Buy 50 Lakh Term Insurance Plan Online in India In 2024

What is a ₹50 lakh coverage term insurance plan?

A ₹50 lakhs term insurance plan is one which offers a coverage of ₹50 lakhs. In other words, the sum assured under the policy is ₹50 lakhs which is generally paid if the life assured passes away during the policy tenure.

How does ₹50 lakhs term insurance work?

Under a ₹50 lakh term insurance plan, you choose the –

Policy term
Premium paying term
Premium paying frequency
Optional riders, if needed

Based on the details selected, the sum assured of ₹50 lakhs, your age and other risk factors, the premium is determined. You pay the calculated premium over the chosen premium payment term and in the selected frequency. If the life assured passes away during the policy tenure, the death benefit will be paid.

On the other hand, if the life assured survives the policy tenure and the plan matures, no benefit is usually paid under basic term insurance plans. However, if you choose the return of premium term plan or the return of premium option and the policy matures, the premiums that you paid during the policy tenure will be refunded.

These factors are taken into consideration and then the cost or premium of a ₹50 lakh term insurance policy is determined.

Key features of ₹50 lakhs term plan

Some of the features of the ₹50 lakh term insurance plan are as follows –

The death benefit paid under the policy is usually guaranteed^*
There is no maturity benefit unless you choose the return of premium term plan or the return of premium option available under many term plans
A range of optional riders are usually offered with ₹50 lakhs term insurance plans. You can add suitable riders at an additional premium
Some plans also come with inbuilt rider benefits which provide enhanced coverage
The premiums are affordable and the choice of premium payment term and frequency offered under most plans allow you to pay the premiums easily

How to determine the right amount of Term Insurance Coverage Amount?

There are different ways of calculating the right amount of term insurance coverage amount. Some of them are as follows⁵ –

● Basic method

Under this method, the coverage required is calculated as a multiple of your annual income. The basic rule is that you need 10 to 12 times your annual income as your term insurance coverage amount. So, if you earn ₹10 lakhs a year, a coverage of ₹1 to ₹1.2 crores would be suitable.

● Financial need analysis

Under this method, your financial needs are analysed and then the coverage is determined. Your average annual expenses are considered along with your existing liabilities and specific financial goals. Then the coverage is determined which should be sufficient enough to provide your family with the funds needed to cover their expenses, pay off the loans and also create a fund for the goals that you have.

● Human Life Value (HLV) method

Under this method, the overall value of your life is ascertained in financial terms. The method seeks to calculate a sum assured which would be sufficient to provide your family with regular income for their financial needs.

For instance, if your annual personal expenses are ₹3 lakhs and you earn ₹10 lakhs, you can provide your family an annual income of ₹7 lakhs. In your absence, your family would stand to lose this annual income of ₹7 lakhs. So, the sum assured should be such that it can generate a regular annual income of ₹7 lakhs for your family. If the risk-free rate of return (return on government security) is taken to be 6% per annum, the corpus which can generate ₹7 lakhs at 6% would be ₹1.17 crores.

● Underwriter’s thumb rule

This rule also uses the multiple of your annual income to calculate the ideal coverage amount. However, the multiple changes with age. It starts at 15 times of your annual income if you are aged 20 to 30 years, then starts decreasing to 14 times if you are 31-40 years, 12 times in the 41-45 year bracket, 10 times in the 46-50 year bracket, 8 times in the 51-55 year bracket and 6 times if you are aged 56 years and above.

Things to Consider Before Buying A 50 Lakhs Term Insurance Policy

Some of the things to consider before buying a ₹50 lakh term insurance plan are as follows –

Is the sum assured sufficient to cover your financial needs?
Should you choose riders with the policy and if you should which riders would be suitable?
What is the premium payable?
Which premium payment term and frequency would be the most affordable choice for you?
Are you eligible to buy the policy?
What should be the suitable policy tenure that offers the maximum protection?

Who Should Opt for a ₹50 Lakhs Term Insurance?

A ₹50 lakhs term insurance plan is suitable for individuals who require coverage of ₹50 lakhs. Young adults who have just started their financial journey and have limited responsibilities can opt for the ₹50 lakhs term insurance plan. Later on, as their financial needs increase, they can add another term insurance policy to enhance their sum assured.

