Did you know a 5 Crore term insurance plan could be the key to unlocking your family’s financial freedom? If you have a range of financial goals to fulfil or want your family to attain their goals without finance becoming an obstacle, consider opting for this substantial coverage.
In today’s unpredictable world, where uncertainties loom large, ensuring the financial security of your loved ones has never been more critical. That’s why the Rs. 5 Crore term insurance plan has become increasingly popular among individuals seeking comprehensive protection. With its coverage, it offers peace of mind and reassurance that your family’s needs will be taken care of, even in your absence.
Individuals with an endless set of responsibilities often choose plans with a high sum assured to provide a solid financial foundation for their loved ones. In this article, we’ll delve deeper into the benefits of a Rs. 5 Crore term insurance plan and why it’s a prudent choice for those with significant financial responsibilities. So, if you’re looking to safeguard your family’s future and provide them with financial stability, know how a Rs. 5 Crore term insurance plan can be your ultimate solution.
What is a 5 Crore Term Insurance Plan?
5 Crore Term Insurance offers a sum assured of Rs. 5 Crore in the case of the unfortunate death of the policyholder. The sum assured is paid as a death benefit to the nominee or the beneficiary of the policyholder.
For example, If you buy a 5 crore term insurance plan, if something bad happens to you and you die, your family(nominee or beneficiary) will get 5 crore of money. So, by getting this insurance, your family will have some money to rely on if you’re not around anymore and even though it gives a lot of coverage, it’s not too expensive, which is why many people choose it. One of the best benefits is that the sum assured amount for the plan is high and the premium paid by the policyholder is quite low.
Why Buy a 5 Cr Term Insurance Plan?
Buying a 5 crore term insurance plan is a smart choice for several reasons:
- Financial Security for Your Family: With a 5 crore coverage, your family will have significant financial support in case of your untimely demise. This money can help them maintain their lifestyle, pay off debts, cover daily expenses, and achieve long-term financial goals.
- Protection against Liabilities: If you have loans or liabilities such as a home loan, personal loan, or business debt, a 5 crore term insurance plan can ensure that your family isn’t burdened with these financial obligations in your absence.
- Education and Future Needs: The sum assured can also cover future expenses such as your children’s education, marriage, or any other financial goals you may have planned for your family.
- Affordable Premiums: Despite the high coverage amount, term insurance plans generally offer affordable premiums, making it an accessible option for many individuals and families.
- Tax Benefits: Premiums paid towards term insurance plans are eligible for tax deductions under Section 80C of the Income Tax Act, providing additional savings for policyholders.
- Peace of Mind: Knowing that your loved ones are financially secure in your absence can provide you with peace of mind about their future well-being.
How Does Term Insurance 5 Crore Provide Comprehensive Financial Protection?
Let’s consider an example case scenario to illustrate how a 5 crore term insurance plan can provide comprehensive financial protection:
Rahul, aged 35, is the sole breadwinner of his family. He works in a software company, earning a Rs.20 LPA salary. Rahul is aware of the uncertainties of life and wants to ensure that his family remains financially secure even if something were to happen to him unexpectedly. He decides to purchase a 5 crore term insurance plan.
Here’s how it provides comprehensive financial protection:
- Income Replacement: In the unfortunate event of Rahul’s death during the policy term, his family will receive the sum assured of 5 crores. This lump sum amount can serve as a replacement for Rahul’s income, ensuring that his family can meet their daily expenses, pay bills, and maintain their standard of living.
- Debt Repayment: Rahul has an outstanding home loan of 1.5 crores. With the 5 crore payout from the term insurance plan, his family can clear the home loan entirely, ensuring that they don’t face the risk of losing their home due to non-payment of EMIs.
- Education and Future Needs: Rahul dreams of providing quality education for his children. The remaining sum assured after clearing the home loan can be invested to cover his children’s education expenses, including school fees, college tuition, and other related costs.
- Support for Dependents: Rahul’s elderly parents depend on him financially. The term insurance payout can provide for their ongoing living expenses and medical needs, ensuring that they receive the care and support required.
