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A 5 crore term insurance plan is a term insurance plan that provides an extensive life cover of ₹5 crore.
Term insurance is an essential financial shield for your family. However, what many people fail to consider is the amount of coverage they should get for their term insurance. To keep the premiums as low as possible, you may end up settling for low coverage and may not consider adding riders^ to your policy.
But the good news is that even a 5 crore term insurance plan can have reasonable premiums if chosen wisely.
Here is a quick guide on what 5 crore term insurance is and how you can use it to your benefit with us!
A 5 crore term insurance plan is a term insurance plan that has been designed to serve policyholders who need high term insurance coverage. In the event of any eventuality, a term plan ensures complete financial protection for your family members; a 5 crore term insurance ensures that your family will not have to seek out any other form of financial assistance, no matter what comes their way in your absence.
As a high coverage term insurance policy, a 5 crore term insurance, like a regular term plan, starts with the purchase of the policy and the premium payments by the policyholder. In return for these timely premium payments, the insurance provider offers the policy coverage, which in turn offers the death benefits in case the policyholder passes away during the tenure of the policy.
A 5 crore term insurance plan is a term insurance policy that provides a life cover of 5 crores to your nominee in the event of your unexpected demise during the policy term. It is offered in exchange for the timely premiums that you pay through the policy tenure.
Your family can utilise the death benefit to clear off debts, plan their future financial commitments, and manage their routine lifestyle.
Furthermore, a 5 crore term plan can be purchased at an affordable premium and customised to individual financial needs by choosing the policy term, premium payment term, and including riders^.
Although a 5 crore term plan does not offer a maturity benefit, you can purchase the term insurance with the return of premium* benefit to receive a total of the premiums at the end of the policy tenure if you survive the policy period.
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V04)
TATA AIA Life Insurance
Option to get your premium back*
Increase Life cover at Important milestones with Life Stage# option
Enhance your protection with optional riders^
Get tax benefits~ as per applicable tax laws
A 5 crore term insurance plan is a pure life insurance plan without a savings or investment component. Therefore, you can purchase this extensive coverage at an affordable 5 crore term insurance premium.
No one would want to leave their family in a financial lurch! While you may be doing your best to repay your loans on time, an unfortunate eventuality may pass on the burden of these debts to your family.
Even if you are living a perfectly happy life, your family’s security is always a concern at the back of your mind. In your absence, you would want to ensure that they do not have to worry about maintaining their standard of living or making alternate arrangements for their daily needs.
You are probably doing the best you can to provide the best of everything for your children. But in case of an unfortunate situation, your children should not have to give up on their dreams and their future aspirations.
When you have adequate coverage to secure your family, you can save or invest better to align your income with your future financial goals. It can help you plan for the long term and focus on achieving your investment goals timely.
With a 5 crore term plan, you can enhance the coverage with add-on riders^ for additional financial benefits during specific scenarios. For example, a health-based rider^an provide the financial support required to pay for your medical expenses during the policy tenure in addition to the life cover.
Though it is advisable not to treat your term insurance plan only as a tax~-saving option, we know the tax~ deduction and exemption benefits on the term insurance premiums and the death benefit proceeds under Section 80 and Section 10(10D) of the Income Tax Act.
Let us understand how the 5 crore term insurance plan works with the following main aspects.
The 5 crore life cover is provided for the specific term as decided by the policyholder.
To keep the term policy valid and for your family to be protected by the life cover, you, the policyholder, will have to make premium payments towards the policy, as predetermined, while purchasing the policy.
The premium amount will be calculated on the basis of factors like your age, gender, yearly income, lifestyle habits, etc.
You can choose the premium payment term or the number of years during which you will pay the premiums. These payments can be made on a monthly, quarterly, semi-annual, or annual basis, as per your preference.
In case of the policyholder’s death during the policy term, the life insurance provider will pay the ₹5 crore sum assured to the nominee or family members of the policyholder as named in the policy.
One of the salient features of the term plan is that you can lock in the premium amount once you purchase the policy. Hence, by buying a term plan at a younger age, you can benefit from locking in lower premium rates. You must continue paying the premiums as per the decided frequency to avoid the 5 crore term insurance cover from being terminated.
A pure term plan will not offer any maturity benefits. In the event of your death within the policy term, once the benefits are paid out to your nominee, the policy is terminated, and no other benefits will be payable. However, suppose you have chosen the term insurance with the return of premium* benefit. In that case, you are entitled to receive a refund of the premium at the end of the policy term if you outlive the policy period.
If you choose from various riders^, you can be protected against specific risks and events for an additional premium. However, the rider^ can only stay valid as long as the base policy is valid.
