50 Lakh Term Insurance

A ₹50 lakh term insurance plan offers straightforward life coverage, ensuring a payout of ₹50 lakh to your nominee in case of your unfortunate passing during the policy term. Since it doesn’t include any maturity benefits, the premiums remain budget-friendly. This type of plan serves as a financial shield for your loved ones, helping them manage daily expenses and meet future goals such as your children’s marriage.

It serves as a practical financial protection to help your family in case of your untimely death, without leaving your monthly expenses strained.

A ₹50 lakh life insurance policy is not in the figure; it's in the advantages that give this amount guaranteed life.

Here are some of the advantages that you can expect from it:

• Low Premiums: Term insurance is known for its low-cost coverage, and ₹50 lakh is often the sweet spot between affordability and protection. You can start with premiums as low as ₹400- ₹700 per month, especially if you buy early.
• Customisable Coverage Options: You can perfectly craft a personalised policy by adding riders like Accidental Death benefit, Critical Illness cover, or Premium waivers to get your coverage one step ahead. This lets you cover multiple risk scenarios under one plan.
• Flexible Payout Options: Beneficiaries are able to receive the claim in a lump sum, monthly income, or a combination of both, allowing them to manage everyday expenses as well as long-term life goals. This offers a sense of peace and stability, free from any stress of handling finances.
• Long-Term Security: It is easy to assume that the duration of a Term Insurance of 50 lakh extends at least for up to 40 to 50 years (or even whole-life arrangements up to 99 years), and your loved ones are protected through all major life milestones. You can rest assured, knowing everything is in the right place. 
• Tax Advantages: Who doesn’t want to save their taxes? Well, this 50 lakh life insurance policy can help you claim tax deductions under Section 80C (for premium paid) and Section 10(10D) (for proceeds of claim). Isn’t it just the ideal tax-saving investment in your portfolio? 

A plan that suits your friend may not be perfect for you because we all have different needs and expectations. A Term plan is only good for you as long as it works out for you specifically.

Here's the way to make the right choice:

1. Analyse Your Financial Obligations:

Think of outstanding loans, the number of dependents, the educational expenses of children, and the expenses of daily living. This helps you assess whether ₹50 lakh is enough or if you might need to supplement it with additional coverage later.

2. Plan Benefits vs. Riders:

Go beyond the premium. Compare the riders provided and whether they include critical illnesses or terminal illness situations. Also, check if the plan offers income payout options or return of premium features, so you can choose one that aligns with your family's needs.

3. Review the Claim Settlement Ratio:

Select insurers with high and stable claim settlement ratios. A higher ratio means better chances of your family receiving the sum assured without complications. Canara HSBC Life Insurance has a high track record with 99.31% claims settled in FY 2023- 2024, which is a reassuring relief.

4. Select a Suitable Policy Term:

If you're between 30 and 40 years of age, opt for at least a 30 to 40-year term. If legacy protection is what you desire, opt for whole-life cover. This ensures your dependents are covered while you pay the most affordable premium. 

5. Opt for Digital Ease and Clarity:

Select policies with easy online buying, policy monitoring, and claim lodging. Look for insurers that offer end-to-end online journeys, minimal paperwork, real-time assistance, and clear disclosures. This saves time and provides peace of mind, especially during emergencies or claims.

To help you compare your options easily, here’s a quick look at different term plans by Canara HSBC Life Insurance with ₹50 lakh coverage for a duration of 20 years. This table highlights important details like premiums, features, and who each plan is best for, making your decision simpler.

_{*This illustration is based on the age of the person being 25 and the salary being ₹10LPA for a duration of 20 years.}