How Much Term Insurance Do You Need in India?
The Human Life Value (HLV) method — the standard used by IRDAI-registered advisors — recommends coverage based on your age and remaining earning years:
Age 25–35
15–20×
Peak earning years ahead; maximum dependency exposure
Age 35–45
12–15×
Mid-career; home loan often at its peak balance
Age 45–55
8–12×
Closer to retirement; dependents reducing
Add these on top of the income multiple:
- Outstanding home loan — don't leave the EMI burden on your family
- Children's education: ₹30–80 lakh for engineering/medical in 2026 (12–15% education inflation)
- 12 months emergency fund for the transition period
Then subtract: existing savings, employer group term cover (usually 2–4× salary — don't rely on it alone as it lapses when you leave the job), and any existing personal policies.
Term Insurance Premium Comparison — India 2026
Rough estimates for a 30-year-old male non-smoker, 30-year term, online policy. Premiums shown are post-GST (0% from Sept 2025).
CSR source: IRDAI Annual Report 2024–25 (individual death claims, by count).
| Insurer & Plan | CSR (FY 2024–25) | ₹1 Crore / yr | ₹2 Crore / yr |
|---|---|---|---|
| HDFC Life Click 2 Protect SuperHighest CSR | 99.96% | ₹10,500–12,000 | ₹19,000–22,000 |
| Axis Max Life Smart Secure PlusLowest Premium | 99.70% | ₹7,900–9,000 | ₹14,000–16,500 |
| Tata AIA Sampoorna Raksha Promise | 98.57% | ₹9,500–11,000 | ₹16,500–19,000 |
| ICICI Pru iProtect Smart | 98.33% | ₹8,800–10,000 | ₹15,000–17,500 |
| SBI Life eShield Next | ~97.0% | ₹9,200–10,500 | ₹16,000–18,500 |
| LIC Tech TermGovt-backed | 97.08% | ₹11,000–13,000 | ₹19,000–23,000 |
Rough market estimates only. Actual premiums vary by health status, city, and underwriting. Get quotes on insurer websites or Bima Sugam (bimasugam.co.in) for accurate pricing.
Tax Benefits on Term Insurance — Old vs New Regime (FY 2025–26)
Critical change for FY 2025-26: The new tax regime is now the default. Sections 80C, 80D, and most Chapter VI-A deductions are not available under the new regime. If you want tax deductions on insurance premiums, you must explicitly opt for the old tax regime when filing your ITR.
Term insurance premiums deductible up to ₹1.5 lakh/year (combined with EPF, PPF, ELSS etc). Old tax regime only.
Critical illness or health riders: ₹25,000/year deductible (₹50,000 if parents are senior citizens). Old regime only.
Death benefit to nominee is 100% tax-free — no upper limit. This applies under both tax regimes.
Bima Sugam — India's New Insurance Marketplace (2025)
What is Bima Sugam?
IRDAI officially launched Bima Sugam (bimasugam.co.in) on September 17, 2025 — a non-profit, government-backed digital marketplace where you can compare, buy, manage, and claim all insurance policies (life, health, motor) from every IRDAI-registered insurer in one place. Phase 1 went live December 2025.
Neutral
Not owned by any insurer — cannot favour one over another
Free
No commission, no hidden fee. You compare at actual insurer prices
One ID
Bima Pehchaan — your permanent insurance identity linked to Aadhaar/PAN
Online vs Offline Term Insurance — 2026 Comparison
| Factor | Online | Offline (Agent) |
|---|---|---|
| Premium (₹1 Cr, 30-yr-old) | ₹7,900–10,500/yr | ₹11,000–14,000/yr |
| GST (from Sept 2025) | 0% | 0% |
| Coverage & Terms | Identical | Identical |
| Medical Requirements | Same | Same |
| Where to buy | Insurer website / Bima Sugam | Licensed IRDAI agent / broker |
| Mis-selling Risk | Very low | Verify carefully |
IRDAI Regulations You Should Know (2025–26)
Free-Look Period
30 days (online) or 15 days (offline) from policy receipt. If unsatisfied, return for a full refund of premium minus proportionate risk premium and stamp duty charges.
Grace Period
30 days for annual/semi-annual premiums; 15 days for monthly. Policy stays active during grace period — claims during this window are still valid.
Suicide Clause
IRDAI mandates 80% of premiums paid back if death occurs within 12 months from policy start or revival. Full death benefit applies after 12 months.
Nomination — Critical
Always register and update your nominee. Under IRDAI regulations, nominees for life insurance have an absolute right to the death benefit — not subject to creditor claims. Update after marriage, divorce, or a child is born.
India Life Insurance Market — 2025 Context
2.7%
Insurance penetration (% of GDP)
FY 2024-25, IRDAI
₹8.86L Cr
Total life premium collected
+7% YoY in FY 2024-25
98.32%
Industry CSR (by count)
FY 2024-25 average
24+
IRDAI-registered life insurers
As of June 2026