A ₹50 lakh term insurance plan is a smart and affordable way to protect your family’s future. In case something unfortunate happens to you, your family receives ₹50 lakhs as a payout (death benefit). This lump sum can help them manage daily expenses, repay loans, fund education, and maintain their lifestyle. Let’s understand what a ₹50 lakh term insurance policy is, its features, benefits, premium cost, and how to buy the best term plan for your needs.
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A ₹50 lakh term insurance plan is a life insurance policy in which the insurer pays your nominee ₹50 lakhs if you pass away during the policy term. This plan offers pure life cover without any maturity or survival benefit, making it a cost-effective way to protect your loved ones financially.
A ₹50 lakh term insurance plan is designed with essential features that ensure financial stability for your loved ones. Let’s take a look at the most important features of this plan.
You get a large life cover of ₹50 lakhs at very low premiums, especially if you start young. This makes it one of the most cost-effective life insurance options.
In case of your unfortunate death during the policy term, your nominee will receive a guaranteed payout of ₹50 lakhs.
You can choose a term that best suits your objectives: 10, 20, 30 years, or even longer.
You can add valuable riders like critical illness or accidental death benefits for additional protection.
A ₹50 lakh term insurance policy provides the perfect blend of affordability and sufficient life cover for many individuals. Let’s look at the key reasons why this coverage amount might be the right fit for you.
Outstanding loans form a significant financial burden on families. Whether you have an education, a home, a car, or a personal loan, they impact your family's savings when you are no longer around to repay them. A ₹50 lakh term insurance coverage can cover all your significant financial liabilities. This ensures your family can avoid financial instability in your absence.
The sudden loss of income when the breadwinner passes away puts the family's lifestyle at risk. The absence of stable income requires several lifestyle adjustments, from budgeting for grocery shopping to giving up on annual family vacations.
Rising inflation impacts the cost of almost everything, while medical expenses are also snowballing. A term plan for 50 lakhs can help your family sustain the lifestyle they are used to, even when you are not around.
A cover of ₹50 lakh gives your family the financial support they require to fulfil significant life milestones. It may be used to finance your child's education, marriage, or to support your spouse or dependents over the long term.
Many ₹50 lakh term insurance plans offered by top insurers come with flexible features that let you customise the policy to your needs. This way, your plan grows with you and stays relevant to your changing financial responsibilities.
Curious about how term insurance for 50 lakhs works? It's easy. You pay regular premiums for a certain term, and if something happens to you within the term, your nominee gets the entire ₹50 lakh sum assured. Here's how it works step by step.
Select ₹50 lakh as the coverage amount and pick a term (duration) based on your financial goals.
To keep the policy active, you can make premium payments monthly, quarterly, or annually. These payment frequency options may vary based on the insurer’s terms, the chosen policy, etc.
A ₹50 lakh term insurance plan has multiple benefits to offer as a smart option. This is what you can look forward to when you take this amount of coverage.
With term insurance, you get life coverage of ₹50 lakhs at cost-effective premium rates. It adequately covers your family's financial needs and future goals.
You can enhance your base coverage by opting for riders like accidental death, critical illness, disability, and premium waiver.
The death benefit payout is tax-free under Section 10(10D) of the Income Tax Act. Moreover, you can claim income tax deductions on the premium paid under Section 80C, up to a maximum limit of ₹1.5 lakh per financial year.
Knowing that your family is financially protected even in your absence gives you peace of mind. You can focus without worrying about meeting other financial goals.
This coverage amount suits a wide range of people. If you match the following profiles, you should strongly consider getting a term policy of ₹50 lakhs:
No matter your life stage, adequate term insurance ensures lifelong financial safety for your loved ones.
ACKO Life offers an innovative term insurance plan that can be managed via the mobile app for ultimate convenience. The ACKO Life Flexi Term Plan is a unique life insurance option that adapts to your evolving lifestyle. It is packed with useful features and promises to provide your loved ones with a financially stable future, with the amount of money you choose for them. Here are 6 reasons to choose the ACKO Life Flexi Term Plan:
The coverage amount required to provide safety to financial dependents can change over time as dependents increase (e.g., kids), financial obligations such as loans are taken (e.g., home, personal, or education loans), or lifestyle changes resulting from shifts in income levels.
The premiums are fair and friendly to your wallet and offer extensive coverage to stay protected and save on income taxes simultaneously.
