Low-Cost Term Insurance Plans with High Sum Assured: Why I Chose One

A few years back, a friend of mine—fresh into his 30s—passed away suddenly, leaving behind a wife and a toddler. What shook me wasn’t just the grief; it was how completely unprepared they were financially. That incident hit home and forced me to confront something we all tend to delay: life insurance.

Now, I’m not a financial advisor, and I definitely don’t enjoy reading policy documents. But here’s what I’ve come to believe—term insurance isn’t just smart, it’s essential. Especially when you can snag one with a high sum assured without coughing up a lot in premiums. Sounds like a win, right?

 what is term insurance really?

Imagine this: you pay a small amount regularly, and in return, your family gets a big safety net if anything happens to you during a set period. That’s it. No frills, no investment jargon. Unlike other insurance types that mix protection with savings, term insurance keeps it simple. You live—great, you move on. You don’t—your loved ones don’t suffer financially.

No survival or maturity benefits mean the premiums are low. That’s a trade-off I’m willing to make, and many others should consider it too, especially if you’re young or have folks depending on your income.

Why I went for a term plan

For starters, the premiums didn’t wreck my monthly budget. I got coverage worth a crore (yes, ₹1 Cr!) for less than what I spend on Netflix, chai, and takeout in a month. That’s wild, isn’t it?And unlike ULIPs or endowment plans, this wasn’t trying to sell me an investment dream. It was just: “Pay this much, get this cover, no nonsense.”

Perks that make it worth it:

It’s affordable. Like, actually affordable. Younger buyers get even lower premiums, especially if they’re healthy.Coverage is massive. We’re talking ₹50 lakh to ₹5 crore, depending on your plan. That’s real protection.

• It’s straightforward. No hidden terms. No stock market-linked surprises.
• Customizable duration. You want 10 years? 30? You choose.
• Tax benefits. Section 80C and 10(10D) got you covered. Enough said.
• A quick word on riders
• Think of these like extras on your pizza. Not mandatory, but they enhance the experience.
• Critical illness cover (helpful if you want your finances to breathe during a tough health scare)

Accidental death benefit

• Waiver of premium (in case you fall seriously ill or become disabled)
• Income rider (your family gets regular monthly income if you pass away)
• I added the critical illness one—it gave me peace of mind, especially since there’s a family history of heart issues.

How is this different from a unit-linked pension plan?

Term insurance is all about protection. Period. ULIP, on the other hand, are investments that aim to grow your money over time, typically for retirement. I have one of those too—but I treat them like apples and oranges. You need both. One keeps you safe today; the other builds your future.

Picking the right plan

Coverage: I aimed for 15x my annual income. Not random, just safe.

• Policy duration: Mine covers me till I’m 60—past my loan terms and till my kid’s through college.
• Compare wisely: Don’t fall for just low premiums. Check claim settlement ratios too.
• Pick a solid insurer: If they have bad reviews, slow claim processes, or confusing fine print—skip!

Final thoughts

Life’s uncertain. That’s cliché, but it’s also true. A term plan won’t stop bad things from happening—but it can make sure your family’s dreams don’t fall apart without you.So yeah, take a weekend, compare plans, call that insurance friend, and just get it done. It’s honestly one of the most grown-up, loving decisions you can make.And if you’re still unsure? Just imagine your family reading the fine print after you’re gone. Let that be your motivation.