Today, financial planning and security are as crucial as it gets, especially when it comes to our loved ones. But if you don’t know where to start, it might be time to consider purchasing a 5 crore term insurance plan. So, continue reading to know more! ...Read More
Written by
Alok Mishra
Insurance Writer
Alok Mishra is a Digital and Content Marketing specialist with 10 years of experience. He has spearheaded Web Content, Social Media & Branding, and Community Building initiatives to drive growth for prominent brands.
Reviewed by
Bhaskar Sinha
Insurance Expert
8+ years of experience in Life Insurance with expertise in Developing Life and Health Products, Digital Sales, Conducting effective trainings and Key Account Management.
In broad terms, a 5 crore term insurance plan is similar to all term insurance plan policies. A term insurance policy is designed to offer financial assistance to the family members of a policyholder in case of the latter’s untimely demise. So, a 5 crore term insurance plan provides a life cover of Rs. 5 crores, which is commonly known as the death benefit.
For instance, if you purchase 5 cr term insurance for your family, the specified nominee or beneficiary will receive a death benefit worth Rs. 5 crores in the unfortunate event of your death. Therefore, by investing in term insurance of 5 crores, your loved ones will have a safety net to fall back on. Even better, despite offering a large coverage amount, the premium costs for this plan are largely affordable, making it the go-to choice for several policy buyers.
Also Read Full Blog on: What is term insurance?Although the primary reason to buy 5 crore term insurance is financially securing our loved one’s future, there are a few more reasons worth considering. Let’s take a look:
One of the greatest benefits of purchasing a 5 cr term insurance policy is high coverage at nominal premiums. While most people think that the premium for 5 cr term insurance is quite unaffordable, that’s not the case. Instead, you can avail the features of a 5 crore term insurance policy at premiums as economical as Rs. 2,500 when you start at an early age.
In addition to the sum assured of Rs. 5 crores, a 5 cr term insurance plan comes with added coverage benefits like add-on covers. For instance, you can increase the plan’s coverage by opting for a terminal illness rider, accidental death benefit*, or waiver of premium rider.
Since Rs. 5 crores are a considerable amount of money, buying the term insurance for 5 crore will ensure that your family’s financial needs and requirements are taken care of even in your absence. Plus, they can use the death benefit to pay off loans, liabilities or use the sum for household expenses.
If you buy a 5 crore term insurance policy, it will provide you with long-term coverage at affordable premiums. As a result, with family already financially protected from uncertainties, you can focus on increasing your investments & savings and park your money in other financial tools such as fixed deposits, mutual funds, and ULIPs.
A term insurance plan is the purest form of life insurance and one of the most relevant financial instruments of today. Plus, in addition to acting as a financial backup plan, a 5 crore term insurance policy allows the nominee to use the death benefit for several expenses, including education, paying off loans, marriage, household expenses, purchasing properties, and more.
However, first, it is crucial to understand how a 5 cr term insurance policy works:
So, a 5 crore term insurance policy is an excellent way to safeguard your family’s future and ensure that their financial needs are met even when you’re not around. Additionally, since the premium for 5 cr term insurance is pocket-friendly, it is a worthy investment that won’t take a toll on your finances.
While buying the best term insurance plan for 5 crore is the ideal way to make sure your family’s financial requirements are looked after in your absence, it is important to evaluate if the plan is suitable for you. So, here are some factors that can help you determine if investing in a 5 cr term insurance policy is the right choice:
The general rule of thumb for buying term insurance dictates that the sum assured of the plan should be at least ten times your annual income. For instance, if your yearly earnings are Rs. 50 lakhs, then your term insurance plan should be worth at least Rs. 5 crores. However, you can also use Axis Max Life’s term insurance calculator as it will make the process much faster and simpler.
While many people don’t realize this, age plays an important role in determining the right coverage amount for term insurance policies. Since older people are more likely to fall sick and develop health conditions, they have to pay a slightly higher premium. Therefore, it is advisableto purchase the best term insurance plan for 5 crore at a younger age so that you can avail cheaper premiums. In addition, it also ensures that your family stays financially secure for a longer period.
If you have family members who are financially dependent on you, it is essential to evaluate if a 5 cr term insurance policy will be sufficient for them. Plus, you need to consider the number of family members who depend on you financially and their future needs such as education, marriage, loans, and more. All in all, you need to make sure that the financial requirements of all your family members, especially the ones dependent on you, are taken care of.
