Term insurance questions
How much cover to buy, which riders matter, and what actually causes claim rejection.
How much term cover should I buy?
A common benchmark is 10 to 15 times annual income, plus outstanding loans, minus liquid assets. Check the figure against actual dependant expenses and goals rather than income alone.
Until what age should the policy run?
Cover until financial dependency ends — usually your planned retirement age or when the home loan closes. Buying cover to age 85 raises premium substantially for years when dependants no longer need income replacement.
Which riders are worth the premium?
Accidental total and permanent disability and waiver of premium address risks that stop your income. Critical illness is often better bought as a standalone indemnity or benefit policy you can renew independently.
Why are term claims rejected?
The dominant cause is non-disclosure of medical history, tobacco use, income or existing policies at proposal stage. Section 45 of the Insurance Act bars an insurer from questioning a policy after three years except for proven fraud.
Is a medical test better than a no-medical policy?
Usually yes. A fully underwritten policy prices your actual health and leaves far less room for dispute at claim stage than a no-medical-test issue based on declarations.
Should I choose lump sum or staggered payout?
Lump sum gives the nominee control and lets them repay debt immediately. Staggered monthly income suits families who prefer not to manage a large corpus; many insurers allow a mix of both.