• A Rs. 1 crore cover may start from around Rs. 473 per month for a 30-year-old non-smoker, depending on the policy and profile.
• Premiums can range from around Rs. 500–Rs. 800 per month based on age, health and other factors.
• A term plan can help cover household expenses, loans and future financial goals.
• You can choose policy terms from 10 to 40 years, depending on the available plan.
• Riders can provide additional protection for specific risks.

If your family depends on your income, protecting that income is an important part of financial planning. Term insurance can provide a lump-sum death benefit to your nominee if you die during the policy term, subject to the policy terms and conditions.

For someone earning Rs. 40,000 per month, this benefit can help the family manage everyday expenses, loan repayments, children's education and other financial commitments.

The premium can also fit into a monthly budget. A general budgeting approach is to set aside around 1–2% of your monthly income, which works out to approximately Rs. 400–Rs. 800 per month for a Rs. 40,000 salary.

This is only a budgeting reference. Your actual premium depends on factors such as age, health, lifestyle, sum assured and policy term.

Here is how it generally works:

1. Choose your cover: Select the sum assured based on your family's financial needs.
2. Select the policy term: Choose how long you want the protection to continue.
3. Pay the premium: Pay according to the available payment frequency.
4. Stay covered: The policy remains active as long as you meet the premium and policy conditions.
5. Claim benefit: If you die during the policy term, your nominee can claim the death benefit.
6. Policy maturity: There is generally no maturity benefit if you survive the term unless you choose a return of premium option.

You can also add eligible riders if you want additional protection against specific risks. Explore term insurance plans based on your requirements and get quote for a suitable one.

• High cover at a manageable premium:

A Rs. 1 crore cover may be available from around Rs. 500–Rs. 600 per month in certain examples, depending on the applicant's age, health and other factors.

• Flexible policy terms:

You can choose a policy duration based on your financial responsibilities. The available terms can range from 10 to 40 years, depending on the plan.

• Additional rider options:

Eligible riders can enhance the base life cover. Options mentioned include critical illness, accidental disability and income benefit covers.

• Tax benefits:

Life insurance premiums may qualify for applicable tax deductions, subject to the prevailing tax laws and your chosen tax regime.

• Digital convenience:

Online platforms like Bajaj Finance Insurance Mall can make it easier to compare plans, estimate premiums, complete an application, make payments and manage your policy.

Understanding these benefits can help you decide how much protection you need without stretching your monthly budget.

For a Rs. 40,000 monthly income, you can start by considering Rs. 72 lakh–Rs. 96 lakh based on 15–20 times annual income. A cover of Rs. 1 crore may also be considered if your family's financial responsibilities require a higher amount.

Before finalising the cover, consider:

• Current expenses: Include household bills, education, healthcare and other regular costs.
• Outstanding loans: Add home loans, personal loans and other liabilities.
• Dependants: Consider your spouse, children, ageing parents or anyone financially dependent on you.
• Future goals: Account for education, marriage, retirement and other major expenses.
• Existing investments: Consider savings, investments and other assets available to your family.
• Inflation: Remember that expenses are likely to increase over time.

A higher sum assured may mean a higher premium, so balance the protection you need with an amount you can comfortably continue paying.

A plan that fits your financial needs and remains affordable over the entire policy term is more useful than one selected only because of its initial premium. Explore term insurance plans based on your financial requirements and get quote for the one that matches your goals.

Term insurance premiums may qualify for tax benefits under applicable income tax provisions, subject to the tax regime and prevailing tax laws.

From April 01, 2026, premium deductions of up to Rs. 1.5 lakh per year may qualify under Section 123 of the Income Tax Act 2025, subject to the applicable conditions. Section 123 replaces Section 80C of the Income Tax Act, 1961, which was applicable up to March 31, 2026.

Death covers qualify for tax exemption under Section 11 of the Income Tax Act 2025, which replaces the earlier Section 10(10D) framework, subject to applicable conditions.

Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors.

For example, a Rs. 1 crore cover may start from around Rs. 473 per month for a 30-year-old non-smoker. A Rs. 50 lakh cover may start at around Rs. 300–Rs. 350 per month in certain cases.

Premium comparison by profile:

These figures are indicative. Your actual premium will be determined based on your individual profile and the policy selected.

For someone earning Rs. 40,000 per month, term insurance is not just a financial tool—it is a safety net that protects your family’s lifestyle and future aspirations. With rising costs and unpredictable life events, having a life insurance plan that fits your income is a thoughtful way to ensure your dependents are never left financially vulnerable. Importantly, it helps you build resilience without affecting your monthly budget or compromising essential expenses.

As highlighted in this guide, the key is to approach term insurance with clarity and planning. Identify your family’s financial requirements, liabilities, and future goals, and use those insights to choose a suitable sum assured. Then, explore a variety of term plans that match your monthly capacity. Online platforms, premium comparison tools, and interactive calculators help you further to make informed decisions. Even riders like accidental cover, income replacement, and critical illness support can be customised affordably.

The focus should be on long-term consistency. Begin early, lock in lower premiums, and review your cover as your income grows. Whether you are supporting ageing parents, saving for your child’s education, or planning future milestones, term insurance gives you the confidence that your dreams will be protected, even in your absence. In today’s fast-paced world, financial protection is not a luxury but a responsibility. A carefully selected term policy is your commitment to your family’s well-being, offering peace of mind and financial security through life’s uncertainties.