50 Lakh Term Insurance Plan

What is a 50 Lakh Term Insurance Plan?

A ₹50 Lakh Term Insurance Plan is a pure life cover plan that provides your family with a financial payout of ₹50 Lakh in case of your unfortunate demise during the policy term. This payout, also called the sum assured, is paid as a death benefit to your nominee and helps manage ongoing expenses, repay loans, and maintain their lifestyle even in your absence.

How Does A Term Insurance for 50 Lakhs Work?

You pay a fixed amount of premium for a fixed period i.e., monthly, quarterly, or annually for a specific policy term. In case the policyholder dies during this time, the insurance company pays Rs. 50 Lakh to the nominee. In pure term insurance plans, the policy do not provide any payout during maturity (unless you have a return of premium term plans

Let’s understand this with the help of an example:
Rajat is an 18-year-old non-smoking male with an annual income of Rs. 10 Lakhs. He chose a 50 Lakh term insurance plan for a 30-year policy term to safeguard his family in the unfortunate event of his demise. After comparing the available term plan 50 lakh plans on Policybazaar, he finally bought the best term insurance plan for 50 lakhs premium starting at just Rs. 274/month. This way, he made sure that his family was protected at uncertain times in the future.

Who Should Consider Rs. 50 Lakh Term Insurance? 

A ₹50 Lakh cover is ideal for: 

• Young professionals who are just starting their careers 

• Newly married couples who are planning a family 

• Anyone having liabilities such as home loans or education 

• Individuals who are moving beyond employer-provided or low insurance

Why Buy 50 Lakh Term Insurance Plan?

Here is why you should buy the best term insurance plan for 50 lacs in India:

• Affordable Premiums: The 50 lakh term insurance premium is affordable, compared to the other types of life insurance, and thus allows you to secure the financial future of your family members.

• Large Cover Amount: With this term policy for 50 Lakh cover, you can create a strong financial shield for your loved ones. This can help your family maintain high living standards and fulfil their goals, even in adverse times.

• Comprehensive Riders: You can choose to enhance your policy’s base coverage with optional riders, such as accidental death benefit, critical illness benefit, and premium waiver.

• Pay off Liabilities/Loans: In case of unforeseen death, your family can use the term insurance 50 lakhs payout to pay off unpaid loans and liabilities like home loans or business loans that might burden your family.

• Income Replacement: The term insurance 50 lakhs payout amount can help you with income replacement in the unfortunate absence of the main income earner.

Best Term Insurance Plan for 50 Lakhs in India 2025~

Let’s take a look at the best term insurance plan for 50 lakhs available in India 2025:

What are the Key Features of the ₹50 Lakh Term Insurance Plan?

Here is a list of key features of the best term insurance plan for 50 lakhs in India:

• Low Entry Age: The entry age limit of term insurance plans is between 18 years to 65 years. This large age limit gap of the term policy for 50 lakhs cover allows a wider range of individuals to secure their loved ones.

• Premium Pay Options: There are various premium payment options available with 50 lakh term insurance. The premium payment terms like regular term, limited term, and single term, along with the term policy for 50 lakhs premium pay modes like monthly, quarterly, semi-annual, and annual.

• Flexible Payout Benefits: With term insurance 50 lakhs plans, you can choose the most suitable payout options like monthly income, lump sum payments, increasing monthly income, or lump sum + monthly income. 

• Customisable Policy Term: You can choose a policy duration that aligns with your financial goals, ensuring coverage for as long as your family may need protection.

• Easy Purchase and Online Renewals: The plan can be easily purchased and renewed online, offering a smooth, paperless process with quick approvals and minimal documentation.

*Note: You can calculate the term insurance premium for 50 lakhs for yourself using the 50 lakh term insurance calculator.

How to Determine the Right Coverage Amount for the Best Term Insurance Plan for ₹50 Lakh?

