For most of the people in their thirties, financial planning is geared towards attaining stability—acquiring a home, accumulating savings, or having children. One of main aspects that get neglected or delayed is having sufficient life insurance coverage.
Choosing a ₹1 crore life insurance term plan at this stage of life provides immense long-term benefits, both in terms of financial protection and peace of mind.
Here are five advantages of opting for a term plan with ₹1 crore cover when you are in your 30s, particularly if you are looking to create a responsible and secure financial future.
1. Low Premium for Higher Coverage
Since you are likely to be healthier and less prone to any lifestyle-related diseases at this age, insurance companies consider you a lower-risk prospect. Therefore, you will be charged lower premiums for greater coverage.
For example, a 30-year-old non-smoker can be offered a ₹1 crore cover at a much lower premium than if the person approached in their 40s. The younger you are, the cheaper the policy and the more you will save by locking in the lower premiums for the term of the policy.
2. Financial Security for Family
One of the reasons people consider buying one of the best term insurance plans for ₹1 crore is to ensure that their family’s financial needs are met in case of their untimely demise. In your thirties, it is normal for you to be the primary breadwinner in your household. You are either financially supporting ageing parents, your spouse, or young children.
If something were to happen to you, your absence could create both emotional and financial stress for your dependents.
A ₹1 crore term insurance can provide for the following expenses:
- Outstanding education or home loans
- Family living expenses each month
- Children’s future education expenses
- Ageing parent illness expenses
This significant amount means your family won’t have to undergo sudden lifestyle adjustments or sell assets during an already stressful time.
3. Scope to Add Critical Illness and Other Riders
One of the greatest benefits of taking term insurance early is the ability to personalise the policy with suitable riders. Riders are additional covers that can be purchased at a relatively low cost, providing enhanced protection.
Certain add-ons are:
- Critical Illness Rider: Pays a lump sum in case of diagnosis of specific critical illnesses.
- Accidental Death Benefit Rider: Gives an additional payout in the case of accidental death.
- Premium Waiver Rider: Keeps your policy active even if you can’t pay future premiums because of a permanent disability or loss of income.
Including these riders with a ₹1 crore term plan increases the comprehensiveness of your coverage and can make a major difference in managing life’s uncertainties.
It’s good to select these while still young, because riders are likely to be affordable and have fewer medical underwriting needs.
4. Tax Benefits
Though the new tax system under Indian law withdraws a lot of deductions, those who opt to remain in the old system can take advantage of Section 80C of the Income Tax Act. The premiums paid for a term insurance policy are allowed as a deduction up to ₹1.5 lakh during a fiscal year. In addition, the nominees receive the death benefit under Section 10(10D) tax-free.
Disclaimer: Deductions under Section 80C and Section 10(10D) are only applicable under the old tax regime. Tax benefits are subject to change as per prevailing tax laws.
Even though these tax benefits may not be the sole reason for choosing insurance, they can serve as an added financial incentive, especially when viewed as part of an overall tax planning strategy.
5. Peace of Mind
When you know that your family will be financially secure, even in your absence, brings peace of mind. A term insurance plan offers an assurance that your loved ones won’t have to worry about expenses, loan instalments or school fees if you are not there. That reassurance is often the greatest relief of all.
Who Can Choose the Best Term Insurance Policy of ₹1 Crore?
Although one’s insurance requirements vary based on lifestyle and liabilities, a policy of ₹1 crore would be appropriate for:
- Salaried persons with dependents
- High-liability individuals, such as those with a home loan
- Young parents who want to ensure their children’s education
- People with long-term liabilities or elderly parents
If you are one of these groups, consider buying the best term insurance plan for 1 crore offered by leading companies like Axis Max Life Insurance. It is not about taking the affordable one, but the one that is optimally priced, flexible, and offers long-term support benefits.
Tips to Shortlist a ₹1 Crore Term Plan
While shortlisting, these are a few useful tips:
| Factor | Why It Matters |
| Claim Settlement Ratio (CSR) | It shows the credibility of the insurer. For instance, Axis Max Life Insurance has a high CSR of 99.70%. |
| Customisation Options | Buy a term insurance plan that allows you to add riders as per your requirements. |
| Payout Options | Seek plans with lump sum, monthly, or staggered payments based on your family’s preference. |
Conclusion
Buying a ₹1 crore term insurance policy in your 30s is not only a financial choice, it’s a smart move to set up your family for life. With lower premiums and add-on rider options, plus long-term relief, the advantages are significant.
While it may seem easy to delay such commitments, acting early ensures that you’re well-positioned to take advantage of lower costs and broader coverage.
