Today, financial planning and security are as crucial as it gets, especially when it comes to our loved ones. But if you don’t know where to start, it might be time to consider purchasing a 5 crore term insurance plan. So, continue reading to know more! ...Read More
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Rohit Ghosh has authored and reviewed several informative articles on Life and Term Insurance during his experience working with top Life Insurance brands. During his experience in the Life Insurance sector he has been responsible for formulation of several integrated marketing communication strategies. In his current role with Max Life Insurance he is responsible for website content and experience enhancement
8+ years of experience in Life Insurance with expertise in Developing Life and Health Products, Digital Sales, Conducting effective trainings and Key Account Management.
What Is A 5 Crore Term Insurance Plan
In broad terms, a 5 crore term insurance plan is similar to all term insurance policies. A term insurance policy is designed to offer financial assistance to the family members of a policyholder in case of the latter’s untimely demise. So, a 5 crore term insurance plan provides a life cover of Rs. 5 crores, which is commonly known as the death benefit.
For instance, if you purchase 5 cr term insurance for your family, the specified nominee or beneficiary will receive a death benefit worth Rs. 5 crores in the unfortunate event of your death. Therefore, by investing in term insurance of 5 crores, your loved ones will have a safety net to fall back on. Even better, despite offering a large coverage amount, the premium costs for this plan are largely affordable, making it the go-to choice for several policy buyers.
Why Buy 5 Crore Term Insurance?
Although the primary reason to buy 5 crore term insurance is financially securing our loved one’s future, there are a few more reasons worth considering. Let’s take a look:
High Coverage at Nominal Premiums
One of the greatest benefits of purchasing a 5 cr term insurance policy is high coverage at nominal premiums. While most people think that the premium for 5 cr term insurance is quite unaffordable, that’s not the case. Instead, you can avail the features of a 5 crore term insurance policy at premiums as economical as Rs. 2,500 when you start at an early age.
Added Coverage Benefits
In addition to the sum assured of Rs. 5 crores, a 5 cr term insurance plan comes with added coverage benefits like add-on covers. For instance, you can increase the plan’s coverage by opting for a terminal illness rider, accidental death benefit*, or waiver of premium rider# (UIN 104B029V03).
Since Rs. 5 crores are a considerable amount of money, buying the term insurance for 5 crore will ensure that your family’s financial needs and requirements are taken care of even in your absence. Plus, they can use the death benefit to pay off loans, liabilities or use the sum for household expenses.
More Room for Investments & Savings
If you buy a 5 crore term insurance policy, it will provide you with long-term coverage at affordable premiums. As a result, with family already financially protected from uncertainties, you can focus on increasing your investments & savings and park your money in other financial tools such as fixed deposits, mutual funds, and ULIPs.
Family's Financial Planning Starts Here
Tax exemptionup to Rs.54,600~#
High life cover at affordable premiums
Claim Paid Ratio^99.34%
Coverage against 64 critical illnesses@
How Does 5 Crore Term Insurance Work?
A term insurance plan is the purest form of life insurance and one of the most relevant financial instruments of today. Plus, in addition to acting as a financial backup plan, a 5 crore term insurance policy allows the nominee to use the death benefit for several expenses, including education, paying off loans, marriage, household expenses, purchasing properties, and more.
However, first, it is crucial to understand how a 5 cr term insurance policy works:
A 5 crore term insurance policy offers life coverage for a specified time period or ‘term’ - hence the name term insurance.
If the policyholder dies during the term plan’s tenure, the insurance provider is obligated to pay the death benefit to the nominee/beneficiary mentioned in the policy details. For instance, if you have a life cover of Rs. 5 crores and you die while the term plan is in force, your nominee will be eligible to receive the death benefit in accordance with the plan’s terms & conditions.
However, to avail of the benefits of the 5 crore term insurance, you will be required to pay a pre-specified premium cost. But the premium amount is calculated based on several factors such as your age, annual income, gender, smoking habits, etc. Additionally, the premium payment can be made monthly, quarterly, bi-annually, or annually, depending on your preference.
Although the premium amount doesn’t change throughout the policy’s term, non-payment will result in the 5 cr term insurance being declared as null and void.
However, the term insurance 5 crore plan will stop existing if you die during the policy duration. There are no survival/maturity benefits unless you opt for an add-on cover or rider for the same.
So, a 5 crore term insurance policy is an excellent way to safeguard your family’s future and ensure that their financial needs are met even when you’re not around. Additionally, since the premium for 5 cr term insurance is pocket-friendly, it is a worthy investment that won’t take a toll on your finances.
How to Determine the Right Coverage Sum?
