Steps to Buy 50 Lakh Term Insurance In India

Written by : Knowledge Centre Team

2026-01-28

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A 50 lakh term insurance plan can be a good starting point for providing financial protection to your family at a nominal premium cost. The plan offers financial assistance to the beneficiaries in case the worst happens. You can start increasing the cover as your life stage progresses, provided your term plan allows it. With term insurance premiums being quite nominal compared to the benefits, you can easily afford the ₹50 lakh cover. It is the simplest and most affordable option for kick-starting your financial goal.

Key Takeaways

A ₹50 lakh term insurance plan can offer a solid financial safety net for your family.
Choosing the right policy term, riders, and claim settlement ratio is crucial.
Premium waiver and return of premium options add flexibility and long-term value.
Coverage should grow with your income and life responsibilities.
Buying early helps you secure higher cover at lower premiums.

What is Term Insurance for ₹50 Lakhs?

Term insurance is a pure risk life insurance cover that can offer significant coverage at a 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 early in your career.

For example, if you buy the ₹50 Lakh Term Insurance Plan and choose specific terms like the death benefit and policy duration, your beneficiaries will receive the guaranteed sum in the unfortunate event of your sudden demise before the policy matures. This payout can provide crucial financial support to families who lose their sole breadwinner.

Protect Your Family with Affordable Term Insurance

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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 of ₹50 Lakh to help them manage the financial expenses. The premium for this term plan remains the same throughout the tenure. In case of non-payment of premiums on time, the policy will be terminated. No survival benefits will be provided if the policyholder outlives the policy term.

Benefits of Buying ₹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 include:

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.
Nominal Cost: The rpemium for ₹50 lakh term plan is relatively low, so, you can buy the cover early in your career without burning a hole in your pocket.
Tax Benefits: The premium is deductible from your taxable income under section 80C, helping you save tax.
Financial Stability: Add-on covers like critical illness and accidental disability can help your family cope with a financially devastating event.
Availability of Loans: Borrowing money may be a necessity at times in life, and can be even beneficial for assets like buying a home or high-value purchases.

How Much Will a 50 Lakh Term Plan Cost?

The cost of a ₹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 ₹ 5 to 7 lakhs per annum, and the plan will continue until 75 years of age.

Age	50 Lakhs Term Life Insurance Monthly Premium	50 Lakhs Term Life Insurance + Critical Illness Benefit Monthly Premium (CI Sum Assured: ₹ 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) Monthly Premium
20	₹551	₹7778	₹ 557
30	₹ 945	₹1481	₹ 967
40	₹1918	NA	NA
50	₹4501	NA	NA

Why Should You Buy a Term Insurance for ₹50 Lakhs?

Buying a ₹50 lakh 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.
Coverage of ₹50 Lakhs can be enhanced with add-ons. For example, you may add a critical illness rider, an accidental death benefit rider, or a 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 ₹50 Lakhs?

₹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. The reason why it is recommended to buy a term plan early is that the premiums increase with your age. Additionally, the susceptibility to getting diagnosed with life-threatening diseases is more when we age.

Listed below are the following categories of people who should buy a term life insurance plan:

Young professionals: Starting early ensures lower premiums and longer-term coverage when responsibilities are still growing.
Self-employed individuals: Without employer-provided benefits, self-employed people need term insurance to protect their family's financial future.
New married couples: This plan can act as a financial safety net in the early stages of building a life together.
New parents: It helps secure your child’s future in case something unexpected happens to you.
Working women: A term plan ensures financial stability for dependents and covers any personal liabilities.
Taxpayers: Term insurance premiums qualify for tax deductions under Section 80C, making it a smart tax-saving tool.

Factors to Consider while Buying a Term Insurance Plan for ₹ 50 Lakhs

Various life insurance companies offer different types of term insurance plans. This can create confusion among buyers. Therefore, we have listed some essential factors you should consider before buying a term insurance plan for ₹50 Lakhs.

Claim Settlement Ratio: The claim settlement ratio is an essential factor to consider when selecting 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 is more likely to settle claims faster.
Policy Term: The policy term refers to the duration of the coverage period under the life insurance policy. The maximum coverage period under insurance plans like iSelect Smart360 Term Plan by Canara HSBC Life Insurance can go up to the age of 99 years of age for a policyholder.
Riders: Certain term insurance policies offer additional features to the policyholder. To avail of those additional benefits, the policyholder must opt for add-ons. These add-ons provide extra protection, enhance policy coverage, and increase the overall payout. However, the premium for ₹50 lakh term insurance plan will increase when you add a rider to your plan.
Waiver of Premium: The waiver of premium option is an additional benefit available with term insurance plans. Through this option, the policyholder is exempted from paying any premiums if a valid claim is made under a rider like accidental disability or critical illness. At the same time, the life cover in the policy will remain active, and all future premiums will be waived off.

Buy a 50 Lakh Term Insurance Cover from Canara HSBC Life Insurance

Canara HSBC Life Insurance offers the iSelect Smart360 Term Plan that you can buy for a 50 lakh term cover. It is a pure protection plan that offers multiple benefits. The plan can enhance the safety umbrella and make it easier to provide financial protection to your family with:

Whole Life Cover: You can opt for a whole life cover in this plan that will cover you until 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.
Steady Income Benefit: If you opt for this option, it will continue after you turn 60, and you can choose the 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).
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.
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. This means that if the policyholder outlives the policy term, they will receive all the premiums back.
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. This ensures that your life cover continues without interruption, even during times of medical or financial stress. It helps reduce the burden on your family while maintaining the financial protection promised by the policy.
Option to 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. This feature offers convenience and cost savings, especially for couples planning their financial future together under a single policy.
Block Your Premium Option: 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, such as 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:
1. Your marriage: An Increment of up to 50% of the base sum assured
2. Childbirth: An Increment of up to 25% of the base sum assured
3. Home Purchase: Increment of up to 25% of the base sum assured
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. Thist means the death benefit shall be reduced to the extent of the claim paid under the terminal illness benefit.

Block your Premium Rate with iSelect Smart36

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. Thist means the death benefit shall be reduced to the extent of the claim paid under the terminal illness benefit.

Conclusion

Term insurance cover is an important part of your contingency plan to help you manage your finances. It will ensure the 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 ₹50 lakhs, make sure to increase it as your income and family grow.

FAQs

A ₹50 lakh term cover can be a good starting point, especially if you are in the early stages of your career. However, the adequacy of the cover depends on your income, liabilities, lifestyle, and number of dependents. It's advisable to review your coverage periodically and increase it as your financial responsibilities grow.

The best time to buy term insurance is when you are young and healthy. Buying early helps you lock in lower premiums and ensures financial protection from the start of your earning years.

Yes, many term plans offer the option to increase coverage during key life events such as marriage, childbirth, or home purchase. You can also buy additional plans or upgrade your existing one based on your changing needs.

Yes, adding riders like critical illness or accidental death benefits may increase your premium slightly. However, they enhance your policy’s coverage and provide additional financial protection in specific situations.

If your term plan includes the return of premium benefit, you will receive all the premiums paid at the end of the policy term. If not, there is no payout on survival, as term plans are designed to provide financial protection in case of premature death.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.