EXPLORE YOUR PROTECTION QUESTIONS
Term Insurance: understand your family's cover needs
Start with the income and responsibilities your family depends on. Explore the amount and duration before discussing a policy.
What term life insurance covers
A term life policy provides a death benefit for covered events during the policy term, subject to the contract, disclosures and underwriting. A basic protection-only term policy generally has no maturity payment if the insured person survives the term. Variants have different terms, costs and benefits.
How much life cover might your family need?
The Human Life Value illustration estimates the present value of future income available to dependents. It adds outstanding loans and deducts existing life cover and liquid assets available for those responsibilities. Personal spending, income growth and discount assumptions can change the result substantially.
Also discuss unpaid care, separate education needs, how long dependents need support and whether employer cover continues after a job change. A numerical result does not establish insurer eligibility or affordability.
Common mistakes to check
- Choosing a round number without listing responsibilities and existing resources.
- Adding the entire loan balance while also replacing the same future EMI payments in full.
- Deducting the family home or an emergency reserve as though it were freely available for income replacement.
- Comparing premiums without checking term length, exclusions, payment commitments and disclosures.
- Failing to review nominee details or share the policy location with the family.
Term versus traditional savings-linked policies
This table compares typical purposes, not individual products. Read the actual benefit illustration and policy wording.
| Question | Protection-only term policy | Traditional savings-linked life policy |
|---|---|---|
| Primary purpose | Life cover during a chosen term | Life cover combined with a savings or maturity structure |
| If the term is survived | Usually no maturity payment in a basic protection-only design | Maturity benefits depend on the contract and any applicable participation terms |
| What to compare | Cover, premium commitment, term, disclosures and exclusions | Cover, benefit illustration, cash-flow commitments, surrender terms and charges |
| Access to money | Not a liquid savings account | Early exit can have significant conditions and reduced value |
Questions about term insurance
No. It is an indicative figure based on your chosen assumptions. Actual cover, premium and eligibility depend on insurer underwriting.
You can show it in the illustration if it would be available to dependents, but review whether it ends with employment. Try the result with and without it.
No. This tool estimates one family-income stream rather than multiplying the same income for every dependent. Set the personal-spending share to reflect your circumstances.