Term Insurance for Gen Z

For many young adults, insurance often feels like something to postpone until later in life. However, for Gen Z, starting early with term insurance can be a smart and strategic financial move. Read more... Buying a plan at a younger age helps lock in lower premiums, making long-term protection more affordable while income and expenses are still manageable. As responsibilities grow with career progress, marriage, loans, or family planning, having term insurance in place provides peace of mind and stability. It safeguards your future dependents and supports long-term financial planning, allowing you to focus on growth and goals with confidence. Read less

Buy Term Insurance for Gen Z

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Premium starting ₹301/month*

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Digit Glow Term Life Insurance

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    Why is Term Insurance Essential for Gen Z?

    Term insurance is not just about cost, it’s about building a safety net that supports everything else you do financially. Before savings and investments can grow, you need protection that ensures those efforts aren’t derailed by unexpected events. 

    For Gen Z, it also fits naturally with a lifestyle built around independence and planning. Having coverage in place means you can pursue career goals, side hustles, or personal ambitions with confidence, knowing your loved ones are secure no matter what happens. 

    Benefits of Buying Term Insurance Early for Gen Z

    Starting term insurance early gives young adults a strong financial edge that grows over time. 

    Lower Premiums When You’re Young

    Lower Premiums When You’re Young

    Insurance companies calculate premiums based on age and health. Buying a plan in your 20s means you lock in the lowest rates possible. This makes long‑term coverage affordable and ensures you don’t pay more later when premiums rise with age.

    Financial Security During Uncertain Times

    Financial Security During Uncertain Times

    Unexpected events can happen at any stage of life. Having term insurance early means your family won’t face financial stress if something happens to you. It’s a simple way to provide stability even before major responsibilities arrive. 

    Tax Benefits That Support Young Earners

    Tax Benefits That Support Young Earners

    Premiums paid for term insurance qualify for deductions under section 80C, and payouts to nominees are tax‑free under section 10 (10D). These tax benefits make term insurance a smart choice for Gen Z, offering both financial protection and savings

    Easy Approval with Fewer Health Checks

    Easy Approval with Fewer Health Checks

    At a younger age, you’re more likely to be healthy, which makes getting approved for term insurance faster and simpler. Starting early avoids the stricter medical checks and higher premiums that come with age.

    Smart Step Toward Financial Discipline

    Smart Step Toward Financial Discipline

    Buying term insurance early teaches Gen Z about the habit of planning ahead. It’s a small but powerful move that builds financial discipline and sets the foundation for responsible money management in the future.

    Longer Coverage for Future Responsibilities

    Longer Coverage for Future Responsibilities

    Gen Z may not have dependents today, but life changes quickly. Early term insurance ensures you’re already covered when responsibilities like family, loans, or dependents come into play. You won’t need to scramble for protection later. 

    Digit GLOW Term Life Insurance

    Suitable for self-employed and young salaried professionals who want smart and early protection.

    Choose your sum assured, from ₹25 Lakhs up to ₹1 Crore, to match your financial goals.

    0% GST on Premium

    No physical forms or waiting, just buy your policy online with PAN and Aadhaar.

    Digit GLOW Term Plan

    Digit GLOW Plus Term Life Insurance

    Suitable for salaried professionals, entrepreneurs, and high-income earners.

    Access up to ₹20 crore sum assured to cover your extensive financial goals and liabilities.

    Terminal Illness Benefit is included and covered at no additional cost.

    Gain long-term protection up to Age 85 that supports post-retirement responsibilities.

    Digit GLOW Plus Term Plan

    Is Term Insurance the Right Choice for Gen Z?

    Term insurance is a practical choice for Gen Z because it combines affordability with meaningful financial protection at the right stage of life. 

    Illustration 1: With Term Insurance

    Rohan, 24 years old, buys a ₹1 crore term insurance plan at a premium of about ₹450 per month. A few years later, he takes a car loan and starts supporting his parents. If something unexpected happens, his family receives ₹1 crore, enough to clear debts and provide financial stability. That small monthly expense protects his loved ones from financial strain.

    Illustration 2: Without Term Insurance

    Ananya, 26 years old, decides not to buy term insurance, thinking it’s too early. She also has an education loan and is helping her younger sibling with college fees. If something were to happen, her family would be left with the loan burden and ongoing expenses, with no financial backup. The absence of coverage means her family faces stress and uncertainty at the worst possible time.

    Disclaimer: These illustrations above are for educational purposes only and not financial advice.

    How Can Gen Z Choose the Right Term Insurance Plan?

    Choosing the right term insurance plan is simple when you focus on your needs and priorities. Follow this process:

    1. Assess Your Needs & Goals 

    Start by identifying what you want to protect: family expenses, loans, or future responsibilities. This helps you decide on the right level of coverage.

    2. Decide on Coverage Amount

    Pick a sum assured that matches your financial situation and future commitments. For most young adults, ₹1 crore is a common starting point.

    3. Flexible Policy Terms 

    Choose a term length that keeps you covered well into middle age. Longer terms ensure protection as your responsibilities grow.

    4. Check for Key Features  

    Look for add‑ons like critical illness riders or accidental death benefit riders. These enhance your plan and provide extra protection tailored to your lifestyle.

    5. Compare Before You Buy 

    Review insurers’ claim settlement records and compare options. A higher ratio means your family is more likely to receive timely payouts when needed. 

