“But I get nothing back” is the most common objection to term insurance, and it contains a misunderstanding worth unpicking.
Where your premium goes
In a term policy, almost every rupee buys protection. In a savings-linked policy, most of the premium is diverted into the savings component, which is why the sum assured for the same outlay is a fraction of the size.
What “nothing back” actually means
It means you lived. That is the outcome you are hoping for. You do not expect a refund on your car insurance for not crashing.
Choosing the term
Cover should run until your dependants no longer depend on your income — typically to retirement, or until the youngest child is financially independent and the home loan is cleared. Buying a shorter term to reduce premium reintroduces exactly the risk you were transferring.
Riders worth considering
A permanent disability rider deserves particular attention. During your working years you are more likely to be disabled than to die, and a disability removes income while adding cost.
One thing to get right
Keep the nominee current, and make sure your family knows the policy exists and where the document is. A policy nobody knows about is not protection.
