Term Insurance
What are the best term insurance and riders you must have?
Don't buy until you have dependants (non working wife, children, sending money to parents for expenses, etc). No point locking in low premiums, you're wasting the money. Get it early only when someone's life will be better when you're not there. Right after marriage is a good choice.
Caveat - if you get it early and cross the 3yr mark, then they can't deny the payout under any circumstances. Personally, I don't do it. get it when I have a dependant.
Don't buy anything that gives you a return. Treat insurance and insurance, don't mix it with investments. Keeps the premium low. It's an unavoidable expense, like car insurance.
NEVER, again, NEVER change the policy. The 3yr clock reset.
You can have any number of life insurances. All of them will payout on death. If you feel that coverage Ä°s low, get a new one. Buying a house? Worried who'll pay the emi on death? Get a new insurance for the house value and close it when you're done. Don't buy from the bank.
Riders? I don't know. Consult with ditto. You can always top-up with a new one if requirements change.
Which company? Practically all of them are the same in the end. Choose any national brand. It doesn't matter.
Locking in low premiums is good as you can get a decent 1cr policy at 25 for like rs 1200 per month. That's nothing in today's world.
Waiting for dependants is stupid, as there'll always be some dependant, and if you have no dependants, just stop paying the premium.
Thank you. This is really helpful. Didn't know Engineers are so aware about financial matters too. 🙂 I am impressed.
I sell insurance for a living here's how I think about term life, products and riders:
If you’re just starting your career, here’s how I think about it:
Start early — ideally once you’re 1–2 years into your career or have around ₹1–1.5K/month to spare without hurting liquidity. (Reason: you lock in great rates if you’re below 25. Cut down 2–3 Zomato orders a month — win-win.)
Add a Critical Illness Rider — preferably as a standalone rider, not bundled. (Reason: our diet & lifestyle — enough said.)
Think of it as discipline, not deduction. Tax benefits are a bonus; the real value is the habit of setting aside money for peace of mind.
Check flexibility. See if the plan lets you increase cover, convert between term/ULIP, or port later. Always read the fine print.
Insurers I trust (based on claim settlement & solvency ratio): ICICI Prudential & HDFC Life
please Note: This isn’t financial advice — just how I personally think about insurance. It’s a subjective product. Always check your own needs and read the terms and conditions carefully.
At the end of the day, one guaranteed outcome is assurance — and that has a surprisingly high long-term ROI, especially if you’re someone prone to anxiety.
This is so assuring to hear from a person who sell insurance for a livelihood. Thank you for sharing your POV.
Take a simple term insurance.
All the riders are extreme case scenarios, so avoid. E.g. If you work in construction, then accidental death rider makes sense. Sitting in a chair and working won't count. Similarly taking a "critical illness" rider, only specific illnesses will be covered, and insurance companies will randomly pull crap saying your illness is not critical. Then what will your dependants do. Fight an insurance company or take whatever money they can and leave.
Accidental insurance should be avoided; it makes sense, but insurance companies generally provide a list of critical illnesses covered under the policy, so there is less chance of disputes.
