A ₹ 5 crore term insurance plan is a high-coverage life insurance policy that ensures your loved ones are financially secure even in your absence. It offers a life cover of ₹ 5 crore, which will be paid to your nominee in case of your premature death during the policy tenure. This payout can be availed as a lump sum, monthly income, or a combination of both, depending on the plan and your nominee's financial needs.
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A ₹ 5 crore term insurance plan is designed for individuals who have higher financial responsibilities, such as supporting dependents, repaying large loans, or maintaining a particular lifestyle for their family. It is a pure protection plan, meaning it only provides a death benefit and no maturity or survival benefit unless you opt for features like Return of Premium (TROP).
If you’re seeking uncompromising financial protection for your family, it is an ideal option to consider. You can purchase it either online or offline, depending on your convenience.
The following are compelling reasons why a ₹ 5 crore term insurance policy can be a good financial move:
In the event of your premature death, your family gets ₹ 5 crore. This payout ensures your loved ones stay financially secure.
With this plan, your home loan, business loan, or other huge financial liabilities will not burden your family.
It ensures that your loved ones can maintain their current lifestyle. The payout can cover daily expenses, school fees, medical bills, and even future milestones like higher education or weddings.
Buy early to lock in affordable premiums on a ₹ 5 crore cover. With your family protected, you can focus on growing your investments and savings, whether in FDs, mutual funds, and more, based on your goals and risk appetite.
ACKO Life Flexi Term Plan is a smart and customisable life insurance solution that gives you control over your policy. From deciding your sum assured to attaching riders for added protection, this plan is flexible, transparent, and affordable. Watch this video to see how it works:
The sum assured refers to the amount your family will receive if something happens to you. Choosing the right sum assured is critical to ensure that your family’s financial needs are fully covered. A good rule of thumb is to choose a sum assured that’s 10-15 times your annual income.
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In simple terms, a term insurance plan works in the following way:
For example:
Ramesh, 35, buys a ₹5 crore 30-year term plan and pays ₹25,000 as an annual premium. Unfortunately, after 5 years, Ramesh dies in a car accident. His nominee will receive the entire ₹5 crore sum assured as a claim settlement.
Why ₹5 Crore is Ideal for a Middle-Class Professional - Rajesh Sharma
Financial Cushion: Rajesh, a 30-year-old professional with a ₹5 crore plan, helps ensure his family's lifestyle and essential needs are met in his absence.
Debt Protection: It clears existing debts, such as mortgages and personal loans, easing the family's financial burden.
Education & Future: The sum assures funds for children’s education and future milestones.
Why ₹5 Crore is Ideal for a High-Income Executive - Anita Mehta
Lifestyle Maintenance: Anita Mehta, a 45-year-old high-income executive ₹5 crore, ensures the family’s high standard of living is preserved.
Coverage: It covers major liabilities, including large home loans and business investments.
Future Financial Goals: Supports long-term goals such as setting up trusts, charitable donations, and securing premium education.
Ravi Kumar, 40, Living in Bangalore
Cost of Living:
In Bangalore’s high-cost environment, ₹5 crore ensures that Ravi’s family can maintain their current lifestyle and cover living expenses.
High Medical Expenses:
The coverage can manage expensive medical treatments and healthcare needs in a big city
Education & Future Planning:
He ensures funding for premium education and future goals, securing a comfortable future for his children.
Small Town Mohan Patel, 50
Local Living Costs:
In a small town, ₹5 crore provides a significant financial cushion, supporting Mohan’s family with ample resources.
Debt Clearance:
Covers local debts and liabilities, relieving financial pressure and maintaining financial stability.
Future Security:
Ensures funds for local educational needs and future milestones, contributing to long-term family security.
Small Business Owner
Name: Suresh Patel, 38
Business Continuity: Suresh’s ₹5 crore plan helps ensure the business remains operational by covering business debts and liabilities in his absence.
Debt Protection: It addresses both business loans and personal debts, preventing financial strain on his family.
Future Growth: The coverage supports ongoing business investments and future expansion plans, securing the company's future.
Home Loan Holder
Name: Anjali Rao, 45
Mortgage Protection: Anjali’s ₹5 crore term plan covers her home loan, ensuring her family can keep the house without financial hardship.
Debt Clearance: In her absence, it clears outstanding mortgage and personal loans, alleviating financial stress on her dependents.
Future Stability: Provides long-term financial stability, covering household expenses and future needs.
Small Family
Name: Karan Desai, 32
Adequate Coverage:
Karan’s ₹5 crore plan ensures his small family can maintain their lifestyle and meet essential needs.
Future Expenses:
It covers educational and future expenses, providing financial stability for his spouse and one child.
Emergency Funds:
The sum assured acts as a substantial emergency fund, covering unexpected costs and ensuring security.
Large Family
Name: Ruha Sharma, 40
Comprehensive Coverage: Ruha’s ₹5 crore plan provides extensive coverage to support her large family and ensure all dependents are cared for in her absence.
Educational Support: It covers the educational expenses for multiple children and supports their future needs.
Long-Term Security: This position ensures long-term financial security by handling household expenses and the large-scale needs of a big family.
