What You Need to Know About 50 Lakh Term Insurance

The loss of a family’s primary earner can bring not only deep emotional pain but also significant financial challenges. Term insurance addresses this gap by offering high coverage at relatively low cost. For example, a healthy 30-year-old non-smoker in India can typically get ₹50 lakh cover at an affordable premium. The payout can provide financial support to help the family manage regular expenses, repay loans, and plan for the future after the policyholder’s death.

What is a 50 Lakh Term Insurance Coverage

A term insurance policy worth ₹50 lakh helps your loved ones stay financially secure even in your absence. Such coverage can be used to replace your lost income, pay off your debts, and ensure your family can maintain their usual standard of living for a period of time without added financial worries.

Factors Determining Your 50 Lakh Term Insurance Premium

The cost of your term insurance depends on many factors, including:

• Age at Purchase: The cost of insurance increases over time as you get older. For example, a 30-year-old may get a lower 50 lakh term insurance premium compared to a 40-year-old for the same coverage.
• Health Status: You may pay higher premiums if you have diabetes, hypertension, or other medical issues affecting your heart. Insurers assess health issues during check-ups before determining the final rates.
• Smoking and Tobacco Use: Premiums for tobacco users tend to be higher since smoking can result in health concerns and a greater chance of a claim. The exact increase may vary depending on the insurer’s risk assessment and policy terms.
• Policy Duration: Longer policies charge higher premiums since they provide coverage for a longer time.  However, the cost per year is often lower compared to renewing short-term plans repeatedly, making long-term coverage more affordable on an annual basis in the long run.
• Gender: As women usually have a higher life expectancy, they often qualify for better premium rates.
• Occupation: People working in high-risk fields like mining, construction and aviation are usually charged higher premiums for life insurance because of the increased mortality risks.

Riders Worth Considering with Your Base Policy

Adding suitable riders to your term plan ensures you have extensive protection:

• Critical Illness Rider: This rider offers a lump sum for treatment if you are diagnosed with a serious health condition without affecting your death benefit.
• Accidental Death Benefit: Your nominee receives an additional payout over and above the sum assured in case of your unfortunate demise within the policy term due to an accident.
• Disability Cover: In case of a disability, this rider ensures you receive a regular monthly income to manage daily expenses.
• Waiver of Premium: In case of a critical illness or disability, future premiums are waived, and the policy stays in effect, giving you continued insurance coverage even without premium payments.

Remember that depending on the riders you choose, your term insurance premium may increase.

Tax Benefits on Term Insurance Premiums

Term insurance comes with the following tax advantages:

• Premium payments are eligible for deduction under Section 80C, up to ₹1.5 lakh per year.
• Death benefits are tax-free under Section 10(10D).

Conclusion

With a 50 lakh term insurance policy, your family can manage important expenses even if something happens to you. Because the premiums are affordable, term insurance can give your family a reliable financial backup in the future. Moreover, review the terms of your insurance from time to time to be sure they still meet your family’s needs. If you are new to the life insurance world and looking to buy a ₹50 lakh term plan, make sure you use a term insurance calculator to find the right coverage and premiums based on your needs.