5 Lakh Term Insurance

A 5 lakh term insurance is a type of life insurance that offers financial protection to your loved ones in case of your untimely death. This plan ensures that your nominee receives a sum assured of ₹5 lakh if something happens to you during the policy term.

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This amount can help your family manage their daily expenses, clear short-term debts, or cover important needs like education or medical bills.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

What is 5 Lakh Term Insurance?

A ₹5 lakh term insurance plans provide a life cover of ₹5,00,000 to the nominee in case of the policyholder’s death during the policy term. It is a pure protection term insurance plan, meaning there is no maturity benefit if you survive the term.

This type of plan is suitable for people looking for basic life cover at affordable premiums, especially first-time buyers, individuals with low liabilities, or those who want an additional layer of protection alongside other financial obligations.

In this case, Saral Jeevan Bima allows a minimum life cover of Rs. 5 Lakhs, and therefore, you can buy one of these plans based on your suitability.

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How Does a ₹5 Lakh Term Insurance Plan Work?

Let’s understand how a 5 lakh term insurance plan works with the help of an example:

Suppose Ramesh, a 25-year-old salaried individual, buys a ₹5 lakh term insurance plans with a 20-year term. He pays a premium of ₹2,000 per year.

If Ramesh passes away during the policy term, his nominee (say, his spouse) will receive ₹5 lakh as the death benefit.
If he survives the term, there will be no payout (as this is a pure term plan).

Note: Check out the best term insurance plan in India and choose one that suits your requirements.

What are the Benefits of a ₹5 Lakh Term Insurance Policy?

Here are the key benefits of a term insurance for 5 lakhs cover:

Financial Support for Family: This type of life insurance helps the nominee manage basic expenses like rent, education fees, or emergency needs.
Low Premium Burden: The 5 lakh term plan cover is ideal for individuals who want to start with basic coverage without straining their budget.
Tax Benefits: Premiums paid are eligible for deduction under Section 80C, and the death benefit is tax-free under Section 10(10D) of the Income Tax Act.
Ease of Purchase: Most insurers allow online purchase of such plans with minimal documentation and instant issuance.
Quick Issuance: Many insurers offer instant or simplified issuance for low sum assured plans like ₹5 lakh, often requiring no medical tests if you meet basic eligibility criteria.

What are the Key Features of ₹5 Lakh Term Insurance?

Here are the key features of a 5 lakh term insurance plan:

Affordable Premiums: The 5 lakh term insurance premiums are lower compared to plans with higher cover amounts.
Fixed Sum Assured: Your nominee will receive ₹5 lakh as a death benefit during the policy term.
Customisable Policy Term: You can choose a suitable policy term and customise the plan depending on your age and financial needs.
Flexible Premium Payment: 5 lakh term insurance premiums can be paid monthly, quarterly, yearly, or as a one-time lump sum (single pay).
Add-on Riders Available: Various term insurance riders like accidental death benefit or critical illness cover can be added for enhanced protection.

Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying the plan.

Why Buy 5 Lakh Term Insurance Plan?

Here are some of the valid reasons why you should consider buying the 5 Lakh Term Insurance plan:

High cover at affordable premiums: Many believe that the 5 lakh term insurance premiums will be much higher, but that is not the case. The premiums for a 5 lakh term plan are budget-friendly, allowing you to get the required coverage without straining your budget.
Providing Financial Assistance to Your Family: The 5 Lakh Term Insurance plan makes sure that your loved ones’ financial requirements are addressed in your absence. Also, the nominees have the flexibility to use the death benefit for settling loans and managing debts, or for covering various expenses towards household and personal needs.
Pay off Loans/Debts: When buying a term insurance for 5 Lakh sum assured, you can make sure that your family isn’t burdened with pending loans/debts if you’re not there around them.
Seamless Online Purchase: Buying a 5 Lakh Term Insurance plan online is quite hassle-free, and eliminates the need to visit insurer’s branch or wait in long queues. With Policybazaar, you can very easily make the purchase from the comfort of your home and enjoy a 15% discount on online term plan purchases on the Policybazaar website or app.
Flexible Payout Options: Unlike many insurers that offer death benefits of life insurance plans in a lump sum mode, you have the flexibility to choose from various payout methods. For instance, you can choose the combination of a lump sum or the monthly income payout option, depending on your requirements and situation.
Tax Benefits: Another significant benefit of buying the term insurance for 5 Lakhs is eligibility for tax deductions under sections 80C and 10(10D) of the Income Tax Act, 1961.

Note: Know what is term insurance first and then buy a term plan for your loved ones.

Final Thoughts

A ₹5 lakh term insurance plan can be a simple, affordable, and meaningful start to securing your family’s financial future. While it may not offer high coverage, it provides basic protection at a low cost. It is especially useful for young earners, individuals in low-income groups, or those seeking a supplementary layer of coverage.

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What is Term Life Insurance

FAQs

Q: Should I buy term life insurance coverage of Rs. 5 lakhs?

Ans: Anybody with a dependent should have term coverage. The sum assured on death should be comprehensive but also on your budget. If you feel that Rs. 5 lakhs is sufficient for your family to support themselves after your death, then you should definitely buy it. However, factor in the rate of inflation, the number of dependents, and the age of your dependents while deciding the coverage. If you can stretch your finances and assure a higher sum, you should consider it.
Q: How to buy term life cover of Rs. 5 Lakhs?

Ans: There are several options to buy plans with the above-mentioned coverage. Most of these plans can be bought directly from the respective insurer’s websites or from insurance aggregators like Policybazaar or through bank partners of the insurers. Buying from aggregators allows you to compare similar plans across insurers and pick the one that suits your needs. You will be required to submit proof of age, insurable interest, medical reports, etc. Once you finalize the details of the policy, you can start your premium payments.
Q: Why should I buy term insurance?

Ans: Term plans replace the income lost on the death of an earning member. It allows a family to fund their expenses with the benefit amount received on the death of the life assured.
Q: Why choose a 5 Lakh Term Insurance plan?
Ans: Here are reasons to buy a 5 Lakh term insurance plan:
- Affordable premiums: 5 Lakh term insurance premiums are much lower than premiums for any type of life insurance.
- Financial security for your family: The plan ensures your family’s well-being in your absence.
- Easy online purchase: Hassle-free process with a 15% discount on Policybazaar.
- Flexible payout options: Choose the benefit payout method that suits your needs.
- Tax benefits: Eligible for deductions under sections 80C and 10(10D).
Q: What is Term Insurance for 5 Lakhs Cover?

Ans: TTerm Insurance for 5 Lakhs Cover is an affordable life insurance plan that provides financial protection to your family in the event of your death. It offers a cover amount of Rs. 5 Lakhs to your chosen nominees, ensuring their financial stability.
Q: Why consider Term Insurance for 5 Lakhs Cover?

Ans: 5 Lakh term insurance cover are essential if you have dependents. They provide a corpus for your family in case of your untimely demise, ensuring their financial security.
Q: Can I get Term Insurance for 5 Lakhs Cover in India?

Ans: Yes, Indian insurance companies offer 5 lakh term insurance plans. Saral Jeevan Bima is one such plan, provided by most Indian insurance companies, allowing a minimum life cover of Rs. 5 Lakhs, providing flexibility based on your needs.
What are the benefits of term life insurance?
Ans: Here are 4 common term insurance benefits :
- Low premium rates
- Tax Benefits
- Death Benefit
- Long term coverage

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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