Insurance Checklist for Your First Job

Landing your first job is exciting — a salary, independence, and a long to-do list. Insurance probably sits near the bottom of that list, but this is genuinely the cheapest moment in your life to buy it. Premiums are lowest when you are young and healthy, and the habits you set now will shape your financial resilience for decades.

Add: A Personal Health Insurance Policy

Your employer almost certainly offers a group health cover. Do not rely on it exclusively. Group policies end the day you resign or are laid off — which happens. Buy a personal individual health plan of at least ₹5–10 lakh sum insured right now. The waiting periods for pre-existing conditions (typically 2–4 years) start ticking from day one, so the earlier you begin, the sooner you are fully covered.

Add: A Term Life Insurance Policy

If anyone depends on your income — parents, younger siblings — a pure term plan is non-negotiable. A ₹1 crore cover for a 23-year-old non-smoker costs roughly ₹6,000–10,000 per year. Lock in that low premium now; the same cover bought at 35 can cost two to three times as much. Choose a policy term that runs to at least age 60.

Add: A Personal Accident Cover

Young professionals commute daily, sometimes on two-wheelers. A standalone personal accident policy paying a lump sum on accidental death or permanent disability is very affordable — often under ₹3,000 a year for ₹25 lakh cover. It complements health insurance by covering income loss, not just hospitalisation bills.

Drop (or Defer): Traditional Endowment and Money-Back Plans

Well-meaning relatives may suggest buying an endowment policy to "save and get covered." These plans bundle insurance with low-yield savings and are poor value for both purposes. At this stage, keep insurance and investments separate. Buy term for protection and put the saved premium difference into an EPF, PPF, or index fund.

Resize: Group Cover as a Top-Up, Not a Primary

Use your employer's group cover as a secondary buffer. If it offers ₹3–5 lakh, great — but do not count it as your primary safety net. When you eventually switch jobs, your personal policy seamlessly continues without a fresh waiting-period clock.

Tax Benefits to Note

Premiums paid for health insurance qualify for deduction under Section 80D — up to ₹25,000 for self and family. Term plan premiums may be deductible under Section 80C (subject to overall ₹1.5 lakh limit). File these properly from your very first ITR.

Conclusion

Your first job is a rare window: maximum insurability, minimum premium. Add a personal health plan and term cover immediately; drop the endowment temptation; and treat your employer cover as a bonus layer, not a foundation. To compare plans side by side and find one that fits your salary and city, explore the resources and speak with an advisor on TruePolicy.