In this scenario, the 5 crore term insurance plan acts as a comprehensive financial safety net for Rahul’s family. It provides them with the necessary funds to maintain their lifestyle, clear debts, secure their children’s future, support dependent parents, and handle unexpected expenses. By investing in such a plan, Rahul ensures that his family remains financially protected and can navigate through life’s challenges with confidence.
Things to Remember When Buying a 5 Cr Term Insurance Plan
Here are 7 important things to remember when buying a 5 crore term insurance plan:
- Evaluate your financial obligations, including debts, future expenses, and the dependent’s needs to determine the appropriate coverage amount.
- Research and compare term insurance plans from different insurers to find the best coverage and premium rates that suit your requirements.
- Thoroughly read and understand the policy terms, including coverage period, premium payment frequency, exclusions, and claim settlement process.
- Choose a reputable insurance company with a strong track record of claim settlement and customer service to ensure reliability and trustworthiness.
- Provide accurate and complete information about your health, lifestyle, and financial status to the insurer to avoid complications during the claims process.
- Explore optional riders such as critical illness cover, accidental death benefit, or waiver of premium to enhance your policy’s coverage as per your needs.
- Understand the premium payment options available, such as annual, semi-annual, quarterly or monthly payments, and choose the one that aligns with your budget and convenience.
How to Buy a 5 Crore Term Insurance Plan
The process of buying a 5 Crore term life insurance policy online has become simple with PolicyBachat. Follow the below steps to buy term insurance online:
- Step 1: Visit the PolicyBachat website. Click on the ‘Term’ tab. Enter the details such as Gender, Annual income from all the sources, Alcohol consumption and tobacco consumption, Salaries or Self-employed, and Date of Birth.
- Step 2: Now the premiums from different insurance companies will be displayed on the screen. Then you can edit the details such as Coverage Amount, Policy Term, Premium Payment Method, etc., and submit the details to get the desired premium quotes. The premium can be changed by changing factors such as coverage required, mode of payment, etc.
- Step 3: Compare different plan premium rates, and then select the plan and pay the premium online. After the premium payment is successful, you will receive an email of the premium payment receipt.
Best 5 Crore Term Insurance Plans Online in India
There is a wide range of term insurance plans available online, which can be easily customized as per the requirements of the insurance buyers. Every term insurance plan is different from another plan in terms of features, benefits, and premium rates. Let’s take a look at the offers a sum assured amount up to Rs.5 crore. Here are the best 5 crore term insurance plans online in India.
| Company Name |
Plan Name |
Total Payout |
Policy Term |
Premium Amount |
|
| HDFC Life Insurance |
Click 2 Protect Super |
5 crores |
20 Years |
31154/- |
Buy |
| AEGON Life Insurance |
iTerm Prime |
5 crores |
20 Years |
382458/- |
Buy |
| ICICI Prudential Life Insurance |
iProtectSmart |
5 crores |
20 Years |
29268/- |
Buy |
| Bajaj Allianz Life Insurance |
Etouch |
5 crores |
20 Years |
20879/- |
Buy |
| TATA AIA Life Insurance |
Sampoorna Raksha Supreme |
5 crores |
20 Years |
30245/- |
Buy |
The above-given premiums are just for illustration purposes only. Compare quotes for the exact premiums
Benefits of Buying Rs. 5 Cr Term Insurance Online
- Best Protection: For financial protection visit our website to choose the best 5 crore term insurance plan. We have top leading insurers tied up with us, can guarantee you with best term insurance plan.
- Quick Process: Purchasing a Policy is one of the major concerns of customers. We make sure that our policy issuance process is easy and hassle-free for all customers.
- Broad Product Range: At PolicyBachat, you will find a wide range of insurance policies that you can easily choose from as per your needs.
- Zero Paperwork Not Required: We ensure that customers do not have to entertain the hassles of paperwork.
