Term life insurance is straightforward in concept — your family receives a lump sum if you pass away during the policy term. But there are meaningful differences between policies in how much they pay, when they pay, and how smoothly the claims process works. Here’s what to focus on.
How Much Cover Is Right for Your Situation?
The commonly cited rule is 10–15 times your annual income. But your actual number depends on specifics: How many people depend on your income? What loans are outstanding — home loan, car, education? What would your family need to cover living expenses comfortably for 10–15 years without your income? These factors together will give you a more accurate figure than any formula. Most term calculators on IRDAI-regulated insurer websites will walk you through this.
Choosing the Right Policy Term
Your policy term should run until your major financial responsibilities are complete — roughly until your youngest child is financially independent and your home loan is paid off. A 20-year policy bought at 35 leaves you uninsured from 55 onward, when obtaining new coverage may be difficult or expensive due to health changes. The premium difference between a 20-year and a 30-year policy is usually small. Most advisers recommend a term that extends to at least age 60.
Look at the Claim Settlement Ratio Over Multiple Years
IRDAI publishes annual CSR data for all life insurers. Look for companies with a CSR consistently above 98% over three to five consecutive years — not just the most recent year, which can be affected by one-off factors. Also worth checking: what percentage of claims are settled within 30 days. A slow process adds unnecessary burden to a family already dealing with loss.
The Tax Angle in 2026
Under the old tax regime, term insurance premiums qualify for deduction under Section 80C (up to ₹1.5 lakh per year). If you’re on the new tax regime, this deduction isn’t available — but the insurance still makes complete sense as pure financial protection. The new Income Tax Act 2025 comes into effect from April 1, 2026, with the same structure but simplified language and filing. Payouts from term policies remain tax-free under Section 10(10D) regardless of which tax regime you’re on.
Disclosure: The Step That Determines Whether a Claim Gets Paid
The most common reason life insurance claims are rejected is non-disclosure of health conditions at the time of application. When filling in your application, disclose all pre-existing conditions, your family’s medical history, and lifestyle factors like whether you smoke — accurately. If the insurer accepts your application knowing your full health picture, they cannot later reject a claim based on those same conditions. Under IRDAI’s moratorium rules, after five years of continuous renewal, claims cannot be rejected for non-disclosure at all (except for fraud). Being upfront at the start is the cleanest path to claim security.
Draco Insurance helps you compare term life policies across India’s leading life insurers, with guidance on coverage amount, policy term, and disclosure requirements. Get a quote or schedule a consultation at dracoinsurance.in, or call us on +91 7064106417.
“Even if we do not talk about 5G (specifically), the security talent in general in the country is very sparse at the moment. We need to get more (security) professionals in the system”
Bharti Airtel, for example, has been preparing for 5G roll out by upskilling its professionals and offering them certification courses such as CCNA (Cisco Certified Network Associate) and CCNP (Cisco Certified Network Professional). The courses are offered based on skill and eligibility level free of cost.
