I’m a 35-year-old salaried professional with a spouse, a young child, a home loan and basic employer-provided life cover. While buying a personal term insurance plan, I’m confused whether to choose a level cover, step-up/increasing cover option, or add riders like critical illness and waiver of premium to match future responsibilities such as inflation, children’s education and outstanding loans. How should one evaluate these features without overpaying? Also, how important are medical disclosures, nominee details and income documentation at the proposal stage, and what are the common mistakes that later lead to claim disputes or delays despite high claim settlement ratios?BhaskarAt the age of 35, financial responsibilities often start becoming more layered, especially with commitments such as a home loan, children’s future expenses, and long-term family security. In such situations, term insurance should be viewed as a financial safety net that supports your family’s financial continuity in your absence, rather than just another financial product.Understanding Your Coverage NeedsEmployer-provided life cover is a useful starting point, but in most cases, it may not be sufficient as a standalone protection plan. Since such coverage is linked to employment, it may not continue during a job change, career break, or retirement. A personal term insurance plan helps create an independent and long-term protection layer for your family.When deciding the cover amount, it is important to look beyond current income levels. Factors such as outstanding loans, future education expenses for children, household living costs, inflation, and the number of years your family may continue to depend on your income should all be considered. Existing investments and savings can support long-term goals, but they may not always be immediately available or adequate during a contingencyLevel cover vs increasing coverA level cover plan provides a fixed sum assured throughout the policy term and is generally suitable for individuals who already have a reasonably adequate cover amount in mind. An increased or step-up cover option may be useful as your responsibilities and income are expected to rise over time. These plans are designed to gradually increase the cover amount to help account for rising costs linked to inflation and future family needs.Instead of selecting every available feature, you should focus on choosing benefits that genuinely align with your life stage and financial priorities. The choice should depend on affordability, financial responsibilities, and long-term sustainability of premiums.Should you add riders?Riders such as critical illness or waiver of premium can provide additional support during difficult circumstances. For example, a waiver of premium rider can help continue the policy in case the policyholder is unable to pay premiums due to a serious illness or disability. Similarly, a critical illness rider may help manage large medical expenses.However, riders should be evaluated carefully based on individual needs, family medical history, and affordability, rather than being added automatically.Why disclosures matterOne of the most important aspects of buying term insurance is accurate disclosure at the proposal stage. Details related to medical history, smoking or alcohol habits, occupation, existing insurance policies, and income should always be declared honestly, even if they appear minor.Many claim-related disputes arise due to incomplete or inaccurate information shared during policy purchase. Nominee details should also be updated periodically to reflect current family circumstances. In addition, policyholders should ensure timely premium payments and keep family members informed about policy documents and insurer details.Ultimately, a term insurance plan works best when it combines adequate financial protection with transparency and long-term discipline.The author is the President - Business Strategy of SBI LifePublished on July 4, 2026