In today’s financial landscape, individuals currently earning 50 lakhs and above are often at a crucial stage in their lives where financial security and wealth management take centre stage. One crucial tool that safeguards their future financially is term insurance. Read below to learn why term insurance is vital for high-income earners, its benefits, and what to look for when choosing such plans.
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Term insurance is a type of life insurance that provides coverage for a specified period, known as the policy term. If the policyholder dies during the term, the death benefit goes to his or her beneficiary. Unlike whole life or endowment policies, term insurance does not have cash value accumulation but provides higher coverage at lower premiums, which is ideal for those with high incomes.
Individuals or professionals earning 50 lakhs and above typically belong to a higher income bracket. Let’s look at some of the professions that often qualify for substantial term insurance coverage:
For individuals earning 50 lakhs and above, term insurance is a crucial component of a comprehensive wealth management strategy that safeguards their family’s future and ensures financial stability in times of need.
Individuals earning 50 lakhs and above usually have families or dependents who rely on their income. So, in the event of premature death, term insurance ensures that the family's financial needs are catered to.
High earners usually have significant financial commitments, including home loans or education fees. Term insurance can provide the necessary funds to repay these dues. This means relieving the financial pressure on their loved ones.
The premiums paid for term insurance are eligible for tax deductions under Section 80C of the Income Tax Act. This means high earners also gain additional financial advantages.
High earners earn well, so they can pay for expensive term insurance policies without getting worried, ensuring adequate coverage.
Term plans from many insurance companies for high earners come with immense flexibility, such as options for add-on riders such as critical illness or accidental death benefits.
Term insurance is a pure protection life insurance designed with various features. Thus, knowing the key features can help high earners to make informed decisions that fit their financial goals and responsibilities. Among all, the three key features include:
Term insurance policies can cover higher amounts, from 1 crore and upwards. Buying a plan with huge coverage ensures your family's financial security is well-cared for.
Many term policies can be converted to whole life policies later. This allows you to continue coverage based on your current financial needs and update your policy with changes in your life.
Buying term insurance usually offers a convenient and efficient means of comparing policies, estimating premiums, and more. This enables them to easily locate the optimal coverage for their needs at competitive rates AND complete the application process without the hassle of one-on-one individual meetings.
ACKO’s unique term plan, the ACKO Life Flexi Term Plan, delivers a modern, flexible, and customer-centric solution for long-term financial protection. It provides an exceptional level of policy flexibility unmatched by most traditional insurers. The convenience of managing the entire policy lifecycle digitally adds to its appeal, particularly for individuals who prioritise ease of use and adaptability.
ACKO’s Digital Policy Management System allows policyholders to easily make any adjustments (endorsements) such as:
Raising claims—all via the mobile ACKO App.
A well-thought policy can offer substantial protection and peace of mind, so here are key considerations to make sure you choose the right one:
Consider all the pending debts, plans, and dependent requirements while finalising how much coverage will be needed to protect your family's financial future.
Compare insurers about their premium rates, claim settlement ratio, and customer reviews that can give you tremendous insights into how much value a particular policy will bring to your life.
Seek other riders that could complement a standard package, such as critical illness cover or accidental death benefit, to gain a greater safety net that is bespoke to your requirements.
Check the insurer's financial security and service delivery levels to ensure you choose a reputable partner who can provide support when needed.
Term insurance is an important financial tool for high earners who earn 50 lakhs or more. Not only does it provide security for the loved ones, but it also takes care of the peace of mind of paying out the liabilities in case something unforeseen happens.
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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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