Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

All about 5 Crore Term Insurance Plan in India

All about 5 Crore Term Insurance Plan in India

5 Crore Term plan

With rising inflation and uncertainties, it has become more important to safeguard your family’s future and plan in advance. Life is surely uncertain but does that mean we cannot be prepared?

Well, as we go along, there could be risks to your life and health and to that of your family members. The key purpose of buying in a term insurance plan is to make sure that your family has enough money to lead a satisfactory, peaceful life if you were to meet an unfortunate incident.

Even if you start saving early and build a corpus for yourself, say of a few lakhs, but do not have a sufficient insurance coverage, all your efforts can come to nothing in case you are diagnosed with a terminal illness, or have to be hospitalized following a major accident, or, worse still, in the event of your death.

Therefore, securing yourself and your family members from such unprecedented risks is an equally important part of creating wealth for a secure future. However, a valid question to ask here is how much coverage is adequate? Read on to find out –

What is a 5 Crore Term Insurance?

A 1 Crore life insurance cover has been a popular number among insurance buyers. However, 5 Crore life insurance is slowly taking over its popularity. A life cover of 5 Crore guarantees to pay for the liabilities of the family and can help fulfill their lifestyle requirements in absence of the bread earner.

A policy that offers to pay a 5 Crore cover, makes the payment to the beneficiary of the insured, in the event of an unfortunate demise of the policy holder during the tenure of the policy. The best part about term plans is that they are a low-cost, high-cover options that come with long tenures. In fact, you can also save a lot more when you buy your insurance policy online.

Considering, an eight-figure number is sufficiently large to cover your family’s entire requirement, but most of us buy it without doing the basic math. Let’s find out how much insurance cover is actually sufficient.

How much Life Insurance is enough Life Insurance?

Life insurance is not about assigning a value to your life; after all, life is priceless. The easiest way to calculate you’re a sufficient life cover for yourself and your family is to multiply your annual income or family’s expenses by 10. So for instance, if your annual income is Rs.10 lakhs, you should opt for Rs.1 Crore cover.

Evaluate your present

The other method of calculating life cover for your needs is called the ‘human-life-value’ method. Here, you need to consider the value of all your future income, exclusive of your personal expenses, EMIs and life insurance premiums and taxes, till the age you retire, ideally 60.

Take this example, considering you are a 35-year-old male with an annual salary of Rs.10 lakhs. You have to make arrangements to provide finances for your family for up to 25 years (retirement at 60 years). Assuming your annual expenses, all inclusive are 2.5 lakhs, your family will face a shortfall of Rs.7.5 lakhs. Now, if this shortfall is calculated for 25 years at an expected rate of 8.5% per annum (factoring in inflation at 6%), then the ideal cover for you should be Rs.1.4 crore.

A Term Insurance Plan for 5 Crores

A variety of insurance products are available in the market, but the strategy should be to keep things simple yet all inclusive. So, get an insurance cover that offers maximum coverage at the lowest cost, so that you are left with some cash to invest and make your money grow.

Some people suggest one must avoid insurance-cum-investment products since the charges are more. However, it may not be true for someone who wishes to achieve multiple goals of wealth creation and life coverage. Finding a balance is the key.

While a term plan like the iSelect Star Term Plan by Canara HSBC Oriental Bank of Commerce Life Insurance can offer a large cover at lower premium rates, a Unit liked plan like the Invest 4G can be beneficial when it comes to saving for long term goals, apart from family’s financial security.

Eligibility Conditions:
iSelect Star Term Plan Invest 4G ULIP
Entry Age 18 years – 65 years Whole of Life Option: 18 years – 65 years
Other Plan Options: 18 years – 50 years
Age at Maturity 28 years – 80 years Life Option: 23 years – 80 years
Life Option with PFB: 28 years – 80 years
Policy Term Plan Option Life: 5 years – 62 years Life Option: 5 years – 30 years
Life Option with PFB: 10 years – 30 years
Other Plan Options: 10 years to 30 years Whole of Life Option: 99-Age at entry

A term insurance policy has several roles to play in the long-term well-being of your loved ones. It also works as an income replacement in case of the insured person’s demise. Moreover, a term insurance of 5 Crore can be an asset that helps take care of future liabilities like repaying of loans, maintaining regular lifestyle, funding your child’s higher education, and much more.

However, you must remember that buying an insurance cover early in life helps you acquire a greater coverage at a lower cost. So, do not procrastinate and plan your future right away!

Speak to an insurance specialist now!

Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
Call BackCall Back Pay PremiumPay Premium
Chat
Back to top