Tips for buying Term Insurance for salaried individuals 2026

If you are a salaried individual and the primary earner, your family depends on your income for everything, daily expenses, rent or EMIs, education, and future goals. A Term Insurance Plan protects all of it. Aditya Birla Sun Life Insurance (ABSLI), regulated by the Insurance Regulatory and Development Authority of India (IRDAI), offers Term Plans built for salaried professionals. In 2026, buying is more affordable than ever. GST on individual term premiums is now 0% (down from 18% since 22 September 2025).

As per IRDAI and insurer disclosure, ABSLI settled 98.86% individual claims with 630+ crore total claims paid in FY 2025-26, a key reliability marker. Term Insurance is pure risk cover: pay premiums, and your family receives a fixed sum if you pass away during the term. Choosing the right plan comes down to a few practical decisions.

What are the tips for buying Term Insurance as a salaried individual?

1. Calculate the right cover amount
Aim for cover worth 10-15 times your annual income. For most urban salaried earners in 2026, ₹1 crore is the baseline adequacy benchmark, with ₹2 crore common for those with Home Loans or children. Use the ABSLI Term Insurance Calculator to size it precisely.

2. Buy early to lock in low premiums
Premiums are lowest when you are young and healthy, and they stay fixed for the whole term. A healthy 30-year-old non-smoker can secure ₹1 crore cover from roughly ₹9,000-12,000 a year, and with 0% GST, you pay only the base premium.

3. Match the policy term to your working years
Choose a term that lasts until your planned retirement or until your dependents are financially independent, typically age 60-65. This ensures cover through the years your family relies on your salary.

4. Choose the right payout option
ABSLI lets your nominee receive the death benefit as a lumpsum, a monthly income, or a combination. A salaried family used to a monthly pay cycle may prefer the monthly income option to replace your salary smoothly.

5. Add riders for fuller protection
Enhance the base plan with a critical illness rider, accidental death and disability, or waiver of premium. These cost a nominal extra and need no separate paperwork.

6. Check the claim settlement ratio
A high CSR signals the insurer reliably pays claims. ABSLI's is 98.86% individual claim settlement ratio in FY 2025-26, within the top tier of Indian insurers.

7. Fill the proposal form yourself and disclose honestly
Never let an agent complete your form. Disclose your health, habits, and income accurately, non-disclosure is a leading cause of claim rejection. Honest disclosure protects your family's claim.

Does Term Insurance for salaried individuals get tax benefits?

Yes. Premiums are deductible under Section 80C (Section 123 of the Income-tax Act, 2025) up to ₹1.5 lakh a year, and the death benefit is tax-free under Section 10(10D) (Section 11 read with Schedule II of the Income-tax Act, 2025), subject to conditions. Note that 80C/123 benefits apply under the old tax regime; confirm based on the regime you choose. Separately, the 0% GST since September 2025 lowers your premium outgo directly.

ABSLI claim settlement ratio vs. leading insurers (FY 2025-26)

As per IRDAI and insurer public disclosures, ABSLI settled 98.86% of individual claims in FY 2025-26:

Source: IRDAI and insurer public disclosures (Form L-40) for FY 2025-26. ABSLI's own disclosures report a CSR of 98.86% for FY 2025-26.

The ABSLI Salaried Term Plan is designed specifically for salaried professionals, with lump-sum and monthly income options. Explore it or compare on the ABSLI Term Insurance page.

Conclusion

For a salaried individual, Term Insurance is the simplest way to secure your family's future against the loss of your income. Size the cover to 10-15 times your income, buy early to lock in low premiums, add relevant riders, and disclose honestly. With 0% GST on individual premiums since September 2025 and a 98.86% individual claim settlement ratio for FY 2025-26, the ABSLI Salaried Term Plan is a strong, purpose-built choice.

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