When should I purchase term insurance of ₹5 crore?

It is advisable to purchase a term insurance policy as early as possible. This ensures higher coverage at a lower premium. Moreover, if you buy a term plan when you are young, you can enjoy coverage from a younger age and also save on taxes on the premiums paid.

What is the eligibility criteria for a ₹5 crore term insurance plan?

Resident Indians and Non-Resident Indians can buy the Rs.5 crore term insurance plan subject to fulfilling the age criteria specified by the insurer and also having sufficient income to pay the insurance plan’s underlying premium.

Can the Term Insurance Plan coverage be increased or decreased anytime within the policy tenure?

Usually, the sum assured cannot be increased or decreased during the policy term. However, some term plans offer the feature of increasing the sum assured at important life events like marriage and childbirth to meet your increased financial responsibilities.

Is a medical examination required to apply for a ₹5 Crore term plan?

Some insurance companies may, typically, have a medical examination for a higher sum assured, including ₹5 crore term plan. The insurer assesses the health status of the insured to determine the risk associated with the term plan premium.

What Is Free Look Period for ₹5 Crore Term Insurance?

The Free Look Period is a specified period, usually of 30 days, from the date of receipt of the policy document, during which one can cancel the policy if policyholder is not satisfied with the terms & conditions of the policy and get a refund of the premiums paid, minus any applicable charges.

Claim Settlement Ratio of 99.23%^~

₹5 Crore Term Insurance Plan

Term insurance plans help you secure the financial future of your family in your absence. They protect against the risk of premature demise and help create financial security. Term insurance plans offer optimal sum assured levels and you can choose a coverage which matches your financial needs. Read More

A ₹5 crore term insurance plan is one such plan which allows high coverage and can be considered if you need optimal protection against unforeseen emergencies.Read Less

Term Insurance Calculator^**

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^{*,^^,@,##,**} T&C apply | BJAZ -WB -EC-10292/2 4

Keep these Documents Handy
Photo	Colored Photo
PAN Card	PAN Card/ Form 60
Age proof (Any one)	Passport Aadhar card Driver’s License Birth Certificate Baptism Certificate of PAN card
Income documents (Any one)	Last 6 months Bank statement with salary credit Form 16 Last 3 years ITR with Computation of Income (COI) Last 3 months salary slip + Last 6 months bank statement showing salary credited
Address proof/ID proof (Any one)	Passport Aadhar card Voters ID Driver’s License

^*Above illustration is for Bajaj Allianz Life eTouch II- A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N198V01) considering Male aged 23 years | Non-Smoker Preferred | Annual Income =>Rs. 15,00,000 per annum | Indian Resident | Policy Term (PT)- 30 years | Premium Payment Term (PPT) - 30 years | Sum Assured opted is Rs. 5,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 14,941. 2nd Year onwards premium is Rs. 16,196. Total Premium is Rs. 4,84,625 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage : 40, Income Payout Percentage : 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.

^**The output generated through calculator are on the basis of the data inputted by you and is being provided to you solely for your reference purpose and not to be construed as investment advice. Please seek independent advice from your insurance consultant before making any investment decisions. While proper caution has been taken in designing this calculator, Bajaj Allianz Life Insurance Co. Ltd. assumes no liability for the accuracy of the information and data provided in this tool.

^##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy. Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

^@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^{^^}Get Free Health Management Services upto Rs. 31,000 per year

Health Management Services	Frequency	Cost (₹)
Doctor Insta-Consultations	3 consultations per month = 36 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 36 = ₹18,000
Health Coach (Diet & nutrition consultations)	1 consultation per month = 12 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 12 = ₹6,000
Emotional Wellness (Psychologist consultations)	1 consultation per month = 12 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 12 = ₹6,000
Network discounts:	Throughout the year	Assumption – Total expense on these services throughout the year Medicines (M) - 10%: ₹5,000 Lab-test booking (L) - 10%: ₹5,000 Total discounts that can be availed throughout the year: M - ₹500 L - ₹500
Total per year as per assumption		₹31,000

Note: The above mentioned costs are based on estimated average market price for respective services. T&C apply.

