Rs. 50 Lakh Term Insurance

As the sole breadwinner of the family, creating financial stability is a must, and a term insurance plan can help you achieve it. Term plans are affordable and provide high coverage of Rs. 50 lakhs at a very reasonable and pocket-friendly premium. If the policyholder dies during the policy tenure, a death benefit is paid to the beneficiary under term insurance. You can select a coverage amount keeping in mind your current lifestyle, expenditures, financial liabilities, and others, a 50 lakh term insurance is recommended for extensive coverage.

The following are the benefits of purchasing an Rs. 50 lakh term insurance plan:

• Financial Protection: In case of your absence, a 50 lakh term insurance plan will provide financial protection to your loved ones. An insurance company pays a death benefit in case of the untimely death of the policyholder.
• Add-on Benefits: The policyholders can enhance the coverage of their plan by including riders to their base term insurance plan. However, you may have to pay an extra premium to an insurance company for purchasing riders.
• Economical Premium: You can buy a term insurance plan at an early age. Term insurance companies even provide lower premium rates to young individuals. Therefore, you can ensure financial stability for your loved ones at affordable premiums.
• Lifetime Protection: Many term insurance companies provide whole-life insurance coverage to the policyholders. As a result, you don’t have to worry about the future of your family at any point in time. During a lifetime, if anything happens to the policyholder, an insurance company will pay a death benefit to the nominee.
• Tax Benefits: With a 50 lakh term insurance plan, you can also enjoy tax benefits as specified under section 8010(10D) of the Income Tax Act of 1961. The tax deduction is applicable to the premium paid towards term insurance plans.

How Does Rs. 50 Lakh Term Insurance Work?

As mentioned above, in a 50 lakh term insurance policy, you get coverage of Rs. 50 lakhs. The policyholder pays regular premiums to the insurance company throughout the policy term. In the unfortunate event of the policyholder's demise during this period, the designated beneficiaries receive the sum assured, i.e., Rs. 50 lakh. This payout is typically tax-free and serves as a crucial financial cushion for the family, helping them meet various financial obligations, such as outstanding debts, mortgage payments, and day-to-day expenses.

In case the policyholder fails to pay the premium on time, then the 50 lakh term insurance policy will lapse. Thus, you must regularly pay the premium to keep this term insurance plan active.

Things to Know Before Buying 50 Lakh Term Insurance?

There are a number of things you need to consider before buying a 50 lakhs term insurance such as those listed below:

• Claim Settlement Ratio: One of the most important things you need to check before buying a 50 lakh term insurance is the claim settlement ratio of the insurance company. You should choose a company that has a higher claim settlement ratio or CSR as this ensures efficiency in term insurance claim settlement.

• Additional Coverage: You should also check if the term insurance plan you are buying offers additional coverage or not. There are a few term insurance plans that even provide maturity benefits along with death benefits, so you need to check that.

• Riders: Almost every insurance company offers riders which you can include in your base term insurance policy. So, before buying a 50 lakh term insurance policy, you need to check whether riders are available or not.

• Policy Terms and Conditions: Before buying a 50 lakh term insurance, you must read the terms and conditions. This will help you get a clear understanding of the inclusions and exclusions of the term insurance policy.

What is the Cost of 50 Lakh Term Insurance?

The exact premium or the cost of Rs. 50 lakh term insurance cannot be directly estimated as it depends on several factors. These factors include the policyholder’s age, medical history, lifestyle, and a few others. Moreover, even gender determines the premium you need to pay for your 50 lakh term insurance plan. Generally, the premium for women policyholders is lower as compared to the others.

You can however use a term insurance premium calculator to get an exact estimate of the term insurance premium. The term insurance premium calculator is also available on InsuranceDekho’s website.

How to Buy Rs. 50 Lakh Term Insurance with InsuranceDekho?

Listed below are the steps in which you can buy Rs. 50 lakh term insurance plan with InsuranceDekho:

• Click on the official website of InsuranceDekho and go to the term insurance option
• Enter details such as age, name, mobile number, whether you are a smoker or non–smoker, etc
• Once you enter all the details, you will be able to view a list of term insurance plans
• From the plans available, you will be able to identify the plans offering coverage of Rs. 50 lakhs. Select a desired plan and proceed with the premium payment
• Finally, when the payment is completed, you will receive policy details on your registered email id

The following are the individuals who must purchase Rs. 50 Lakh term insurance plans:

• An individual who has a regular source of income and financial dependents must consider purchasing a term insurance plan.
• Parents, professionals, married/unmarried people, recently retired people, self-employed etc.
• Taxpayers should consider investing in term life insurance for tax exemption and also create a financially secure future for their loved ones from the uncertainties of life.
• Young individuals who have started making a living for themselves should invest in term insurance plans as they get a substantial coverage amount at a nominal premium cost.
• If you are a sole breadwinner, then a 50 lakh term insurance is recommended as it creates a safety net for your loved ones even when you are not around