How much a term life insurance policy cost at the age of 30?

Life insurance is about financial protection for your loved ones. The most efficient way to do that is through a term insurance policy. Photo: iStock

1 min read . Updated: 16 Mar 2021, 01:39 PM IST Navneet Dubey

When it comes to tax benefits, the premium paid towards term insurance policy is eligible for tax deduction under Section 80C of the Income Tax Act for up to ₹1.5 lakh. Death benefits are also exempt under Section 10(10D) of the Income Tax Act

NEW DELHI: Term insurance is a simple and cost-effective way of protecting one's family from financial hardships in the event of an untimely demise. It helps the policyholder’s nominees meet financial needs and goals by paying out an assured sum.

Adhil Shetty, CEO, BankBazaar.com said it is ideal to get one at an early age because the premium payout is lower. For example, for a 45-year-old, a cover of ₹1 crore for 20 years could cost around Rs30,000 per year. But for a 30-year-old, the same cover for 35 years will cost around Rs10,000 a year. Therefore, you can provide comprehensive coverage to your family at very low costs even if you’re young and don’t have a large income.

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"Apart from the pricing, it may also be easier to buy term insurance coverage while you are young and healthy. You may face difficulties in availing of optimal coverage because of the higher life risks that invariably come with age," he said.

Data pertains to term insurance cover for a 30-year-old, salaried, non-smoker male, residing in Bangalore, earning <span class='webrupee'>₹</span>5 lakh annually, for a 30-year term. Data as on 9 March 2021. Cos listed on the basis of descending claim settlement ratio, i.e. highest at top and lowest at bottom. (Source: BankBazaar.com) — Data pertains to term insurance cover for a 30-year-old, salaried, non-smoker male, residing in Bangalore, earning ₹5 lakh annually, for a 30-year term. Data as on 9 March 2021. Cos listed on the basis of descending claim settlement ratio, i.e. highest at top and lowest at bottom. (Source: BankBazaar.com)

When it comes to tax benefits, the premium paid towards term insurance policy is eligible for tax deduction under Section 80C of the Income Tax Act for up to ₹1.5 lakh. Death benefits are also exempt under Section 10(10D) of the Income Tax Act.

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