5 Crore Term Insurance Plan

What is a 5 Crore Term Insurance?

A Rs. 5 crore term insurance is a pure term insurance plan. It provides a life cover of Rs. 5 crore to the nominee in case of policyholder’s unfortunate demise during the policy term. This term plan does not offer any maturity or survival benefits if the policyholder survives the policy term. 

List of Term Insurance Plans for 5 Crore

There is a wide range of term insurance plans available in the market, which can be easily customized according to the requirements of the insurance buyers. Every plan differs in terms of features, benefits, and premium rates. Let’s take a look at the term insurance plan that offers a sum assured amount up to Rs.5 crore.

Disclaimer: ˜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

How Does a ₹5 Crore Term Insurance Plan Work?

A ₹5 crore term insurance plan is basically a big financial cushion for your family if something happens to you, and you get it by paying a fixed premium every year (or month, depending on what you pick). Here is how a 5 crore term insurance works in simple steps:

Step 1: Pick your cover and the number of years

You decide the cover amount, which is ₹5 crore here, and choose how long you want the policy to cover you. You can now also select if you want to pay the premium in a monthly, yearly, or quarterly premium paying mode.

Step 2: Pay the same premium through the term

Once the insurer issues your policy, your premium stays the same throughout. It doesn’t increase after a few years and help you plan your expenses because you know exactly how much you’ll be paying.

Step 3: Family gets the payout if something happens

If the policyholder passes away during the policy period, the nominee gets the full ₹5 crore. This amount usually isn’t taxable as per the current rules.

That payout can ease a lot of stress for the family. It can take care of EMIs, school or college fees, day-to-day bills, and even long-term plans the family had in mind. The idea is that your family shouldn’t have to struggle or change their lifestyle suddenly in your absence.

Why Buy a ₹5 Crore Term Insurance Plan?

For many families today, especially in bigger cities, expenses and long-term goals keep increasing every year. In such cases, a 5 crore term insurance is important to secure the financial future of your loved ones. It is more of a practical safety net. People who have sizeable responsibilities, including salaried professionals, business owners, or anyone supporting a household, usually consider this amount because it can actually support a family’s financial plans even during difficult times.

• Budget-friendly premiums:
  A ₹5 crore cover sounds like a lot, but the premiums are still quite manageable if you buy it early. Since insurers link the cost to your age, the sooner you pick it up, the less you end up paying over the long run.

• A dependable financial cushion:
  The payout from a ₹5 crore policy can serve as income replacement, cover EMIs, take care of children’s education, and manage day-to-day household expenses. The purpose is to ensure your family does not have to compromise on their lifestyle or long-term plans.

• Protection that keeps up with the times:
  What may feel “enough” today might not hold up ten or fifteen years down the line. Inflation, medical costs, overseas education, everything keeps shooting up. A ₹5 crore cover allows you to handle these future needs without any financial struggles.

• Let's you continue building wealth:
  Term plans don’t eat up a huge portion of your budget. Since the premiums are relatively light, you can keep investing in mutual funds, real estate, or retirement plans without cutting corners. 

A ₹5 crore term insurance plan is a good choice for anyone who has long-term goals, dependents relying on them, and wants peace of mind knowing their family will not be financially impacted during uncertain times.

Explain with the Help of an Example How a 5 Crore Term Insurance Works

Sometimes it is easier to understand how a ₹5 crore term insurance plan works when you picture a real situation. Let us take the example of Rohan, who is a 42 year old, works in Mumbai, doesn’t smoke, and takes care of his wife, two school-going kids, and his ageing parents. He has a home loan of ₹80 lakhs and with so many people depending on him, he decides to take a ₹5 crore term plan with 30 year policy term.

Now, if something unfortunate happens to him during these 30 years, the full ₹5 crore will go to the person he has named as the nominee. That payout is meant to help the family stay steady and continue their life without suddenly worrying about money.

Here’s just an example of how that ₹5 crore could end up being used by the family:

This kind of breakdown shows why such a large cover makes sense for families with big responsibilities. A 5 Crore term insurance cover helps your family pay off loans, take care of child's education, pay for monthly expenses, and still save some for emergencies in the future. 

What Are the Benefits of a ₹5 Crore Term Insurance Plan?

A ₹5 crore term insurance plan provides your family with financial security and helps you plan your budget accordingly. It offers a large cover that helps your family take care of their financial needs and allows you to lead a stress-free life knowing that your family will be financially stable in your absence.

• Helps Maintain Lifestyle and Meet Long-Term Goals
  A ₹5 crore plan makes sure your family can continue living comfortably and meet important milestones, even in your absence. The payout can be used by your family to cover their daily expenses, repay EMIs, or fund your child’s higher education and wedding.
  Example: When 35-year-old Rajeev, an IT professional, suffers an untimely death, his family uses the ₹5 crore payout to manage EMIs, fund their daughter’s higher education, and maintain their lifestyle without any financial difficulties.

