Term insurance is the simplest form of life insurance. You pay a small annual premium; if you die during the policy term, your family receives the sum assured. If you survive the term, you get nothing back. That's it.
Why it is the gold standard
Because it's pure protection, term insurance offers the highest sum assured for the lowest premium. A healthy 30-year-old can get a ₹1 crore cover for roughly ₹10,000–14,000 per year. No other financial product gives you that kind of leverage on your premium.
How much cover
A standard rule of thumb is 10–15 times your annual income, or enough to replace your income for the years your dependents would need it. If you earn ₹15 lakh a year, aim for ₹1.5–2 crore. If you have a home loan, add the outstanding loan amount to that number so your family isn't forced to sell the house.
Avoid endowment and ULIP traps
Insurance agents often push endowment plans and ULIPs because they earn higher commissions. These products combine insurance with investment — and do both badly. You get less cover, lower returns, and higher fees. Separate insurance (term) from investment (mutual funds). It's simpler and strictly better.
Get it young, medical tests
Apply while you're healthy. Insurers will require medical tests, and any diagnosis after you apply becomes a pre-existing condition that either increases your premium or causes rejection. Lock in a 30-year policy in your 30s and forget about it.