In 2015, ₹1 crore was a genuinely significant sum of money for a middle-class Indian family. It could pay off a home loan, fund a child through college, and leave the surviving spouse with several years of financial cushion. In 2025, ₹1 crore still sounds like a lot — but its real purchasing power has eroded considerably.
At a modest 6% annual inflation, ₹1 crore in 2015 is equivalent to roughly ₹1.79 crore in 2025. That means your family's ability to use that payout to cover the same expenses has shrunk by almost half compared to when you bought the policy.
This is one of the most overlooked aspects of life insurance planning: your cover needs to grow with your life. As your income increases, your lifestyle expenses increase. As property values rise, your home loan balance may actually grow relative to what you first borrowed. As your family grows, so does the financial responsibility.
The practical fix: review your total cover every 3–5 years, or after any major life event (new child, job change, home purchase, significant income increase). Adding a second term policy is often more efficient than trying to increase cover on an existing plan.
If you bought your only policy more than 5 years ago and haven't reviewed it since, today is the right time to do that calculation.