No matter where you live in India, securing your family is a fundamental priority, especially when you’re an individual earning Rs. 25k per month. When it comes to protection, “term insurance” stands out as the best option to provide financial protection in your absence. Furthermore, it gives you peace of mind that if anything wrong happens to you then the term insurance will meet the expenses of your family.
But if you think that you’re earning only a 25K salary and no company would give you insurance, then you are probably mistaken! Even though you are earning Rs. 25000, there are still many companies that may provide you term insurance that perfectly caters to your needs and budget.
In this post, we’ll discuss the top-term insurance for individuals earning 25K salary and other associated details.
Importance of Term Insurance for Individuals With 25K Salary
Speaking of its importance, term insurance is incredibly important for individuals earning a 25K salary because it offers an affordable and effective way to secure substantial financial protection. With such kind of insurance option, you will rest assured that beneficiaries would receive a sum assured in case of your death. Remember that the financial protection provided by term insurance may cover substantial expenses such as children’s education, daily household expenses, debts, and other kinds of liabilities. Thus, it would help prevent your family from facing financial hardships.
Top 5 Term Insurance Plans For Individuals Earning 25K Salary
Let’s take a look at the top-term insurance for individuals earning 25K salary.
1. Max Life Smart Secure Plus Plan
The Max Life Smart Secure Plus Plan is a popular term insurance product designed to provide you with a reliable financial safety net. It helps you to create a financial shield that can easily adapt to life’s unexpected changes. One of the interesting aspects of the plan is that it offers two types of death benefits which ensure your loved ones are financially secure in case something happens to you. Furthermore, it is built to meet your financial security needs and offers dependable support during emergencies.
| Parameters | Details |
| Minimum/maximum age at entry | Minimum Age- 18 Years from both Non-POS & POS Maximum Age- For Non-POS: Regular Pay- 65 Years Pay Till 60- 44 Years For POS: Regular Pay- 55 Years Pay Till 60- 44 Years |
| Minimum Sum Assured | Base Death Benefit: Rs. 20,00,000 For Secondary life, in joint life: Rs. 10,00,000 For POS, the base sum assured shall be in multiple of INR 50,000 Accelerated critical illness (ACI) benefit option- Rs. 5,00,000 Accident cover option Minimum- Rs. 50,000 |
| Maximum Sum Assured | Base death benefit No Limit For secondary life, in joint life: Rs. 50,00,000 For POS, the base sum assured shall be in multiple of INR 50,000 Accelerated critical illness (ACI) benefit option: Maximum a) ACI Benefit: 50% of base death benefit sum assured chosen at inception capped at Rs. 50, 00,000. Accident Cover Maximum
In addition, note that the Addition cover sum assured cannot be higher than the base death benefit sum assured. |
| Premium Payment Options | Single Pay or Regular Pay. |
Key Features & Benefits:
These are as follows:
- Death Benefit
One key benefit of the plan is that it enables you to choose between Life Cover or increasing life cover, which may help you build a strong financial safety net for your loved ones.
- Terminal Illness Cover
Another major aspect of the plan is that if you are diagnosed with a terminal illness, the plan may provide you with immense financial support when you need it most. In such cases, upon certification by a medical professional, you will receive 100% of the guaranteed death benefit (up to 1 cr.).
- Special Exit Value
The plan allows you to exit the policy at a certain point and receive a “Return of Premium”. For those who don’t know, it means that you will receive the total premiums you paid, including any extra premiums and adjustments.
2. ICICI Pru iProtect Smart
The ICICI Pru iProtect Smart term plan offers comprehensive financial protection for your family and critical illness coverage. Furthermore, the plan provides a flexible payout option, which ensures that your family’s financial needs are taken care of even if you’re not here.
| Parameters | Details |
| Minimum/Maximum Entry Age | 18/65 Years |
| Minimum Premium | Rs. 2400, excluding taxes |
| Additional death benefit | Minimum- Rs. 1,00,000 Maximum- Equal to the sum assured chosen by you. |
| Minimum/Maximum sum assured | Subject to the minimum premium Unlimited |
Key Features & Benefits:
These are as follows:
- Need-Based Benefit Payout
One of the major benefits of the plan is that you would have the flexibility to choose how the benefit amount is paid out. Furthermore, the policyholder may receive it as a lump sum as monthly income for 10, 20, or 30 years, or a combination of both.
- Comprehensive Additional Benefits
The plan offers additional add-ons like accelerated critical illness benefits and accidental death benefits which may provide extra protection and support.
- Enhanced Protection
Another interesting aspect of the plan is that it offers robust coverage that includes protection against death, terminal illness, and disability.