Choosing the right life cover isn’t about picking a random number, it’s about ensuring your family’s financial security aligns with their real needs. A ₹50 Lakh Term Insurance Plan may suit some individuals perfectly, while others may require a higher cover. Use the following checklist to evaluate whether ₹50 Lakh is the right coverage for you.

 Understand Your Family’s Financial Needs

Start by assessing your family’s regular monthly expenses, including rent, EMIs, groceries, utility bills, and school fees. Multiply this by the number of years you want your family to remain financially supported.

Factor in Your Current Age

Buying term insurance early, especially in your 20s or 30s, means lower premiums and broader coverage options. Even if your current liabilities are low, your family’s future expenses may increase.
A ₹50 Lakh plan can be a solid starting point that you can enhance later as your income and responsibilities grow.

Align Your Cover with Annual Income

Experts recommend choosing a cover that is 10–15 times your annual income.

This benchmark helps ensure that your loved ones can maintain their standard of living in your absence.

Account for Inflation Over Time

Inflation can significantly reduce the value of money over time. What seems adequate today may not suffice 10–15 years later. Therefore, while a ₹50 Lakh plan offers stability today, it’s wise to factor in rising costs of education, healthcare, and lifestyle when choosing your coverage amount.

Plan for Short- and Mid-Term Goals

Beyond long-term security, consider near-future responsibilities such as:

• Children’s education or marriage expenses

• Ongoing EMIs for home or car loans

• Spouse’s financial independence or parental care

If ₹50 Lakh comfortably covers these needs, the plan fits well. If not, consider increasing your cover or adding riders for enhanced protection.

Add a Cushion for Emergencies

Unplanned expenses such as hospitalisation, legal matters, or job loss can add financial pressure. Adding a small buffer, say ₹5–10 Lakh, beyond your calculated requirement helps your family handle unexpected costs without compromising their lifestyle or savings.

Subtract Existing Savings and Assets

Review your current financial assets like mutual funds, fixed deposits, EPF, or any existing life cover. Subtract this total from your family’s overall financial requirement. If the gap is around ₹50 Lakh, then a ₹50 Lakh term plan will likely offer the right balance of coverage and affordability.

Ensure Premiums Fit Your Budget

While higher covers like ₹75 Lakh or ₹1 Crore may sound appealing, affordability is essential. Choose a premium that fits your monthly budget comfortably to maintain consistent coverage without financial stress. A ₹50 Lakh term plan offers strong protection at an accessible premium point, making it a practical choice for most households.

How to Use the ₹50 Lakh Term Insurance Calculator?

To understand how much a ₹50 Lakh term plan may cost you, use an online term insurance calculator to get an instant premium quote. Here is how the term insurance for 50 Lakh calculator work:

Step 1: Enter basic details such as age, gender, income, and lifestyle habits (e.g., smoking).
Step 2: Select the desired coverage amount (₹50 Lakh) and policy term (e.g., 30 years).
Step 3: Instantly view premium options, monthly, quarterly, or annually.
Step 4: Add optional riders like accidental death or critical illness for extra protection.

What are the Benefits of a Term Policy for 50 Lakhs?

The following are the benefits of buying the best term insurance plan for 50 lakhs in India:

• High Coverage at Affordable Premiums: One of the biggest benefits is the affordability of Rs. 50 lakh term insurance premiums. A healthy non-smoking 30-year-old male could get covered for 25 years with a premium as low as 334/month 

• Financial Security for Family: With the term plan 50 lakh, in case of an unfortunate event, your family receives ₹50 lakh as a death benefit, which can help them cover living expenses, repay loans, and maintain their lifestyle.

• Flexibility in Policy Tenure: You can choose a term policy for 50 lakhs policy tenure that aligns with your financial goals, ensuring coverage during the different life stages.

• Flexible premium payment options: You can choose from:

  • Regular pay (pay throughout the term), 

  • Limited pay (pay for a few years and staying covered longer), and 

  • Single pay (pay one time). 

