Why Do I Need Rs 5 Lakh Term Insurance?
Table of Content
Each one of us strives to provide our family with safety and security. A term plan enables you to do this even if something happens to you. These policies are pure life insurance plans. They offer coverage for a specific tenure. If anything happens to the policyholder during that time, their loved ones receive the sum assured payout. Let’s look at the benefits of having a Rs. 5 lakh term insurance plan.
What Is a Rs. 5 Lakh Term Insurance?
A Rs. 5 lakh term plan will provide your beneficiary with Rs. 5 lakhs if anything happens to you, the policyholder, while the plan is active. The amount should enable your loved ones to replace the lost income and deal with pending debts.
Why Buy Rs. 5 Lakh Term Insurance?
Generally, people advise you to purchase a term plan worth at least ten times your current income. Plans offering a sum assured of only Rs. 5 lakhs are often supplementary plans that provide enhanced financial protection over and above an existing policy. Individuals who have recently opted for a loan can choose a Rs 5 lakh term insurance policy to help their loved ones repay the debt if anything happens to them.
How Does a Rs. 5 Lakh Term Plan Work?
Mohit purchased a term plan in his early 30. He opted for a high sum assured and a long tenure of 30 years. In his 40s, he faced financial hardships and took a loan worth Rs. 5 lakhs. Mohit did not want his loved ones to face financial trouble if anything happened to him. So, he purchased a Rs. 5 lakh term plan for just ten years, which was the loan tenure. His loved ones will receive the amount if anything happens to him, enabling them to pay off the outstanding amount and quickly become debt-free.
What Are the Benefits of Rs. 5 Lakh Term Insurance?
Purchasing a Rs. 5 lakh term plan lets you enjoy:
- Affordable premiums
- Premium payment flexibility
- Customize plans with additional benefits to meet unique requirements.
- Maximize tax benefits under Income Tax Act.*
- Ensure the financial security of your family.
How to Choose the Right Rs. 5 Lakhs Term Insurance Plan
Before purchasing a Rs. 5 lakh term policy, you should consider the:
Several insurance providers offer term plans. Identify companies that provide the coverage you want at a pocket-friendly price.
Claim Settlement Ratio
Ensure the insurance company has a high claim settlement ratio. It provides peace of mind that your beneficiary will likely receive the amount after filing a valid claim request.
Check the add-ons on offer and select the ones that enhance your coverage and suit your lifestyle.
Frequently Asked Questions
Q: What are the eligibility criteria to purchase a Rs. 5 lakh term plan?
A: All working individuals between 18 and 65 can purchase a Rs. 5 lakh term plan.
Q: What is the premium amount for a term plan offering coverage of Rs. 5 lakhs?
A: Premiums depend on your age, medical history, income, and policy term. You can use an online calculator to understand your premiums.
Q: What happens if I survive the policy tenure?
A: Term plans do not offer payouts on survival. However, if you select a Return of Premium plan, you get a payout equal to all premiums paid until maturity.
Q: How can I purchase a Rs. 5 lakh term plan?
A: You can purchase a term policy worth Rs. 5 lakhs directly from our website.
- What is a Joint Life Term Insurance policy?
- Eligibility Criteria for Buying Term Insurance in India
- Are Add-ons and Optional Features of Term Insurance Really Beneficial?
- What is the Age Limit to Buy a Term Insurance Policy?
ARN - ED/04/23/1532
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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.