Term Insurance Growing — Is Your ₹1Cr Cover Enough?

More Indians are buying term life insurance now, but experts say most people pick covers that are far too small. Having a ₹1 crore policy sounds big, but it may not even cover 10 years of your family's expenses after you're gone.

Here's what happened: Term insurance adoption in India is growing at 15–20% annually, with new buyers including housewives, self-employed individuals, and NRIs entering the market.. Average sum assured has roughly doubled over the past three years, moving from around ₹1 crore toward ₹2 crore per policy among new buyers.. Despite rising awareness, most existing policyholders remain significantly underinsured — their cover does not match their actual income, liabilities, or family needs..

What you should do: Calculate your correct cover: multiply your annual income by at least 15–20x, then add all outstanding loans (home, car, personal) — that's your minimum sum assured.. Review your existing term policy today — if you bought it 3–5 years ago at ₹50 lakh or ₹1 crore, your income and liabilities have likely grown well beyond that amount.. If you're self-employed or have a working spouse at home, buy separate term covers for both — a housewife's replacement cost (childcare, household work) is economically real and insurable..

A ₹2 crore term policy for a healthy 30-year-old costs roughly ₹1,000–₹1,200 per month — less than a single tank of petrol. Buying early locks in this low premium for the full 30-year policy term.