Why Do I Need Rs 5 Crore Term Insurance?
Every working person strives hard to ensure their loved ones enjoy a secure future. You put away savings and invest for a better tomorrow. Every good financial plan also includes a term insurance policy. These life insurance products offer high life coverage for a limited period. Since term plans are pure life insurance products, you benefit from a high sum assured at an affordable premium.
What Is a Rs. 5 Cr Term Insurance?
A term plan that offers a sum assured of Rs. 5 crores is called a 5-crore term policy. You can purchase the policy for a limited time, during which you enjoy life coverage worth Rs. 5 crores. If something happens to you during the policy tenure, your beneficiary receives the Rs. 5-crore payout.
Why Buy Rs. 5 Crore Term Insurance?
You must select the correct sum assured whenever you purchase a term policy. Understanding the right amount can seem tricky. As a general rule of thumb, you should opt for a sum assured 10 to 15 times your current annual salary. You should also add any outstanding debts to the amount. Using this formula should provide your family with an amount that will help them replace your lost income in the future and pay off any debts. Individuals who earn between Rs. 30 lakhs and Rs. 50 lakhs per year benefit the most from a term plan worth Rs. 5 crores.
How Does a Rs. 5 Crore Term Plan Work?
Aditya, a married father of two, decides to purchase a term plan in his early 30s. He earns quite well and wants to safeguard his family’s financial future. His spouse stays home to look after their children. He chooses a policy tenure of 30 years and a sum assured of Rs. 5 crores. A few months after his 45th birthday, Aditya has a fatal heart attack. His wife and children are devastated as they lost their sole breadwinner. Thanks to his prudent planning, his wife receives a payout of Rs. 5 crore that allows her to pay off the outstanding debt for their home loan. It also provides her with enough to pay her children’s school fees and maintain their standard of living until she can find another source of income.
What Are the Benefits of Rs. 5 Crore Term Insurance?
When you purchase a term insurance policy worth Rs. 5 crores, you benefit from:
- High coverage at affordable premiums
- Premium payment flexibility
- Customise your plans by the purchasing the add-ons
- Tax benefits under Income Tax Act *
- Best financial security for your loved ones.
How to Choose the Right Rs. 5 cr Term Insurance Plan
When looking for a Rs. 5 crore term policy, you should consider the following crucial points:
Term policies offer high coverage at affordable rates. Always compare the premiums various term insurance providers offer before selecting a plan.
Claim Settlement Ratio
Every life insurance company must inform policyholders of their claim settlement ratio. It lets you know how many claims the company settled of all requests received. A higher ratio indicates that your beneficiary will likely receive the payout.
Always check the add-ons that various insurance companies offer. You could boost your coverage and enhance your family’s financial future by selecting the add-ons that suit your needs. For example, the accidental death benefit provides an additional sum assured. Individuals who have high-risk jobs or travel frequently should opt for the rider.
Frequently Asked Questions
Q: What are the eligibility criteria to purchase a Rs. 5 crore term plan?
A: Generally, anybody between 18 and 65 who works can purchase a term plan. However, insurance companies may impose minimum income requirements for a Rs. 5 crore plan.
Q: What is the premium amount for a term plan offering coverage of Rs. 5 crore?
A: The premium amount for the term policy depends on your lifestyle, age, health, income range and more. Individuals in their 30s will likely pay lower premiums than those in their 40s.
Q: What happens if I survive the policy tenure?
A: On survival, the term plan ends, and you do not receive any maturity benefit. However, if you selected a Return of Premium policy, you will get the premiums back on maturity.
Q: How can I purchase a Rs. 5 crore term plan?
A: You can purchase a term policy worth Rs. 5 crores directly from our website.
- What is a Passive Income? Why Should You Use It to Buy a Term Plan?
- How to Choose the Right Term Policy Period?
- How NRIs buy term insurance in India?
- What Does Happen to Your Term Insurance Plan Post-Divorce?
ARN - ED/04/23/1531
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##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2021-22.
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
^ Available under Life & Life Plus plan options
*As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.