₹50 Lakh Term Insurance Plan: Complete Guide 2025

1. Exceptional Affordability

Term insurance for 50 lakhs offers the highest coverage at the lowest cost.  A healthy 30-year-old can get ₹50 lakh coverage for just ₹650 - 850 per month.

2. Financial Security for Your Family

A ₹50 lakh life cover can provide:

• Income replacement: If the nominee invests the ₹50 lakh payout in a safe instrument like fixed deposits at an annual return of around 8% (FD interest rates in India typically range from 3% to 8% depending on the bank and tenure), the money can generate steady income.
  At 8% return:
  ₹50,00,000 × 0.08 = ₹4,00,000 per year
  That’s around ₹33,000 per month, which can support rent, groceries, and basics for a middle-income household.
• Debt clearance: Settles home loans, education loans, car loans, personal loans, etc. 
• Lifestyle maintenance: Covers 10-15 years of family expenses for middle-income households.

Source: RBI - Sectoral Deployment of Bank Credit (housing, vehicle, education and other personal loan categories):

https://www.rbi.org.in/Scripts/Data_Sectoral_Deployment.aspx

3. Now GST-Free (2025 Update)

Since September 22, 2025, individual life insurance policies, including 50 lakh individual term plans, are exempt from 18% GST. This means:

• Old premium structure: ₹10,000 base + ₹1,800 GST = ₹11,800 total
• New premium structure: ₹10,000 total.

4. Tax Benefits

Term insurance 50 lakhs comes with more than just one tax benefit. You can claim multiple advantages under three different sections of the Income Tax Act:

Tax savings example:

If you fall under the 30% income tax bracket and you pay a ₹50,000 as a 50 lakhs term insurance premium, you can claim this amount under Section 80C. And, by paying this premium, your taxable income reduces enough to save you ₹15,600 in taxes.

5. Inflation

While ₹50 lakh may seem like a big amount today, prices of goods and services will rise over time, meaning the same amount of money will buy less in the future. That’s why many smart Indians start with a term insurance for 50 lakhs cover when they’re young and then increase it to ₹1 crore term insurance or more as their income grows and their responsibilities rise.

Source (Inflation Data): MOSPI - Consumer Price Index (CPI) Press Release, Government of India

https://www.mospi.gov.in/sites/default/files/press_release/CPI_PR_13May25.pdf

6. Peace of Mind

There’s a different kind of comfort that comes from knowing your family is financially protected. Wife, husband, mother, father, children, they are your closest people, the ones you work hard for every day. For many Indian families, the loss of the primary earner isn’t just emotional; it also becomes a financial struggle, because savings run out quickly and monthly expenses don’t stop.

Fixed Sum Assured

Your nominee receives exactly ₹50 lakh, a predetermined amount, regardless of when the claim occurs during the policy term.

Flexible Policy Terms

While you’re free to pick any term that feels right for you, here are some simple recommendations to help you decide:

• 20 - 25 years is ideal if you’re between 35 - 40 years old
• 30- 35 years works well for people in the 25 - 35 age group
• 35 - 40 years is best suited for early buyers in their 20s who want long-term protection

Multiple Premium Payment Options

You can pay your premiums monthly, quarterly, yearly, or through limited pay options based on your preference and budget.

Below is a simple guide to help you understand which payment mode may suit you best and how it impacts your overall premium:

Customisable Riders

You can customise your term plan for 50 lakhs with optional riders that add extra protection based on your needs. These riders enhance your policy and make it more meaningful for real-life situations.

Here are some of the most useful ones:

Buy an Online Term Plan easily

Most insurers, including ACKO, offer a 100% digital process from purchase to policy issuance.

• No paperwork hassles
• Medical tests scheduled at your convenience

1. Age

It is the single biggest factor because the younger you are, the cheaper your premiums. The reason is quite simple: insurers see younger individuals as lower risk, so they offer lower premium rates.

2. Gender

As mentioned earlier, women generally pay lower term insurance premiums because they have a higher life expectancy. So if you’re a working woman, your premiums will usually be lower than those of a man with the same age and health profile.

So, if you are asking, “Are term insurance premiums lower for women?” The answer is Yes. The exact difference depends on the insurer, but it is almost always noticeable.

Let’s see how term insurance premiums differ for men and women:

Male, Non-Smoker, ₹50 Lakh Coverage, 30-Year Term:

Female, Non-Smoker, ₹50 Lakh Coverage, 30-Year Term:

3. Smoking Status

Tobacco use is a major risk factor for many chronic diseases. This includes cancer, lung disease, cardiovascular disease, and stroke. According to the World Health Organization, it is responsible for more than eight million deaths worldwide each year, including approximately 1.35 million deaths annually in India.

For term insurance in India, smoking has a big impact on how much you pay. Because tobacco use brings higher health risks, smokers often end up paying about 80% to 100% more for their term insurance premiums compared to non-smokers.

Let’s see what the term insurance premiums look like:

4. Policy Term

Your policy term also affects how much you pay for a ₹50 lakh term insurance plan. The rule is simple: the longer the term, the higher the premium. This happens because the insurer is covering you for a longer period and taking on more risk.

For example, the premium for a 50 lakh term insurance policy with a 20-year term will be lower compared to a 40-year policy term for the same ₹50 lakh life cover.

5. Health Conditions

Another key factor is your health. There’s no doubt that your health directly affects what you pay for a ₹50 lakh term insurance plan. The better your health, the lower your premiums. 

When you apply for term insurance while you're still healthy, you get several advantages:

• No premium loading, meaning no extra charges added to your policy
• Faster approval, since there are fewer medical risks
• More insurer choices, giving you the best plans at the best rates
• No exclusions for pre-existing conditions, because none exist yet

Understand that once health issues appear, your term insurance premium will increase. In addition to that, the approval process may get stricter:

• Your premium may come with a loading, depending on your medical condition
• There is a higher chance of rejection for serious health issues
• Policies may include specific exclusions related to your medical condition

6. Regular Pay vs. Limited Pay

When buying a term plan for 50 lakhs, you can choose between paying your premiums throughout the policy term or completing them early with a Limited Pay option. Your premium payments end earlier with Limited Pay. This gives you long-term freedom from yearly premiums. It’s a good option for those with a high current income who prefer to finish their payments sooner.

Quick Online Purchase

• Click on ‘Check Prices’
• Enter your basic details
• Select the right coverage and term
• Complete a medical check-up, if required
• Make the payment
• Receive your policy via email

Buy via the ACKO App

• Download the ACKO app
• Tap ‘Explore Now’ and then choose ‘Find My Right Coverage’
• Fill in the required details to check your eligibility and premium
• Complete a medical check-up, if required
• Make the payment
• Receive your policy via email or download it from the app

Identity Proof (any one)

• Aadhaar Card
• PAN Card
• Passport
• Voter ID
• Driving License

Address Proof (any one)

• Aadhaar Card
• Passport
• Utility bills (electricity, water)
• Bank statement
• Rental agreement

Income Proof

Age Proof (any one)

• Birth certificate
• 10th standard mark sheet
• PAN card
• Passport

Medical Reports (if required)

• Blood test reports
• Urine test
• Existing condition reports