Term Insurance for GenZ

Note: Know more about what is term insurance first before reading this article.

What are the Term Insurance for GenZ in India 2026?

*Disclaimer: ˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Why is Term Insurance Important for GenZ?

Below mentioned are some of the reasons why term insurance is important for GenZ.

• Financial Protection for Families
  One strategy to ensure that your family is never in financial hardship after your death is to get term insurance for GenZ. In this case, term insurance can be used because it is the least expensive type of life insurance and offers death benefits.

• Affordable Premium Rates
  Being a member of GenZ, you may obtain high life cover at low premium rates, in comparison to people in their 50s. The older you are, the more your premium rates will be. 

• Tax Benefits
  In addition to the benefits listed above, if you have an active term insurance policy, you can save money on taxes under Sections 80C and 10(10D) of Indian Income Tax Act.

• Debt Pay-off
  As a GenZ, you may have certain debts or loans taken for education, traveling, home etc. These loans/debts can be paid off by your loved ones when you have planned a term insurance for this purpose. Or else, it will just be another financial constraint for them and will act as a burden.

• Peace of Mind
  With a term insurance for GenZ, you can get the peace of mind knowing that your family and loved ones will be financially protected in the event of your unfortunate demise.

Types of Term Insurance for GenZ Available in India

Out of the number of term insurance options available for GenZ, below mentioned are a few that can be beneficial to them:

• Regular Term Insurance Plan
  Regular Term insurance is the most affordable and convenient type of life insurance and provides death benefit to the nominee upon the demise of the policyholder. Millennials or GenZ can avail term insurance as they can not only secure their loved ones but also buy the policy at much lower premium rates. 

• TROP Plan
  Term Return of Premium (TROP) plans provide maturity benefit and return the total premium paid to the policyholder if he/she outlives the policy term.

• 100% Refund of Premium at No Cost Term Plan
  In this plan, there is 100% refund of premium plans at no cost if the policyholder outlives their policy tenure. These are more affordable than TROP plans but not as much as the regular term insurance plans.

• Whole Life Insurance 
  Whole life insurance plans for GenZ provide cover to their family for the long term of 99/100 years. This way, you can secure financial protection that will continue for your whole life, and give you peace of mind.

How GenZ Can Decide the Right Term Insurance Coverage Amount?

For GenZ, choosing the right term insurance cover is not about age alone, but about future responsibilities that may slowly build over time. Even if you are at an early stage of your career, your income is likely to grow, and so will your financial commitments. A suitable cover should be selected by taking your family's expected lifestyle costs, future responsibilities, education loans, or plans such as buying a home into account.

As a general thumb's rule, many insurance advisors suggest choosing a sum assured that is at least 10–15 times your current annual income. This makes sure that your loved ones are financially supported if something unexpected happens. Buying a large cover early also allows you to lock in lower premiums for the long term, making it easier to stay protected without affecting your finances later.

Common Misconceptions GenZ Has About Term Insurance

Many GenZ customers delay buying term insurance because of a few common misunderstandings. Let us take a look at some of the most common misconceptions GenZ has about term insurance:

“I don’t need insurance at this age”
Accidents, medical emergencies, or sudden loss of income can happen at any stage. Buying term insurance early makes sure your family has financial support, even if the unexpected happens sooner than planned.

“Term plans are too expensive”
Term insurance is one of the most affordable forms of life cover. When bought young and in good health, premiums are low, often costing less per day than routine lifestyle expenses, while offering substantial coverage.

“My employer’s insurance is enough”
Employer-provided insurance usually offers limited cover and ends when you change jobs. A personal term plan covers you irrespective of your employer and provides long-term financial security.

“I can buy it later when life is settled”
Delaying term insurance may result in higher premiums and stricter health checks. Buying early helps lock in lower rates and avoids future eligibility issues.

“It has no returns, so it’s not useful”
Term insurance is designed purely for protection. While it does not offer returns, it ensures your family’s financial stability when they need it most.

“Claim settlement is complicated”
Today, claim processes are largely digital and structured. As long as policy details are accurate and documents are in place, settlements are generally smooth and timely.

“I’m healthy, so I don’t need it yet”
Good health is exactly why buying early makes sense. Insurers offer better coverage at lower premiums when you are young and healthy, making it a practical long-term decision.

Factors to Consider When Buying a Term Insurance for GenZ

• Pick the Right Insurer
  One of the first step in choosing the term insurance plan will be a reliable brand name with good track record.

• Claim Settlement Ratio (CSR)
  CSR is the total claims percentage that an insurer settles in a year out of the total number of claims made to the insurer. The CSR of an insurer should be above 95%.

• Affordable premium rates
  The premium amounts you pay for your plan will differ from insurer to insurer. Buying insurance through an agent will result in high premiums. Thus, it is recommended that you buy term plan online without any hassles.

• Sum Assured
  The sum assured is the fixed amount that a beneficiary/nominee will receive in case of any unforeseen event to the policyholder. The policy seeker should always ensure that sum assured is sufficient enough to fulfill the nominee’s requirements.

• Add Riders
  Term rider is an add-on or attachment to the base term insurance plan. The policy seeker can also add accidental death and critical illness riders along with the plan, as these riders offer increased coverage and additional protection against the risk. 

Wrapping it up!

Term insurance has a significant role in giving financial assistance to your loved ones in the event of an emergency, especially death. It is recommended to begin investing in term insurance products as soon as one begins earning or saving enough to pay the premiums. You can always go to Policybazaar where over 15 insurance companies are compared for you to choose your plan. Hence, as GenZ, you must prepare for the future whilst you enjoy the present to the fullest!

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

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