• Rider Options: Many insurers offer important term insurance riders to enhance your protection beyond the base term plan 50 lakh life cover such as: 

  • Critical illness rider: Lump sum payout if diagnosed with illnesses such as heart attack, cancer.

  • Accidental death rider: Extra payout if death occurs because of an accident 

  • Waiver of premium: Future premiums are waived off in case of critical illness or disability and more riders. 

• Easy online and hassle-free purchase : With Policybazaar, purchasing a 50 lakh term insurance is purely online: 

  • You can instantly check your premium using the online calculator

  • Fill a quick digital form 

  • Upload your documents, and complete medicals if needed. 

  • Your policy document is then sent directly to your inbox. 

• Renewing the policy is just as easy, with online payments, automatic reminders, and 24/7 access to your policy details.

• Tax Benefits: You can claim term insurance tax benefit under Sections 80C and 10(10D) of the Income Tax Act, 1961 as per the prevailing tax laws.

• Peace of Mind: Knowing that your family will be financially secure in your absence gives you peace of mind, allowing you to focus on your personal and professional life.

Why is Sum Assured an Important Factor When it Comes to Term Insurance? 

Choosing the right sum assured in your term insurance plan is crucial for your family’s financial security. It ensures they are protected in case of any unexpected event and helps cover major expenses like loans, education, and daily needs. The right cover amount offers peace of mind and long-term stability. Check the tabs below to find the best term insurance options and select the ideal sum assured for your needs.

Who Should Buy the Best Term Insurance Plan for 50 Lakhs?

A 50 lakh term insurance plan is ideal for individuals with specific financial needs and family responsibilities. Here’s a comparison of different scenarios to help determine if this coverage is right for you:

A Rs. 50 Lakh term insurance plan can be helpful at all life stages, irrespective of when you decide to buy one. Below are some of the reasons you should consider purchasing this term plan based on your age range: 

• For individuals in their 20s: In their 20s, a term plan can provide financial protection for their parents in the future if they have taken out education loans for higher education. 

• For individuals in their 30s: In their 30s, a Rs. 50 Lakh term plan can provide financial support to their loved ones in case of an unforeseen death to help pay off car loans, property loans, etc., which the life assured may have opted for. 

• For individuals in their 40s: In the 40s, the life cover (sum assured) from a Rs. term insurance 50 lakhs plans can be used to provide the financial stability to their dependents in fulfilling their needs such as children’s education, marriage etc.

• For individuals in their 50s: In their 50s, a ₹50 Lakh term plan helps protect their spouse or dependents by covering household expenses, loans, or medical costs, ensuring financial stability as they near retirement.

• For individuals in their 60s: In their 60s, a ₹50 Lakh term plan provides financial security for the spouse and dependents, helping cover daily expenses or healthcare needs, and ensuring peace of mind in later years.

What Factors to Consider Before Buying 50 Lakh Term Life Insurance Plans?

Here is a list of the factors you should consider before buying term policy for 50 lakhs in India:

• Claim Settlement Ratio: The ratio of the number of claims settled by an insurance company compared with the number of claims filed. An insurer with a higher claim settlement ratio (>99%) will be less likely to reject claims filed against any policy.

• Max Policy Term Limit: Most life insurance plans provide a maximum policy term of 75-100 years. In general, more extended periods of coverage will require higher term insurance premium for 50 lakhs.

• Large Sum Assured: Life cover refers to the total lump sum assured amount distributed to the policyholder's beneficiaries/nominees.

• Rider policies or Add-ons: These policies offered by various life insurance companies have different add-on options that increase policy coverage, provide additional payouts, or provide various other benefits.

• Waiver of Premium Cover: Some policies provide a “waiver of premium cover,” which means that the policyholder will be exempt from paying additional premiums if they are impacted by an illness or injury that affects their livelihood.