Doctor Insta-Consultations and Health Coach Services are unlimited and the above numbers are assumed only for the purpose of calculation of the yearly benefit.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

Get Your Life Goals, Done!

Tailored Life Insurance Solutions for your long-term Life Goals.

Term Insurance

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Guaranteed Return Plans

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Child Plans

Written ByPalak Bagadia

AboutPalak Bagadia

Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.

Reviewed ByRosy Pathak

AboutRosy Pathak

Rosy Pathak, AVP- Product and Brand Marketing at Bajaj Allianz Life Insurance carries over 17 years of experience in Marketing and a demonstrated history of working in the insurance industry. She is skilled in Product Management, Planning and Strategy, Project Management, Marketing and Communication.

What is a ₹5 crore Term Insurance Plan?
Benefits of ₹5 Crore Term Insurance Plan
How does a ₹5 Crore term insurance plan work?
How to Determine the Right Coverage Sum?
Who Should Buy a ₹5 Crore Term Plan?
How do you choose the best ₹5 crore term plan?
Factors Affecting The ₹ 5 Crore Term Insurance Premium?
Conclusion
Why Bajaj
FAQ's

What is a ₹5 crore Term Insurance Plan?

A ₹5 crore term insurance plan is a life insurance policy which has a sum assured of ₹5 crores. This sum assured is usually paid as the death benefit if the insured passes away during the tenure of the policy. The plan offers high insurance coverage at affordable premiums, ensuring substantial financial security for your family. The death benefit amount can help the insured’s family to replace the lost income, maintain their standard of living, and meet their future financial goals.

Benefits of ₹5 Crore Term Insurance Plan

A ₹5 crore term insurance plan offers several benefits and advantages to the insured and their family. Here are some of the reasons why you can buy a ₹5 crore term insurance plan:

Cost-Effective

The ₹5 crore term insurance plan can provide life insurance coverage at affordable premiums. The plan might allow you to pay premium regularly, for a limited tenure or in a single instalment. Moreover, you can choose to pay the premiums annually, half-yearly, quarterly or monthly to make it more affordable.

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Provides Peace of Mind

With a high sum assured, the plan can provide the much-needed peace of mind that your family is financially secure at all times, even when you are not around.

Read Less

Loan repayment

The ₹5 crore term insurance plan can give your family a lump sum payout to meet their financial obligations like existing loans and debts. This eases the financial strain that your family might suffer in your absence.

Read Less

Inheritance

A ₹5 crore term plan is a good investment plan to create an inheritance for your loved ones so that they do not have to give up on their dreams and future aspirations when you are not around.

Read Less

Riders for Additional Coverage

You can add riders to your term insurance plans by paying a nominal extra premium to get enhanced coverage. These riders include critical illness benefit riders, accidental permanent total/partial disability riders, accidental death benefit riders, waiver of premium riders, and family income riders amongst others.

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Tax Benefits

The premiums paid for the term insurance plan can be claimed as tax deductions up to Rs. 1.5 lacs per annum under Section 80C of the Income Tax Act, 1961. The deduction benefit is only available for taxpayers opting for the old tax regime. There are no tax deductions available on term insurance under the new tax regime¹. The death benefits received by the nominee are exempted from taxes². The maturity benefit received from the return of premium term plans is also tax-free under Section 10(10D), subject to specific terms and conditions¹.

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How does a ₹5 Crore term insurance plan work?

Under a ₹5 crore term insurance plan, the sum assured is ₹5 crore, and you can choose the following policy details –

The tenure of the policy
Premium paying term and frequency
Optional riders

The premium of the policy is determined based on the above-selected factors, also considering your age, health condition and other risk factors. The higher the risk, the higher would be the premiums and vice-versa.