• Offers Tax Benefits
  You can claim term insurance tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act, 1961. The 5 crore term insurance pays a tax free benefit to your family in case of your unforeseen death. 

• Provides Financial Stability to Loved Ones
  A large cover amount like ₹5 crore makes sure that your family remains financially stable in your absence. It helps them clear their remaining debts, supports future goals, and protects them against unexpected financial stress.

What are the Key Features of a ₹5 Crore Term Insurance Plan?

A ₹5 crore term policy not only provides a large life cover, but also fits you at different stages of your life. It allows you to choose how you want to pay the premiums, add additional benefits you want, and how your family should receive the payout.

• High Coverage at Manageable Premiums
  Term insurance keeps premiums reasonable even for a large cover. For instance, a 50-year-old non-smoker can get ₹5 crore coverage for roughly ₹21,649 a month for a 30-year term, which makes it easier for many families to plan long-term protection.

• Flexible Premium Payment Choices
  You can pick a payment style that suits your income pattern — monthly, quarterly, yearly, or even limited-pay and single-pay options if you prefer finishing payments early.

• Option to Add Riders
  Riders such as accidental death benefit, critical illness cover, or waiver of premium allow you to strengthen your plan without buying separate policies. These add-ons make the cover more practical for real-life risks.

• Flexible Claim Payout Options
  You can decide whether your family gets the ₹5 crore at once, in monthly instalments, or a mix of both. This makes it easier for them to manage expenses without stress.

• High Claim Settlement Ratio
  It is recommended that you choose an insurance company with a CSR or more than 95%. HDFC Life, for example, has a claim settlement ratio of 99.68% (FY 2024–25), which gives families confidence that their claim will be handled smoothly.

How to Choose the Right Coverage Amount For Yourself?

A ₹5 crore term plan may not be suitable for everyone. You need to check if the 5 cr term insurance is right for you or not:

• Look for your Family's Needs: You should check your family’s financial needs in your absence, their monthly expenses, any outstanding loans, and child’s future education. 

• Factor in Your Age: Your age plays a major role in both the premium amount and policy duration. You should buy term insurance as early as possible as then you can secure a larger cover for a lower premium.

• Annual Income: A thumb rule says to choose a sum assured that is around 10 to 15 times your annual income. This makes sure that your family can maintain their quality of life, meet monthly expenses, and plan for future goals.

• Account for Inflation: As living costs continue to rise, your insurance cover should also keep pace. A 5 cr term insurance allows you to make sure your family’s lifestyle remains unaffected by inflation over time.

• Secure Future Financial Goals: Think for your family's long-term goals and responsibilities, such as your children’s higher education, your parents’ medical care, or your spouse’s retirement needs. These factors can help you find out the right coverage amount.

• Help in Emergencies: Life is unpredictable, and emergencies can happen without any warning. Including an extra buffer in your coverage makes sure that your family is financially prepared for medical, legal, or other unexpected expenses.

• Consider Existing Assets: If you already have investments or savings, you can factor them into your financial plan. However, make sure your insurance coverage still fills any remaining financial gaps for complete protection.

• Check Affordability: You should use an online term insurance calculator to find a balance between the premium amount and the benefits offered. This tool helps you choose a plan that fits your current budget while securing your family’s financial future.

Is ₹5 Crore Term Insurance the Right Choice for You?

A ₹5 crore plan is suitable for people with high financial goals. These plans provide comprehensive cover for daily expenses, education fees, EMIs, and retirement needs.

Who is it right for?

• You are an earning member with dependents.

• You have large outstanding loans.

• You aim to protect your family from inflation and rising costs.

• You want long-term financial independence for your loved ones.

Fixed Premiums: The premiums remain the same for the entire premium payment term, which allows you to budget accordingly.

Add-on Riders: You can choose to increase base cover of the policy with the following riders:

• Critical Illness Rider – Provides a lump sum on diagnosis.

• Accidental Death Benefit – Offers extra payout for accidental death.

• Waiver of Premium – Future premiums are waived in case of disability or critical illness.

Will My Rs. 5 Crore Term Insurance Policy be Enough?

Choosing an appropriate plan needs a lot of planning and a better understanding of what is term insurance offers. A term insurance plan offers a scope of items to help accomplish your financial objectives, along with protection against risks, taking care of debts, the child’s educational needs, retirement, and so forth. You must assess your requirements and choose a plan that can fulfil those requirements to the best. Also, keep in mind the future aspects like rising inflation, loan repayments, etc., When purchasing term insurance of 5 crore, remember that higher coverage will help your family deal with these aspects in the case of any eventuality. 