    Common Gen Z Myths about Term Insurance

    Many young adults hesitate to buy term insurance because of misconceptions. Here’s a simple breakdown of common myths and reality:

    Myth  Reality 
    Term insurance or any life insurance policies are only for older people  Life insurance policies designed for anyone with responsibilities, and buying young keeps premiums low. 
    It’s too expensive for beginners  Premiums are actually very affordable, especially when purchased early in life. 
    All policies are complicated  Term insurance is one of the simplest forms of insurance, with clear terms. 
    It doesn’t offer any extra benefits  Riders like critical illness or accidental death benefit can be added for more protection. 
    I’m healthy, so I don’t need it now  Buying early locks in affordable premiums before health risks or responsibilities increase. 
    The purchase process is too time‑consuming and confusing  Digital platforms make buying term insurance quick, transparent, and hassle‑free. 
    It’s a waste of money because it has no returns  Term insurance is about protection, not investment. For returns, you can opt for Term Insurance with Return of Premium (TROP), which refunds all premiums if you outlive the policy term. 
    Insurance seems “uncool” or not relevant for Gen Z  It’s a smart financial move that shows foresight and responsibility. 
    Stock market investment is better than insurance  Investments help grow wealth, but insurance provides risk protection; both serve different purposes and complement each other. 

    You Might Also Like to Read

    Term Insurance for Self-Employed
    How Age Affects Term Insurance Premiums?
    Term Insurance for Young Adults
    Term Insurance Calculator

    For Gen Z, term insurance isn’t about expecting the worst to happen. It’s about being prepared for the unexpected with confidence. Starting early offers practical advantages like lower premiums, longer coverage, and financial security that grows with life’s responsibilities.

    Investing in a term insurance policy may feel like an unnecessary option, but building this safety net ensures financial stability for the future. In a world where uncertainty is constant, term insurance stands out as a simple, affordable way to protect what matters most: your loved ones and your responsibilities.

    FAQs about Term Insurance for Gen Z

    Does Gen Z really need term insurance?

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    Yes. Even if you’re young and healthy, term insurance provides a safety net against unexpected risks. For Gen Z, it’s less about immediate returns and more about securing responsibilities like loans or future family needs. Having coverage early ensures you don’t face higher premiums later when risks increase. 

    Can students buy term insurance?

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    Students can buy term insurance if they have a source of income, such as part‑time work or freelancing, that qualify as financial proof. While coverage amounts may be smaller, starting early helps lock in low premiums and prepares for future responsibilities. 

    How does term insurance fit into Gen Z’s financial priorities like investing and saving?

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    Gen Z often focuses on investments like mutual funds, stocks, or crypto. Term insurance doesn’t compete with these; it complements them. Investments grow wealth, while insurance protects against risk. Without insurance, sudden events could wipe out savings or leave debts unpaid. Together, they create a balanced financial plan. 

    Can freelancers or gig workers buy term insurance?

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    Yes. Term insurance is not limited to salaried employees. Freelancers, gig workers, and entrepreneurs can buy policies as long as they can show income proof. This makes it accessible to Gen Z, many of whom work in flexible or non‑traditional jobs.

    What happens if a Gen Z policyholder changes jobs or moves abroad?

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    Term insurance is not tied to your employer, so changing jobs doesn’t affect it. If you move abroad, most policies remain valid, though you should inform the insurer and check if coverage applies globally. Updating your address and nominee details is important to keep the policy active. 

    How does lifestyle impact premiums for Gen Z?

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    Insurers assess risk based on habits. Smoking, drinking, or poor health can increase premiums, while fitness and healthy living keep costs lower. If the insured person is more health‑conscious, maintaining good habits can directly reduce the cost of coverage. 

    Is the return of premium rider a good option for Gen Z?

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    Return of premium rider or plans refund the premiums if you survive the policy term. For Gen Z, this can feel more rewarding than pure protection. However, premiums are higher compared to regular term insurance. It’s useful if you want both protection and a guaranteed return, but not as cost‑efficient as pure term insurance. 

    Can term insurance help Gen Z with loan protection?

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    Yes. If you have education loans, car loans, or even a home loan later, term insurance ensures your family won’t be burdened with repayment if something happens to you. It acts as a financial shield against debt. 

    How does inflation affect term insurance coverage for Gen Z?

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    A fixed coverage amount may lose value over decades due to inflation. For example, ₹50 lakh today may not be enough 20 years later. Gen Z should consider policies with increasing cover options or review coverage periodically to keep it relevant. 

    Can Gen Z manage term insurance digitally?

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    Yes. Most insurers now offer mobile apps and online portals where you can buy, track, and manage policies. This suits Gen Z’s preference for digital convenience, making insurance less intimidating and more accessible. 

    Does term insurance make sense if Gen Z has no dependents yet?

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    Even without dependents, term insurance can cover liabilities like student loans or personal loans. It also prepares you for future responsibilities, so you don’t have to worry about rising premiums later. Think of it as securing your base early. 

    Can Gen Z buy multiple term insurance policies?

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    Yes. You can hold more than one policy to increase coverage. Insurers will check your income to ensure the total coverage is reasonable. This flexibility allows Gen Z to start small and add more coverage as income grows. 

    How does policy duration affect Gen Z’s planning?

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    Choosing a longer duration lock in affordable premiums for decades, while shorter terms may require renewal at higher costs later. For Gen Z, long‑term coverage is usually better because it ensures protection throughout key life stages. 

    Are there riders Gen Z should consider?

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    Riders like critical illness cover, accidental death benefit, or waiver of premium can be added to term insurance. They provide extra protection tailored to Gen Z’s needs, especially if you want coverage beyond just death benefits. 
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