You have to pay the premium in the chosen premium payment frequency, say, monthly, quarterly, half-yearly or yearly over the chosen premium payment tenure. If the life assured passes away during the policy tenure, the death benefit would be paid. no benefit will be payable on maturity under normal term plans if the insured survives the chosen tenure. However, if you choose the return of premium term plans or the said option in your term plan, on maturity, the premiums that you have paid will be refunded.

Moreover, if you add riders to the term plan, which may be inbuilt or optional at an additional premium, the rider benefit will also be paid along with the policy benefit if the relevant claim occurs. For instance, if you add the Accidental Death Benefit Rider and the life assured dies in a road accident, the rider sum assured would also be payable in addition to the death benefit under the term insurance plan.

How to Determine the Right Coverage Sum?

One can consider the following factors for determining the right coverage as sum assured in a term insurance plan

Factor	Description
Age	The younger the insured, the higher the sum assured is usually required, as financial responsibilities tend to grow with age.
Inflation Rate	It is necessary to factor in the impact of inflation on future expenses while determining the right coverage. The coverage of the term plan should keep pace with the economic inflation.
Number of Dependents	Consider the number of dependents you have, such as your parents, children, spouse, etc. More dependents require a higher coverage amount to ensure their financial security.
Existing Assets and Liabilities	Your existing assets and liabilities also impact your insurance coverage requirements. Existing assets can reduce the coverage required, while liabilities increase it.
Basic Lifestyle Needs	The term plan coverage should be sufficient to support the basic lifestyle expenses of your family and maintain their standard of living even in your absence.
Goals	The number and nature of your goals are directly proportional to the coverage required. More goals generally necessitate higher coverage to achieve them.

Who Should Buy a ₹5 Crore Term Plan?

A term insurance plan may be purchased by anyone. However, considering a ₹5 crore term insurance may be suitable for the following:

Newly Married Couples

Newly married couples or couples not having kids may have a list of things to tick off at the start of a new life, together. They can opt for a ₹5 crore term insurance plan if the said amount can help meet their financial goals alongside creating financial security for their spouse and dependent parents.

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Couple with Young Kids

For parents or couples with kids, the top priority is to secure the financial future of their child. The sum assured of ₹5 crore term insurance plan may help cover existing debts and meet ongoing family needs, keeping in mind the current expenses and liabilities, as well as enable them to secure funds to meet long-term goals of their child’s future even in their absence.

Read Less

Young Professionals

For young professionals, a 5-crore term insurance plan may ensure substantial coverage, taking care of the financial responsibilities that may arise as their career and responsibilities evolve. However, an optimal sum assured can only be determined by factoring the total debts/liabilities, expenses, inflation, etc.

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Individuals Nearing Retirement

Those nearing retirement may want to opt for a ₹5 crore term insurance plan, sufficient enough to cover debts, expenses, inflation etc. to ensure a stable source of income for their spouse and dependent children.

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How do you choose the best ₹5 crore term plan?

Consider the following factors while choosing the best ₹5 crore term plan:

Premium Cost

Compare the premiums of the available ₹5 crore term insurance plans offered by different insurance providers and evaluate the premium vis-à-vis the coverage offered to get the best value.

Coverage Provided

While term plans provide straightforward coverage, you may also want to look for additional riders and options that can enhance the benefits and flexibility of the plan. Select a term plan which meets your specific coverage requirements.

Ease of Purchase

Go for term plans, which have an easy purchase process. A hassle-free application process ensures quicker coverage.

Easy Claim Settlement

Review the claims settlement process of different insurance policies and select the one which has an efficient and smooth claim settlement process for faster disbursement.

Claim Settlement Ratio

Claim Settlement Ratio (CSR) shows the track record of settling the claims by the insurance company. Compare the Claim Settlement Ratio across insurance providers and choose one which has a higher claim settlement ratio as it shows that the insurer has settled the maximum of its filed claims.

Factors Affecting The ₹ 5 Crore Term Insurance Premium?

There are several factors which affect the premiums of ₹ 5 Crore Term Insurance. Some of them are listed below³:

Age

The older the individual, the higher the mortality risk (risk of dying) and the higher would be the premiums due to the risk involved.

