Who needs a term plan
- Anyone whose income supports a spouse, children or parents
- Home, car or business loan borrowers — the liability outlives the borrower
- Single-income households, where the loss of income is total
- Self-employed professionals with no employer group cover
How to size your cover
Start with the income your family would lose, add every outstanding loan and each big future goal, then subtract existing savings and any cover you already hold. That gap is your sum assured.
| Component | What to include |
|---|---|
| Income replacement | Annual income x years of dependency |
| Liabilities | Home loan, personal loan, credit outstanding |
| Goals | Children's education and marriage, spouse retirement |
| Less: existing assets | Savings, EPF, mutual funds, existing life cover |
Riders worth considering
- Accidental death benefit — extra payout in case of accidental death
- Critical illness — lump sum on diagnosis of listed illnesses
- Waiver of premium — future premiums waived on disability or critical illness
Buying checklist
- Disclose medical history, smoking, income and existing policies honestly
- Complete the medical tests the insurer asks for — they protect the claim
- Name a nominee and keep contact details updated
- Choose annual or monthly premiums you can sustain for the full term
- Tell your family where the policy document is kept
Frequently asked questions
How much term insurance cover do I need?
A common working rule is 15 to 20 times your annual income, plus outstanding loans, minus existing savings and cover. Use the life-cover calculator for a number based on your own income, liabilities and dependants.
Till what age should I take term insurance?
Usually until you expect to stop earning or until your last big liability ends — commonly age 60 to 65. Longer terms cost more, so match the term to the years your family depends on your income.
Does term insurance give money back?
A pure term plan pays only on death (or on a covered event under a rider). Return-of-premium variants exist but cost noticeably more for the same cover, so compare carefully.
Will the claim be rejected if I disclose an illness?
Honest disclosure is what protects the claim. Non-disclosure of medical history, income, occupation, smoking or existing policies is the most common reason claims run into trouble.