New Delhi, Sept. 24 -- A term insurance cover of Rs.1 crore sounds like a substantial safety net, but the figure alone reveals little about actual family protection. For an individual earning Rs.10 lakh annually, the traditional "10 times income" rule points to a Rs.1 crore policy. However, this simple multiplier ignores crucial realities like home loans, young children, future education expenses, and years of recurring household bills. Financial planners now advise treating the 10x formula merely as a baseline rather than a definitive answer.

To determine adequate coverage, families must evaluate what funds would be necessary if the primary breadwinner's income vanishes. This comprehensive approach-known as Human Life Value-based planni...