All you should know about term insurance if you are earning Rs 35,000 per month
Salary hikes are an instant boost. As the monthly pay package grows beyond Rs 30,000, we not only get the impetus to work harder, but to invest better too. As you mature with age, the more you realise how important it is to ensure financial security for your family too. Here’s where term insurance can help you. Low premiums, yet solid support for your family in case tragedy strikes – what more to ask for!
Why is it important to invest salary share in term insurance?
Saving for the future is what we all look forward to. If you are the sole bread-earner for the family, the responsibility gets bigger and you need to think about how they would cope if you are not around anymore. This is what makes it worth investing your salary share in term insurance plans.
A term insurance policy is designed to pay a sum assured to your family in case you die an untimely death within the policy period. In case the unforeseen happens, the lumpsum death benefit will help support your family in running the household, and taking care of their financial needs. The amount can also be saved for the future as financial security. Moreover, in case you have EMIs to be paid, the death benefit can be used to repay the loan, saving it from being a burden to your family.
How much should you invest in term insurance if you earn Rs 35,000 per month?
The premium amount for a term insurance plan is calculated based on your age, income, medical condition, financial liabilities and a few other factors. Term insurance is considered affordable as monthly premiums start from as low as less than Rs 500. Also, there are no age or income criteria for eligibility to purchase term insurance policies.
So, how much should one invest in term life insurance policies if their salary is Rs 35,000? Ideally, the sum assured in life insurance should be 10-12 times the annual income. Thus, for a Rs 35,000 salary, the life cover amount should be over Rs 50 lakh. Now all you need is to check various term insurance plans for the premium amounts required for this sum assured. Pick the one that best suits your budget and needs.
Features and Benefits of a Term Insurance Plan
There are certain features and benefits of a term insurance plan that you need to know before investing in it.
Wide coverage: Term insurance plans come with a longer period of coverage, usually 5-40 years. Targeting youngsters, this investment option aims to cover their entire life span.
Minimal investment: Premiums are quite low in the case of term life insurance to ensure affordability for all. Moreover, the insurance companies are also capable to keep the rates low as they don’t have to pay anything to the policyholder if they live through the policy term.
Lumpsum assured: Term insurance plans offer a big amount as a death benefit, compared to the low premiums paid. This is feasible as no survival benefit is payable to the policyholder upon maturity.
Return of money: Usually, term insurance doesn’t pay anything if the policyholder survives through the policy term. However, those who want their money back can opt for Term Insurance with Return of Premium (TROP) policies. These plans return all the premiums paid to the surviving policyholder upon maturity of the policy.
Added services: Term insurance can also make a lumpsum payout in case of accidents, critical illnesses or terminal diseases. These are optional riders in the plan which the policyholder can purchase.
Tax benefits: Term insurance premiums and death benefits can help you save income tax. These payments are exempted under sections 80C and 10(10D).
A Rs 35,000 salary can open up various investment avenues for you. Amongst them, term insurance can therefore be a good choice if you are looking for affordable options.
Q: Can I take two-term insurance?
A: Yes, you can take more than one plan. But make sure you know the terms and conditions of each plan correctly.
Q: Can I get my money back if I cancel my life insurance?
A: If you cancel the insurance policy midway, you won’t get coverage anymore. But there’s no scope of getting the paid premiums back if you stop paying for the policy before its maturity.
Q: Can I sell my term insurance?
A: Since you purchase the policy, it becomes your personal property. Hence you can sell it to someone else just like you can do with any other thing you own.
- Benefits of Term Insurance Plans You Must Know
- Salient features of a Term Insurance Plan
- A Comprehensive Guide for Term Insurance Riders
Not sure which insurance to buy?
Talk to an
Advisor right away
Advisor right away
We help you to choose best insurance plan based on your needs
Here are a few more articles about Term Insurance.
We help you to make informed insurance decisions for a lifetime.
A term insurance plan for your familys future makes eminent sense while drawing a Rs 25,000 salary
25K Salary Term Insurance Plans : You can put away a small share from your Rs 25,000 salary every month to secure a safe future for your family. Read now!
- Best Investment Plans
- What is Term Insurance
- 1 Crore Term Insurance
- Short term saving plan
- Term insurance
- Saving plans
- ULIP Plan
- Health Plans
- Child Insurance Plans
- Group Insurance Plans
- Long Term Savings Plan
- Fixed Maturity Plan
- Monthly Income Advantage Plan
- Pension Calculator
- BMI Calculator
- Compound Interest Calculator
- Term insurance Calculator
- Tax Savings Investment Options
- 2 crore term insurance
- 50 lakhs term insurance
- annuity plans
- Investment Calculator
- get pension of 30000 per month
- ULIP Returns in 5 Years
- investment plan for 5 years
- investment plan for 10 years
- 50-Lakh Investment Plan
- guaranteed returns plans
- sanchay plans
- Pension plans
*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/05/23/2243