TERM
CALCULATOR
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V04)
One of the most well-known benefits of a 5 crore term life insurance policy is its affordability. When compared to other life insurance plans, you can avail of a high term insurance coverage with very affordable premium payments.
Term life insurance offers death benefits in the form of the sum assured to the policyholder’s nominee in case of the untimely death of the policyholder due to any unforeseen circumstances during the policy tenure.
The 5 crore term insurance premium can be paid through a single premium payment, limited premium payment, or a regular premium payment option.
A single payment refers to a single, one-time payment. A limited premium payment refers to paying the premium for a limited term, while a regular premium payment refers to paying the premium regularly for the longer policy term.
You can choose between the lump sum or the regular income payout option for the 5 crore term plan. For example, if you feel your family may not be able to handle a lump sum wisely, you can choose the regular income option.
Though pure term plans do not offer any maturity benefits, some term plan options come with a return of premium* benefit that is offered as a maturity benefit. In such a scenario, the insured will be able to claim this benefit if they outlive the term insurance policy tenure.
The total premiums paid during the policy term are then returned to the policyholder. For example, Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN: 110N160V04) offers 105% of the total premiums* paid as the maturity benefit under the Life Plus option.
Term insurance not only provides the sum assured as a protective cover for your family but also has additional provisions for specific emergencies in the form of optional riders^. For example, suppose you purchase the rider^ for the waiver of premium benefit. In that case, your future premiums will be waived off if you are affected due to a total and permanent disability in an accident.
You can access 5 crore term plans online, compare their features, purchase, and raise claims online. It is simple, user-friendly, and less time-consuming.
Your Age
Your Health Conditions
The Policy Term
Premium Payment Term
Your Lifestyle Habits
A term insurance plan is for everyone since these policies are quite flexible as per one’s needs and can be easily purchased online.
However, here are some categories of individuals who should opt for a 5 crore term insurance plan.
Is a ₹5 Crore term insurance policy enough for your family's financial future? or How much life insurance is enough?
If you have to answer these questions and determine the right coverage for your term plan, you need to consider the following pointers.
The general thumb rule to purchasing a term insurance plan is to consider the coverage as ten times that of your current annual income. It will take into consideration the inflation rates for income replacement that can help combat the price rise over the years.
As a result, if your family needs financial assistance in the future, they will not have to struggle with a meagre sum assured to make ends meet or dip into their savings in times of need.
If you are the sole breadwinner of your family, you need to consider your current income, the expenses of your family, liabilities, and future financial commitments.
It will ensure the coverage is sufficient for them to lead a self-sufficient life while also planning for their future goals, such as education, marriage, etc. You can access our Tata AIA Life Insurance Human Life Value Calculator to determine this value.
A term plan covers not only your family's needs but also any liabilities that you may have left behind in the form of loans and debts. When you determine the coverage for your term insurance plan, you need to consider the total loans and liabilities that need to be repaid.
With a 5 crore term policy, you can ensure that the burden of these debts does not bother your family if you have huge debts to be cleared off.
Analyse your financial condition to determine the policy term and the premium payment term. Also, determine the affordable premium that you can pay for the policy term.
Compare the different options for the 5 crore term insurance plans based on their features and benefits to decide on a suitable policy for your financial requirements considering the affordability.
Check for the rider^ options offered for the 5 crore term insurance plans that can enhance the coverage for various scenarios such as the critical illness benefit, waiver of premium benefit, accidental death benefit, etc.
Your life insurance provider’s claim settlement ratio is critical 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.
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.
Families protected so far1
99.01% Individual Death Claim Settlement Ratio2 in FY 2022-23
As per applicable Income Tax~ laws
Presence across major cities
Assured 4 hours of claim settlement3
Flexibility to choose premium payment mode as per convenience
3T&C apply
Our experts are happy to help you!
What are the eligibility criteria for buying a 5 crore term insurance plan?
While there are no specific criteria for purchasing a term insurance plan for 5 crores, for Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN:110N160V04) 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.
Can one avail of tax benefits on 5 crore term insurance?
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.
Do 5 crore term insurance plans come with a free-look period?
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.
How should I choose a life insurance provider for term insurance with a high-sum assured?
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.
Will my nominee be able to file a claim for my 5 crore term plan if they are abroad?
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.
How much term insurance will be enough for my family?
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 consid
What are the main factors that affect the 5 crore term insurance premium?
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.
Is it safe to buy a 5 crore term insurance plan online?
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.
How can I ensure affordable premiums for my 5 crore term plan?
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.
Can a person in their late 20s afford a 5 crore term insurance?
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.
Disclaimer
FOR EXISTING POLICY
FOR NEW POLICY
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