Family income plays a critical role in shaping financial well-being, housing decisions, and long-term planning across the United States. From qualifying for low income rental housing to using a family income calculator for budgeting, understanding how family median income impacts financial security is essential. Let us explore how family income levels affect term insurance, especially income replacement strategies, while also highlighting relevant options for NRIs in the United States.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
Family income refers to the combined income of all members within a household who are related by birth, marriage, or adoption. This includes wages, salaries, self-employment earnings, investment income, and government transfers.
Average family income: The mean income across all families.
Family median income: The midpoint where half the families earn more and half earn less.
Area median family income: Localised figure used to determine eligibility for housing and other benefits.
Term Plans
Whether calculating expenses using the family income calculator or determining loan eligibility for housing for low income families, understanding family income provides clarity on financial standing, it also influences decisions about housing, education, healthcare, and life insurance coverage.
Determining eligibility for housing for low income families
Planning using a family income calculator
Understanding rent thresholds in low income rental housing programs
Term insurance is designed to offer financial protection to an average family income if the policyholder passes away. When tied to family median income levels, term insurance becomes a key tool for income replacement, helping dependents sustain their standard of living.
Offers monthly payout instead of a lump sum
Helps manage recurring costs such as rent, education, groceries, and healthcare
Ideal for families relying on a single income stream
Secure Your Family Future Today
₹1 CRORE
Term Plan Starting @
Get an online discount of upto 15%#
Compare 40+ plans from 15 Insurers
| Income Segment | Characteristics | Recommended Insurance Features |
| High family income | Multiple income sources, significant assets | High coverage with optional riders |
| Median family income | Balanced budget, limited savings | Income replacement with moderate premium |
| Low family income | Limited reserves, high risk of financial disruption | Basic cover focused on essentials like rent/mortgage |
When deciding on insurance for life coverage, families can align their policy with income metrics:
Family income calculator tools help estimate income-based coverage needs
Area median family income data can guide policy affordability
Premium levels can be tailored according to financial capacity and dependents
Non-Resident Indians (NRIs) based in the United States often support family members in India or retain financial ties with their home country. Term insurance for NRI from India offers a more affordable and accessible alternative.
Term insurance premiums from Indian insurers are much more affordable than international term plans.
You can claim term insurance for NRI GST waiver of 18% on the premiums paid.
Receive a 5% additional discount on choosing to pay the premiums in annual mode.
Various Indian insurers allow you to get your medicals cleared online via tele or video channels.
Get pre-approved cover that offers global coverage to you and your family.
Here is how NRIs in the USA can buy term life insurance from Indian insurers via policybazaar:
Step 1: Visit the term insurance for NRI page on Policybazaar’s platform
Step 2: Fill in the required details like name, gender, and other contact details
Step 3: Select the right smoking habit, occupation type, education qualifications, and annual income
Step 4: Choose the best term insurance plan for NRIs in the USA and proceed to pay
From managing housing needs to securing family well-being, understanding your family income, whether it aligns with the average family income, area median family income, or income by household, is key to long-term planning. Term insurance offers a valuable safety net, especially when designed to replace family income over time.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
© Copyright 2008-2025 policybazaar.com. All Rights Reserved
+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.
In the United States, the average household income plays a
Read more
Aflac life insurance is an American life insurance company that
Read more
Getting a life insurance quote is a key step in planning for
Read more
Life insurance is a crucial financial tool that provides
Read more
Globe Life Insurance provides a variety of life insurance
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