Choosing a ₹5 crore policy translates to availing maximum coverage for the long-term requirements of your family. The policy has several plus points, from income replacement to debt protection and tax benefits. Let's discuss the benefits in detail.
You can get substantial coverage of ₹5 crores. It's one of the best budget-friendly options to protect your family's financial future. Remember, a 5 crore term insurance premium depends on your age, gender, habits, etc. The younger you are, the lower the premium.
The claim amount provides financial security to your family in your absence. It helps maintain their lifestyle and achieve financial goals.
The claim amount can be used to repay outstanding loans so your family does not inherit the debt burden.
Eligible for tax deductions under Section 80C, Section 80D and Section 10(10D).
You can add extra benefits like critical illness or accidental death cover to increase protection by paying a small extra premium.
Choose how long you want to stay covered and how you want to pay the premiums, be it monthly, yearly, or one-time. You can customise it to fit your budget and needs. Remember that these payment frequency options may vary based on the insurer’s terms, the chosen policy, etc.
There's a range of add-ons ready to enhance your basic coverage. You can select and customise your plan to fit your specific needs. Some of the common term insurance add-ons include:
If you survive the entire policy term, you get all premiums back.
Future premiums are waived if you are disabled due to an accident or sickness.
Lump sum payout on diagnosis of listed critical illnesses during the term.
An extra sum is assured in case of death due to an accident.
While ₹5 crore may sound like a huge cover, the cost can be surprisingly affordable depending on certain factors. Your health, age, policy duration, and lifestyle decisions influence the premium. Here's what you need to know before you calculate your cost.
The younger you are, the lower the premium. However, the rate increases with age as health risks increase.
Women pay lower premiums than men due to higher life expectancy.
Good health means lower premiums. Chronic ailments, tobacco usage, etc., can make it costlier.
Hazardous jobs attract higher premium rates due to increased mortality risks.
Alcohol, smoking and drug usage lead to higher premium payments.
The longer the tenure, the lower the total premium outgo towards the policy.
The higher the sum assured, the higher the premium to be paid.
Limited payment has a higher yearly premium than regular payment of equal tenure.
Add-ons increase the premium according to the additional covers selected. More riders mean a relatively higher premium.
Choosing the right term insurance coverage is not all about selecting a high number, but it's also about securing your loved ones' future. You also need to consider:
If you have other financial obligations or are the only breadwinner, opting for a higher cover like ₹5 crore is a good idea. It keeps your family secure, and they don’t have to compromise on their future.
A ₹ 5 crore term plan is ideal for people with big responsibilities and long-term financial goals. Let's determine who should opt for a ₹5 crore term insurance policy.
If you have an annual income of ₹ 25 lakh or more, a larger cover such as ₹ 5 crore can keep your family maintaining the same lifestyle even in your absence.
If your loved ones rely on your earnings for everyday expenses, savings, and long-term plans, this plan assures them that they'll be financially secure.
Most businesses are accompanied by loans and debts. This plan makes sure your family does not have to deal with your business loans in case something unfortunate happens to you.
Whether it’s a home loan, car loan, or education loan, a ₹ 5 crore term cover makes sure your debts don’t become a burden on your loved ones.
If you’re planning for your children’s higher education or future weddings, this policy guarantees that those dreams can still be fulfilled, even if you’re not around.
With multiple insurers providing term plans, it can be confusing to choose the appropriate one. Comparing aspects such as claim settlement ratio, premium rates, and riders can help you make a well-informed decision. Here's how to select the best ₹5 crore term policy.
ACKO offers an innovative and flexible term life insurance plan called ACKO Life Flexi Term Plan with many unique benefits:
Fully digital purchase to claim process without paperwork. Fill out the details and receive a copy of the policy online.
Affordable premiums for a high sum assured. Get quotes in just a few minutes.
You can adjust the policy tenure and coverage amount according to changing needs.
Various options to pay premiums.
A fully digital claim process promises the fastest settlement.
Add, modify or change nominees whenever you want.
Choose if nominees get a monthly payout or a one-time full payment.
To buy the ACKO term plan online, you can follow this simple step-by-step guide:
To ensure a smooth application process, it’s important to keep all required documents ready. Here’s a quick list of what you’ll need when applying for a ₹5 crore term insurance policy.
Term insurance is a cost-effective way to protect your family's financial future. A term insurance plan is one of the most popular options because it provides significant protection at affordable costs. This plan shields your family from financial stress by ensuring your loved ones' financial security in unexpected events.
Whether you look for 5 crore term life insurance plan or the best term insurance plan for 1 crore, you should always consider factors like policy duration, premium affordability, and claim settlement ratios. Using a term insurance calculator can help you calculate premiums for your insurance plan.
Life cover offers both financial and lifetime coverage. If you want to get more coverage at a lower cost, term insurance is the best choice for you. To find a perfect mix between cost and coverage, compare features and other insurance plans.
A ₹5 crore term insurance policy adequately secures your family's financial future. Whether you are a business owner, professional, or have increasing financial obligations, this policy gives you the peace of mind and financial security your family needs. Calculate the amount you need and search for the best term insurance plan today!
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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