New Delhi, April 21 -- In India, term life insurance is often misunderstood as merely a tax-saving tool, courtesy of the benefits under Sections 80C and 10(10D) of the Income Tax Act. While these deductions - up to Rs.1.5 lakh on premiums-and tax-free benefits are compelling, they should not distract us from the real purpose of term insurance: long-term financial protection for families.

For far too long, financial planning in India has been skewed towards investment-led instruments. Life insurance is typically bundled with savings-oriented products like ULIPs and endowment plans, promoting the idea of wealth creation rather than risk protection. This mindset has pushed term insurance - the most cost-effective and purpose-built form of l...