While buying the best term insurance plan for 5 crore is the ideal way to make sure your family’s financial requirements are looked after in your absence, it is important to evaluate if the plan is suitable for you. So, here are some factors that can help you determine if investing in a 5 cr term insurance policy is the right choice:
1. Your Annual Income
The general rule of thumb for buying term insurance dictates that the sum assured of the plan should be at least ten times your annual income. For instance, if your yearly earnings are Rs. 50 lakhs, then your term insurance plan should be worth at least Rs. 5 crores. However, you can also use Max Life’s term insurance calculator as it will make the process much faster and simpler.
2. Current Age
While many people don’t realize this, age plays an important role in determining the right coverage amount for term insurance policies. Since older people are more likely to fall sick and develop health conditions, they have to pay a slightly higher premium. Therefore, it is advisableto purchase the best term insurance plan for 5 crore at a younger age so that you can avail cheaper premiums. In addition, it also ensures that your family stays financially secure for a longer period.
3. Number of Dependents & Their Needs
If you have family members who are financially dependent on you, it is essential to evaluate if a 5 cr term insurance policy will be sufficient for them. Plus, you need to consider the number of family members who depend on you financially and their future needs such as education, marriage, loans, and more. All in all, you need to make sure that the financial requirements of all your family members, especially the ones dependent on you, are taken care of.
4. Pending Loans & Liabilities
When choosing a term insurance policy, you also need to consider any pending loans and liabilities. For instance, if there is a home loan, car loan, education loan, or debt that has to be paid off, you need to factor that into the 5 crore term insurance policy. Hence, purchasing term insurance for 5 crore is a viable option as it offers a higher sum assured compared to other term insurance policies.
Benefits Of Term Insurance Plan for 5 Core
In addition to providing comprehensive financial coverage, term insurance for 5 crore is loaded with several other benefits. So, here are some of the most notable features of a 5 cr term insurance policy:
When buying an insurance plan, one of the first things we worry about is the premium cost. However, the premium for 5 cr term insurance is quite affordable, and it definitely won’t burn a hole through your wallet. Plus, you can take advantage of even lower premiums if you purchase the policy at a younger age, and you can simultaneously focus on other financial investments.
A notable benefit of purchasing the best term insurance plan for 5 crores is the tax exemption as per Section 10(10D) of the Income Tax Act. According to Section 10(10D), the death benefit of a term insurance plan, including any earned bonuses, is completely exempt from taxes. This feature can save you a considerable sum of money, making it an essential factor to consider.
#*Tax benefits are subject to changes in tax laws.
Availability of Add-Ons
Although a 5-crore term insurance policy offers comprehensive coverage as is, it comes with the added benefit of add-on covers. For instance, you can opt for riders such as waiver of premium variant#,
accidental death cover*, and critical illness & disability rider(UIN 104b033V01). While purchasing these riders isn’t necessary, it gives you the option to expand your coverage if needed.
Today, you can easily buy a 5 crore term insurance plan online, all thanks to the internet. So, you don’t need to visit insurance offices or stand in long queues as you can explore, select, and buy term insurance plans from the comfort of your home.
Flexible Payout Options
Even though most insurance companies provide the death benefit of term insurance policies in a lump sum, you have the option to opt for other payout methods as well. For instance, you can choose a lump sum plus monthly income payout if that will help you manage your expenses better. Similarly, you can even go for a monthly income payout as it can act as an income replacement for your family.
Who Should Opt for 5 Crore Term Insurance?
There is no simple answer to this question as anyone who can afford the term insurance of 5 crore should purchase it. However, if you fall under any of the situation/categories mentioned below, you can consider investing in the plan:
If you’re young, healthy, and in the prime of your career, it might be time to invest in a 5 cr term insurance policy. This is essential because the premiums for term insurance are much lower for young adults, making it an affordable option. So, if you’re in your early 2os or 30s, you can consider buying term insurance 5 crore.
Even though the term insurance plan for 5 crores can be purchased by people across all age groups, the policy is best suited for those in the 25-40 age bracket.
Anyone who is the sole earning member of their family and has financial dependents can consider buying a 5 crore term insurance plan. As discussed earlier, term insurance acts as a financial cushion for your loved ones and ensures their financial requirements are met even in your absence.
In order to consider the purchase of 5 crore term insurance, your annual income should be ranging between Rs.30-50 lakhs
Since the primary purpose of term insurance policies is to offer financial assistance, individuals with existing loans, liabilities, and debts should think about buying a 5 cr term insurance plan. Doing so will ensure that your loved ones can take care of such looming expenses without them becoming a burden.
