Student Term Plan: With a big education loan and long repayment years, should you go for it?

Term insurance is usually associated with working adults, who have dependents, loans and a steady income. But insurers are now targeting a younger audience, including students and young adults, who might want to secure life coverage before they dive into full-time jobs.


Parents often spend years saving to give their children the best education possible, which can be expensive and usually requires a significant chunk of their savings, along with a hefty education loan. Sadly, if something were to happen to the child, the family could lose their lifelong savings, and still face the stress of paying off the loan. Term insurance can offer financial security in such tough times.


There’s now a new term insurance plan aimed at students aged 18 to 25, with cover options extending up to 30–40 years.

What does the new student term insurance plan offer?

Policybazaar today (August 19, 2026) launched a dedicated Student Term Plan in partnership with its insurer partners. Student Term Plan is a purpose-built insurance product tailored for students, young individuals who want to start their financial protection journey early, even before stepping into full-time employment.

The Student Term Plan directly addresses this gap with:

• Ultra-affordable premiums starting at ₹388 per month for ₹ 50 lakh life cover for an 18-year-old buying a term plan for 30 years (non-smoker with no pre-existing diseases).
• Long-term financial security with coverage options for 30–40 years.
• Premium payment flexibility (annual, semi-annual, quarterly, monthly).
• Optional riders for critical illness and accidental death.
• Available to students aged 18-25.

Why are insurers targeting students with term insurance?

One of the key arguments for buying life insurance early is that premiums are generally lower when the policyholder is younger and healthier.

For students taking education loans, there may also be a financial liability even before they start earning. If the borrower dies during the loan tenure, the outstanding liability could ultimately become a burden for the family, depending on the loan structure and any protection already in place.

The student-focused plans aim to provide a financial cushion against such liabilities while allowing young buyers to start their insurance journey early.

"Students represent the most underserved segment in Indian insurance. They're taking on education loans, often supporting families, and building careers—yet they remain uninsured. The Student Term Plan removes cost barriers and simplifies access to financial protection,” says Vivek Jain, Chief Business Officer, Policybazaar.

"As students transition into careers, their financial responsibilities can grow through loans, family commitments and long-term goals. Our product, ‘ICICI Pru iProtect Smart Plus’ addresses this gap enabling eligible students to access term insurance at an early stage by leveraging their parents’ income as proof of financial capacity,” says Srinivas Balasubramanian, Chief of Marketing, Digital & Bancassurance, ICICI Prudential Life Insurance.

"Student Protection was designed to help young individuals start their insurance journey early, securing life cover at lower premiums while addressing the financial and eligibility barriers that often delay the adoption of term insurance," says Vaibhav Kumar, Head - Products, Ecommerce and Enterprise COE, Axis Max Life Insurance.

Should students go for it?

Starting insurance early offers the advantage of lower premiums along with long-term protection. But insurance should be bought to protect a financial need, not simply because it is cheaper at a young age.

For a student with an education loan or financial dependents, an early term plan may provide useful protection. For someone with no significant liabilities, building an emergency fund and getting adequate health insurance may be more immediate financial priorities.

The new student-focused products therefore expand access to term insurance, but the right amount and timing of cover will still depend on the student's financial circumstances.