A 50 lakh term insurance plan can be a good start for providing financial protection to your family at a nominal premium cost. The plan will provide some financial assistance to the beneficiaries in case the worst happen. You can start increasing the cover as per the growing life stages if the term plan you have allows you to. With term insurance premiums being quite nominal compared to the benefits, you can easily afford the Rs 50 lakh cover. It is the simplest and affordable option for kick starting your financial goal.
What is Term Insurance for Rs. 50 Lakhs?
Term insurance is a pure risk life insurance cover that can offer significant coverage at nominal premium. As the most affordable life insurance plan, it is perfect for your family’s long-term financial protection. It is a good start to financially secure your family from unfortunate mishaps. One of the best things about this plan is that you can buy it in the early years of your career.
For example, if you buy the 50 Lakh Term Insurance Plan and decide on terms such as death benefit, policy term, etc. In the unfortunate event of your sudden demise, before the maturity of the policy, the beneficiaries will receive the assured amount. The amount can prove beneficial for families who suffer the loss of their sole breadwinner.
How does Term Insurance for 50 Lakhs Work?
Term insurance for 50 Lakhs will provide the beneficiaries with an assured amount in case of the policyholder’s demise during the policy term. If the policyholder passes away during the policy term, the beneficiaries will receive a death benefit to help them manage the financial expenses. The premium for this term plan will not change throughout the tenure. In case of failure to pay the premiums on time, the policy will be terminated. No survival benefits will be provided if nothing happens to the policyholder within the policy’s active period.
Benefits of Buying Rs. 50 Lakhs Term Insurance Cover
When you buy a term insurance of 50 lakhs, you can enjoy multiple benefits besides the coverage. The most prominent of these benefits are:
a) Long-Term Financial Safety
Term insurance cover gives you peace of mind by ensuring that your family will not suffer financial hardships in case the worst happens.
b) Nominal Cost
Premium for Rs 50 lakh term plan will be low. So, you can buy the cover early in your career without burning a hole in your pocket.
c) Tax Benefits
The premium is deductible from your taxable income under section 80C, helping you save tax.
d) Financial Stability
Add-on covers like critical illness and accidental disability can help your family cope up with a financially devastating event.
e) Availability of Loans
Borrowing money may be a necessity at times in life and will be even beneficial for assets like buying a home or for any big ticket items.
How much will a 50 Lakh Term Plan Cost?
The cost of a Rs. 50 Lakh term insurance depends on a variety of factors. Some of the factors on which the premium depends are - age, lifestyle habits, medical history, and occupation.
The following figures are calculated for an individual with a salary ranging between Rs. 5 - 7 Lakhs Per Annum and the plan will continue until 75 years of age.
|Age||50 Lakhs Term Life Insurance
|50 Lakhs Term Life Insurance + Critical Illness Benefit
(CI Sum Assured: Rs. 10 Lakhs) – Additional CI Sum Assured + Waiver of Premium on Diagnosis of CI
|50 Lakhs Term Life Insurance + Waiver of Premium Rider (on Critical Illness or Disability)
|20||Rs. 551||Rs. 7778||Rs. 557|
|30||Rs. 945||Rs. 1481||Rs. 967|
Why should you Buy a Term Insurance for Rs. 50 Lakhs?
Buying a Rs. 50 Lakhs term plan will have a lot of advantages especially if you have bought it at an early age as the premium amount will be relatively lower. Here are a few more reasons you should buy this protection plan:
- Low-cost premiums allow you to have an economical insurance policy.
- Start early and get more time to save for your future goals.
- Coverage of Rs. 50 Lakhs can be enhanced with add-ons. For example, you may add critical illness rider, accidental death benefit rider, or waiver of premium rider, considering your financial goals.
- There are many liabilities such as loans in the early stages of one’s career. A term insurance for can pay off these liabilities in case of your sudden demise and the burden will not fall upon your parents and family.
- The sum assured can be increased over the period of time keeping in mind the growing responsibilities at different life stages.
Who should Buy Term Life Insurance for Rs. 50 Lakhs?
Rs 50 Lakh worth of coverage for your family is a good start if you are the only breadwinner in the family. However, it is mostly recommended to buy this plan in the early stages of your career as it will be an economical option. Reason why it is recommended to a buy a term plan early is because the premiums increase with your age. The susceptibility for getting diagnosed with life threatening diseases is more when we age.