Individuals in other life stages too can consider the ₹50 lakhs term insurance plan if the plan covers their financial needs. They can also choose the plan to enhance their overall coverage with multiple-term plans if they already have an existing plan.

In a nutshell, a ₹50 lakh term insurance plan is suitable for those whose coverage needs can be fulfilled. So, you should assess your coverage needs and then make an informed choice.

Eligibility Criteria for ₹50 Lakhs Term Insurance Plan

The eligibility criteria for buying a ₹50 lakh term insurance plan depends on the plan that you choose and can vary from insurer to insurer. However, some of the common criteria are as follow s⁶

Age	Description
Entry age	There’s a minimum and maximum entry age specified under the policy. The minimum age usually starts from 18 years while the maximum age can go up to 60 or 65 years. This will vary from product to product and from company to company depending on the terms and conditions.
Maturity Age	There’s a maximum age up to which the coverage is allowed. This age can go up to 85 years under some plans. Moreover, if you choose the whole life cover option, the maturity age can go up to 99 or 100 years
Income	Some insurer’s may have a minimum income criterion for issuing a term plan. Some may not allow you to buy a term plan if your income is below 5lakhs while some may allow. Your income also impacts the maximum sum assured that you can avail under the plan.
Educational Qualification	Usually, the minimum education qualification required to opt for a term insurance plan is graduation. However, some insurers may allow non-graduates to avail a term plan as well.
Occupation	Usually, professionals, salaried, self-employed, housewives can opt for a term plan. Some insurers may impose restrictions on certain types of occupations that are high-risk in nature. This usually depends on the underwriting policy of the insurer.
Medical History	Insurers may typically ask the applicant to undergo medical tests to determine health related risks if any before issuing a policy. Term insurance premiums and maximum allowed sum assured may be impacted by applicant’s medical records.

References:

https://www.zeebiz.com/personal-finance/insurance/news-refund-of-premiums-how-do-term-plans-with-rop-work-should-you-opt-for-it-stst-253596
https://www.etmoney.com/blog/what-is-a-term-insurance-with-return-of-premium-should-i-buy-it/
https://incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
https://www.livemint.com/money/personal-finance/how-life-insurance-policies-are-taxed-11665145664260.html
https://indianexpress.com/article/business/sum-insured-life-cover-amount-the-most-crucial-factor-when-buying-term-life-insurance-7553661/
https://www.forbes.com/advisor/in/life-insurance/term-insurance/term-plan-with-return-of-premium/

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 (Psychologists consultations)	1 consultation per month = 12 consultations per year	Average cost per session = ₹ 500 Total cost per year = ₹ 500 * 12 = ₹ 6,000
Network discounts: Medicines (M) - 10% Lab-test booking (L) - 10%	Throughout the year	Assumption – Total expense on these services throughout the year	Total discounts that can be availed throughout the year
		M - ₹ 5,000	₹ 500
		L - ₹ 5,000	₹ 500
Total per year as per assumption		₹ 31,000

₹50 lakhs term insurance

What is a ₹50 lakh coverage term insurance plan?

How does ₹50 lakhs term insurance work?

How much does a ₹50 lakh term insurance plan cost?

The policy tenure

The premium payment term and frequency

Age

Gender

Lifestyle habits

Medical history

Other risk factors

Term Insurance Plans by Bajaj Allianz Life

Key features of ₹50 lakhs term plan

What are the benefits of buying ₹50 lakhs term insurance?

Insurance protection

Affordable premiums

Choice of riders

Tax benefits

How to determine the right amount of Term Insurance Coverage Amount?

How to choose the best ₹50 lakhs term insurance plan?

Coverage offered

Premium rate

Ease of purchase

Claim process

Claim Settlement Ratio

Things to Consider Before Buying A 50 Lakhs Term Insurance Policy

Who Should Opt for a ₹50 Lakhs Term Insurance?

Proposal form

photographs

Proof of address

Proof of age

Proof of income

Medical report

Any other document

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%^

Term Insurance with Return of Premium FAQs

Life Insurance Guide

Articles

Calculators

Podcasts

Videos

Customer Speaks

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%^{^}