Max Life Insurance Smart Secure Plus Plan
Max Life’s Smart Secure Plus Plan [A non-linked non-participating individual pure risk premium life insurance plan | UIN104N118V04] is designed to offer extensive financial coverage to policyholders across all age groups. The term insurance policy comes with built-in features such as two death benefit payout methods, plus the choice of premium payment with regular and limited payment options. Additionally, the right term insurance plan has some other key features such as:
Sum Assured Top-Up*
– With this feature, policyholders have the option to voluntarily top-up their base sum assured by 100%.
Terminal Illness Coverage
– Max Life’s term insurance plan offers up to 1 crore payout on diagnosis of a critical illness like cancer. This is a built-in feature.
– This feature provides policyholders the choice to skip paying premiums without losing their coverage twice during the policy tenure.
Special Exit Value
– Another in-built feature with surrender offering whereby the policyholder has the option to receive all premiums paid back at one specified point during the policy term.
Joint Life Cover*
– The joint life cover feature provides policyholders the option to extend the life coverage to their spouses.
The Smart Secure Plus Plan by Max Life Insurance is the most reliable term insurance plan available in the market today. Besides being largely economical, the policy offers comprehensive life coverage while ensuring financial safety for your loved ones. So, even when you’re no longer around, know that your loved ones’ future will be in the best hands.
Check out the different Online Insurance Plans from Max Life!
Max Life Smart Secure Plus Plan
Comprehensive death benefit for your family member(s) in case of your unfortunate demise during policy term
Guaranteed maturity benefits/Income Benefit and accrued guaranteed additions to help meet your life goals
Multiple variants - lumpsum; short term income, long term income, and whole life income with unique benefits
While there are no set criteria for term insurance for 5 crore, the minimum age requirement is 18 years, whereas the maximum age limit is 65 years.
According to Section 10(10D) of the IT Act, the death benefit payout for term insurance plans is completely tax-free#*. This also includes any bonuses policyholders may have received over time. Hence, there will be no tax deductions when you claim your 5 Cr term insurance policy.
*Tax benefits are subject to changes in tax laws.
The primary factors that affect the premium for 5 Cr term insurance include age, gender, annual income, and nicotine consumption/smoking habits.
If you want to calculate the premium for the 5 crore term insurance plan, you can use an online term plan calculator. You will have to fill in some basic details such as your name, mobile number, age, gender, annual income, and smoking habits. Additionally, you can also calculate the premium cost by adding riders.
The minimum entry age for term insurance plans for 5 crores is 18 years.
Although there is no fixed age as to when you should purchase a term insurance policy, it is best to do so while you’re young. The best time to invest in term policies is when you’re in your 20s or 30s, so you can get access to lower premiums and stay covered for longer.
If you opt for a return of premium or maturity benefits, you will receive the total paid premiums at the end of the policy tenure. However, if you don’t opt for such add-ons, your term insurance plan will cease to exist once the tenure is complete.
Yes, you can purchase the term insurance 5 crore plan online from the comfort of your home. All you need to do is visit the term insurance calculator page, add your personal information, select riders, and proceed to buy the plan.
The free-look period for the best term insurance plan for 5 crore is generally 15days long(30 days if the policy is sourced through Distance Marketing modes)from the date of receipt of the policy document . Policyholders have the option to surrender their term policy during this period. Plus, all paid premiums (if any) will be returned to the policyholder.
ARN NO: PCP/5CRTI/250123
1)*On payment of additional premium
2)**On payment of additional premium. Upon policyholder's selection of Return of Premium variant, this product shall be a Non-Linked & Non participating Individual Life Insurance Saving Plan
3)#Applicable riders available on the payment of Additional Premium are Max life Critical Illness & Disability Rider | Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN 104b033V01 and Max Life Waiver of Premium Plus Rider| A Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN 104B029V03
4)##Available at an additional premium for policies with Policy Term greater than 30 years & premium payment term greater than 21 years. Option to skip paying premium for 12 months, 2 premium breaks will be available during the Premium Payment Terms separated by interval of at least 10 years.
Max Life Term Insurance Plan
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Max Life Term Insurance Plan
“I already have a policy and buying this was a nice experience. This is according to my requirement. Completely satisfied with details shared by customer care executive before purchasing the policy.”
Gaurang Kumar Pawar
Max Life Term Insurance Plan
“I visited Amritsar branch after the demise of my son. My family was not left with a single penny and it was getting impossible to make the ends meet. Vinay Sharma gave me the right direction and helped me at every step to receive the claim amount and gave a source of income to my family. I thank him and bless him from the bottom of my heart.”