Listed below are following categories of people who should buy a term life insurance plan:
- Young professionals
- Self-employed individuals
- New married couples
- New parents
- Working women
Factors to Consider while Buying a Term Insurance Plan for Rs. 50 Lakhs
Various life insurance companies offer different types of term insurance plans. This creates confusion among buyers. Therefore, we have listed some essential factors you should consider before buying a term insurance plan for 50 Lakhs.
1. Claim Settlement Ratio
The claim settlement ratio is an essential factor in your selection of a term insurance plan. It shows the number of claims settled by a particular life insurance company against the number of claims filed in a financial year. An insurer with a higher claim settlement ratio would settle the filed claims faster.
2. Policy Term
Policy term refers to the coverage period under the life insurance policy. Maximum coverage period under insurance plans like iSelect Smart360 Term Plan can go up to the age of 99 years for a policyholder.
Certain term insurance policies offer additional features to the policyholder. To avail of those additional benefits, the policyholder must opt for add-ons. Through these add-ons, they would receive extra benefits, increase the policy coverage and enjoy increased pay outs. However, the premium for Rs. 50 Lakhs term insurance plan will increase when you add a rider to your plan.
4. Waiver of Premium
Waiver of premium option is an additional benefit available with term insurance plans. Through this option, the policyholder is exempted from paying any premiums. The option comes to force when you make a claim under a rider like accidental disability or critical illness. At the same time, the life cover in the policy will remain active and the future premiums will be waived off.
Buy 50 Lakh Term Insurance Cover from Canara HSBC Life Insurance
Canara HSBC Life Insurance offers iSelect Smart360 Term Plan that you can buy for 50 Lakhs term cover. It is a pure protection plan that offers multiple benefits. The plan can enhance the safety umbrella and add to the ease of providing financial safety to your family:
1. Whole Life Cover
You can opt for a whole life cover in this plan that will cover you till you reach 99 years of age. A whole life cover is beneficial if you have dependents who will rely on your finances for a long period, for example, your children with special needs, or a non-working spouse.
2. Steady Income Benefit
If you opt for this option, it will continue after you turn 60 and you will have an option to receive regular income until maturity. After you turn 60, the policy will give you a steady income benefit. You will receive a fixed survival income (0.1% of the assured sum) every year until the maturity of the policy or death (whichever is earlier).
3. Special Exit Value
If you choose to exit the term insurance plan voluntarily before the maturity of the plan, you will get a special exit value. This option is available with long-term policies and allows you to receive a significant part of the paid premiums.
4. Return of Premium
If no official claim is made, the insurance company will return the total premium paid by the policyholder after the policy has matured or expired. That means on outliving the policy term, the policyholder will receive all the premiums back.
5. Premium Waiver on Critical Illness
No premiums will be charged, and all other future premiums will be waived if the policyholder is affected by a critical illness, accident, or permanent physical or mental disability.
6. Add your Homemaker or Working Spouse
You can add your homemaker or working spouse to the same policy at a discounted rate and for better coverage. It is beneficial as you do not have to buy a new term plan in case you need to get coverage for your spouse.
7. Block your Premium
You can block your premium for 5 years at the inception of the policy and increase your coverage within this period. This allows you to increase your life cover with the growing needs like marriage, childbirth, etc. The benefit of this option is that you will get the extra cover without paying the extra premium due to increasing age. The increments are available for the following life events:
• Your marriage: Increment of up to 50% of the base sum assured
• Childbirth: Increment of up to 25% of the base sum assured
• Home Purchase: Increment of up to 25% of the base sum assured
8. Terminal Illness Benefit
You can increase the total cover amount under the terminal illness benefit. The sum assured in the plan is payable upon diagnosis of a terminal illness as well. On the diagnosis of a terminal illness, a lump sum benefit will be paid out, which is an accelerated benefit. That means the death benefit shall be reduced to the extent of the claim paid under terminal illness benefit.
Term insurance cover is an important part of your contingency plan to help you manage the finances. It will ensure financial security of your loved ones in case of your unfortunate and untimely demise. However, you need to have adequate coverage. Usually, a term life cover of 10-15 times your annual income is sufficient to look after all the financial needs of your family in your absence. So, even when you start with a coverage of Rs 50 lakhs, make sure to increase it as your income and family grows.
FAQs on 50 Lakhs Term Insurance Plan
50 lakh term insurance premium is very cost-effective. However, factors such as age, smoking habits, salary, health status, etc. affect the premium for an individual. You can calculate premium costs by using the term insurance premium calculator.
The rider benefits available on the 50 lakhs term plan are - critical illness and accidental total and permanent disability rider, accident cover, and waiver of premium rider.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.