In today’s unpredictable world, financial security is the foundation of a confident and peaceful life. While you work diligently to provide for your family and build wealth, safeguarding their future against life’s uncertainties must remain a priority. One of the most practical and cost-effective ways to create this security is by choosing a term insurance plan.

Term insurance is a straightforward solution that offers substantial coverage at an affordable cost. It ensures that, should anything happen to you, your loved ones will have the financial resources they need to maintain their lifestyle and meet essential commitments.

Why a high-cover term insurance policy matters

Choosing a high-cover term insurance plan is not just about numbers—it is about planning responsibly for the rising cost of living and long-term obligations. Here are some reasons why a higher sum assured can make all the difference:

1. Accounting for inflation
   The value of money continues to decline as expenses rise. What appears to be adequate coverage today might be insufficient in 10 or 15 years. A larger cover, such as Rs.2 crore or more, helps ensure that your family can comfortably handle everyday costs, pay for children’s education, repay outstanding loans, and meet healthcare needs over the long term.
2. Long-term financial security
   A high-cover plan is an important element of financial planning. It creates a dependable safety net that lasts for decades, giving you peace of mind knowing that your loved ones will be supported, no matter what the future brings.
3. Aligning with Human Life Value (HLV)
   Your earnings play a major role in maintaining your family’s lifestyle. Human Life Value is an approach that estimates your economic worth by factoring in your current income, liabilities, and life goals. A high-cover policy ensures that, if you are not around, your family will continue to have financial support equal to your earning capacity.

Types of term insurance plans

Before you select a policy, it helps to understand the different types of term insurance available:

• Level Term Insurance: The most common type, where the sum assured remains unchanged throughout the policy term. If you pass away during this period, your nominee receives the full benefit.

• Decreasing Term Insurance: Here, the coverage gradually reduces over the policy tenure. This type is often used to cover loans or mortgages, where the outstanding balance reduces with time. While premiums are lower, this option may not be enough for broader family protection.

• Increasing Term Insurance: In this plan, the sum assured grows annually by a fixed percentage to keep pace with inflation and increasing financial needs. Though premiums are slightly higher, it is an excellent choice for those seeking evolving protection.

Who should consider term insurance?

While term insurance can be valuable for nearly anyone, it is especially critical for:

• Working professionals with significant income responsibilities: If your family depends largely on your earnings, a high-cover policy prevents their lifestyle from being disrupted in your absence.

• Sole breadwinners: If you are the only earning member, your family’s future depends on your income. A robust term insurance policy can help cover living costs, children’s education, and other essentials.

• Young individuals: Buying a policy early means locking in lower premiums for a high sum assured. For example, people in their 20s or early 30s can secure substantial coverage at a fraction of the cost compared to purchasing it later.

• Business owners: A term insurance policy can help protect business continuity. For example, a policy can cover outstanding business loans, provide funds to support your employees, or even facilitate smooth ownership transition.

How much does a high-cover term insurance policy cost?

One of the reasons term insurance is so popular is its affordability. Even a large sum assured like Rs.2 crore can be obtained at a surprisingly reasonable premium. For a young, healthy individual, premiums may start as low as the daily cost of a cup of tea or a simple meal.

Factors that impact premium amounts include:

• Age: Younger policyholders pay less because they present a lower risk.

• Health: A healthy medical history and active lifestyle lead to more affordable premiums.

• Income: Insurers consider your income to assess eligibility for high coverage.

• Policy term: A longer term might increase premiums slightly but ensures longer protection.

• Gender: Women often enjoy lower premiums due to longer life expectancy.

• Habits: Tobacco use and risky behaviours typically result in higher costs.

How to select the right term insurance plan

Here are some steps to help you choose confidently:

• Compare plans and features: Use reliable online tools to evaluate different policies and premiums. Look for plans that combine a competitive price with comprehensive coverage.

• Check claim settlement ratios: The claim settlement ratio reflects how consistently an insurer honours claims. A higher ratio indicates a trustworthy insurer.

• Review terms carefully: Understand inclusions, exclusions, and any waiting periods. Pay attention to options for riders like critical illness cover, accidental death benefit, or premium waiver.

• Consider additional benefits: Some insurers offer special discounts or added features for salaried professionals or women policyholders.

• Confirm insurer reputation: Choose a company known for strong financial stability and dependable customer support.

Why you should not delay purchasing coverage

Many people delay buying term insurance because they feel young or healthy, but securing coverage early is the smartest move. Early planning means:

• Locking in lower premiums.

• Providing immediate protection against uncertainties.

• Reducing the financial burden on your family.

• Creating room to focus on other investments and savings, such as your Sevana Pension contributions.

A term insurance policy, paired with retirement planning tools like the Sevana Pension, can help you build a balanced strategy that prepares you for both expected and unexpected life events.

Conclusion

Term insurance is more than a policy—it is your promise to protect your family’s wellbeing, no matter what life brings. With its affordability, simplicity, and flexibility, term insurance remains one of the most effective ways to create lasting financial security. Whether you are a young professional, a sole breadwinner, or someone planning for future goals, a high-cover term insurance plan can help you build confidence and stability for the years ahead. Take the step today—because securing your family’s future is the smartest move you can make.