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Content Manager with heart, mind, and soul dedicated to creating impactful content that exceeds the market standard, delivers and reaches the readers conveniently. Besides producing high-ranking content, my focus lies in creating content that solves user queries and adds value.
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A term insurance policy offers financial security to your loved ones in case of your unfortunate demise during the policy tenure. Having term insurance with sufficient sum assured allows your loved ones to live a comfortable life. A 5 crore term insurance policy offers a sum assured of 5 crore to your family in case of your passing away.
Your family can use this amount to fulfil their financial needs, cover their living expenses, and pay off outstanding debts if any. Buying a term insurance plan in your early 20s helps you save a considerable amount in premiums. A 5 cr term insurance is a considerable choice due to the rising inflation rate in India.
Let’s understand how a 5 crore term insurance policy works with a simple premium illustration.
Say Hello to Rajeev
Rajeev is a 30-year-old non-smoker and a healthy person earning Rs 7 lakhs annually.
Policy Purchase
Purchased a 5 crore term insurance policy at annual premiums of Rs 40,311.
Unfortunate Death
In the 10th policy year, Rajeev suffered an unfortunate demise.
Claim
His family received ₹5 crore as a death benefit from the insurer.
After Claim
His dependents can use the sum assured amount to substitute the loss of income.
We have provided a list of the best 5 cr term insurance plans that you can consider for buying. The plans are chosen based on various parameters including the insurer’s CSR, affordability of premiums, and brand value.
| Company Name | Plan Name | CSR (2023-24) | Annual Premiums | Unique Features |
| Axis Max Life Insurance | Smart Total Elite Protection Plan | 99.65% | Rs 40,311 |
|
| TATA AIA Life Insurance | Sampoorna Raksha Promise | 99.13% | Rs 48,150 |
|
| ICICI Prudential Life Insurance | iProtect Smart Lumpsum Plan | 99.17% | Rs 39,842 |
|
| HDFC Life Insurance | Click 2 Protect Super | 99.50% | Rs 45,660 |
|
| Bajaj Allianz Life Insurance | E Touch II | 99.23% | Rs 31,360 |
|
The sample premium is calculated for a 30-year-old male earning Rs 10 lakhs annually and looking for a life insurance coverage of 5 crore till 55 years. The above premiums are calculated using the PolicyX term insurance calculator.
When considering the life coverage amount of your term plan you should analyze various factors including your lifestyle expenses, your annual income, financial responsibilities, any outstanding loans, etc. A term insurance policy offers financial protection to your loved ones in case of your unfortunate demise during the policy tenure. You can buy a 5 crore term insurance plan at affordable premiums in your early 20s.
A 5 crore term insurance policy would be enough to live a decent lifestyle and fulfil financial obligations. By comparing various term plans with a 5 crore coverage on PolicyX.com you can choose an ideal plan.
Along with financial security for loved ones, a 5 crore term insurance policy offers a lot of benefits. Below we have listed various benefits of a 5 cr term plan.
The primary benefit of buying a Rs. 5 cr term insurance plan is that you'll get comprehensive coverage at affordable premiums. People make misconceptions about the premium of 5 cr term insurance being unaffordable. Instead, you can opt for the high life cover plan at premiums that are as economical as Rs. 2,500 if you start early.
A 5 crore term insurance policy provides financial security to your loved ones in case of your unfortunate demise. This money can help your loved ones to live a comfortable lifestyle and complete their financial needs.
You can avail of additional riders with your 5 cr term plan as per your requirements. You can choose from a range of rider options including terminal illness rider, accidental death benefit rider, or waiver of premium rider.
You can avail of tax benefits on the premiums paid for your term insurance under Section 80 (C) and Section 10 (10D) of the Income Tax Act, 1961.
A 5 cr life insurance policy helps to avoid the burden of your outstanding debts on your loved ones in case of your unfortunate passing away. They can live a peaceful and comfortable life.
There are various factors that affect the premiums of a 5 cr term insurance plan. Understanding these factors helps you make a viable decision.
The age of the policyholder affects your 5 cr term insurance plan. The earlier you buy, the lower your premiums will be. That’s why experts always recommend buying a term plan at a younger age.
| Policyholder’s Age | Plan Name | Sum Assured | Policy Tenure | Premium Payment Tenure | Annual Premiums |
| 25 years | Axis Max Smart Total Elite Protection Plan | Rs 5 crore | 30 years | 30 years | Rs 34,262 |
| Policyholder’s Age | Plan Name | Sum Assured | Policy Tenure | Premium Payment Tenure | Annual Premiums |
| 30 years | Axis Max Smart Total Elite Protection Plan | Rs 5 crore | 30 years | 30 years | Rs 47,969 |
You can see how age affects the premiums from the above premium illustrations.
The health conditions of the policyholder also affect their 5 crore term insurance plan premiums. The premiums for a healthy individual are lower as compared to an individual with an illness.
The premiums for your 5 cr term insurance also depend on the policy tenure chosen. The higher your policy tenure, the higher your premiums and vice-versa.
The lifestyle habits of a policyholder also affect their 5 crore term insurance premiums. If you are a smoker or consume alcohol your premiums are going to be higher as compared to a non-smoker.
The gender of the policyholder also impacts their 5 cr term insurance premiums. As per the life insurance companies women live longer than men. That’s why women are charged lower premiums as compared to men.
pert InsightsSouth Africa has the highest life insurance penetration of 9.2% as compared to India’s insurance penetration of 2.8%.
*Data Source: IRDAI Annual Report 2023-24
To choose the right 5 cr term insurance policy you should consider certain factors so that you can make a wise decision. Let’s understand these factors in detail.
You must check the CSR (Claim Settlement Ratio) of the insurer before buying a term plan from them. A good claim settlement ratio highlights the efficiency of insurers in settling claims.
You must make a comparison between various 5 crore term insurance plans before choosing the one. Comparing various term plans helps you make a wise decision.
You must choose additional riders wisely as each rider increases your premium amount. Choose only necessary riders. There are various riders available including accidental death benefit rider, return of premium rider, disability rider, critical illness rider, etc.
You must read your policy documents carefully so that you don’t miss any crucial information mentioned in the documents.
You must check the customer testimonials and feedback from the insurance company before purchasing a plan. The customer testimonials and feedback would give you a better idea of the insurer’s reputation.
One can invest in a 5 crore term plan depending on their individual requirements. However, a 5 crore life policy is suitable for a certain set of individuals including:
Young professionals who are in their 20s or 30s and just started earning must consider buying a 5 crore term insurance. These individuals can avail 5 crore plan at nominal premiums.
If you are the sole breadwinner in the family you must consider investing in a 5 crore term plan. It makes sure your loved ones are financially secure in case of your demise.
As young parents you must buy a term plan to secure the future of your children especially when children are not mature. Hence, it is necessary to secure your child's future with a 5 cr term insurance plan.
Investing in a 5 crore term plan is worth it for someone with dependents. The term plan will offer a financial safety net to your dependents even in your absence.
You must buy a 5 crore term insurance policy if you have outstanding debts. A term plan ensures that your loved ones do not face the burden of your debts in case of your unfortunate demise.
A 5 crore term insurance plan offers a sum of Rs 5 crore to your loved ones in case of your passing away during the policy tenure. You can also avail of additional riders such as accidental death benefit rider, critical illness rider, return of premium rider, etc with your term plan to enhance the coverage.
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Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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