Term insurance helps young adults protect their family’s future. If your income is between ₹5 lakh and ₹10 lakh, you may already have responsibilities like EMIs, rent, or parents depending on you. When you look at term insurance eligibility salary, the common rule is to take cover of at least 10 to 15 times your yearly income. That means that for a salary of 10 lakh, the ideal coverage can be 1 crore or more. People also check the 10 lakh term insurance premium to see how much it costs every month. This makes it easier to plan and choose the right protection.
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Buying term insurance early is smart. Premiums are low when you are in your 20s or 30s, but they rise as you grow older. Young adults and millennials can get a high sum assured at a very small premium. This helps cover family expenses, future education costs, and even the marriage plans of children.
For young adults in the income bracket of ₹5 to ₹10 lakhs, a suitable term insurance sum assured is usually between 10 to 15 times their annual income.
This coverage gives financial security to dependents and helps manage costs such as loans, education, and daily living. Still, every young adult’s needs are different, so it is better to consider personal factors like existing liabilities, family requirements, and future financial goals to decide the exact amount of coverage.
For young adults in India earning ₹5 to 10 lakh a year, term insurance is usually affordable, especially when bought early. The 10 lakh term insurance premium is within reach for most professionals, but the exact cost depends on different factors. Let’s look at them one by one.
At a young age, premiums are cheaper. Buying an affordable term insurance plan early gives more coverage for less cost.
Loans and debts increase the cover you need. Many young professionals take higher coverage to protect their families from these liabilities.
Your daily expenses matter. Checking term insurance eligibility by salary helps decide how much cover you can afford, along with your monthly budget.
Family goals like children’s education and marriage need higher protection. Using a term plan calculator helps young adults plan the right coverage for these needs.
Premiums vary by income and lifestyle. For example, the 10 lakh term insurance premium is usually low for millennials, making millennials term insurance a smart choice for long-term security.
Term life insurance is the simplest type of life insurance. You choose a fixed time period, called the term, and during this time, your family stays protected. If you pass away during the term, the insurance company will pay a guaranteed amount to your chosen nominees.
Term life insurance provides your dependents with the sum assured in case of your untimely death. This money should support their lifestyle or pay the expenses they need.
Term insurance generally offers much higher coverage at lower premiums than other life insurance products. This makes term insurance more accessible for people who want financial protection without harming their budgets.
In case you have loans or mortgages, term insurance would serve to pay off these debts so that your family is not burdened, which otherwise could dig a financial hole for them, affecting their stability in the long run.
Term insurance gives you peace of mind by ensuring your family's security in case of your death. It allows you to focus on your career and personal life without worrying about financial hardships in the future.
you can choose the coverage amount and duration that best suits your needs. This flexibility enables you to tailor your insurance to your specific financial situation.
The premium paid on the term insurance is tax-deductible under Section 80C of the Income Tax Act. Also, the death benefit is normally tax-free under Section 10(10D) to the beneficiaries.
Suppose you are a 25-year-old individual, and your annual income is ₹6 lakh. As per this age range, you can multiply your yearly income by 15, so ₹90 lakh can be the coverage amount you can get to ensure your family is financially protected if something happens to you. For instance, should the unexpected happen during the policy term, your family would receive the sum assured. If you also add a rider like an accidental death benefit, it will benefit your family in addition to the sum assured.
When purchasing a term plan to protect your loved ones' financial future, choosing the right sum assured or coverage is key. In fact, it requires consideration of several factors, which include:
You must assess how much you need today and into the future to cover loans, mortgages, children's education, and daily living expenses. From such an assessment, the correct amount assured will be determined.
Consider how many people depend on your income. A larger family may require higher coverage.
Add all outstanding debts, such as personal loans, car loans, or mortgages. In an ideal scenario, the sum assured should cover those liabilities to reduce household stress.
You should strive for coverage that can replace your income for a long period to sustain your family's lifestyle. The sum assured should be 10-15 times your current annual income.
There are additional benefits, such as the critical illness rider or accidental death benefits and more that you can add to your policy for extra protection.
The premium should easily fit within your budget. Do not stretch your budget; keeping the policy within your budget is wise.
Term plans for individuals with ₹5-10 lakhs annual income can use the following methods to calculate how much term insurance they should opt for:
This is a basic method of counting how much term insurance one can opt for, and it is one of the most common methods. Under this method, you can calculate the insurance amount by multiplying your annual income, that is, ₹5-10 lakhs, by 10 to 15.
Human Life Value (HLV) is another very common method to calculate the correct sum assured you can have. In this method, the value of life is estimated based on individual income.
For example, suppose that an individual earns ₹7 lakh per year. This means that his/her family expects to have ₹7 lakh from him/her per year as long as the work continues. If this individual meets a sudden demise, his/her family would lose this annual income of ₹7 lakh. Therefore, to continue earning income even in his/her absence, it is critical to make a provision accordingly. If the current risk-free rate of return is 7%, then a corpus of ₹1 crore can guarantee a ₹7 lakh annual income.
The underwriter's thumb rule is a similar method, but it has a slight variation. It considers your age to determine the number by which you have to multiply your annual income. The younger you are, the larger the number, and the older you are, the lower it is.
In this list, LPA means lakhs per annum.
With the ACKO Life Flexi Term Plan, you get complete flexibility to customise your coverage amount and policy term to match your changing life goals, a 99.38% claim settlement ratio, and 100% digital and hassle-free.
