A basic thumb rule while buying a term plan is that the sum assured of the policy should be 10 times that of your annual income. Hence, if your annual income is 10 lakhs, the sum assured should be INR 1 crore. Your income plays an important role when it comes to selecting a term plan with high coverage since it will indicate your capacity to make timely premium payments so that your family’s life cover protection is not interrupted.
 

But apart from that, take into consideration your family’s current and future needs, which include any financial commitments such as education, marriage, settling abroad, relocating to another town or city and so on. And though you may assume that your family is in good health now, it would be prudent to consider medical emergencies and make provisions for the same since you do not know what the future holds.
 

Comparing term plans and their premium quotes online on a term insurance premium calculator can also help you understand how much coverage you need, the premiums you pay, and the life cover will suffice to keep your loved ones safe and sound.
 

This is where a 5 crore term insurance policy can solve your problems. Since the coverage of such a term plan is high, it will ensure that every single need of your family can be taken care of. Be it repaying a loan or planning a lavish trip to an international destination, a 5 cr term insurance policy not only takes care of their essential requirements but also provides for their moments of joy and happiness so that everything they want to do does not feel like an obligation!
 

Hence, a 5 crore term plan protects your family in your absence, just the way you would if you were around.

Finding the most suitable 5 crore term insurance plan can take some time, but it is not impossible. You can choose to buy your term plan from the official website of Tata AIA Life insurance or visit us at any of our office branches to make the purchase.
 

To get a fair idea of what a good term insurance plan looks like, here are some features:
 

• You can increase the life cover/sum assured of the same policy during your important life stages.

• Be covered against critical illnesses, accidental death and disability, etc., with optional riders.

• Choose the policy term and the premium payment term of the term insurance as per your needs and convenience.

• You can also opt for a pay-out mode – monthly income or lump sum benefit – that you feel will be convenient for your family’s needs.
   

Apart from these term plan features, also look out for these parameters on the basis of which you can choose your term insurance provider:
 

• Claim Settlement Ratio

  Your life insurance provider’s claim settlement ratio is very important as it proves if they can settle your death claim effectively and honour the payout to your family, as predetermined while offering the term policy. If their claim settlement ratio is high (above 90%), consider buying your term insurance policy from such a life insurance provider.
   

• Rider Options

  Along with a term insurance plan, look into the rider options offered by the insurer. There are some important riders such as a critical illness cover, an accidental disability rider or a comprehensive health rider that covers a range of health emergencies. Also, take time to understand the features and benefits of these riders before you go ahead with the purchase of a term plan.
   

• Solvency Ratio

  Your insurer’s solvency ratio is another important parameter to be considered because it directly indicates your insurer’s financial capacity to honour term insurance claims and helps you understand if they can meet their liabilities with the current cash flow. The solvency ratio, much like the claim settlement ratio, also should be high enough to prove the insurer’s credibility.

While there are no specific criteria for purchasing a term insurance plan for 5 crores, for Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN:110N160V03) the minimum age of the policy buyer should be 18 years. Also, considering that a 5 crore term plan offers greater coverage than other term insurance plans, ensure that you are able to pay the premiums for the coverage regularly without missing any payments.

Yes, the tax benefits for a 5 crore term insurance are similar to that of a regular term plan. The premiums you pay for the term plan will be eligible for tax deductions under Section 80C of the Income Tax Act, while the proceeds paid out as a death benefit will be exempt from taxes under Section 10(10D) of the Income Tax Act. You can also save tax up to Rs 46,800⁺⁺ when you buy a term insurance plan. 

Yes, like a regular term insurance plan, 5 crore term insurance plans also come with a free-look period of 15 days if the policy has been purchased online and 30 days in case it has been bought online or through the Distance Marketing modes from the date of receiving the policy document. During the free-look period, you can choose to give up the policy if you are not satisfied with the policy, subject to the terms and conditions of the insurance company.

When selecting a life insurance provider to purchase your 5 crore term insurance from, be sure to check the insurer’s claim settlement ratio, online reviews and ratings, solvency ratio, range of products, online purchase, renewal processes, claim process, and customer service. If all of these parameters are as per your needs or exceed your expectations, you can go ahead and purchase your term insurance from such an insurer.

Yes, if your nominee is outside of India and would like to file a claim, they will have to upload the attested copies of the required claim documents online or send them to us through email. However, if the nominee wants to file the claim offline, they will have to courier their claim documents to their representative in India, who can come to our office and file the claim on their behalf.

This will depend on how many family members you would like to cover in your term policy and their financial needs in the future. A term plan will ensure that your loved ones are financially supported in the event of your demise; hence, it is important to consider their future goals and commitments while buying a term insurance plan.

A 5 crore term insurance plan would be a good sum assured to support your family’s daily needs as well as any major events or medical emergencies that need financial backing, even after taking inflation rates into consideration.

Your 5 crore term insurance premium can be affected by a number of factors such as your age, your medical history, your health, the number of individuals covered under the policy, the sum assured, your family’s medical history, and the nature of your occupation and so on.

Most policy buyers may be apprehensive about selecting a high sum assured term plan online but in reality, purchasing a 5 crore term insurance plan online is quite safe and secure.

Apart from being able to compare the premiums of different plan options and easily purchasing the policy, Tata AIA Life Insurance ensures that your personal and payment details, as well as your policy information, are secured.  

Moreover, you can choose from different secure online payment modes to make your premium payments successfully without the fear of your financial details being stored or misused.

If you want to be able to pay affordable premiums for your 5 crore term plan, you can start by calculating and comparing the premiums for your term insurance with a term insurance premium calculator. Since term plans are known to be quite flexible, you can also choose a policy term and a premium payment term as per your needs. This lets you decide how you can pay your premiums in a way that they do not hinder your other financial commitments while you protect your family from future financial uncertainties.

Being able to have a 5 crore term insurance will, to some extent, depend on your ability to pay the premiums on time. However, being a term insurance plan, the premiums of a high sum assured policy can be quite affordable. Therefore, if you are earning a stable salary that allows you to have a 5 crore term insurance plan in your late 20s, then you should go for it.