Life Insurance for Students in India: Key Benefits and Options

Death is the ultimate reality, but till today, most of the people in India do not like to have an open conversation about it. Similarly, life insurance is also something that still lacks popularity and isn’t talked about much. In that limited section also, we generally see adults buying life insurance policies, especially when they have dependencies. But in this blog, we will learn about the importance of life insurance for students. We will understand how a life insurance policy helps your family or dependents in times of crisis if you are a student and the sole breadwinner of your family.

The Need for Life Insurance for Students

1. Payment of Education Loan: If you are a student who has taken a loan for your education, you plan to repay it on time without causing any financial trouble to your parents. But in case of any mishap, the burden of paying the loan amount falls on the parents. A life insurance policy helps avoid that situation by paying off the remaining loan amount in your absence.
2. Wealth Creation: Many life insurance policies today are provided with attractive add-ons. You can opt for investment options that will help you financially achieve your future goals. If you want to pursue higher studies, which require a good amount of funds, then these investments can be your savioursavior.
3. It Acts as a Support for Your Dependents: Normally, students are dependent on their parents for their financial needs. But what if you are a student and married? There are many people who continue their studies even after marriage and they bear the responsibilities of their family. If this is your case too, then you should consider buying a life insurance policy. The policy gives your spouse and children financial support in case of your untimely demise. The children of the policyholder can also use that money to complete their studies thus they will not be stuck in any financial instability in your absence. 
4. Death Benefits to Nominees: In certain cases, a student is the sole breadwinner of the family. Buying a life insurance policy can offer you peace of mind that, in your absence, your dependent parents will not have to struggle with financial problems.

Benefits of Life Insurance for Students

When you are young, in your early or mid-20s, you generally do not bother about financial planning. However, saving and investing smartly can help you in the future. Below are the benefits that you get when you buy a life insurance policy as per your requirements.

1. Extremely Low Premiums: This is one of the most lucrative advantages of buying a policy at an early age. The premiums are very low when you are young, making it affordable for you. As you grow, the policy becomes costly because the chances of falling ill and dying are comparatively low at a younger age.
2. Financial Support in The Future: As you grow, your responsibilities grow. When you get married, you have to take care of your life partner and your children. An insurance policy secures your family’s financial future in your absence. It assures that even if you are not there, your family will not have to face financial problems.
3. Compounding Growth Benefit: Compounding means you will earn interest on interest. It means whatever interest you earn in your plan will be reinvested in the plan to get more interest. Thus, your amount grows exponentially if you are consistently investing in your policy.
4. Tax Saving Benefits: Buying an insurance policy gives you tax benefits under Section 80c of the Income Tax Act, 1961. This helps you save money when you are earning income.

List of Life Insurance Plans

Below are some of the popular life insurance plans for students:

How Can You Buy Life Insurance for Students?

One can buy a life insurance policy for students through InsuranceDekho’s website where you can find and choose from a number of options. The steps are simple and easy to follow as mentioned below:

Step 1: Visit InsuranceDekho Website

Go to the InsuranceDekho website and click on the “Insurance” tab at the top. Choose the “Life Insurance” option.

Step 2: Fill in Your Details

Enter your name, gender, date of birth, mobile number, etc., on the next page. Then, click on the "View Plans for Free" button.

Step 3: Choose The Plan of Your Choice

Apply filters as needed and select the most suitable Life Insurance plan from the list. Consider adding add-ons for extra benefits after you have compared the top plans.

Step 4: Provide Specific Information

On the following page, input specific details such as your name, education, income, etc. Click on the "Next Step" button after filling them out.

Step 5: Pay Premium

Review the premium amount and click on the "Accept and Pay" button to make the premium payment for your selected Life Insurance Plan.

Step 6: Submit Proposal Form & Basic Documents

Following successful payment, proceed to submit the Proposal Form along with basic documents such as KYC and income proof and additional documents based on the responses you provided in the Proposal Form. 

Step 7: Medical Evaluation & Underwriting Review

You may have to undergo medical evaluation and later the underwriting team will thoroughly assess all submitted details, and then decide on the policy issuance.

Step 8: Policy Issuance

If approved, your Life Insurance policy will be issued and you will receive the confirmation on your registered email ID and phone number. 

Note: Before buying an insurance policy, you should thoroughly understand the details of the policy and accordingly choose the plan. You can always enhance your policy features by adding more options.

The Final Words

Life is unpredictable. It is better that you plan wisely rather than leave you or your family struggling with financial crises during any emergency. A life insurance policy acts as a protective shield for your family in times of mishap. When you are young, you have the advantage of low premiums, which makes buying a policy affordable for you. You can also customise it by adding riders as per your needs.