Term Insurance in Mumbai

From high living costs to rising health risks, this city's fast-paced lifestyle causes residents to overlook long-term financial planning. Opting for a term insurance plan is the key to securing the future of your family and safeguarding them against uncertainties. Let us consider the factors below to understand why term insurance is not just a financial instrument but a necessity for Mumbai residents.

• High Cost of Living in Mumbai

Mumbai, India's financial capital, is renowned for its vibrant lifestyle and abundant career opportunities. However, it also ranks among the most expensive cities to live in India. According to Numbeo, as of May 2025, the average monthly expenses for a single person in Mumbai are approximately Rs. 35,418, excluding rent. For a family of four, this figure rises to around Rs.122,872 per month, excluding rent. These costs include housing, education, healthcare, and daily necessities.

In such a high-cost environment, the sudden loss of income can place significant financial strain on families. Investing in a term life insurance policy can provide a crucial safety net, ensuring that loved ones receive a lump sum to cover expenses in the event of an untimely demise.  

For instance, Ravikant, a 25-year-old IT professional in Mumbai, purchases HDFC Life Click 2 Protect Super (Life option) and secures 1 crore term insurance for just ₹706¹ per month. This proactive approach to financial planning is essential in a city where living costs continue to escalate.

• Financial Protection for Your Family

In Mumbai's fast-paced environment, term insurance serves as a vital safeguard for families. According to Ministry of Statistics & Programme Implementation with over 60% of Indian households relying on a single income source, the sudden loss of an earner can severely impact dependents.

Term insurance offers a tax-free lump sum to beneficiaries as per the provisions of Section 10(10D) of Income Tax Act,1961#, helping cover daily expenses, outstanding debts, and future goals like education. This financial cushion ensures that spouses, children, or elderly parents maintain their standard of living and achieve financial independence, even in the policyholder's absence.

• Rising Health Risks and Stress in Mumbai

Mumbai’s urban lifestyle poses significant health challenges. The city's air quality often falls into the 'poor' category, with AQI levels exceeding 150, indicating unhealthy pollution levels. Prolonged exposure to such pollution increases the risk of respiratory and cardiovascular diseases. 

According to the 2023 ICMR INDIAB study. India faces a growing diabetes crisis, with over 101 million individuals affected, many unaware of their condition. These health risks underscore the importance of securing financial protection. Investing in a term insurance plan with Critical Illness rider can provide a safety net against unforeseen medical emergencies, ensuring peace of mind in Mumbai's high-stress environment. 

• Coverage Against Hazards in Mumbai

Mumbai's bustling traffic poses significant risks, with  by Hindustan Times. Nota4,935 road accidents and 1,108 fatalities reported in 2024 by Mumbai Police 2024 Report. Notably, two-wheeler riders and pedestrians accounted for approximately 70% of these fatalities. Given these alarming statistics, securing a term insurance policy with an Accidental Death Benefit (ADB) rider is crucial.

This rider offers an additional payout to beneficiaries if the policyholder dies due to an accident, supplementing the base sum assured. Such coverage ensures enhanced financial protection for families, particularly in accident-prone urban environments like Mumbai.

• Long-Term Financial Planning

With rising pollution, urban stress, and healthcare challenges, life expectancy in India remains uncertain. According to the World Economics Forum, India's life expectancy at birth was 72.2 years in 2024. This makes long-term financial planning essential, not optional. Choosing an affordable term insurance plan offers peace of mind by ensuring your family is financially protected.

It helps manage future expenses like medical bills, children’s education, and long-term liabilities. A well-planned policy with adequate duration ensures financial stability, even during unforeseen life events, securing your loved ones’ future.

Let us understand how term life insurance works with the help of a real-life example:

Rahul is a 25-year-old professional in Mumbai who buys a Rs. 2 crore term insurance plan for 20 years and pays a monthly premium³ of Rs.1412².

Here is a step-by-step flow on how it works:

• Policy Purchase:

Rahul fills out the proposal form, undergoes a medical exam, and starts paying premiums.

• During Policy Term:

 He regularly pays premiums to keep the policy active.

• Death during the policy term:

If Rahul passes away during the policy term, his nominee receives the tax-free death benefit of 2 Crore^#.

• Outlives the policy term:

If Rahul survives the policy term, his coverage will end unless he has chosen a return of premium option.

How to Buy Term Insurance Online?
 

• Step 1:

Go to the official website of HDFC Life and navigate through several term insurance plans available

• Step 2:

Choose the term insurance plan you wish to

• Step 3:

Fill out the application form with detailed information such as age, name, gender, and other details

• Step 4:

Gather proof of your age, identity, and address, and click on 'Submit'. The address proofs include Aadhaar card, and a passport. Also PAN card is the Mandatory document.

• Step 5:

  Proceed to select the features of the policy that include the payment method of premiums, riders, policy term, and more.

• Step 6:

  Pay out the premium amount through debit or credit card, net banking, UPI, and others.

• Step 7:

  The insurance company further reviews your submitted documents

• Step 8:

  A copy of your chosen policy is further sent to your chosen email address, and the selected plan will be active

How to Buy Term Insurance offline in Mumbai?

• Step 1:

Visit the nearest HDFC Life branch in Mumbai and select the desired sum assured for your term life insurance

• Step 2:

The respective officials at the branch will provide you with a detailed guide on the next steps. Normally, the steps are similar to the online method, including submission of your age, identity, address proof, filling out the form, and more.

• Step 3:

Choose the features of your chosen policy, such as the term of the policy, the riders, and the method of paying the premium amount.

• Step 4:

Pay out the premium amount through debit and credit card, UPI, or in cash

• Step 5:

   The company further reviews your submitted documents

• Step 6:

A copy of your chosen policy is then further sent to your registered email address, and your chosen plan will be active