What term life insurance actually covers
Term life insurance covers a lump sum to your family if you die during the policy term. No maturity value, which is exactly why it is cheap.
The cover in plain terms
A lump sum to your family if you die during the policy term. No maturity value, which is exactly why it is cheap.
What it does not cover
Every policy has exclusions, and they are the part worth reading twice. Look specifically for waiting periods, sub-limits, co-payment clauses and anything described as "reasonable and customary charges" — that phrase is where claims shrink.
Where it sits in the family plan
Insurance is not an investment and should not be judged like one. Its job is to stop one bad event from undoing years of saving. Buy for the catastrophe you cannot fund yourself, and self-insure the small stuff.
Where FamTally comes in
FamTally holds every policy the family has — term life insurance included — with sum assured, premium, frequency, renewal date and the members it covers. It totals your cover so gaps are obvious, puts premiums into your monthly cashflow, and reminds you ahead of each renewal. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
What does term life insurance cover?
A lump sum to your family if you die during the policy term. No maturity value, which is exactly why it is cheap.
How much cover should we take?
Ten to fifteen times annual income, plus outstanding loans, plus known future costs like education.
What happens if it lapses?
Premiums are level for the whole term; the danger is a missed payment lapsing a policy you cannot easily replace at the same price.