Why Every Earning Indian Needs a Term Plan
A term plan is the purest and cheapest form of life insurance — massive cover at a tiny cost. If something happens to you, your family receives the full sum assured; there is no maturity value, which is exactly why premiums are 10–15× lower than endowment plans.
LIC Term Plans Compared
| Feature | New Tech-Term (954) | New Jeevan Amar (955) | Saral Jeevan Bima (859) |
|---|---|---|---|
| Purchase | Online only | Offline (agent) | Both |
| Min Sum Assured | ₹50 lakh | ₹25 lakh | ₹5 lakh |
| Max Entry Age | 65 | 65 | 65 |
| Smoker rates | Differential | Differential | Uniform |
| Cover options | Level / Increasing | Level / Increasing | Level |
How Much Cover Do You Need?
Thumb rule: 15–20× your annual income + outstanding loans − existing investments. A 30-year-old earning ₹8 lakh/year with a ₹30 lakh home loan should target roughly ₹1.5 crore of cover.
💡 Buy early: Premium locks in at purchase age for the entire term. Buying at 25 vs 35 can halve your lifetime premium outgo.