“I Don’t Earn a Lot — Do I Still Need Life Insurance?”
If you earn around ₹20,000 to ₹30,000 a month, you’re not alone in wondering whether life insurance is even necessary. A lot of young earners think insurance is only for the wealthy — or something they can think about later.
But here’s the truth: if your family depends on your income, you need life insurance — and probably more than you think.
Even a modest monthly income plays a huge role in keeping your household running. Rent, groceries, children’s school fees, electricity bills — it all adds up. And if something were to happen to you, your family would feel that loss instantly — not just emotionally, but financially too.
That’s exactly where term life insurance comes in.
Let’s Break Down the Numbers
Say you’re earning ₹25,000 per month, or ₹3 lakh per year.
You’re 30 years old, and you plan to work till you turn 60 — that’s 30 working years ahead.
Now imagine this: if you weren’t around, how much income would your family lose?
₹3,00,000 × 30 years = ₹90,00,000
So even without accounting for inflation, medical needs, or loans, you’d need at least ₹90 lakh in life insurance cover just to replace your income.
In reality, a ₹1 crore term insurance policy is the ideal minimum in this case.
Can You Afford ₹1 Crore Life Cover on a ₹25K Salary?
Yes, absolutely.
Term insurance is built for affordability — especially if you’re young, healthy, and a non-smoker.
If you’re 30 years old and in good health, you could get a ₹1 crore term plan for just ₹500–₹700 per month.
That’s less than the cost of:
- One weekend dinner
- Two rounds of tea every day
- Your monthly OTT subscription
And this one small habit can secure your family’s financial future for the next 30–40 years.
What Happens If You Buy a Smaller Cover?
Let’s say you settle for a ₹25 lakh life cover thinking it’s “better than nothing.”
Here’s the issue:
If your family receives ₹25 lakh and uses it over 20 years, that’s about ₹10,000/month.
Now ask yourself — would that cover:
- Rent or EMI?
- Monthly groceries and bills?
- Children’s school or tuition fees?
- Medical emergencies or sudden repairs?
Chances are, it won’t. Not even close.
This is why under-insuring yourself is almost as dangerous as having no insurance at all.
What If You Have a Loan?
If you’ve taken:
- A personal loan
- An education loan
- A home loan
Then your insurance needs go up.
Let’s say you have ₹10 lakh in loans.
You now need:
₹90 lakh (income replacement)
➕ ₹10 lakh (loan repayment)
= ₹1 crore total life cover
Because if anything happens to you, your family could be left not only without your income — but also with the burden of loan EMIs.
Can You Increase Your Cover Later?
Yes — and that’s the good news.
Many insurers offer “life stage benefit” options. You can start with a base cover today, and increase it when:
- You get married
- Have children
- Buy a home
- Change jobs
However, your premium also increases with age.
That’s why locking in a ₹1 crore cover early (in your 20s or 30s) keeps the premium low — for life.
Best Term Plans for ₹25K Monthly Income (2025 Options)
While we don’t promote any brand, here are features to look for:
- ₹1 crore term cover
- Policy term of 30–40 years
- Riders for accidental death or critical illness
- Option for return of premium (optional, higher premium)
- Monthly premium: ₹500 to ₹750 (age-based)
Trusted insurers offering such plans include:
- LIC
- HDFC Life
- SBI Life
- Max Life
- ICICI Prudential
- Tata AIA
Pro Tip: Always compare at least 3 plans. Check for claim settlement ratios, hidden fees, exclusions, and how easy it is to file a claim.
Final Thought: Start Small, But Start Now
If you earn ₹25,000 a month, don’t wait for your income to grow before getting life insurance.
Your ideal cover today is ₹90 lakh to ₹1.2 crore — and yes, it’s affordable.
Start with a plan that fits your budget now. You can upgrade it later. But don’t delay protection.
Because your income might seem modest — but for your family, it’s everything.
| Factor | Example |
|---|---|
| Monthly Income | ₹25,000 |
| Annual Income | ₹3,00,000 |
| Working Years Left | 30 years |
| Ideal Cover Needed | ₹90 lakh – ₹1 crore |
| Estimated Premium | ₹600/month (age 30, non-smoker) |