The table below compares the ACKO Life Flexi Term Plan with traditional term insurance plans, highlighting key differences in flexibility, premium payment options, and value-added features.
| Parameters | ACKO Life Flexi Term Plan | Traditional Plans |
| Claim Settlement Ratio | 99.38% | Varies from 98-99% |
| Policy Adjustments | Instant changes via app | Depends on the medium ( offline and online ) |
| Increasing Cover Option | Yes. No restrictions* | Restricted to life big events such as marriage, welcoming a child, etc. |
| Cost Savings | Up to 40% savings* | Costs grow over time 📉 |
| Future Premium Hikes | Age wise premiums remain the same | Age wise Inflation adjusted premium |
| Customisability | Flexible coverage/term | Rigid, limited options |
| Riders | Offers valuable riders to enhance protection | Riders may be provided depending on the plans |
| Length of Claim Form | Easy, digital, and short | Moderately long/Very long/Not available online |
| Option to Exit the Plan | Yes* | Approx. 80% of insurers provide |
| Digital Experience | Fully online, app-based 📱 | Often requires offline processes, paperwork, or branch visits |
| Free Will Creation | Yes | No, Generally does not offer integrated will creation services |
You won’t have to pay higher premiums that typically increase with age or inflation adjustments over time.
It allows for seamless modifications to both the Coverage Amount (Sum Assured) and Policy Duration. This flexibility means that you can increase or decrease your coverage based on your evolving life circumstances, such as marriage, buying a house, or having children.
A fully digital policy management system is offered. Policyholders can easily make any policy adjustments (endorsements), such as:
When young adults in India buy term insurance, adding riders can give extra protection at a small extra cost. Riders make affordable term insurance plans more useful because they cover risks beyond death. Here are the most important riders for young professionals:
Accidents are unpredictable, especially for young adults who travel often. With this rider, the nominee gets an extra payout if death happens due to an accident. ACKO Life offers the ACKO Life Accidental Death Benefit Rider that adds more protection for your family.
If an accident leaves you disabled and unable to work, this rider pays a regular income. It helps young professionals manage expenses when they cannot earn. ACKO Life offers the ACKO Life Accidental Total Permanent Disability Benefit Rider, which ensures financial stability even in such difficult times.
A critical illness rider gives a lump sum payout if you are diagnosed with a serious illness like cancer or heart disease. ACKO Life offers the ACKO Life Critical Illness Benefit Rider, covering 21 illnesses, including cervical cancer, breast cancer, ovarian cancer, fallopian tube cancer, and many others. This rider ensures that if you are diagnosed with a critical illness, your family’s financial security is not at risk.
Here is the complete list of covered critical illnesses.
✔️ Cancer of Specified Severity
✔️ Myocardial Infarction (First Heart Attack Of Specific Severity)
✔️ Open Chest CABG
✔️ Open Heart Replacement Or Repair Of Heart Valves
✔️ Coma Of Specified Severity
✔️ Kidney Failure Requiring Regular Dialysis
✔️ Stroke Resulting In Permanent Symptoms
✔️Major Organ /Bone Marrow Transplant
✔️ Permanent Paralysis Of Limbs
✔️ Motor Neuron Disease With Permanent Symptoms
✔️ Multiple Sclerosis With Persisting Symptoms
✔️ Benign Brain Tumor
✔️ Blindness
✔️ Deafness
✔️ End Stage Lung Failure
✔️ End Stage Liver Failure
✔️ Loss Of Speech
✔️ Loss Of Limbs
✔️ Major Head Trauma
✔️ Primary (Idiopathic) Pulmonary Hypertension
✔️Third Degree Burns
When buying term insurance for young adults in India, one of the most important things to check is the claim settlement ratio. The claim settlement ratio shows how many claims an insurer has paid compared to the number of claims received. A higher ratio means better trust and security for your family.
For young professionals, this number matters because you want to be sure your family will get the money when they need it most. Choosing affordable term insurance plans is important, but the claim settlement ratio tells you if the insurer is reliable. ACKO has a 99.38% claim settlement ratio*, making ACKO Life a strong choice for millennials term insurance and young adults who want trusted protection.
Choosing the right cover amount is very important when buying term insurance for young adults in India. The right sum assured depends on your salary, family needs, and future goals. A common rule is to take 10 to 15 times your annual income as coverage. For example, a young professional earning 10 lakh a year may need a ₹1 to 1.5 crore cover. You can also check the 10 lakh term insurance premium using a term plan calculator to see what fits your budget.
Here are some popular coverage options:
Understanding the common misconceptions about term plans, you'll be armed to make more informed decisions to protect your loved ones.
Many believe term life insurance is only relevant for young families with children. However, anyone with financial dependents can benefit from it regardless of age.
Some think term insurance is not worth it because if they outlive the policy, there's no return on investment. The primary purpose of a term plan is to provide financial security, which is invaluable today.
Another common myth is that older people cannot get term insurance. True, perhaps premiums might be steeper; however, most insurance providers allow older applicants to secure policies.
Although health has a direct impact on premiums, even a person with health concerns can get an insurance policy. It may either be at a higher premium or by excluding certain conditions.
Many people consider term insurance complicated. In fact, it is probably one of the least complex forms of life insurance. It is the most straightforward life insurance primarily designed to provide a death benefit.
You may think that your existing insurance, be it health or group insurance, is enough. These policies replace nothing in case of death; term replaces income lost in case of your untimely demise.
Term insurance is a long-term investment that provides essential financial protection for your loved ones. It offers an affordable and practical way to provide financial protection in case of unforeseen events. By carefully evaluating your needs, comparing insurance, and selecting the appropriate policy, you can ensure your family's financial security even if you aren't around. You can use a reliable term plan calculator to estimate the right sum assured and associated premiums to plan your budget effectively.
Here are some of the most frequent questions and answers people ask about ₹5-10 lakhs term insurance plans:
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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