50 Lakh Term Insurance Plan

Term Insurance Plans

Term insurance plans are comparatively the most affordable life insurance policy as they provide large amounts of coverage against relatively low premiums. This is because term plans are purely risk-based – meaning the entire sum paid by policyholders as a premium is kept in reserve for payouts if the policy is claimed. If the policy matures or expires while the policyholder is still alive, there is no monetary benefit. In case of survival of the insured beyond the policy maturity date, the policy buyer has to renew his coverage, presumably under different payment conditions, or forgo their insurance entirely.

Most term insurance policies also offer some payout in the event of permanent or partial disability through critical illness or accident, such that the policyholder’s regular means of livelihood is disrupted.

What to Know Before Buying Term Life Insurance Plans?

There are several options for purchasing term insurance, as various insurance companies offer different types of insurance packages targeting different types of individuals. Readers should be aware of the following details with regard to term insurance:

• 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 limit – Most term insurances provide a maximum period of coverage of 75-100 years. In general, more extended periods of coverage will require higher premiums.

• Life Cover – Life cover refers to the total lump sum assured amount distributed to the beneficiaries of the policyholder.

• Rider policies or Add-ons – The term policies offered by various insurance companies have different add-on options that increase policy coverage, provide additional payouts or various other benefits. Examples of standard rider policies include an "extra payout in the event of accidental death,” “return of premium on policy maturity,” and “coverage against critical illnesses.”

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

• The term insurance premium of 50 Lakh policy increases with the age of the applicant 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.

• Term insurance premium of 50 Lakh often rises with age. Customers should keep this in mind when applying for a policy, as they will have to pay much higher premiums if they have to renew their policy in the event that they are alive at the time of policy expiry. Consumers should, therefore ideally, purchase a term insurance plan as soon as they start earning a decent monthly salary, and it is recommended to purchase a policy that provides coverage for at least 65 years.
  Note: You can use the 50 Lakh term insurance plan premium calculator to compute the amount you would need to pay as premiums for your desired term life insurance plan.

• The Income Tax act provides tax benefits for payments made towards term insurance premiums.

Best 50 Lakh Term Insurance Plans in India 2023 

Let’s take a look at some of the best 50 Lakh term insurance plans available in India 2023:

*The premiums and rider costs mentioned in the above table are values calculated for Rs. 50 lakh term insurance for a 25-year-old, non-smoking male, and only meant to act as a guide for comparison purposes. Policy premiums are subject to change with market conditions and will vary based on the health and income of the policy seeker. Readers are therefore encouraged to conduct their own due diligence before applying for a life insurance policy.

Benefits of Buying a 50 Lakh Term Insurance

There are several reasons why one might opt for an Rs. 50 Lakh term insurance policy at various stages of their life – 

• One in their twenties might opt for the term insurance plan to provide financial safety against education loans taken out by their parents for their higher studies and provide for their parents later in life.  

• In their thirties, A life insurance policy such as Rs. 50 Lakh term insurance plan can provide a means for one’s loved ones to overcome their financial liabilities such as loans against property, vehicles, etc., that the policyholder might have taken out. 

• In their forties, the sum assured to the dependents of the policyholder will provide financial security and guarantee their dependents’ needs and life goals, such as children’s education or marriage, will be provided for.

• The modern-day lifestyle often results in various ailments and diseases. Most insurance plans have provisions to safeguard one's dependents and loved ones after their passing while also providing protection coverage against critical illnesses. 

How to Buy a 50 Lakh Term Life Insurance Plan?

Here is a step-by-step guide on how you can buy a term life 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 most suitable plan as per your requirements and proceed to pay

Wrapping it up

Online term plans often provide significant discounts compared to the offline term life 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 not only secure your family financially in your absence but also help you save on your yearly taxes.