Increase or decrease as your financial dependents, loans, lifestyle, and income change.
We will help you create a will to outline which assets go where clearly.
Being digital-first means you can easily buy or make claims on your term insurance policy with us.
You can add or modify riders, such as critical illness or accidental death coverage, tailoring the policy to your specific needs.
Selecting the appropriate life cover is important to ensure your family isn't underinsured. But is ₹50 lakhs sufficient? Below are some easy methods to determine your desired coverage based on financial goals.
Start by calculating your family’s annual expenses. Then, multiply that by how many years you wish to cover them. This provides a rough estimate of the minimum amount they'll need to continue their lifestyle.
Include all your existing financial liabilities, such as home loans, personal loans, or credit card debt. Your term plan should cover these, so your family doesn't struggle to repay them in your absence.
Consider significant future expenses like your child’s higher education or marriage. These milestones require planned savings and a life cover that ensures they’re not compromised if something happens to you.
Deduct any existing savings, fixed deposits, mutual funds, or property assets your family can tap into in case of emergencies. This prevents over-insurance and makes your premium more affordable.
Many financial advisors recommend multiplying your annual income by 10 to 20 times to estimate ideal life cover.
Here are things to keep in mind when purchasing the best term insurance plan for 50 lakhs:
The idea is to make an informed purchase decision for adequate protection at the best rates.
The premium for a ₹50 lakh term plan depends on several personal and policy-related factors. Let’s look at some of the key factors you must know:
Younger individuals pay significantly lower premiums. Similarly, females generally pay slightly lower premiums due to longer life expectancy.
Longer policy terms mean a slightly higher premium but longer coverage.
Smokers end up paying more because there are more health risks. If you're not a smoker, you'll pay a much lower premium for the same ₹50 lakh term insurance cover.
Medical conditions like diabetes, hypertension, or heart disease may raise your premium. You might also be asked to undergo a medical examination prior to approval.
The inclusion of riders such as critical illness and accidental death enhances your protection, but they also increase your overall premium. So, add only the ones you really need.
Not all term plans are equal. Whether it's premium charges or rider options, there are several things that distinguish one policy from another. Here's how you can discover the most suitable ₹50 lakh term insurance plan for your requirements.
Compare policies from different insurers to locate the most economical premium for your chosen coverage. Online aggregators or insurer websites enable one to check and compare.
Select a company with a claim settlement ratio of more than 95%. It reflects the insurer's promptness and ease in settling claims without delays or hassles.
You can select a flexible term plan that offers riders such as critical illness, accidental death, or disability. Riders provide important additional coverage that addresses your unique needs and lifestyle.
A good term plan offers flexible premium payment options. Some insurers even provide limited-pay options, where you pay for a few years and stay covered for the rest of your term.
Choose a reliable insurer with robust financial strength. Check actual reviews on service, claim settlement, and customer support.
Don’t settle for the first quote. Compare features, exclusions, premium costs, and added benefits across multiple insurers to choose the best plan.
To buy the ACKO Life Flexi Term Plan online, you can follow this simple step-by-step guide:
Keep the following documents ready while buying a ₹50 lakh term insurance policy:
You will require valid ID proof, such as an Aadhaar card, PAN card, or Passport. This is required for KYC (Know Your Customer) purposes.
Proofs such as electricity bills can be submitted to authenticate your residence address as per regulatory norms.
Submit income-related proofs like salary receipts, Bank statements, ITR, etc.
Depending on your health conditions, lifestyle, and age, insurers may ask for recent medical test reports or a health check-up report before issuing the policy.
When considering buying life insurance, one of the first things you should assess is whether term life insurance is the best option for you. Term insurance is the most affordable choice if you're looking for a simple, cost-effective way to protect your family's financial future.
You can start by using a term insurance calculator to choose the best plan. This tool helps you calculate premiums based on various factors, including age, health, lifestyle, and type of coverage. For example, if you want to find the best term insurance plan for 1 crore, the calculator will help you determine the premium amount and whether it fits within your budget.
Considering rising inflation, unforeseen medical costs, and significant financial goals, inadequate insurance coverage can disrupt your family's financial security. A term insurance plan with a high sum assured acts as the first defence to protect your loved ones when you are not around. For young nuclear families and single breadwinners with significant liabilities, ₹50 lakh term insurance coverage suits a wide range of people.
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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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