Willing to secure the life and future of your family members with a INR 50 lakh term insurance plan? Let us guide you through the cost and other important details of the same in this post. So, continue reading!
Simply knowing the cost of INR 50 lakh term plan may not fulfill your purpose if you do not understand what a term insurance plan is and other the policy details. Thus, let us start the post with giving you some details about term insurance plans.
What is a Term Insurance Plan?
Among the different kinds of life insurance policies, the most pure and reasonable type of plan to cover life is a term insurance plan. A term insurance plan solely serves the purpose of covering life of the insured and providing death benefit to the nominee of the policyholder in the event of sudden demise of the person during the term of the policy. Hence, a term plan is considered essential if you want to secure your family’s future so that your dependents can continue their life without any financial worries.
Eligible individuals to buy term insurance plans?
Anyone between the age group of 18 to 55 years can buy a term life insurance plan. However, it actually depends from person to person. Also, if you have dependents who solely depend on your income, you should definitely consider buying a term insurance worth INR 50 lakh.
Death is unpredictable and if you lose someone who happens to be the head earning person in a family, it definitely has a huge impact on the finances of the family. So, in such a situation a term plan seems to be a smart choice to protect a family.
Further, anyone including parents, newlywed couples, young employed individuals, aged or retired people etc., are eligible to buy term insurance plans. Overall, whoever wants to give the security of money to their families can and must buy a INR 50 lakh term insurance.
If you are set to purchase a INR 50 lakh term plan, you must ensure that the policy cover the following:
- Cover your loans and liabilities that are going on
- Your children’s primary and higher education cost
- Your household expenses such as groceries, servant and driver’s payments, etc.
If your term plan covers the above, you can relax as you have adequate coverage. However, if it doesn’t cover the above, you may have to reconsider your investment plans accordingly. However, just remember to buy a term plan that you can easily manage along with all your other expenses
Now, if you have finalized on buying a INR 50 lakh term insurance plan, let us analyze how much it will cost you and what returns it will offer you with the help of an example of a term insurance premium for 50 lakhs.
Here we are considering a term plan available with three different options – basic cover, fixed income protection cover and increasing income protection cover.
Let’s for instance consider that a healthy male in his early 30s buys a term plan availing the basic cover. The person has no bad habit of smoking and drinking. He buys the term insurance plan for a 30 years tenure and pays approximately INR 4,500 annually.
So, in this case if the person dies untimely within the policy tenure, the insurer will offer the nominee a sum assured of INR 50 lakh as a lump sum amount and will close the plan.
Fixed Income Protection Cover
Taking the above case ahead, if the person decides to buy a fixed income protection cover of life insurance with a 30 year term, he pays around INR 7,700 per year. Here, if the insured dies during the term of the policy, the nominee will get INR 50,000 per month till the age of 60.
Increasing Income Protection Cover
In the third case, if the insured from the above instance buys a term insurance plan for 50 lakhs with increasing income protection cover for a 30 year term, he will pay approximately INR 18,000 per year. Here, if he dies suddenly during the term of the plan, the nominee gets the increasing monthly income in varying amounts of INR 85,000 and above depending on the policy. This amount will start coming in from the 7th year to 25th year of the policy or till the age of 60 years.
However, it depends on the particular policy and the insurer that you are buying the plan from. It is important to discuss the plan in detail with the insurance provider before jumping into it. It is also necessary to compare different plans and choose the best term insurance plan to suit your needs aptly.
Procedure to apply for a INR 50 lakh term insurance plan
To apply for a INR 50 lakh term insurance plan, all you need is to visit the website of your insurer or a reputed insurance broker like Paybima.com to get quotes and to compare policies before buying the most suitable plan for yourself.
Once you choose a plan, the next step is to fill in the application form and make payment of the premium online.
You may have to submit certain required documents online to complete the insurance buying process.
Read More: Cost of 1 Crore Term Insurance Plan in India at Your Age
To Sum Up
Providing for one’s family is a top priority for any individual. Even if you are not there to take care of their needs you want to ensure that your family doesn’t suffer any setback due to lack of finance. Hence, people depend on term plans to make sure that they can give the best facilities to their dependents even if they had to leave the world abruptly.
With a INR 50 lacs life insurance, you can definitely buy peace of mind for you and your dear ones. This plan manages the needs of a family in terms of finances. Moreover, the best part of the plan is that it doesn’t take a toll on the pocket of the policyholder and you can also save tax on 50 lakh plans in India.
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