Why Do I Need Rs 50 Lakh Term Insurance?

 

Every good financial plan includes a term insurance policy. These plans offer life cover for a specific time, providing your family with financial security during a difficult time. Since traditional term policies are pure life insurance products, they do not offer any additional maturity benefit, making them affordable. However, some plans today offer a Return of Premium option, which pays you an amount equal to all premiums paid on maturity if you outlive the policy term. A 23-year-old non-smoker can get a high sum assured of Rs. 50 lakhs for just Rs. 800 each month. Let’s better understand what a Rs. 50 lakhs term insurance plan is and how it benefits you.

What Is a Rs. 50 Lakh Term Insurance?

A 50-lakh term policy offers life coverage of Rs. 50 lakhs for a given time. If anything happens to the policyholder during the plan tenure, the beneficiary receives a payout of Rs. 50 lakhs.

Why Buy Rs. 50 Lakhs Term Insurance?

None of us knows what life has in store for us. An unexpected illness or accident could take us away from our loved ones. Term plans provide our loved ones with the finances they require during this uncertain time. The payout from the term plan should be enough to help your family maintain their standard of living in the future or pay off any outstanding loans. You can calculate your Human Life Value or HLV to better understand how much your family requires. HLV refers to the present value of future income expenses, investments, and liabilities. Individuals who earn around Rs 5 lakhs per year should get a term plan that offers at least Rs. 50 lakhs as the sum assured.

How Does a Rs. 50 Lakh Term Plan Work?

We can understand how a Rs. 50 lakh term insurance works with an example. Rahul is a 24-year-old who just started working. His salary is enough to cover his basic monthly expenses. Rahul stays with his parents. Both of them are still working and have saved up for their retirement. Rahul purchases a term plan offering Rs. 50 lakh coverage for 30 years. After three years, he takes a loan to buy a two-wheeler. About a year later, while still repaying the loan, he meets with a fatal accident. His mother, the term policy beneficiary, receives the payout of Rs. 50 lakh. She can use the amount to pay off Rahul’s pending loan. The money helps her and her husband maintain their finances at a difficult time.

What Are the Benefits of Rs. 50 Lakhs Term Insurance?

When you purchase a term insurance policy worth Rs. 50 lakhs, you benefit from:

• High coverage at affordable premiums
• Premium payment flexibility
• Customise your plans with of add-ons benefits
• Tax benefits under the Income Tax Act^*
• Financial stability for your loved ones

How to Choose the Right Rs. 50 Lakhs Term Insurance Plan

When looking for a Rs. 50 lakh term policy, you should consider the following crucial points:

• Premiums

  Term policies are popular since they provide high coverage at affordable rates. Ensure you look for plans that offer the best benefits at a pocket-friendly premium.

• Individual Death Claim Settlement Ratio

  The IRDAI regularly releases the individual death claim settlement ratio for various life insurance companies. It lets you know how many claims the company settled of all requests received. The higher the ratio, the better.

• Add-ons

  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.

Frequently Asked Questions

Q: What are the eligibility criteria to purchase a Rs. 50 lakh term plan?

A: You must be at least 18 and earning to buy a term plan. If you're over 65, you might not be able to purchase a policy.

Q: What is the premium amount for a term plan offering coverage of Rs. 50 lakhs?

A: The premium amount for the term policy depends on your lifestyle, age, health, income range and more.

Q: What happens if I survive the policy tenure?

A: Term plans do not offer any maturity benefits. However, if you selected a Return of Premium policy, you will get the premiums back on maturity.

Q: How can I purchase a Rs. 50 lakh term plan?

A: You can purchase a term policy worth Rs. 50 lakhs directly from our website.

Related Article

• Can NRIs Buy Term Insurance in India?
• What is a Level Term Life Insurance policy?
• 5 Simple Steps to Follow When Buying Term Insurance
• 4 Simple Methods to Calculate : How Much Term Insurance You Need

ARN - ED/04/23/1703