insurance


Let’s understand these factors that can make your term plan more expensive:


  • Age - The more you delay buying term insurance, the more your premiums are likely to increase. Find out if you should buy term insurance now or wait.

  • Gender - If you are a man, you may have to pay a higher premium compared to what a woman will pay

  • Medical history - Your premiums may go up if you have any underlying medical conditions such as diabetes, cancer, or heart disease

  • Unnecessarily long policy duration - Higher the policy duration, the higher the premium.  Find out until what age you should ideally be covered.

  • Unhealthy lifestyle - If you smoke, drink, do drugs, live a sedentary lifestyle or have other unhealthy habits, you may have to pay a higher premium 

  • Occupation and vocation - If you are in a high-risk occupation, say as a stuntman or a pilot, etc. or you pursue high-risk hobbies like rock climbing, racing, etc, your premium amount is likely to be high


Find out more about factors that can raise your term insurance premium.

Yes, there is. You can do the following to increase the chances of getting affordable premiums for your term insurance policy: 


  • Live a healthy life and avoid unhealthy habits 

  • Buy term insurance as early as possible in life

  • Get yourself covered only till the age you want to retire at

  • Get a life cover that is adequate. Don’t overinsure. 

  • Add only the riders that you feel are necessary for your needs  

Remember, to save costs, buy a term plan with features that exactly meet your term insurance needs. You can check out the KlarifyLife Term Guide to understand what you need from a term policy.

Yes, unfortunately, that’s true. 


See, if you have a very unhealthy lifestyle or you suffer from any medical condition like diabetes, cholesterol, or heart problems, you are more likely to pass away than a person who is not suffering from these conditions. 


In that case, your insurer will have to pay your life cover to your family. 


That makes you a high-risk customer. As a result, the insurer may charge you a higher premium on your term insurance plan.


But remember this:


Even if you’re worried that your health status can increase your premium, do not hide any health information or lie about it to your insurer. 


If they find out about it at the time of application, they can reject your application.

If they find out that the cause of your death is an underlying medical condition that you hadn’t disclosed at the time of buying the plan, they can reject your claim. 


And if one insurer has increased your premium, chances are so will others. 


So disclose all information correctly to your insurer of choice and don’t be discouraged. The financial security your family will receive is worth paying a high premium for.

No, absolutely not. Here’s why:


See, term insurance is not an investment. It is a contingency plan that helps keep your family financially protected if something were to happen to you. 


Your term plan gives a payout which helps your family avoid a financial crisis that may arise due to your passing away, especially if you are the sole breadwinner. 


It helps them meet their essential expenses as well as other financial responsibilities. 


And essentially, while you are alive, a term policy gives you the peace of mind that comes from knowing that your loved ones will be taken care of even in your absence. 

So to answer your question - no term insurance is not a waste of money. It is a must-have if you don’t want them to struggle after you’re gone.

Yes, you can. It totally depends on your financial plan. 

See, your term insurance plan is meant for providing financial protection. It does not give any maturity benefit, i.e any returns on investments. 


It will be just a replacement for your income and will provide your family with a significantly large payout if you pass away during the policy duration. 


Whereas life insurance gives you both financial protection (life cover) as well as returns on the investment (maturity benefit). If you survive the policy, you may also get a survival benefit. And if you die, your family will get the life cover and the maturity amount. But the life cover amount from a life insurance policy is typically lesser than that from a term plan. 

Most of your premiums will be invested and paid with returns as maturity benefits. 


So, if you are looking for a pure protection plan, you should opt for term insurance. 

If you are looking for investment and protection, you should look at life insurance. 

And yes, you can get both too if it fits your financial goals. 


Find out more about the differences between life insurance and term insurance.

Well, it's good to have a solid investment plan to build wealth for your family. 


But understand this:


Your investments are most likely to give significant returns in the long run. 

What happens if you pass away before you're able to meet your financial goals?


The corpus you were trying to build for your family may not be enough to meet your family's needs. And thanks to rising inflation, its value may also reduce by then.


Term insurance is like plan B which protects your family in case something happens to you unexpectedly. The significantly large payout your family will receive from it will make sure they don't face any financial crisis and meet all their expenses. Find out why you should buy term insurance.


Plus, you don't always know for sure that all your investments will pay off for sure. You can't afford to be uncertain when it comes to protecting your loved ones.


So have goal-oriented investments but don’t forget to buy term insurance too.

Yes, you should. 


Even if you have only employer insurance, credit card insurance, government insurance, mutual fund insurance, etc. they will still offer inadequate protection because the combined amount from these policies will not be enough to support your family financially in your absence.


But your term insurance life cover will be much higher and can help them meet all their expenses, especially if you are the sole breadwinner.


If you don't have a term plan, you are only protecting your loved ones partially. 


Find out in detail why term insurance matters alongside other policies.

Term insurance does not give any returns aka maturity benefit. Your family only gets your life cover if you pass away during the policy duration. Otherwise, you get nothing.


You can however buy a TROP (term plan with return of premium) plan and get back only all the premiums you have paid if you manage to outlive the policy duration. 


If you are of the mindset that you must ‘get something back’ if you have paid for it, then you can buy it. 


But remember, TROP plans are more expensive. So your premium will also go up. 

Plus, these plans don't give any maturity benefit. They just return the premiums you have paid. Thanks to inflation, the value of the money you’ll be refunded will be reduced, so technically you won’t be getting the full value of your premiums. 


You are better off investing the additional amount you’d pay towards a TROP plan premium in a fixed deposit or mutual fund as it can give you better returns. 


Find out more about if you should buy a TROP plan.

Yes. Your term policy can become more expensive if you buy it later in life. 


See, as you age, you have more chances of developing unhealthy lifestyle habits or poor health conditions which will also increase your risk of passing away. 


So, if you buy term insurance when you are older, you may have to pay higher premiums compared to a younger person who is buying a similar policy. 


Find out more about why you should buy term insurance early.

Term insurance plans can be 5-10% cheaper when bought online. But, you’ll have to check with your insurer regarding this. In some cases, you may save costs as you may not opt for an agent when you are buying a plan online.