Gender

The premiums for female life insurance are generally lower than those for male life insurance.

Family History

A history of genetic illnesses can lead to higher premiums. As such, an adverse family history increases your premium cost.

Health History

Premiums are higher if you suffer from any health or medical complication due to higher mortality risks.

Lifestyle Habits

Your lifestyle habits influence the premiums. Higher premiums are charged for smokers and individuals consuming alcohol.

Sum Assured

The higher the sum assured, the higher would be the premium.

Policy Tenure

Long-term insurance policies generally have lower annual premiums than short-term ones.

Conclusion

A ₹5-crore term insurance plan is a smart strategy to secure the financial future of your family. It offers robust financial security for individuals at various stages of life, whether they are young, married or nearing retirement. The coverage can ensure that your family is protected from financial uncertainties, even when you are not around, ensuring peace of mind and enabling them to meet significant financial objectives and goals.

Reference:

https://cleartax.in/s/life-insurance-taxability
https://www.livemint.com/money/personal-finance/how-life-insurance-policies-are-taxed-11665145664260.html
https://www.livemint.com/money/personal-finance/7-factors-affecting-your-life-insurance-premium-151669020170981.html

99.23%

Claim Settlement Ratio^~

1 Day

Get 1 Day Claim Approval^%

AAA

Stable Rating by CARE^$

₹1,16,966 Cr

Assets Under Management (AUM)^**

4.19 Cr

Number of Lives Covered^#

432%

Solvency Ratio of 432%^{^}

Disclaimer:~Individual Death Claim Settlement Ratio for FY 2023-2024 | %96.70% of non-investigative individual claims approved in one working day for FY 2023-24. 1 day is counted from date of intimation of claim before 3 PM on a working day (excluding Non-NAV days for ULIP) at Bajaj Allianz Life offices | $For details refer to press release published by CARE | **All figures as on 30 June 2024 | ^Solvency ratio 432% as at 31 March 2024 against IRDAI mandated 150% | #Individual & Group.

Frequently Asked Questions

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Types Of Term Insurance Plans In India

Life may be great for the most part, but at some point, uncertainties and unexpected events may happen. They may be sudden job losses, pay cuts, or even accidents. And almost always, such incidents come with financial

What Is Premium Paying Term?

While buying an insurance plan, you might have come across something called the "premium paying term". Have you ever wondered what that

What is Term Insurance?

Term insurance is a pure form of life insurance plan which provides financial protection to the life assured’s nominee(s) in case of demise of life assured during the policy tenure

Benefits of Term Insurance

Receiving more than what we expect in the form of a bonus is usually welcome, especially in terms of financial benefits. A bonus may be referred to as an additional increase

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Disclaimers:

Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

Life Cover + 17% Discount** + Save Tax^*!

Under Section 80C & 10(10D) of Income Tax Act, 1961^*

Get Life Cover + Save tax up to Rs 46,800^*

₹2 Cr Term Plan

@ 25/Day²

Free Health Management Services

upto ₹ 14,000 p.a.^

Disclaimer:

²Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04) considering Male aged 22 years | Non-Smoker Preferred | Annual Income =>Rs. 15,00,000 per annum | Indian Resident | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 2,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 8,469. 2nd Year onwards premium is Rs. 9,041. Total Premium Paid is Rs. 2,70,658 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is inclusive of Online Discount only and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

^**5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency, applicable only on first year’s premium 1% Discount will be available for all policies where premium payment is under auto-debit process (as allowed by RBI from time-to-time) through-out the premium paying term.

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy. Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

^Get Free Benefits up to ₹ 14,000 per year

S No.

