Term insurance is pure life cover: you pay a premium for a fixed period (e.g., 20–30 years), and if you die during the term, your nominees receive the sum assured. There is no maturity value or investment component—it’s the cheapest way to protect dependents.

Why FIRE Investors Use Term Insurance

• Low cost — A ₹1 crore cover for a 30-year-old can cost ₹8,000–15,000/year.
• High coverage — Ensures family is financially secure if you die before reaching FI.
• No mixing with investments — Keep insurance and investing separate; invest the difference in index funds or ELSS.

For FI Planning

Cover until your FIRE number is reached and your corpus can support your family. After FI, you may reduce or drop term cover if dependents are financially secure. Pair with health insurance for complete protection.