How Much Does Term Life Insurance Cost for a 30-Year-Old?

Understanding Term Insurance Cost for a 30-Year-Old

An average cost of term insurance for a non-smoking, healthy 30-year-old with a life cover of INR 1 Cr (coverage till 60 years) would be:

INR 1,000 to INR 1,900 per month for a male

INR 800 to INR 1,600 per month for a female

However, the rates vary from insurance company to insurance company, depending on several factors they consider for risk assessment. Let us explore the factors that influence the cost of a term life insurance policy.

Factors That Influence Term Insurance Cost

The following factors influence the term life insurance premium calculation:

Age

Age is the main factor that is considered while determining the cost of term insurance. The younger the age lower the premium. Typically, at your 30s, you are young and healthy, and can expect lower premiums and favourable insurance terms.

For example, if you are a 30-year-old non-smoker buying an INR 1 Cr cover ( for a 30-year term), it would cost you INR 1,000 per month. The same coverage for 20 years would cost you nearly INR 2,000 a month if you are a 40-year-old. Double the cost! Risk increases as you age, and coverage becomes expensive. Hence, buying at an early age benefits you as the premium remains constant for the entire policy term.

Gender

Many studies have stated that women generally live longer than men. Hence, women are charged a lower premium in comparison to men.

For example, a woman aged 30, a non-smoker, can buy a term insurance for INR 800 a month, while a 30-year-old male pays INR 1,000 for the same cover.

Health History

The underwriters of the Insurance company go through your medical record and health history in detail while assessing the risk. Pre-existing medical conditions like hypertension, diabetes or a family history of cancer can lead to an increase in premium. Sometimes insurance company may even deny the cover.

For example, if a 30-year-old healthy man pays INR 1,000 a month for an INR 1 Cr term insurance cover, a man of the same age with diabetes might have to pay INR 2,000 a month or more, considering the higher mortality risk.

Smoking and Tobacco Usage

Smoking and tobacco usage are associated with many serious illnesses that increase the risk. Hence, a significantly higher premium is charged to smokers than to non-smokers.

For example, if a 30-year-old, non-smoker pays a premium of INR 1,000 a month for an INR 1 Cr term insurance cover, a smoker of the same age might have to pay INR 1,800 a month, considering the risk of illnesses is high.

Coverage and Term

You need to choose the desired amount of coverage and policy term at the time of buying a term insurance plan. You can arrive at the desired amount of coverage after assessing your family’s future financial needs and expenses. The term can be decided based on your earning years and tenure of financial obligations. The higher the coverage amount and the longer the term, the higher the premium.

For example, let us say you are buying a term insurance coverage of INR 1 Cr for a premium of INR 1,000 per month. In case you need an INR 2 Cr cover, you would have to pay nearly INR 1,700 a month.

Hobbies and Occupation

Let us say you have adventurous hobbies such as hiking, scuba diving or sky diving, which can increase the risk of accidents. In this case, you might have to pay a higher premium than others. Similarly, the risk involved in your profession, such as construction, mining, can impact the term insurance premium.

Policy Add-Ons or Riders

Many insurance companies allow you to customise your term insurance policy and enhance the coverage with various add-ons that can give you additional protection at an extra cost of premium. This includes riders like personal accident cover, critical illness rider, etc. Let us policyholder dies in an accident, his family would get an additional lump sum (as personal accident cover) along with death benefits.

Important Tips to Get the Best and Affordable Term Insurance Plan

Here are some important things to keep in mind to get the best rate while you avail the right term insurance plan as per your needs:

1. Buy early, when you are young and healthy
2. Comparison shopping is the key to getting the best policy at an affordable rate
3. Ensure to choose the right coverage
4. Disclose the right information about your health and habits
5. Insurance needs keep changing. Hence, review regularly to stay adequately covered.

At Jio Insurance Broking, you can compare quotes and features of term insurance policies from various insurance companies to make an informed decision.

Final Words

To sum up, as you straddle between your confident 20s and responsible 30s, make an important commitment to your family to financially secure them even when you are not around. Term insurance policy is not just a financial product, it is a valuable tool that safeguards your family and fulfils your promises in an unforeseen event. Term insurance gives you peace of mind and a sense of security.