What To Do If You Can’t Afford ₹5,000 A Year For Term Insurance

If your household earns between ₹15,000 and ₹20,000 a month, then you already know — every rupee has a purpose. Food, rent, school fees, medicines — everything counts. So when someone says, “You should buy term insurance for ₹5,000 a year,” it may feel impossible.

But here’s the truth:
You don’t need ₹5,000 to start protecting your family.

You just need to take the first step — no matter how small — and build from there.

Start With ₹436: PMJJBY — The Easiest First Step

If ₹5,000 feels too much, start with ₹436. That’s the yearly premium for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

For just ₹436 a year — less than ₹2 per day — your family gets ₹2 lakh if something happens to you.

No medical test
No agent hassle
Just link it with your savings account (age 18–50)

It may not be a huge amount. But when there’s nothing else, ₹2 lakh can help pay school fees, clear a loan, or buy a few months of breathing room for your loved ones. That’s a real cushion.

Look at ₹1,000–₹2,000 Plans From LIC or SBI

If you can spare a little more, there are entry-level plans from LIC, India Post, and SBI Life made specifically for modest incomes.

For example:

LIC Micro Bachat Plan
LIC New Jeevan Mangal
SBI Life Grameen Bima

These plans offer ₹50,000 to ₹2 lakh coverage. Some even come with small savings on maturity. The premiums? Often under ₹2,000/year.

These are ideal for shopkeepers, farmers, delivery workers, and others who want to save + protect — without pressure.

Can’t Pay ₹5,000 at Once? Break It Into ₹400/Month

Here’s something most people don’t realize:
Term plans can be paid monthly, not just yearly.

So instead of ₹5,000 in one go, you pay ₹400–₹450/month for ₹10–₹15 lakh coverage.

Many insurers — like HDFC Life, Tata AIA, and SBI Life — offer this mode. You can even set up auto-debit from your bank account.

This monthly format feels easier — and keeps your family covered, even if something happens suddenly.

Don’t Wait for “The Perfect Plan”

Many people delay buying insurance because they think,
“I’ll get a better plan when I earn more.”
But life doesn’t always wait. Accidents, illnesses — they don’t follow salary schedules.

So instead of aiming for a ₹50 lakh cover next year, start with:

₹2 lakh (PMJJBY) this year
Add ₹10 lakh term plan next year
Top-up as income grows

This step-by-step strategy is better than doing nothing and leaving your family unprotected.