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30K Salary Term Insurance Plan

Making your dreams a reality by getting your own home and car is a great idea. But while you are working on a Rs 30,000 salary, the EMIs can be a drain on your savings. A sound term insurance plan can save you sleepless nights and protect your family from debts should anything happen to you.

To delay is to regret

You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.

Term Insurance


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Term Insurance

Why investing meticulously in term insurance plans when earning Rs 30,000 per month is a good idea

30k Salary Term Insurance Plan
March 04, 2024


Once the monthly pay packet reaches the Rs 30,000 mark, having your personal vehicle or a dream house top the wish list. While these are goals that make life worthwhile, the liability of car and home loans enter your balance sheet. But what if you are suddenly not there to pay your EMIs anymore? A sound term insurance plan can be an answer to this question.

Why is it important to invest salary share in term insurance?

Life indeed is the most unpredictable journey. No one knows what’s in store. Thus, being prepared for the unforeseen is a wise bet. Term insurance plans are designed to take care of the situation if the policyholder dies a premature death. Investing a salary share in such a policy can act as a financial shield for your family if you are not around. If a policyholder dies within the policy term, the death benefit can help the family to

1. Run the family without a financial hiccup

2. Take care of any ongoing loan repayment like car and home loans

3. Save a corpus for future needs.

How much should you invest if you earn Rs 30,000 per month?

Often people are confused about finalising the amount to invest in term insurance plans. Term insurance plan being a low-premium investment option, the first task is to determine the life cover you need. Ideally, to provide your family with adequate financial support if you are not around, the sum assured of your policy needs to be 10-12 times your annual income. Thus, considering your salary to be Rs 30,000 a month, the life cover you need is over Rs 43 lakh. Based on that, check the premium rates for different term insurance plans for this amount of sum assured before you take your pick. 

One thing that needs to be considered here is, premium amounts are calculated based on your age, duration of policy, your health condition, income level and financial liabilities etc. But the benefit here is that the monthly premium for term insurance starts as low as less than Rs 500 and hence can be affordable at a Rs 30,000 salary. Moreover, there are no income or age criteria to be eligible for this investment option.  

Features and Benefits of a Term Insurance Plan

Before you take a call on whether to invest in term insurance plans, it’s important to know its features and benefits. 

Low Premium: The premium you need to pay for term insurance is much lower than other investment options. This is because general term insurances pay the death benefit only and nothing is returned if the policyholder survives the policy term. 

Death Benefit: Term insurance plans are meant to be a financial security for the family if the policyholder dies within the policy term. Thus, the sum assured is pretty high as no survival benefit is available. 

Longer Coverage: Term insurances are usually offered for longer periods like 5-40 years. This is to cater to the policyholder as coverage for their entire life span. 

Extra Benefits: Not just death, but accidents and critical illnesses too can be covered by a term insurance policy. Certain plans allow opting for riders that provide lumpsum payouts in case of accidental death and disability, or critical and terminal illnesses. 

Tax Benefit: You can enjoy tax exemption on premiums paid and death benefits of term insurance policies under sections 80C and 10 (10D)*. 

Added Advantage: If you are someone looking to get back your money if you survive the policy term, there’s scope as well. Term Insurance with Return of Premium (TROP) policies pay back all the premiums after maturity. 

Now that you know the basics of a term insurance plan, it’s easier to decide and pick a policy for yourself with a 30K salary. Right?


Q: Is term insurance refundable?

A: Not every term insurance is refundable. But the TROP policies refund the premiums paid if the policyholder survives. 

Q: Does term insurance expire?

A: Yes, a term life insurance policy has a stipulated operational period and an expiry date. A policy of this nature typically lasts for 5-30 years. After that, a higher premium is required.

Q: What happens if I don’t pay the premium?

A: A term insurance policy doesn’t set an obligation on the buyer to pay the premium. Hence no legal actions will be taken if you falter in paying the premiums.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

*Tax benefits are subject to conditions under Sections 80C, 10(10D) and other provisions of the Income Tax Act, 1961. 

^ Available under Life & Life Plus plan options

##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2021-22.

#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved

ARN - ED/05/23/2242