A term insurance plan with a sum assured of ₹5 crores provides extensive financial protection to your family in your absence. While the premiums are affordable, the high coverage ensures their financial security when needed. Read on to understand all you need about 5 crore term insurance.
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A term insurance plan with a sum assured of ₹5 crores is a robust life coverage package. In case of the policyholder's unfortunate demise during the policy tenure, the insurance company will disburse the total sum assured to the nominee. A term plan offers pure protection without savings or investments. If you’re seeking uncompromising financial protection for your family, it is an ideal option to consider. You can purchase it either online or offline, depending on your convenience.
Individuals who would benefit from this protection include:
In simple terms, a term insurance plan works in the following way:
So, in short, if you live - you lose nothing. If you die - your family gets ₹5 crores. For example: Ramesh, 35, buys a ₹5 crore 30-year term plan and pays ₹25,000 as an annual premium. Unfortunately, after 5 years, Ramesh dies in a car accident. His nominee will receive the entire ₹5 crore sum assured as a claim settlement.
Why ₹5 Crore is Ideal for a Middle-Class Professional - Rajesh Sharma
Financial Cushion: Rajesh, a 32-year-old professional’s ₹5 crore plan, helps ensure his family's lifestyle and essential needs are met in his absence.
Debt Protection: It clears existing debts, such as mortgages and personal loans, easing the family's financial burden.
Education & Future: The sum assures funds for children’s education and future milestones.
Why ₹5 Crore is Ideal for a High-Income Executive - Anita Mehta
Lifestyle Maintenance: Anita Mehta, a 45-year-old high-income executive ₹5 crore, ensures the family’s high standard of living is preserved.
Coverage: It covers major liabilities, including large home loans and business investments.
Future Financial Goals: Supports long-term goals such as setting up trusts, charitable donations, and securing premium education.
Ravi Kumar, 40, Living in Bangalore
Cost of Living:
In Bangalore’s high-cost environment, ₹5 crore ensures that Ravi’s family can maintain their current lifestyle and cover living expenses.
High Medical Expenses:
The coverage can manage expensive medical treatments and healthcare needs in a big city
Education & Future Planning:
He ensures funding for premium education and future goals, securing a comfortable future for his children.
Small Town Mohan Patel, 50
Local Living Costs:
In a small town, ₹5 crore provides a significant financial cushion, supporting Mohan’s family with ample resources.
Debt Clearance:
Covers local debts and liabilities, relieving financial pressure and maintaining financial stability.
Future Security:
Ensures funds for local educational needs and future milestones, contributing to long-term family security.
Small Business Owner
Name: Suresh Patel, 38
Business Continuity: Suresh’s ₹5 crore plan helps ensure the business remains operational by covering business debts and liabilities in his absence.
Debt Protection: It addresses both business loans and personal debts, preventing financial strain on his family.
Future Growth: The coverage supports ongoing business investments and future expansion plans, securing the company's future.
Home Loan Holder
Name: Anjali Rao, 45
Mortgage Protection: Anjali’s ₹5 crore term plan covers her home loan, ensuring her family can keep the house without financial hardship.
Debt Clearance: In her absence, it clears outstanding mortgage and personal loans, alleviating financial stress on her dependents.
Future Stability: Provides long-term financial stability, covering household expenses and future needs.
Small Family
Name: Karan Desai, 32
Adequate Coverage:
Karan’s ₹5 crore plan ensures his small family can maintain their lifestyle and meet essential needs.
Future Expenses:
It covers educational and future expenses, providing financial stability for his spouse and one child.
Emergency Funds:
The sum assured acts as a substantial emergency fund, covering unexpected costs and ensuring security.
Large Family
Name: Ruha Sharma, 40
Comprehensive Coverage: Ruha’s ₹5 crore plan provides extensive coverage to support her large family and ensure all dependents are cared for in her absence.
Educational Support: It covers the educational expenses for multiple children and supports their future needs.
Long-Term Security: This position ensures long-term financial security by handling household expenses and the large-scale needs of a big family.
There are several benefits of having a 5 crore term plan. Let’s look at some of them.
You can get substantial coverage of ₹5 crores by paying an affordable premium. The premium depends on your age, gender, habits, etc. The younger you are, the lower the premium.
The claim amount provides financial security to your family in your absence. It helps maintain their lifestyle and achieve financial goals.
The claim amount can be used to repay outstanding loans so your family does not inherit the debt burden.
Eligible for tax deductions under Section 80C, Section 80D and Section 10(10D).
There's a range of add-ons ready to enhance your basic coverage. You can select and customise your plan to fit your specific needs. Some of the common term insurance add-ons include:
If you survive the entire policy term, get all premiums back. Ensure premiums are recovered.
Future premiums are waived if you are disabled entirely due to an accident or sickness.
Lump sum payout on diagnosis of listed critical illness during the term.
An extra sum is assured in case of death due to an accident.
The younger you are, the lower the premium. However, the rate increases with age as health risks increase.
Women pay lower premiums than men due to higher life expectancy.
Good health means lower premiums. Chronic ailments, tobacco usage, etc., can make it costlier.
Hazardous jobs attract higher premium rates due to increased mortality risks.
Alcohol, smoking and drug usage lead to higher premium payments.
The longer the tenure, the lower the total premium outgo towards policy.
The higher the sum assured, the higher the premium to be paid. ₹5 crore has a higher rate.
Limited payment has a higher yearly premium than regular payment of equal tenure.
Add-ons increase the premium according to the additional covers selected. More riders mean a relatively higher premium.
Follow these steps to purchase term insurance online
Determine the sum assured and tenure you need based on income, loans, responsibilities, etc.
Calculate the premium you can afford for the selected sum assured and term.
Compare term plans on online portals to find one that matches the needs at a suitable premium.
Provide basic personal, health and lifestyle details for the insurer to calculate the policy premium.
Pay premium online instantly to receive policy documents through email.
Review the policy during the free look period after purchase.
ACKO offers an innovative and flexible term life insurance plan called ACKO Life Flexi Term Plan with many unique benefits:
Fully digital purchase to claim process without paperwork. Fill out the details and receive a copy of the policy online.
Affordable premiums for a high sum assured. Get quotes in just a few minutes.
You can adjust the policy tenure and coverage amount according to changing needs.
Various options to pay premiums.
A fully digital claim process promises the fastest settlement.
Add, modify or change nominees whenever you want.
Choose if nominees get a monthly payout or a one-time full payment.
A ₹5 crore term insurance policy adequately secures your family's financial future at budget-friendly premiums. Unlike endowment or money-back plans, term insurance provides maximum risk coverage by offering the highest sum assured against the lowest premium payments. Calculate the amount you need and search for the best term insurance plan today!
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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