First time buying insurance? Your head probably hurts already. So many options. Strange words everywhere. Someone is trying to sell you five different things at once.
Look, you just want your family safe. Which policy actually does that?
Two matters are most important when you’re starting out. Term life insurance takes care of your family if you die. A critical illness policy gives you money if you get really sick.
Different problems. Different solutions. We’ll show you what each one does and which to get first.
What Term Life Insurance Actually Means
This is the easiest insurance to understand. Pay some money every year. If you die during that time, your family gets a big amount.
Nothing fancy about it. No investments. No returns. Just protection for the people you love.
Your family needs money for rent even without you. School fees don’t stop. Daily expenses keep coming. This insurance handles all that.
The “term” part just means how many years you want coverage. Could be 20 years. Could be 30. Depends on when your kids will be independent or when your home loan ends.
Why First-Time Buyers Need Term Life Insurance
You just started your career. Got married, maybe. Or had a baby. People rely on your salary now.
What if you’re suddenly gone? How do they pay bills? A term life insurance helps here.
Here’s why this works for young people:
- Get 1 crore coverage for around 8,000 to 10,000 rupees per year when you’re 25
- Works out to less than 900 rupees monthly
- Your family stays secure no matter what
- Get this before spending on that new car or fancy phone
How Much Coverage You Actually Need
Don’t just throw a dart at random numbers. Do some simple math instead.
Take what you earn in a year. Times it by 10 or 15. There’s your baseline.
Other things to add:
- All your loans, especially home loans
- Money needed for your kids’ college later
- Future wedding expenses
- Most young buyers should target 50 lakhs to 1 crore minimum
What a Critical Illness Policy Does
Now let’s talk about the other important protection. A critical illness policy pays you money when you get diagnosed with a serious disease.
Cancer. Heart attack. Kidney failure. Stroke. Brain surgery. Major organ transplant. These are critical illnesses.
You get a lump sum payment right after diagnosis. Not after you die. While you’re alive and dealing with the illness.
Use that money however you need. Medical bills. Lost income. Special treatments. Home care. Travel for treatment. Anything.
This is totally different from health insurance. Health insurance pays hospitals. Critical illness policy pays you cash directly.
Why You Need a Critical Illness Policy Too
Medical science helps people survive serious illnesses now. But survival costs money:
- Cancer treatment costs 10 to 20 lakhs easily
- Heart surgery runs 5 to 10 lakhs
- You can’t work for months, so the salary stops
- Your spouse might take leave to care for you
- Health insurance covers hospital bills, not lost income or extra costs
The Right Coverage Amount
Start with your annual income again. At least 5 to 10 times that amount makes sense for a critical illness policy.
If you earn 6 lakhs yearly, get coverage of 30 lakhs to 60 lakhs. This covers treatment plus living expenses for recovery time.
Consider your city, too. Delhi and Mumbai have higher medical costs than smaller towns. Adjust your coverage accordingly.
Don’t go too low, thinking you’ll save on premiums. Inadequate coverage defeats the purpose. You’ll still struggle financially when illness strikes.
Understanding the Difference and What to Buy First
These two policies protect against different risks. Term life insurance pays only if you die. Critical illness policy pays when you’re diagnosed but still alive.
You need both for complete protection. They’re like two different locks on your door.
But if you can only afford one right now, buy term life insurance first. Death leaves your family with zero income. That’s the worst situation possible. Critical illness is tough, but your family still has some income while you recover.
Plus, term life insurance costs much less. Get good coverage without stretching your budget. Once that’s locked in, add a critical illness policy next.
How to Actually Buy These
Start online. Most insurance companies have websites where you can get quotes instantly.
Put in your age, income, whether you smoke, and the coverage amount you want. You’ll see the premium right there.
Compare at least three different companies. Premiums vary. Some charge more for the same coverage.
Check their claim settlement ratio. This tells you how many claims they actually pay. Higher is better. You want a company that pays claims without hassle.
Read reviews online. See what other customers say about their experience.
For the critical illness policy, check which illnesses are covered. Some policies cover 15 diseases. Others cover 40. More coverage is better.
Look at waiting periods, too. Some policies make you wait 90 days before you can claim. Check these details.
Getting Started Today
Stop researching endlessly. You don’t need to become an insurance expert. You need basic protection.
Open three insurance company websites right now. Get quotes for term life insurance. Pick the one with the best mix of price and claim settlement ratio.
Buy it this week. The whole process takes maybe an hour online.
Once that’s done, get quotes for a critical illness policy. Compare coverage and prices. Add this to your protection within the next month.
You’re young and healthy now. Premiums are lowest at this age. Lock in these low rates before you get older or develop health issues.
Your family deserves security. You deserve peace of mind. Both term life insurance and a critical illness policy give you that. Make it happen this month, not someday.