As families reassess their financial needs, a ₹1 crore term insurance policy may fall short by 2026, especially for those with monthly expenses exceeding ₹1 lakh. Financial experts, including Nilesh Parmar from Generali Central Life Insurance, emphasize that coverage should be closer to ₹1.5 crore, considering factors like income, liabilities, and dependents. The adequacy of insurance is influenced by outstanding debts, lifestyle, and future financial goals. For example, families with significant loans may find a large portion of the insurance payout consumed by debt repayment, leaving little for education or retirement needs. To determine the right coverage, individuals should consider replacing lost income, clearing debts, and future obligations. It's advisable to maintain coverage until retirement age, typically 60-65 years. Additionally, purchasing term insurance in one’s 20s can lock in lower premiums and secure coverage before potential health issues arise. Modern policies often allow for increased coverage at life milestones, ensuring that protection evolves with changing family and financial responsibilities.