Value Added Service

Frequency

Cost (₹)

Doctor Teleconsultations

Consultation per month
= 24 consultations per year

Average cost per session = ₹500
Total cost per year = ₹500 * 2 * 12 = ₹1200

Network Discounts
Medicines (M) - 10%, Lab Booking (L) - 10%,
In-Patient Hospitalization (P)- 5%,
Out-Patient Consultation (O) - 10%

Throughout the year

Assumption - Total Expenses of these throughout the Year	Total Discounts that can be availed throughout the year
M - ₹5,000	₹500
L - ₹5,000	₹500
O - ₹5,000	₹500
P - ₹10,000	₹500

Total per year as per assumptions

₹ 14,000

Note: The above mentioned costs are based on estimated average market price for respective services.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

BJAZ-OT-EC-08343/24

Bajaj Allianz Life Term Insurance with tax benefit up to Rs 46,800

Buy Term Insurance

Bajaj Allianz Life Term Insurance with tax benefit up to Rs 46,800^*

99.23% Claim Settlement Ratio^~

Premium Holiday¹

Buy Term Insurance

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS

IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

CIN: U66010PN2001PLC015959 | Registered Office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune-411006, Maharashtra

Email: customercare@bajajallianz.co.in | Tollfree: 1800 209 7272,

Disclaimer: Images used on this website and the models photographed in them are for representative purposes only and are not indicative of anyone's personal thoughts or ideas.

The Logo of Bajaj Allianz Life Insurance Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its “Bajaj” Logo and Allianz SE to use its “Allianz” logo.

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Disclaimer

For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. The terms and conditions of product/plan as contained in the Policy Document issued by the Company is available on the Web Site. The names of the Company, Products/Plans/funds do not indicate the quality and its future prospects or returns. IN ULIPs, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. Tax benefits are as per the prevailing Income Tax Laws including the Income Tax Act, 1961 and are subject to change from time to time. Goods and Services Tax will have to be borne by the Policyholder as per applicable rates. All other charges shall be levied in accordance with the terms and conditions of the policy.

This calculation and results displayed are based on information provided and certain assumptions about the rates of return. It is for assistance only and does not constitute an offer or solicitation. It is not intended to be and must not alone be taken as the basis for an investment decision. Kindly note that the returns are only illustrative and they are not guaranteed. The returns do not indicate the upper or lower limits of the return that you may get with your policy and the value is dependent on a number of factors including future performance. Bajaj Allianz Life Insurance Company Limited shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the calculator.

¹©2021 Morningstar. All Rights Reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. The information, data, analyses and opinions ("Information") contained herein: (1) include the proprietary information of Morningstar and its content providers; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates and procured from various sources. Morningstar, its affiliates, and its officers, directors and employees shall not be liable for any trading decision, damage or any other loss arising from using the Information. Please verify all of the Information before using it and do not make any investment decision, except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up

Disclaimer

₹5 Crore Term Insurance Plan

What is a ₹5 crore Term Insurance Plan?

Benefits of ₹5 Crore Term Insurance Plan

Cost-Effective

Provides Peace of Mind

Loan repayment

Inheritance

Riders for Additional Coverage

Tax Benefits

How does a ₹5 Crore term insurance plan work?

How to Determine the Right Coverage Sum?

Who Should Buy a ₹5 Crore Term Plan?

Newly Married Couples

Couple with Young Kids

Young Professionals

Individuals Nearing Retirement

How do you choose the best ₹5 crore term plan?

Premium Cost

Coverage Provided

Ease of Purchase

Easy Claim Settlement

Claim Settlement Ratio

Factors Affecting The ₹ 5 Crore Term Insurance Premium?

Age

Gender

Family History

Health History

Lifestyle Habits

Sum Assured

Policy Tenure

Conclusion

Why Bajaj Allianz Life Insurance ?

Claim Settlement Ratio~

Get 1 Day Claim Approval%

Stable Rating by CARE$

Assets Under Management (AUM)**

Number of Lives Covered#

Solvency Ratio of 432%^

Frequently Asked Questions

Customer Speaks

Related Articles

Popular Searches

Claim Settlement Ratio^~

Get 1 Day Claim Approval^%

Stable Rating by CARE^$

Assets Under Management (AUM)^**

Number of Lives Covered^#

Solvency Ratio of 432%^{^}