Insurance companies are now courting students as young as 18 with term life policies that promise coverage at a fraction of the premium paid by older buyers. The offers, widely advertised on college campuses and digital platforms, highlight the advantage of locking in low rates before a professional career begins. For many Indian families, the idea of securing a death benefit early appears attractive, especially as the Nifty Insurance index has risen over 12% this year. The push is driven by insurers’ need to expand their customer base in a saturated market and to spread risk over a longer horizon.
By enrolling policyholders at the start of their earning life, insurers can count on decades of premium inflow with minimal claim experience, improving profitability. Moreover, regulatory encouragement for financial literacy among youth has created a favorable environment for such products. However, financial advisors caution that term cover for students may not be a priority. At 18, most individuals have no dependents, income or substantial debts, which are the usual triggers for life‑insurance demand.
The modest premiums could instead be allocated to a systematic investment plan or a high‑yield savings account, building an emergency fund that will be more useful when earnings commences. Retail investors should assess their personal circumstances, compare the cost of early term cover with alternative savings options, and monitor how the insurance sector’s growth reflects on the Nifty Insurance performance.