Policybazaar launched a dedicated Student Term Plan on August 19 in partnership with insurer partners, targeting individuals aged 18 to 25. According to the company, premiums can start at ₹388 per month for ₹50 lakh cover for an 18-year-old buying a 30-year policy, provided the person is a non-smoker with no pre-existing diseases. The plans are available with policy terms of 30 to 40 years and allow premium payments through monthly, quarterly, half-yearly, or annual options. Critical illness and accidental death riders are available as optional add-ons.
The latest offering provides life insurance coverage of up to ₹2 crore for eligible students, as confirmed by Vaibhav Kumar, head - products, ecommerce and enterprise COE at Axis Max Life Insurance. Financial waivers allow students to obtain cover without submitting income proof, with eligibility depending on the college and degree being pursued. According to Varun Agarwal, head of term insurance at Policybazaar, insurers may ask for college admission letters and marksheets from previous years. The absence of independent income proof has generally kept students outside the insurance ecosystem, but eligible students can now access term insurance by using their parents' income as proof of financial capacity.
Age remains a crucial factor in term insurance pricing, with younger and healthier applicants accessing cover at lower premiums than those buying the same coverage later in life. According to Policybazaar, the premium advantage is one of the principal benefits of purchasing term insurance early, with premiums remaining fixed for the policy term once cover is issued. For a 19-year-old student from Delhi, who is a non-smoker, the annual premium is ₹5,262-5,266 for a life cover of ₹50 lakh for a 40-year policy tenure offered by ICICI Pru and Axis Max Life. The company notes that buying early allows policyholders to lock in premiums at a younger age, producing substantial savings over their lifetime.
The immediate financial trigger for student term insurance is education debt, particularly professional and overseas courses that require families to borrow substantial amounts. As reported by Policybazaar, if the student is the borrower and dies while the loan is outstanding, the family could be left dealing with repayment obligations as well as loss of the student's future earning potential. Term insurance can create a financial safety net for parents and family members who have invested their savings in the student's education and growth. The cover should ideally last until between age 60 and 70, with students maximizing cover early to lock in higher protection and buying for longer tenures to secure lower premiums for the long term.
Most Indian term insurance policies provide global coverage, allowing students to buy term insurance from India even when the cover is intended to apply overseas. According to Varun Agarwal from Policybazaar, video medical examination is available as an alternative when students are abroad, and most major destinations including the United Kingdom, United States, Europe and Gulf Cooperation Council countries are covered. However, premiums and policy terms can vary according to country-specific risk assessment. Students going abroad should maintain an Indian account with standing instructions for premium payments and keep the policy claim-ready by giving nominees copies of the policy for safekeeping.