When choosing a term insurance policy, you also need to consider any pending loans and liabilities. For instance, if there is a home loan, car loan, education loan, or debt that has to be paid off, you need to factor that into the 5 crore term insurance policy. Hence, purchasing term insurance for 5 crore is a viable option as it offers a higher sum assured compared to other term insurance policies.
Based on a number of key factors that play a major role in helping you decide on the best term insurance plan is choosing the right sum assured to secure your family’s future. The information provided in this section helps you choose the right sum assured option for your term plan. Click on one of the tabs provided below to know more about the sum assured amounts:
Disclaimer: %*Standard daily premium for 24-year old healthy male, non-smoker, 25 years policy term, 25 year premium payment term (exclusive of GST) for Axis Max Life Smart Total Elite Protection Term Plan (UIN: 104N125V07). ARN: C/SA/280125
In addition to providing comprehensive financial coverage, term insurance for 5 crore is loaded with several other benefits. So, here are some of the most notable features of a 5 cr term insurance policy:
When buying an insurance plan, one of the first things we worry about is the premium cost. However, the premium for 5 cr term insurance is quite affordable, and it definitely won’t burn a hole through your wallet. Plus, you can take advantage of even lower premiums if you purchase the policy at a younger age, and you can simultaneously focus on other financial investments.
A notable benefit of purchasing the best term insurance plan for 5 crores is the tax exemption as per Section 10(10D) of the Income Tax Act. According to Section 10(10D), the death benefit of a term insurance plan, including any earned bonuses, is completely exempt from taxes. This feature can save you a considerable sum of money, making it an essential factor to consider.
#*Tax benefits are subject to changes in tax laws.Although a 5-crore term insurance policy offers comprehensive coverage as is, it comes with the added benefit of add-on covers. For instance, you can opt for riders such as waiver of premium variant#, accidental death cover*, and critical illness & disability rider(UIN 104b033V02). While purchasing these riders isn’t necessary, it gives you the option to expand your coverage if needed.
Today, you can easily buy a 5 crore term insurance plan online, all thanks to the internet. So, you don’t need to visit insurance offices or stand in long queues as you can explore, select, and buy term insurance plans from the comfort of your home.
Even though most insurance companies provide the death benefit of term insurance policies in a lump sum, you have the option to opt for other payout methods as well. For instance, you can choose a lump sum plus monthly income payout if that will help you manage your expenses better. Similarly, you can even go for a monthly income payout as it can act as an income replacement for your family.
There is no simple answer to this question as anyone who can afford the term insurance of 5 crore should purchase it. However, if you fall under any of the situation/categories mentioned below, you can consider investing in the plan:
Axis Max Life Smart Total Elite Protection Term Plan [A non-linked non-participating individual pure risk life insurance plan | UIN: 104N125V07] or Axis Max Life STEP Term Plan is designed to offer financial protection to your loved ones no matter who you are. Available only to elite policyholders opting for high sum assured, a 5 crore term insurance plan under this policy offers some key benefits that one should keep in mind:
The above mentioned benefits of the Axis Max Life Smart Total Elite Protection Term Plan is illustrative and not an exhaustive list. you should read through various policy documentation and prospectus in order to get a better idea of how this 5 crore term insurance plan can fit into your plans for protecting the future finances of your loved ones in spite of your absence.
ARN NO: PCP/5CRTI/140824
1)*On payment of additional premium
2)**On payment of additional premium. Upon policyholder's selection of Return of Premium variant, this product shall be a Non-Linked & Non participating Individual Life Insurance Saving Plan
3)#Applicable riders available on the payment of Additional Premium are Axis Max life Critical Illness & Disability Rider | Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN 104B033V02 and Axis Max Life Waiver of Premium Plus Rider| A Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider | UIN 104B029V05
4)##Available at an additional premium for policies with Policy Term greater than 30 years & premium payment term greater than 21 years. Option to skip paying premium for 12 months, 2 premium breaks will be available during the Premium Payment Terms separated by interval of at least 10 years.
“Subodh Mishra helped me a lot in getting the money. He personally collected the documents and helped me at every step. I am extremely thankful to him and I would like to buy another Axis Max lIfe policy in future”
Subodh Mishra
“I already have a policy and buying this was a nice experience. This is according to my requirement. Completely satisfied with details shared by customer care executive before purchasing the policy.”
Gaurang Kumar Pawar
“I visited Amritsar branch after the demise of my son. My family was not left with a single penny and it was getting impossible to make the ends meet. Vinay Sharma gave me the right direction and helped me at every step to receive the claim amount and gave a source of income to my family. I thank him and bless him from the bottom of my heart.”
Vinay Sharma
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