• Factors Influencing Premium Rise: The term insurance premium for a 50 Lakh policy increases with the applicant's age at the time of registration, whether the applicant smokes, the amount being insured for, and any pre-existing health conditions the applicant might have. Disclosure of the full health information of the applicant is required, and violation of the same will be grounds for rejection of any policy claims.

• Tax Benefits: The Government of India provides tax benefits under sections 80C and 10(10D) of the Income Tax Act, 1961 for the term insurance premium for 50 lakhs life cover.

What is 50 Lakh Return Policy?

50 Lakh term insurance policy offers life coverage of Rs. 50 lakhs for a specific time period/policy term. And if anything unfortunate happens to the sum assured/policyholder during the plan term, the nominee/beneficiary receives the death benefit/payout of Rs. 50 Lakhs.

On the contrary, if the policyholder chooses a term plan with Return of Premium option, he/she will get back the premiums paid (minus GST) upon outliving the policy term.

How to Buy a 50 Lakh Term Life Insurance Plan?

Here is a step-by-step guide on how you can buy a 50 lakh term insurance plan online:

• Step 1: Visit the term life insurance page

• Step 2: Enter basic information like name, gender, date of birth, and phone number and click on ‘View Plans’

• Step 3: Fill in your smoking habits, occupation type, annual income, and educational qualifications accurately

• Step 4: Select the best term insurance plan for 50 lakhs as per your needs and proceed to pay

*Note: You should first understand what is term insurance and then buy the best term insurance plan for 50 lakhs without hassle.

Is Rs. 50 Lakh Term Insurance Coverage Sufficient for My Family? 

While ₹50 lakh seems like a large sum, its sufficiency completely depends on your family's unique financial situation. You must evaluate five key areas before deciding if this coverage is enough for your family's long-term financial security:

• Number of Dependents: ₹50 lakh might work if you have a single dependent and very low debt. But if you are the sole earner for a large family (spouse, children, and parents), this amount will likely be inadequate for long-term support.

• Current Income: Insurance experts recommend coverage of 10–15 times your annual income. If you earn around ₹5 lakh annually, ₹50 lakh is reasonable. However, if your income is ₹10 lakh or more, this policy only offers 5 times protection, which is generally insufficient given inflation.

• Outstanding Loans: Your term plan must first pay off all your liabilities (home loans, car loans, etc.). If your current debts are already ₹35–40 lakh, a ₹50 lakh policy leaves only ₹10–15 lakh for your family’s actual living expenses.

• Children's Future Goals: Future costs for higher education and marriage are massive (often ₹20–30 lakh per child). For young children, you must factor in inflation over 10–15 years, meaning ₹50 lakh may fall critically short of securing these milestones.

• Lifestyle Expenses: A family needing ₹40,000 per month requires nearly ₹5 lakh annually. At this rate, a ₹50 lakh payout would only last about 8–10 years. To ensure your family maintains their current lifestyle for a longer period, a higher cover is almost certainly required.

Documents Required to Buy a Rs. 50 Lakh Term Insurance? 

To purchase a ₹50 lakh term insurance policy, you’ll need to submit the following documents:

Identity Proof

• Passport

• Driving Licence

• PAN Card (Mandatory)

Address Proof

• Passport

• Voter ID

• Permanent Driving Licence

• Aadhaar Card

• Central KYC Identifier (Accepted only if the downloaded document is an OVD and the address matches the proposal form)

Income Proof

• ITR (Income Tax Returns)

• Bank Statements

• Salary Slips

Medical Reports (If Required)

Insurers may ask for your medical tests or health reports before issuing a ₹50 lakh term plan

Wrapping it up!

Online term plans often provide significant discounts compared to offline 50 lakh term insurance plans, as the agent commission is eliminated in the online plans. You can easily compare and buy a term plan online that is the most suitable for your financial needs. Term life insurance can secure your family financially in your absence and help you save on your yearly taxes.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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