Term insurance coverage can differ for different people depending on their income, lifestyle, expenses, loans, and more. If you are under the age of 55, you should take a cover that is approximately 10 to 12 times your gross annual income1. Such a sum can be adequate to meet future needs and counter inflation.

What is the meaning of term insurance coverage?

Term insurance coverage refers to the sum assured that will be payable to the nominee in an unfortunate event with the Life Assured during the policy term. It also includes any additional add-on benefit, such as accidental death benefit^ that can increase the payout given to the family members.

How does term insurance coverage work for an individual?

Here’s an example to show you how term insurance coverage works for an individual:

For instance, your current salary is ₹ 10,00,000 per annum. In order to ensure that your family is well taken care of in your absence, you can consider a sum that is 10 times your current salary, i.e., ₹ 1 crore. In case of an unfortunate event during the policy term, your loved ones will be given a death benefit amounting to ₹ 1 crore. This payout received will be tax-exempt$ subject to conditions under Section 10(10D) of the Income Tax Act, 1961.

If you have added a rider, such as the accidental death benefit^, your family will also receive an additional payout over and above the sum assured.

Points to note while calculating your term insurance cover:

  • Calculate your monthly expenses -

    Take into account all your expenses to ascertain how much cover you need. This should include your grocery bills, electricity and water bills, fuel expenses, rent, clothes, and other expenses
  • Analyse your liabilities -

    Cover all your loan liabilities and do not let the burden fall on your family after you. Hence, you must factor in any outstanding debt, such as loans, credit card payments, or any other dues and then pick a suitable cover
  • Consider your life and financial goals -

    Financial goals like saving for a child’s higher education or marriage can require significant savings. Buying adequate term insurance can help your loved ones continue with this goal in your absence in case of an unfortunate event.
  • Tenure of your policy -

    You can have different responsibilities at different stages of life. For instance, at the age of 25, you are likely to be single with few responsibilities responsibilities but at the age of 40, you may have a spouse and a child. Your age and lifestage can affect the tenure and coverage of your policy.


It is important to carefully select a term insurance cover as your decision can greatly impact the life of the nominee. Moreover, you must also pay attention to adding the right riders as they can help you in your hour of need.

ICICI Pru iProtect Smart Plan offers a life cover` of ₹ 1 crore at affordable premium rates. The plan also lets you add optional add-on benefits, such as a critical illness benefit**, an accidental death benefit^, and an in-built waiver of premium benefit in case of permanent disability~, to enhance your coverage. So, go ahead and invest in the plan to secure your future and provide for your family.

People like you also read ...


1 How much life insurance do you really need?


` Life cover is the benefit payable on the death of the Life Assured during the policy term.

$ Tax benefits are subject to conditions under Section 80C, 10(10D), 115BAC and other provisions of the Income Tax Act,1961. Good and Service tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

** Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One options. This benefit is payable, on first occurrence of any of the 34 illnesses covered. Medical documents confirming diagnosis of critical illness needs to be submitted. The benefit is payable only on the fulfillment of the definition of the diagnosed critical illness. The ACI Benefit, is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in detail about ACI Benefit, terms & conditions governing it, kindly refer to sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.

^ Accidental Death benefit (ADB) is up to ₹ 2 crores (subject to underwriting guidelines). ADB is available in Life Plus and All in One options. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.

~ On diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more about definitions, terms & conditions applicable for permanent disability due to accident, kindly refer sales brochure of ICICI Pru iProtect Smart.

ICICI Pru iProtect Smart UIN (A Non-Linked Non-Par Life Individual pure risk premium product).

ADVT: W/II/0027/2022-23.

Back to Top