3. Future Generali Care Plus
Future Generali Care Plus is a dedicated term insurance plan designed to cater to your specific needs and preferences. Furthermore, the plan is designed to provide you with peace of mind, which means your family’s lifestyle will stay protected even if you are not there.
| Parameters | Details |
| Entry Age (Minimum & Maximum) | 18 years to 65 years |
| Maturity Age | 23 years to 85 years |
| Accidental death sum assured | Minimum- Rs. 5 Lacs Maximum- Base sum assured or Rs. 2 cr, whichever is lower. |
| Sum Assured | Minimum- Rs. 25 lakhs Maximum- As per board-approved underwriting policy |
Key Features & Benefits:
- Flexible Benefit Payout
One of the plan’s highlights is that it allows you to choose how you want to receive your death benefit—either as a lump sum or monthly payments.
- Tax Benefits
Another major aspect of the plan is that it makes you eligible for tax benefits under current income tax laws. Remember that these benefits can change with updates to tax laws.
- Choose Your Policy & Premium Terms
One of the major benefits of the plan is that it enables you to select both the length of your coverage and the duration of your premium payments.
PNB MetLife Mera Term Plan Plus
PNB MetLife Mera Term Plan Plus is a complete family protection term plan that offers comprehensive coverage at an affordable cost. The plan enables you to choose protection against death, critical illness, accidental disability, and terminal illness. Additionally, it provides options like coverage for your spouse and whole life protection. Also, the policyholder can tailor your coverage with multiple enhancement options.
| Parameters | Details |
| Age at Entry | Minimum- 18 years Maximum- 55 years (if pay till age 60 is chosen as PPT) |
| Sum Assured | Minimum- Rs. 25,00,000 Maximum- No Limit |
| Premium | It is based on the basic sum assured, policy term, entry age, benefit option, and smoker status. |
| Premium Payment term |
(Minimum allowed policy term for limited pay option: premium payment term plus 5 years) |
Key Features & Benefits:
These are as follows:
- Step-up Benefit
One of the interesting aspects of the plan is that it comes with a step-up benefit, which means that the coverage amount increases each year starting from the first anniversary of your policy and for the next 10 years.
- Child Education Support Benefit
Another major highlight of the plan is that you can choose to increase your coverage specifically to help with the cost of your child’s education.
- Life Stage Benefit
Another major benefit of the plan is that it enables you to increase your coverage at key life events such as getting married, the birth of your first and second child, or when you take out a home loan.
SBI Life- Smart Shield
SBI Life—Smart Shield is a major term insurance plan that offers a life cover option that grows as you age, providing ongoing protection for your loved ones. With the plan, you can focus on pursuing your dreams without the stress of financial concerns, which means your family’s security is in good hands.
| Parameters | Details |
| Age at Entry | Minimum- 18 years Maximum- 60 years |
| Age at maturity | 80 years |
| Basic sum assured | Minimum- Rs. 25,00,000 Max- No Limit |
| Policy term | Minimum- 5 years Maximum- 80 years less age |
Key Features & Benefits:
These are as follows;
- Flexible Term Assurance
One of the major highlights of the plan is that it enables you to choose between level term assurance (Where the coverage amount stays the same) and increasing term assurance (where the coverage amount grows over time).
- Additional Coverage Options
Another major benefit of the plan is that it can significantly boost your protection with two rider options available at a low additional cost. Furthermore, these riders provide additional benefits to enhance your coverage.
- Financial Protection & Tax Benefits
Another major highlight of the plan is that it helps secure your family’s financial future in case of an unfortunate event.
Factors to consider while choosing term insurance for someone earning a 25K Salary
Listed below are the factors to consider while selecting a term plan for individuals earning 25k.
- Affordability
One of the biggest factors to consider when choosing a term insurance plan is that you should consider its cost and ensure it stays within your budget. Since term insurance premiums are fixed for the entire policy duration, ensure you choose a plan that you can afford comfortably.
- Coverage Amount
Another major aspect to consider is that you should evaluate how much coverage you need based on your salary, current financial responsibilities, and more. When you consider such things then you can choose the ideal coverage amount.
- Policy Term
One of the major aspects to consider when choosing a term plan is that you should choose a policy that perfectly matches your long-term financial goals and provides adequate coverage during important life stages.
- Health & Lifestyle
When you are choosing a term plan that matches your current 25K salary, ensure you should be honest about your health and lifestyle habits. There is no denying that factors such as smoking, pre-existing health conditions, and involvement in high-risk activities can influence your premium rates and coverage.
- Insurance Provider’s Reputation
Last but not least, make sure you spare some time and research insurance providers to ensure that they provide robust customer support and should have a reputation in the insurance industry. Ensure you look at reviews and ratings from other customers to determine the readability and credibility of the company.
Frequently Asked Questions
Listed below are the frequently asked questions related to the term insurance for individuals with 25K salary.
You should choose a policy term that lasts until your retirement age. Most term insurance plans offer coverage from 5 to 40 years.
Yes, a 5-year term policy is available. However, keep in mind that the premiums may not be lower for such short terms.
Yes, it is worth buying. Term insurance helps ensure your family is financially protected if something happens to you and you’re not there to support them.
In India, there is no specific minimum income requirement for term insurance. However, if you’re a salaried employee, the insurer will usually ask for your past salary slips.
Unemployed individuals, except for housewives, generally cannot buy term insurance in India.