Each person and family's needs are different. If your dependent is your life partner and has a kid, then, a Rs 5 crore term insurance cover, should be enough. On the other hand, if you wish to provide for more members of your family, a bigger sum might be required. 

Who Should Buy a ₹5 Crore Term Insurance Plan?

This plan is ideal for people who have big financial responsibilities or long-term financial goals.It gives peace of mind, and also your family’s needs will be fulfilled even in case of your absence. It is important to consider this term plan if you have:

• Large home or personal loans 

• Financial dependents (ageing parents, spouse, children) 

• Long term goals such as regular lifestyle expenses of family, higher education of children abroad, retirement corpus for family/spouse 

• Commercial or Business liabilities 

 What are the Factors to Consider Before Buying a ₹5 Crore Term Plan?

Here are the factors to consider before buying a 5 crore term insurance plan:

• Coverage Amount: Start by evaluating your income, monthly expenses, remaining debts, and the number of people financially dependent on you. This will help you find out if a ₹5 crore cover is the right fit for your family’s financial needs.

• Policy Tenure: You should choose a policy term that covers you until your main financial responsibilities, such as your children’s education, loan repayments, or retirement planning, are fulfilled. This makes sure your family remains protected throughout the most important stages of life.

• Premium Affordability: You can compare premiums from different insurers to find a plan that offers comprehensive coverage without straining your budget. Check that the premium fits into your budget, as your life stages and responsibilities may change.

• Claim Settlement Ratio: Always choose an insurance company whose CSR is above 95% which indicates settling claims quickly and offers peace of mind that your loved ones will not financial difficulty during emergency. 

• Riders: You can increase your base plan coverage by adding some of the useful riders such as accidental death, waiver of premium, and critical illness. These rider benefits offers security against risks which are non-death which makes your policy effective. 

• Documentation: You should keep the important documents ready, like income proof, medical records, and valid ID documents. For a 5 cr term insurance, insurers may also require a medical test or detailed financial verification.

• Exclusions: Review the policy exclusions carefully before purchasing. Common exclusions include death by suicide within the first policy year, self-inflicted injuries, or non-disclosure of medical conditions. Understanding these helps avoid claim rejections later.

• Claims Process: You should choose insurers that provide a quick, transparent, and simple claim settlement process. Your nominee should be aware of how to file a claim and the documents required, so they can access the payout without difficulty.

• Flexibility: Select a policy that allows you to increase coverage at different life stages, such as marriage, childbirth, or a rise in income. 

• Tax Benefits: You can check if your plan qualifies for tax benefits under Section 80C for premiums paid and Section 10(10D) for the death benefit received. 

How to Choose the Best ₹5 Crore Term Insurance Plan?

Here is how you should choose the best 5 cr term insurance plan:

• Compare premiums: You need to review and compare premium rates from different insurers in order to select a policy that offers affordability and maximum benefits. You must opt for large life cover without affecting your monthly budget.

• Check the Claim Settlement Ratio: You should always buy 5 cr term insurance from insurers whose CSR is above 95%. A higher CSR indicates the number of claims the company has settled in the previous year, thereby giving you the peace of mind that your family might receive timely financial support when needed.

• Add Riders: You should check the available term riders for critical illness, accidental death benefit, or waiver of premium, among others, and select those that best suit your health profile, occupation, and lifestyle. All these riders increase the comprehensiveness of the coverage of your policy.

• Entry Age: By buying a term insurance plan at a young age, you can lock in lower premium rates for the full duration of the policy. This also covers longer periods at relatively lower costs.

• Look for Dependents: It is recommended to choose your coverage amount based on the number of dependents you have and their future financial goals. This makes sure that your family’s needs, such as child's education, daily expenses, and future plans, are taken care of even in your absence.

What is the Best Time to Buy 5 Crore Term Insurance?

Note: Check all the best term insurance plan in India.

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

What are the Documents Required to Buy a Rs. 5 Crore Term Insurance Plan?

Here is a list of documents which are required to buy a Rs. 5 crore term insurance plan:

• Income Proof
  Accepted documents are: Last 6 months’ bank statements with salary credit, Form 16, last 3 years’ ITR with Computation of Income (COI), or the latest 3 months’ salary slips along with 6 months’ bank statements showing salary credit.

• ID & Address Proof
  You can submit any of the following: Passport, Aadhaar Card, Voter ID, or Driver’s License.

• Age Proof
  Any one of these is valid: Passport, Aadhaar card, Driver’s License, Birth Certificate, or PAN Card.

• Additional Requirements
  You might be required to present a recent passport-size photo, details of currently active life insurance policies, and medical reports or a health declaration form.

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