Term insurance plan for 26-year-old. Makes sense?

Insurance taken at the earliest possible age is always the best decision, there are no two ways about it. No one knows when unfortunate event might strike one's life, so better to get protection at the earliest. Another important point to note here is since you are very young, you would have to prove to the insurance company that you are having financial standing to get such a large cover at such a young age, by way of your bank statement/Income tax returns etc etc. Insurance coverage is alwys commensurate with your earnings/networth.

My opinion:

1. Term plan is meant to be the simplest possible, the features (early pay/return of premium/etc) are all marketing strategies for push sales. Simple understanding, a term plan is to cover you till the period you earn so that you secure your dependents. Therefore, duration 60 yrs(max 65) and pay annual premiums till maturity.
2. Instead of 10k/month for 5 years, I suggest paying on annual basis for your entire duration. Why pay a hefty sum now on a monthly basis and finish in 5 years? I don't think the annual premium for you will exceed 12k, and invest the balance savings in other options.
3. Since you are already 26 yrs old, it is already the right time to take a term plan. The Sooner you take the plan, it gets fixed for life (unlike health insurance). So you'll have to pay the same amount till your maturity which will be negligible as years pass by.

Hope I was of help in your decision-making.

Alok