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Pay Fixed Premiums
You have to make payments monthly, quarterly or annually to keep your term life policy active.
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What is a ₹1.5 Crore Term Insurance Plan?
A ₹1.5 crore term insurance plan is a type of life insurance policy where the policyholder’s nominee would receive a coverage amount of ₹1.5 crore if the holder passes away during the policy tenure. With this payout, the family members can manage household expenses, outstanding loans, children’s education and future financial needs in their absence.
How Does a ₹1.5 Crore Term Insurance Plan Work?
Like any other standard term life plan, a ₹1.5 crore term insurance plan works as follows:
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Death Benefit Payout
Upon an unfortunate event during the policy tenure, your nominee will receive the full lump sum payout of the sum assured.
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An Unfortunate Event During the Policy Tenure
Unless you select a return of premium option, you would not get any payout if you survive the policy term.
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Rahul Outlives His Policy Term
If Rahul survives the 30-year policy term, he will not receive a maturity benefit under a basic term insurance plan. However, if he chooses a Return of Premium (ROP) plan, the insurer may refund the premiums paid at maturity, generally excluding taxes and rider costs, as per the policy terms.
Why Should You Buy a ₹1.5 Cr Term Insurance Plan?
Here are some reasons why you should consider buying the ₹1.5 crore term insurance via Pluto Insurance:
With India’s latest Consumer Price Index (CPI) rates already exceeding the Reserve Bank of India’s 4% medium-term inflation target, the cost of living may rise over time, making term insurance of ₹1.5 crore a reliable coverage.
Key Benefits of a ₹1.5 Crore Term Insurance Plan
If the ₹1.5 crore term life insurance aligns with your income and future goals, it will offer your family members the following benefits:
Income Replacement
During an unfortunate event, the ₹1.5 crore sum assured of this term plan will act as an income replacement to help manage your family's expenses, such as medicines or groceries.
Additional Protection with Riders
With a wide range of rider options such as hospital cash, critical illness and accidental death, you and your family can manage expenses resulting from sudden medical emergencies and unfortunate accidents.
Loan Repayment
With the death benefit of a ₹1.5 crore term life plan, the nominee can repay eligible debts, such as home loans, personal loans or other liabilities and maintain greater financial stability after the policyholder's death.
Tax Burden Reduction
Under Section 123 of the Income-tax Act, 2025, you can claim up to ₹1.5 lakh for your term insurance premiums. Additionally, the nominee's death benefit is completely tax-exempt under Section 11, Schedule 2, helping families get tax advantages.
Factors Affecting ₹1.5 Crore Term Insurance Premium
If you are wondering how insurers evaluate the premium of your ₹1.5 crore term life insurance, have a look at the following factors.
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Age
Younger applicants can secure a lower premium than older applicants due to lower mortality risks.
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Policy Tenure
If you choose a longer tenure, it will lead to higher risk protection, which can increase the overall payable amount.
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Lifestyle and Habits
Since smoking, using tobacco, or heavy alcohol consumption increases health risks, it can automatically lead to higher term plan costs.
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Add-on Options
Due to providing added protection riders, such as accidental death or critical illness cover, the insurer could increase the premium of your term plan.
Frequently Asked Questions (FAQs)
What is not covered in a ₹1.5 crore term insurance plan?
A standard ₹1.5 crore term insurance plan does not cover instances like self-harm or suicide, along with deaths caused by illegal or criminal acts or drug overdose.
Can I increase my ₹1.5 crore term insurance cover later?
Yes, you can increase your ₹1.5 crore term cover if you choose an increasing term insurance plan, as it allows your coverage amount to grow automatically over time.
Can I have multiple nominees in my ₹1.5 crore term insurance?
Yes, you can name multiple nominees in a ₹1.5 crore term insurance policy by dividing the payout in equal percentages.