I’m a 36-year-old single mother. I live with my daughter and parents. What kind of term insurance should I buy?

I’m a 36-year-old single mother. I currently live with my daughter and my elderly parents, both of whom are financially dependent on me. I want to ensure that in the unfortunate event of my death, my daughter’s future is financially secure — particularly her higher education and living expenses until she becomes independent. At the same time, I also want to make sure my parents are not left financially vulnerable and can maintain their standard of living.

Given these responsibilities, what kind of term insurance policy should I consider? Specifically, I’m looking for guidance on:

The ideal coverage amount (sum assured) I should opt for to ensure both my daughter and parents are adequately protected.

The best policy tenure, considering I may want coverage until my daughter is financially stable or until my retirement age.

Whether I should consider riders like critical illness or accidental death for enhanced protection.

If it makes sense to split the coverage or have a staggered payout structure to manage education costs and living expenses.

Any other tips on nomination, premium affordability, and claim smoothness that would help me make an informed decision.

My goal is to provide peace of mind and a financial safety net for my loved ones while ensuring the premiums are manageable within my current income.

Advice by Satishwar B., MD and CEO, Bandhan Life Insurance

As a 36-year-old single mother, your role as both a provider and protector for your daughter and parents is invaluable. Choosing the right term insurance plan is a powerful step toward ensuring their financial security, no matter what life brings. It’s not just a good-to-have—it’s an urgent financial necessity that ensures your loved ones are protected, even in your absence.

Since you have dependants across two generations, your policy should be comprehensive enough to cover their needs while also offering flexibility.

A pure term insurance plan will meet your requirements. Apart from a pure term plan, you should also look at comprehensive financial solutions that can meet various needs and take care of both the risks i.e. dying too early or living too long. Planned savings for your daughter to meet her long-term needs and a long-term regular income solution to support your requirement of continuous cash flow over a long duration can be further additions to meet your parent’s needs.

Some term insurance plans offer a ‘special exit value' option, allowing you to exit the policy at age 55 and get back all the premiums you have paid.  The amount can come in handy for your daughter’s future needs or it can also help you build a retirement corpus, as by then you would have fulfilled most of your financial obligations towards your dependents.

How much life cover do you need?

To ensure complete financial protection, your sum assured should be at least 20 times your annual income basis your current age. Consider these factors when calculating your coverage:

·         Your Current Income & Future Inflation – To maintain your family’s standard of living.

·         Existing Debts – If you have any home loans or personal loans, your cover should be enough to pay them off.

·         Long-Term Responsibilities – Your daughter’s higher education and ongoing support for your parents.

 Right Insurer

To make the process hassle-free and reliable, pick an insurer that offers:

·         Paperless Onboarding – A seamless and quick online application process.

·         Affordable Premiums – Competitive pricing for maximum coverage.

·         High Claim Settlement Ratio – Ensuring your family faces no difficulties in receiving the claim.