Term Insurance Comparison That Puts Your Family First

Raj is 35, working in Bengaluru with a wife and a young daughter. He earns about ₹10 lakh a year, pays home EMIs, and dreams of sending his daughter abroad for higher education. 

One evening, while talking with a friend, one question stuck with Raj: “What if something happens to me, how would my family take care of finances?”

That thought led him to explore term insurance. With so many options available, doing a term insurance comparison helped Raj focus on the plans that matched his family’s needs. 

What is Term Insurance Comparison and Why It Matters?

A term plan is the most basic form of life insurance, and you pay a premium, and your family gets a payout if something happens to you during the policy term. But not all plans are the same. 

When Raj carried out a term life insurance comparison, he was clear that he was not buying just a policy. But he was choosing the proper protection for his family. So here is what he also considered:

1. How much coverage will actually meet his family’s needs
2. The insurer’s claim settlement record
3. Flexibility in payouts and additional riders
4. Alignment with long-term financial goals

Once you understand your family’s priorities, a term plan comparison can help identify the policy that provides peace of mind.

1. Coverage Amount - Is It Enough for Your Family’s Needs?

Your term plan’s coverage (sum assured) is the backbone of your policy. Many people underestimate how much their family would actually need in their absence. Experts usually recommend at least 10 to 15 times your annual income. 

For Raj, with an annual income of ₹10 lakh, a cover of ₹1–1.5 crore made sense to handle EMIs, daily expenses, and his daughter’s education abroad.

Raj initially considered a ₹50 lakh plan. But after running the numbers, he upgraded to a ₹1.2 crore cover, knowing his daughter’s dream of studying abroad wouldn’t have to be compromised.

Why coverage matters in a term insurance comparison?

Here are the three reasons why you should consider this factor:

1. Matches future financial responsibilities, not just present expenses
2. Protects against inflation eating into your cover value
3. Provides peace of mind that your family won’t have to “ cut down” on dreams

2. Premium Affordability - Balancing Cost and Protection

The right premium offers long-term affordability without compromising cover. A policy that feels cheap today may not meet tomorrow’s needs.

For Raj, paying about  ₹800 a month for a ₹1.2 crore cover was a small price compared to the security it bought his family.

Why premium affordability matters?

Here are the three reasons why you should consider this factor:

1. Protects the family without straining your budget
2. Avoids underinsurance caused by picking only the cheapest plan
3. Ensures long-term continuation and reliability

3. Claim Settlement Ratio- Choosing a Reliable Insurer

A term plan is only as good as its payout promise. The Claim Settlement Ratio (CSR) tells you how many claims an insurer has honoured out of 100. A higher CSR = higher trust.

Raj compared insurers and picked one with a CSR above 95%. He felt reassured that if his family ever needed the cover, they wouldn’t face extra battles.

Why is it valuable?

Here are the three reasons why you should consider this rider:

1. Ensures your family gets support quickly, without added worry
2. Builds confidence in the insurer’s reliability
3. A simple yet powerful metric for choosing wisely

4. Riders and Add-ons- Strengthening Your Base Policy

Insurance riders are small, affordable add-ons that make your plan stronger. They can cover critical illnesses, accidents, disability, or income protection.

When Raj thought about his EMIs and his daughter’s fees, he added a Family Income Benefit Rider. So his wife would receive a monthly income if anything happened to him.

Why add riders in a term insurance comparison?

Here are the three reasons why you should consider:

1. Covers multiple risks in a cost-effective way
2. Ensures financial plans stay on track despite unforeseen events
3. Strengthens the overall protection

5. Policy Term- Covering the Right Years

The policy term should last until your family no longer relies on your income, usually up to 60–65 years of age.

Why does policy term matter in a term plan comparison?

Here are the three reasons why you should consider this rider:

1. Aligns protection with earning years
2. Prevents security gaps at crucial stages
3. Provides peace of mind for long-term planning

6. Payout Options- Lump Sum or Monthly Support

Some families prefer monthly payouts rather than a single lump sum. Raj chose 50% lump sum + 50% monthly payout to meet both immediate and ongoing expenses.

So keeping this in mind, Raj decides to choose a mix of 50% lump sum + 50% monthly payout. His wife could clear significant expenses early. At the same time, monthly payments would handle ongoing costs. 

Why is it valuable?

Here are the three reasons why you should consider this:

1. Know your family’s financial habits
2. Provides stability instead of money management stress
3. Keeps life running smoothly after you’re gone

7. Tax Benefits- Protecting Your Family and Your Money

Term insurance doesn’t just protect your family, but also helps you save money today. A term insurance tax benefit ensures that premiums are eligible for deduction under Section 80C, while payouts remain tax-free under Section 10(10D).

For Raj, this meant not only securing his family’s future but also reducing his taxable income every year.

Why is it valuable?

Here are the three reasons why you should consider this rider:

1. Double advantage: protection + tax saving
2. Keeps plan affordable through annual deductions
3. Maximises financial efficiency while securing loved ones

Secure Your Family’s Tomorrow with the Right Term Plan

A term plan comparison is more than paperwork- it’s a promise. Like Raj, don’t just buy the first policy you see. Evaluate your family’s needs and choose a plan that truly protects them.

You can also explore corporate life insurance policies if you’re looking for group coverage through your employer. Compare term insurance options to ensure you pick the most suitable plan.

Disclaimer: The information provided is intended for general informational purposes only. For personalised recommendations, please consult a certified insurance professional.

ARN:SLIC/Elec/Sep 2025/1138