Term insurance is the simplest and cheapest form of life cover. You pay a modest annual premium, and if you pass away during the term, your nominee receives the full sum assured — often ₹1 crore or more.
Because it has no investment or savings element, premiums are far lower than endowment or ULIP policies. A healthy 30-year-old might secure ₹1 crore of cover for around ₹10,000 to ₹15,000 a year.
The guiding principle is to keep insurance and investment separate: buy cheap term cover for protection, and invest the money you save through mutual funds or PPF. A common rule is cover worth 10 to 15 times your annual income.