What is ₹50 Lakh Term Insurance?
A ₹50 lakh term insurance plan is a financial product offering a life cover worth ₹50 lakh to the policy’s beneficiaries. This offering is carried out in the event of the insured individual’s death during the policy term. This kind of life insurance plan ensures the life insured’s family is financially secure and can maintain their lifestyle in the insured individual’s absence.
How Does a ₹50 Lakh Term Insurance Plan Work?
A ₹50 lakh term insurance plan works by providing a substantial death benefit to the beneficiaries if the policyholder passes away during the policy term.
Here’s a detailed explanation:
Policy Purchase: The policyholder chooses a term plan for ₹50 lakh and pays the premium based on age, health, lifestyle, and policy tenure.
Premium Payment: Premiums can be paid annually, semi-annually, quarterly, or monthly, depending on the policyholder's preference.
Policy Term: The policy term can vary, usually term plans provide coverage till 99 years. The term is selected based on the policyholder’s financial goals and responsibilities.
Death Benefit: If the life insured dies during the policy term, the insurance company pays ₹50 lakh to the beneficiaries. This lump sum amount can be used to cover debts, living expenses, and future financial goals.
Looking to buy a new term plan? IndiaFirst Life offers a range of term life insurance plans with the option of choosing ₹50 lakh sum assured. Choose the plan that matches your requirements.
Who Should Opt for ₹50 Lakh Term Insurance?
Choosing a ₹50 lakh term insurance plan depends on various factors, such as financial obligations, dependents, and future goals. Here are some types of individuals for whom a ₹50 lakh term insurance plan is beneficial:
Young Professionals: Individuals in the early stages of their careers with fewer financial liabilities can opt for a ₹50 lakh term plan to ensure their family’s financial security at an affordable premium.
Newly-Married Couples: Newlyweds planning for future responsibilities and children should consider a term policy for ₹50 lakhs to protect their spouse and potential children’s financial future.
Parents with Young Children: Parents with young children need a substantial cover to ensure their children’s education and lifestyle are not compromised in case of an untimely demise.
Home-Loan Borrowers: Individuals with outstanding home loans should opt for a ₹50 lakh term insurance plan to cover the liability and prevent burdening their family with debt.
Businessowners: Entrepreneurs and businessowners should secure their family’s financial future with a term plan of ₹50 lakh to cover business liabilities and personal expenses.
Why Buy A ₹50 Lakh Term Insurance Plan?
Buying a ₹50 lakh term life policy offers several advantages:
Affordability: Term insurance plans are cost-effective and provide high coverage at low premiums.
Financial Security: A plan can ensure that the policyholder’s family is financially secure in their absence.
Debt Coverage: A policy can cover outstanding debts such as home loans, car loans, or personal loans.
Future Planning: A term-based life plan can help with the financial situation pertaining to children’s education and other long-term goals.
Peace of Mind: A plan can provide peace of mind knowing that loved ones are protected financially.
What Are the Benefits of ₹50 Lakhs Term Insurance?
A term insurance plan of ₹50 lakh sum assured comes with numerous benefits:
High Coverage at Low Premiums: One of the primary benefits of term insurance is that it offers high coverage at affordable premiums, making it accessible to many.
Tax Benefits: Premiums paid towards a ₹50 lakh term life policy are eligible for tax deductions. It is according to Section 80C of the Income Tax Act. Additionally, the death benefit is tax-free under Section 10(10D).
Financial Security: The plan provides financial security to the policyholder’s family. It ensures they can maintain their lifestyle and meet financial goals even in the policyholder’s absence.
Rider Options: Policyholders can enhance their coverage by opting for riders such as critical illness, accidental death, and disability riders. All of these can provide additional financial protection.
Flexibility: Term insurance plans offer flexibility in choosing the policy term and premium payment frequency. Policyholders can thus select options best suiting their needs.
How to Select the Right ₹50 Lakh Term Insurance Plan?
Select the right term insurance plan of ₹50 lakh sum assured via the careful consideration of various factors.
Compare Plans: Use a term insurance calculator to compare different plans and premiums offered by various insurers.
Assess Financial Needs: Evaluate your current financial obligations, future goals, and the number of dependents to determine the adequate coverage amount.
Check Claim Settlement Ratio: Opt for insurers with a high claim settlement ratio to ensure a smooth and hassle-free claims process.
Review Policy Terms and Conditions: Thoroughly read the policy documents to understand the terms, conditions, exclusions, and benefits of the plan.
Consider Riders: Enhance your coverage by opting for riders offering additional protection against specific risks.
Why Buy ₹50 Lakh Term Insurance Plan from IndiaFirst Life?
We offer competitive advantages with our ₹50 lakh term life insurance plan:
Affordable Premiums: High coverage at affordable premiums, making it accessible to many.
Easy Claim Process: A hassle-free and efficient claim settlement process with a high claim settlement ratio.
Additional Riders: Various riders such as term rider and waiver of premium for enhanced protection.
Is ₹50 Lakhs Enough Term Insurance Coverage for My Family?
Determine whether ₹50 lakh is sufficient coverage, on the basis of your financial responsibilities, dependents, and future goals.
Here are some factors to consider:
Financial Obligations: Calculate your outstanding debts, including home loans, car loans, and personal loans, to ensure the coverage amount can pay off these liabilities.
Living Expenses: Estimate your family’s monthly living expenses and multiply by the number of years you want to provide financial support for.
Education Costs: Factor in the future education costs of your children, including school fees, college tuition, and other related expenses.
Inflation: Consider the impact of inflation on future expenses and adjust the coverage amount accordingly.
Additional Goals: Include other financial goals such as retirement planning and emergency funds.
Evaluate these factors to determine if a ₹50 lakh term life insurance plan is adequate for your family’s needs.
Need help in choosing the right life insurance plan? Call us now at 8828840199 or book a call here.
Frequently Asked Questions
What are the eligibility criteria to purchase a ₹50 lakh term plan?
The eligibility criteria to purchase a ₹50 lakh term plan typically include the policyholder's age (usually between 18 to 65 years), income, and health condition.
What is the premium amount for a term plan offering coverage of ₹50 lakhs?
The premium amount for a term plan offering coverage of ₹50 lakhs varies based on the policyholder's age, health, lifestyle, and policy term.
What happens if I survive the policy tenure?
If you survive the policy tenure, there is no payout, as term plans do not offer maturity benefits.
What riders can be applied to a ₹50 lakh term insurance policy?
Riders applicable to a ₹50 lakh term insurance policy include critical illness rider, accidental death benefit rider, and waiver of premium rider.
Are tax benefits applicable to ₹50 lakh term insurance plans?
Yes, tax benefits are applicable to ₹50 lakh term insurance plans under Section 80C and Section 10(10D) of the Income Tax Act.
Can I purchase two term insurance plans for higher coverage?
Yes, you can purchase multiple term insurance plans for higher coverage. Ensure that the total coverage amount aligns with your financial needs and insurer's guidelines.
Customers 
Distributor 
Employee 
