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Life is full of unexpected changes. With the cost of living, healthcare, and education all on the rise, having a safety net against unforeseen expenses is more important than ever.
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Hence, term insurance should be considered a financial safety net for anyone earning ₹ 13 lakh or more in Andhra Pradesh.
Let’s explore how term insurance works, its importance, and how to choose the right policy for individuals earning ₹13 lakh in Andhra Pradesh.
Term Plans
In Andhra Pradesh, where the average monthly salary of an individual is around ₹18,000, your earnings of ₹13 lakh put you in a comfortable range. This also means that you have a greater responsibility. In case of an untimely death, term insurance in Andhra Pradesh enables your family to overcome the sudden financial burden. Here is why it is important:
Financial Protection
As someone making ₹ 13 lakh yearly, you probably have mortgage debts, children's education expenses, and other necessary expenses. In case of your unexpected death, your family need not suffer as term insurance ensures their financial security through the policy payout.
Affordability
Term insurance is budget-friendly, even with a high coverage. With rates as low as ₹485 monthly for a 1 crore cover, you can protect your family's future.
Wide Coverage
Term insurance offers wide coverage that can be useful to pay off debts without financially burdening your family. Additionally, some insurance plans offer additional riders. These could be for accidents and critical illness, ensuring complete protection. Customising your plan based on your financial needs will help keep your family safe during unanticipated events.
Peace of Mind
Did you know that 25% of urban Indians do not have life insurance? Term insurance provides financial stability against unanticipated circumstances. If your family depends on your salary, term insurance becomes more important for you. You can secure your family's needs with this coverage. It ensures that their needs will be met even in your absence.
Tax Benefits
You can take advantage of tax deductions under Section 80C of the Income Tax Act for your term insurance premiums. This deduction helps lower your taxable income. It enables you to save money while ensuring your family’s financial security.
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Multiple life insurance companies in India provide customisable term plans for individuals in Andhra Pradesh. Some of the term insurance plans for individuals earning ₹ 13 lakhs in Andhra Pradesh include:
| Insurance Provider | Term Insurance Plans | Claim Settlement Ratio | Entry Age | Maturity Age |
| ICICI Prudential Life Insurance Company Limited | iProtect Smart | 99.2% | 18 - 65 years | 99 years |
| HDFC Life Insurance Company Limited | Click 2 Protect Super | 99.5% | 18 - 65 years | 85 years |
| MaxAX Life Insurance Company Limited | Smart Total Elite Protection | 99.7% | 18 - 65 years | 85 years |
| TataATA AIA Life Insurance Company Limited | Sampoorna Raksha Promise | 99.1% | 18 - 65 years | 100 years |
| Bajaj Allianz Life Insurance Company Limited | Life eTouch | 99.2% | 18 - 55 years | 99 years |
* You can use the term insurance premium calculator to check the premiums applicable for your desired life cover.
As a rule of thumb, if you are earning ₹13 lakh, your term insurance coverage should be 10–15 times your annual income. Here is how you can choose the right coverage:
Income Multiplier: For a policyholder earning around ₹13 lakh per annum, the ideal coverage amount should be between ₹1.3 crore ₹1.95 crore. Such coverage will help your family support its current expenses and future needs.
Existing Liabilities - In case of your demise, your family has to pay off liabilities such as car loans, home loans, or other personal loans. Ensure that your coverage amount also can pay for these liabilities.
Future Expenses—When choosing the coverage amount, Consider long-term needs like future healthcare costs for elderly members, children's education needs, marriage expenses, and other expenses.
Inflation - The value of money decreases over time due to inflation. Your sum assured may seem large enough today, but after 10 to 20 years, it may not be sufficient to meet increasing living costs. The sum assured should be 10-15 times your annual income to provide adequate protection for your family. For someone earning ₹13 Lacs, this would typically be between ₹1.30 -1.50 crores.
Claim Settlement Ratio (CSR) - Choose insurers with a higher claim settlement ratio to avoid unnecessary hurdles for your family while receiving their financial support. Look for companies with a CSR of 95% or above when settling the claims made.
Premium Affordability - Premiums vary from one insurer to another. Choose a provider that offers affordable premiums. For someone earning ₹13 lakh in Andhra Pradesh, the annual premium can vary from ₹9500 to ₹12,000 for ₹1.3 - ₹1.95 crore coverage. Ensure you compare premiums from different insurers to find a policy that fits your budget.
Riders - Consider including riders for additional benefits. Here are some riders to consider:
Accidental Death Benefit Rider - Provides an additional payout in case of death due to accidents
Critical Illness Rider - You get a lump sum amount in case of a diagnosis of a critical illness like cancer or heart attack.
Waiver of Premium Rider - In case of total disability or critical illness, your future premium payments can be waived.
Policy Term - Choose a policy term that covers your financial obligations. If you are young, consider buying a policy with a longer term of 20 to 30 years. This ensures that the policy coverage extends until your children become independent or your debts are closed.
Reputation of Insurer - Ensure that you purchase insurance from a reputable provider based on ease of customer support, claim process, and policy renewal.
Following are the steps to purchase term life insurance for individuals making ₹ 13 lakhs in the state of Andhra Pradesh:
Step 1: Go to the term insurance page of Policybazaar.
Step 2: Fill in the personal details like name, gender, and contact details.
Step 3: You will be asked to share details about types of occupation, annual income, level of education, smoking habits and current city..
Step 4: Find the most appropriate term life insurance policy and proceed to pay.
In Andhra Pradesh, an individual earning ₹13 lakhs annually should consider term insurance to secure their family's future. The optimal coverage should be chosen based on liabilities, income, and future financial needs. Ensure that the insurer you choose has a good reputation, higher CSR, and offers affordable premiums with a wide range of add-ons. Always choose a term insurance plan that best suits your family’s needs and budget.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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