50 Lakh Term Insurance Plan - 2025

Like most life insurance policies, you can purchase a ₹50 lakh term policy if you are at least 18 years old. The maximum age limit on most term policies is 65 years unless you have opted for a whole life cover.

While a ₹50 lakh term plan is quite affordable, the premium rates of a term plan can vary depending on your age, policy tenure, and if you have chosen to add any additional riders⁵ to your plan.

A few key benefits of purchasing a ₹50 lakh term insurance policy include:

•  Lifetime protection under most insurance providers
• Tax benefits⁸ under applicable tax laws
• Easy customization with add-on riders⁵
• Cost-effective life insurance coverage
• Security against existing and potential loans and liabilities. 

For a more detailed explanation of the benefits, you can get under these points, refer to our Benefits of ₹50 Lakh Term Insurance mentioned above. 

Using an online term insurance calculator to estimate any potential premium amounts under a term plan is recommended as it mitigates the risk of human errors that may occur during the calculator process, giving you a more accurate estimate. 

This will depend on factors like your current lifestyle, your number of dependents, your annual income, and existing liabilities like debt or loan payments (if any) that are yet to be paid off. 

Unless you have opted for a Return of Premium benefit under the plan, that coverage amount will lapse along with the policy once the policy tenure is over. This is because most term insurance plans do not offer any survival benefits to the policyholder unless your policy wording specifically states otherwise. 

Some popular add-on riders⁵ that people opt for when purchasing term insurance are:

• Accidental Death Benefit
• Terminal Illness Cover
• Critical Illness Cover  
• Accidental Total and Permanent Disability Benefit  
• Hospicare Benefit

You can also check our blog on Which Riders to Choose for Your Term Insurance Plan? To learn more about the riders mentioned here and about other riders, you can opt for when buying a term plan. 

Term plans offer tax⁸ deductions under their annual premium payments of up to ₹1.5 lakhs to policyholders under Section 80C of the Income Tax Act 1961.

You may also be eligible for other deductions or exemptions under sections 80D and 10(10D) if you have opted for medical insurance coverage or are a nominee under a term policy and received a death benefit payment, respectively.

It is possible to purchase more than one term policy. However, you must note that buying more than one plan can get expensive as you will be paying more premiums and will need to go through the application process again when buying a new plan.

Moreover, the premium rates charged for older individuals are higher than younger policyholders for the same coverage amount.

Instead, we recommend getting top-up plans and add-ons or opting for an increasing term insurance plan altogether if you think you may need more coverage in the future. 

Your annual income determines the maximum term insurance coverage you can purchase. The higher the coverage, the higher the premiums charged for the term plan.

Generally, your maximum term insurance coverage should range between 10 to 15 times your annual income. For example, if your annual income is ₹5 lakhs, you may be able to afford a ₹50 lakhs term insurance policy.