If life is unpredictable, shouldn’t your future be protected?

We all dream of a peaceful life of owning a house, giving our kids the best education, going on family vacations, and retiring without financial worries. But what happens to these dreams if something unexpected happens tomorrow? That’s where insurance comes in – not as an expense, but as a smart protection plan. However, with so many types of insurance out there, the biggest question remains: Which one is right for you? And most importantly, why do experts always talk about term insurance?

Let’s dive into this topic and help you make a decision that secures not just your life, but also your loved ones’ future.

What is Insurance?

Before we talk about which type suits you best, let’s understand what insurance really is.

Insurance is a financial agreement where you pay a small amount (premium) to an insurance company, and in return, they promise to support you financially during unexpected events—like accidents, health issues, property damage, or even death.

It’s like an umbrella on a rainy day; you may not use it daily, but when the storm hits, you’ll be glad you had it.

Different Types of Insurance and Who Should Choose Them

Here are the main types of insurance and how to know if one suits your current stage of life and needs:

1. Term Insurance – Pure Life Protection

What it is:
Term insurance is a simple life insurance policy that offers financial coverage to your family if you pass away during the policy term. It doesn’t have any maturity benefit if you survive the term.

Who it’s for:

• Young professionals starting their careers
• Married individuals with dependents
• Parents with school/college-going children
• Sole breadwinners of the family

Why it suits you:
Term insurance is affordable and offers high coverage at low premiums. If your goal is to secure your family’s future in your absence, this is the most important insurance to have. We’ll discuss more about this later in the article.

2. Health Insurance – For Medical Emergencies

What it is:
Health insurance covers medical expenses such as hospital stays, surgeries, medicines, and more.

Who it’s for:

• Everyone, regardless of age
• People with lifestyle diseases
• Families with aging parents

Why it suits you:
Medical costs are rising. Even a minor surgery can burn a hole in your savings. A good health insurance plan ensures you get quality treatment without worrying about money.

3. Motor Insurance – For Vehicle Owners

What it is:
This insurance covers your vehicle (car or bike) in case of accidents, theft, or damage.

Who it’s for:

• Anyone who owns a vehicle

Why it suits you:
It’s legally required in India. More than that, it helps you avoid large repair bills and protects you from legal liabilities if you’re in an accident.

4. Home Insurance – Protecting Your Home Sweet Home

What it is:
Home insurance covers your house and belongings against risks like fire, theft, floods, or natural disasters.

Who it’s for:

• Homeowners
• People living in disaster-prone areas

Why it suits you:
You work hard to build a home—don’t let one unexpected event take it away. A small annual premium can protect your biggest asset.

5. Travel Insurance – Safe Trips, Peaceful Journeys

What it is:
Travel insurance protects you against trip cancellations, lost baggage, medical emergencies, and other travel-related risks.

Who it’s for:

• Frequent travelers (domestic or international)
• Students studying abroad
• Senior citizens traveling overseas

Why it suits you:
Travel mishaps can be expensive, especially in foreign countries. A travel insurance plan makes sure your trip doesn’t turn into a financial nightmare.

6. ULIPs and Endowment Plans – Insurance + Investment

What it is:
These plans provide life cover and help you save/invest for future goals like retirement or children’s education.

Who it’s for:

• Investors looking for dual benefits
• People with long-term financial goals

Why it suits you:
If you want insurance plus savings in one plan, these are worth exploring. However, they’re often more expensive than term insurance for the same coverage.

👉 Want to know how insurance compares with other investments? Read our in-depth guide on Insurance vs. Mutual Funds/Stock Market: Which Offers Better Returns?

Why is Term Insurance So Important?

Now, let’s talk about the hero of this blog, Term Insurance and why financial advisors always recommend it.

1. It Provides High Coverage at Low Cost

Let’s say you are 30 years old. You can get a ₹1 crore term insurance cover by paying as low as ₹500–₹800 per month. That’s the cost of one dinner outing or a few cups of coffee. But this small monthly amount can secure your family’s entire future.

No other life insurance plan gives such high cover at such a low premium.

2. It Gives Your Family Financial Security

If something unfortunate happens to you, your family will get the sum assured (insurance amount). They can use this money to:

• Pay off home loans or debts
• Manage monthly expenses
• Fund children’s education
• Maintain their current lifestyle

Your absence won’t leave them financially stranded.

3. It’s Pure Insurance, No Confusion

Unlike other life insurance plans that mix investment and insurance, term plans are straightforward. If you die during the policy period, your nominee gets the payout. If you survive the term, there’s no payout.

This makes term insurance transparent, honest, and easy to understand.

4. You Can Add Riders for More Protection

Riders are add-ons that increase the protection of your term plan. For example:

• Accidental death rider
• Critical illness rider
• Waiver of premium rider

These give you extra safety without needing separate insurance plans.

5. Tax Benefits

Under Section 80C and Section 10(10D) of the Income Tax Act, the premiums you pay and the sum received by your nominee are tax-free, adding to your savings.

So, Which Insurance Type Should You Buy First?

If you’re just starting and can only afford one insurance policy, go with term insurance. Here’s why:

• It protects your family’s future
• It’s very affordable
• It covers large risks like death of the earning member
• You can buy health or investment plans later as your income grows

How to Choose the Right Term Insurance Plan

Here are a few tips:

• Choose a cover that’s at least 10–15 times your annual income
• Select a claim settlement ratio of 95% or higher from the insurer
• Compare premiums online
• Choose a policy term that covers you till your retirement age (60–65 years)
• Don’t hide information during the application process

Final Thoughts: Make Insurance Work for You

Insurance isn’t just about death or accidents, it’s about living with peace of mind. Each type of insurance has its role, but term insurance is the foundation of a strong financial plan.

It protects your dreams even when you’re not around. And that, truly, is the most responsible gift you can give your loved ones.

So, take a moment. Think about your life, your family, your future. Then ask yourself: Am I truly protected? If the answer is no, maybe it’s time to explore the right insurance with Bimavista by your side.

Need help finding the best term insurance plan for you?
Let Bimavista guide you with unbiased advice, trusted comparisons, and the right plan—just for you.