Life Insurance For Students 

Why is Student Life Insurance Needed for College-going Students?

A college-going student needs a life insurance plan for the following reasons:

1. Pay off Remaining Student Loans

   Many students opt for student or education loans to pursue higher education. However, if something happens to them, the burden of paying off the remaining loan may fall on your parents' shoulders. A student life insurance can help your family pay off the remaining loan in your absence and any other such debts that you may leave behind. 

2. Provide Death Benefits to Nominees

   If you are a student who is also the sole earning member of the family, your financial dependents may be left with no income in your absence. The death benefits provided by life insurance for students can help your family recover from the financial implications of losing a loved one and maintain their current lifestyle.

3. Build Wealth for Your Future Goals

   As a student, you may have future goals for your life, like pursuing higher education, getting married, or moving abroad. Life insurance for students can help you build wealth by investing in different investment funds through life insurance plans while offering the security of insuring your life.

4. Offers Peace of Mind 

   A life or term insurance for students can offer you the peace of mind of knowing your family will be financially secure in your absence and won’t have to worry about paying monthly expenses in case you are the main breadwinner of the family. 

What are the Benefits of Buying Life Insurance for Students?

The mid-20s is the age of enjoyment, and planning financially for your future may not be the foremost thing that comes to your mind. Though, saving and investing at a young age will help you in the future. The following are the benefits of purchasing the life insurance plan: 

1. Low Premium Rates 

   One of the main reasons to buy a policy at a young age is just because of low premium amounts. The insurance premium price increases with age because younger individuals are less likely to be diagnosed with an illness. You can consider buying term insurance for students, as it is one of the most affordable types of life insurance.

2. Investment Security

   Life insurance for students is one of the safest investment options. They protect your investments and ensure that your loved ones receive the life cover if you die during the plan tenure. 

3. Compounding Growth Benefit

   The interest earned on the principal amount is reinvested in the plan to get more interest, called compounding. Simply put, it is the interest that is gained on the interest. The more time you remain invested in your plan, the more time you permit your money to increase exponentially. 

4. Helps fulfil wealth creation goals 

   Apart from providing coverage, life insurance for students is also used for long-term wealth creation. You can fulfil this by availing yourself of plans such as endowment, ULIP, money-back, etc. In these plans, you receive a maturity benefit after the expiration of plan tenure. These plans enable you to accrue money and pay off debts such as pending student loans. 

5. Tax Benefit 

   You can claim tax benefits on term insurance for students to get tax savings benefits. The premium amount paid for a plan can be claimed u/s 80C of the ITA. This decreases your tax liability, helping you further save money. 

What is Life Insurance for Students in India?

The table below illustrates the term insurance for students offered by the life insurance companies for young individuals: 

*Disclaimer: The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

How can College Students Buy Life Insurance Plans? 

Here is how you can buy life or term insurance for students in India 2024:

• Step 1: Visit the life insurance page

• Step 2: Select the type of life insurance you want to buy: term life insurance or investment plans

• Step 3: Fill in the required details like name, gender, date of birth, and phone number

• Step 4: Select the most suitable term insurance for students and proceed to pay

Wrapping It Up!

Life insurance for students can help you secure your loved ones, offer wealth creation benefits, help save on yearly taxes and provide overall peace of mind. With a student life insurance, you can secure a large life cover at an early age in exchange of really affordable premiums.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.