- Customer Support: We believe in providing the best support to our customers and aim to offer ideal solutions to our customers without fail.
- Premium: Your premium is decided on the age at which you buy the policy and remains the same for the entire policy term.
Factor Affecting 5 Crore Term Insurance Premium
The following factors can increase or decrease your premium expense:
- Age: Younger individuals are charged lower premiums compared to older individuals because they are considered to be at a lower risk of mortality.
- Policy term: The higher the policy term the higher your total premium will be.
- Premium payment term: The shorter your premium payment term the higher your immediate premium expense will be.
- Health condition: If you have an existing medical condition or a disability your premium would be higher than others.
- Lifestyle Habits: Factors such as smoking, alcohol consumption, and participation in hazardous activities or occupations can increase the risk profile of the insured, leading to higher premiums.
- Gender: Women tend to have longer life expectancies and lower mortality rates than men, resulting in lower premiums for female applicants.
- Occupation: Certain occupations or professions that involve higher levels of risk, and may lead to higher premiums due to increased mortality risk.
- Riders and Add-ons: Opting for additional riders or add-on covers can increase the premium amount.
Life insurers would only charge a higher premium when there is a higher risk to your life. Thus, you should secure the life cover for your family’s financial safety even if at a little higher cost.
How to Choose the Right Coverage Amount
Choosing the right coverage amount for term insurance requires careful consideration of various factors. Here are the steps to help you determine the appropriate coverage amount:
- Assess Your Financial Obligations
- Estimate Future Financial Needs
- Determine Income Replacement Needs
- Consider Life Stage and Responsibilities
- Factor in Existing Insurance Coverage
- Health and Lifestyle Considerations
- Review Budget and Affordability
- Compare Policies and Premiums
- Regularly Review Coverage Needs
By following these steps and considering your circumstances, you can choose the right coverage amount for term insurance to provide adequate financial protection for your loved ones.
Best Life Insurance Coverage Options
Frequently Asked Questions (FAQs):
Who Should Opt for a 5 Crore Term Insurance Plan?
Anyone with significant financial responsibilities, such as dependents, large debts, or future financial goals, should opt for a 5 crore term insurance plan to ensure adequate financial protection for their loved ones in case of their demise.
What is the Best Term Insurance Plan for 5 Crores?
The best term insurance plan for 5 crores varies based on individual preferences, including coverage features, premium rates, claim settlement record, and customer service reputation. It's essential to compare different plans from reputable insurers to find the most suitable one.
What are the Eligibility Criteria for Term Insurance for 5 Crore?
Eligibility criteria for term insurance for 5 crores typically include factors such as age usually between 18 and 65 years, income stability, and medical history. Insurers may require applicants to undergo medical tests based on their age and coverage amount.
What are the Advantages of Buying a 5 Crore Term Insurance Plan?
The advantages of buying a 5 crore term insurance plan include
- Comprehensive Financial Protection
- Coverage for Future Expenses
- Affordable Premiums
- Tax Benefits
- Peace of Mind
What are the Disadvantages of Buying a 5 Crore Term Insurance Plan?
Disadvantages of buying a 5 crore term insurance plan may include
- Expensive for certain people
- Premium payment capability reduces with age
- No guarantee of wealth
What are the Exclusions of 5 Crore Term Insurance?
Exclusions of a 5 crore term insurance plan typically include
- Death Due to Pre-Existing Medical Conditions
- Death Due to Participation in Criminal Activities
- Suicide and/or Death due to a hazardous activity
- Death under the influence of alcohol or drugs
Wrapping Up
Opting for a 5 crore term insurance plan is a prudent decision for individuals with significant financial responsibilities and dependents. It offers comprehensive financial protection, covering large debts, future expenses, and providing peace of mind knowing loved ones are secure. While there are advantages such as affordable premiums and tax benefits, it’s essential to assess one’s needs and consider potential disadvantages and exclusions before deciding. Overall, a 5 crore term insurance plan serves as a crucial safety net, ensuring that your family's financial well-being is protected even in your absence.