Both are essential. But the right sequence depends on your life situation — and getting it wrong costs you.
One of the most common questions ArthSree's advisors hear: "I want to get insured — should I start with term or health insurance?" It is a great question, and the answer is not simply "buy both." Understanding the difference and the right sequence protects your family more effectively — and saves you money.
If you pass away during the policy term, your nominee receives the sum assured — typically ₹1 crore. If you survive, there is no payout. Because there is no investment component, premiums are extremely affordable.
Your family losing their income source — mortgage, school fees, daily expenses — if you are no longer there to earn.
Covers hospitalisation costs — surgeries, ICU, diagnostics, doctor fees — up to your sum insured. Either cashless at network hospitals or reimbursement after discharge.
A single Bangalore private hospital stay — easily ₹2–5 lakh — wiping out your savings overnight.
| Aspect | Term Insurance | Health Insurance |
|---|---|---|
| What it covers | Your family's financial loss if you pass away | Hospitalisation and medical treatment costs |
| Who benefits | Your dependants (spouse, children, parents) | You and your insured family members |
| When it pays out | On death during the policy term | On hospitalisation or covered medical events |
| Typical premium (30yr, Bangalore) | ₹490–₹800/month for ₹1 crore cover | ₹800–₹1,500/month for ₹10 lakh family floater |
| Tax benefit | Section 80C (up to ₹1.5 lakh/year) | Section 80D (up to ₹25,000–₹75,000/year) |
| Linked to employment? | No — personal policy | Group cover ends when you leave; personal cover continues |
It depends on your life situation. Here are the three most common scenarios:
If...
You have dependants (spouse, children, or parents relying on your income)
The primary risk is your family losing their income source. A ₹1 crore term plan at ₹490/month is the single most impactful protection you can buy.
If...
You are single with no financial dependants
Your biggest personal risk is a sudden illness wiping out your savings. A ₹10 lakh health plan protects your financial independence.
If...
You have dependants AND your employer provides group health cover
Group health cover ends with your job and typically offers only ₹2–3 lakh cover. Add your own policy within 6 months of starting a new job.
Many Bangalore professionals assume their company health insurance is sufficient. It usually isn't, for these reasons:
In most cases, both policies are affordable enough that the real question is sequencing, not choosing. We recommend: start with term insurance if you have dependants, then add a family floater health plan within 3–6 months. Combined premium for both is typically ₹2,000–4,000/month — very manageable for a Bangalore salaried professional.
ArthSree compares plans across leading insurers to find the right coverage at the right price for your family.
Compare individual, family floater, and senior citizen plans from 20+ insurers. Coverage from ₹6,000/year.
Term InsuranceGet ₹1 Crore life cover for your family. Compare 15+ top insurers with expert guidance from ArthSree.
InvestingOnce your insurance is in place, the next step is building wealth. Here is how to start a SIP in Bangalore.