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Insurance

Why term insurance is non-negotiable

JM Investments Research Desk 10 February 2025 5 min read

Before a single rupee goes into investments, your family's protection should be secured. A plain-spoken case for adequate term cover.

Financial planning has a natural order, and protection comes first. Before optimising returns or saving tax, a sound plan ensures that the people who depend on you are secure no matter what happens.

The purpose of life insurance

Life insurance is not an investment. Its job is to replace your income and clear liabilities if you are no longer there to provide. Measured against that job, term insurance is the most efficient tool available.

How much cover is enough

A useful starting point is 10 to 15 times your annual income, adjusted for outstanding loans and future goals such as your children's education. The aim is for your family to maintain their lifestyle and meet their goals in your absence.

Buy early, review often

Premiums rise with age, so securing cover early locks in affordability. Revisit your cover whenever your income, family or liabilities change, so protection keeps pace with responsibility.

A note: This article is for general educational purposes and does not constitute personalised investment advice. Mutual Fund investments are subject to market risks; please read all scheme related documents carefully. For guidance tailored to your situation, do get in touch.
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