Term insurance is generally more affordable than other life insurance plans as it primarily provides life cover without investment benefits. Thus, the policyholder can help their family secure the ₹5 crore sum assured at a comparatively low cost.
Jump to a section
What is a ₹5 Crore Term Insurance Plan?
A 5 crore term insurance plan provides a ₹5 crore death benefit to the nominee if the policyholder dies during the policy term. This high-cover term life policy is generally designed to provide substantial financial protection against daily expenses and major future goals, such as children’s higher education, marriage expenses, etc.
In exchange for the coverage, the policyholder has to pay a regular premium throughout the chosen policy tenure.
Benefits of a ₹5 Crore Term Insurance Plan
From providing income replacement to assisting in loan repayment, ₹5 crore term insurance comes with a wide range of benefits as discussed below.
How Does a ₹5 Crore Term Insurance Plan Work?
Once you purchase a ₹5 cr term insurance policy, here’s what you can expect:
1
Fixed Premium Payment
You have to pay your term insurance premium as per the payment frequency you select to keep the policy active. You can generally pay it monthly, yearly, or annually. Moreover, some policies may also offer limited-pay or single-pay options.
2
Receiving Death Benefits
In case of an unfortunate event during the policy tenure, your nominee receives the full lump sum payout of the sum assured as per the policy terms. In some cases, insurers also allow the beneficiaries to receive it via installments.
3
Surviving the Policy Tenure
Any standard term insurance plan typically does not offer any maturity benefit if the policyholder survives the policy term. Unless a return of premium option was selected, you would not get any payout if you survive the policy term.
Who Should Buy a ₹5 Crore Term Insurance Policy?
This policy can be a good choice for any individual whose income and financial goals align with the ₹5 crore sum assured. Let us discuss this in detail:
To protect your family from the financial impact of losing their primary source of income, you may consider this term insurance. With the death benefit, your dependents such as parents, spouse or children can get adequate financial support.
How to Choose the Right Coverage Amount for Your Term Plan?
Although a ₹5 crore sum assured is a practical option for families, you must consider these important factors before deciding whether this coverage is enough for you or not.
Calculate your family’s monthly expenses, including groceries, utility bills, healthcare and education costs. Based on the cost, choose an assured sum that can help them manage these essential expenses comfortably and maintain their lifestyle if you are no longer around.
Eligibility Criteria for Buying a ₹5 Crore Term Insurance
The table below highlights the key eligibility criteria to buy a ₹5 crore term insurance plan via Pluto Insurance.
| Eligibility Criteria | Details |
|---|---|
| Minimum Age | 18 years |
| Maximum Age | 60-65 years, but can vary across insurers |
| Income Requirement | Policyholders are usually required to have a minimum annual income of ₹5 lakh to ₹10 lakh. |
Documents Needed to Buy ₹5 Crore Term Insurance
To purchase ₹5 crore term insurance from Pluto, you will need the following documents:
Frequently Asked Questions on Term Plans.
How much premium do I need to pay for a ₹5 crore term insurance plan?
The premium of a ₹5 crore term insurance plan typically costs between ₹35,000 and ₹55,000 per year, which is around ₹2,000 to ₹4,500 per month for a healthy, 30-year-old non-smoker. The cost can vary significantly by your insurance company, location, and coverage type.
Is ₹5 crore term insurance right for me?
A ₹5 crore term insurance policy is generally right for you if your annual income exceeds ₹30 to ₹50 lakh, as your family will require a substantial income replacement. Yet, before you choose the sum assured, ensure it aligns with your income and future financial goals.
How to buy a ₹5 crore term insurance online?
With the digital platform of Pluto Insurance, you can easily buy ₹5 crore term insurance online. All you have to do is enter your personal details, choose coverage, select appropriate riders, disclose health or lifestyle information and pay your premium securely online to receive policy documents.
What are the different types of riders for ₹5 crore term insurance?
A ₹5 crore term insurance policy generally comes with different optional add-on covers or riders to expand protection against accidents, disabilities, and serious illnesses. The common ones include the income benefit rider, critical illness rider, permanent disability rider and waiver of premium rider.
Is a ₹5 crore term insurance better than a ₹1 crore term insurance?
Yes, a ₹5 crore term insurance plan is generally better than a ₹1 crore plan for providing a higher sum assured. However, the right choice of coverage sum assured can vary based on your current income, liabilities, and number of dependents in your family.