Life insurance is a very important decision, and it is not something that should be taken lightly. It is an essential part of any financial plan, and it can provide peace of mind for you and your loved ones in the event of your death.
When you are looking at life insurance, there are several different factors to consider. These include the type of coverage you want, how much coverage you need, how long the policy will last, what the premiums will be each month, and how much money it will take out of your paycheck every month, etc.
Rs. 5 lakh life insurance is one of the best coverage to take care of future liabilities like repaying for a home loan, supporting a child's higher education, etc. in your absence. A 5 lakhs life insurance policy will cover you for an amount of 5 lakh rupees in case of death. In this article, we discuss the different types of life insurance plans for 5 lakhs coverage, their features, and their benefits. We also discuss the pros and cons of buying a life insurance policy for 5 lakhs coverage and provide information on how to choose an appropriate plan for you.
Reasons to Buy Rs. 5 Lakh Term Life Insurance Policy?
There are many reasons to buy a life insurance plan with 5 lakhs worth of coverage. One reason is that your family will be financially secure if something happens to you, and they can still afford to live comfortably without having to worry about money. Another reason is that you have dependents who rely on your income; without it, they would have no way to survive financially. Here are some of the most common reasons why you need a 5 lakh life insurance plan.
- Affordable: Term life insurance plans are one of the cheapest forms of life insurance that you can get. The premiums on a term insurance plan are very affordable, especially in comparison to whole life insurance.
- Accessible:A sum assured of Rs 5 Lakh amount will be accessible for a much larger pool of people because the premiums are very low. Hence, term insurance plans with Rs. 5 Lakh coverage amount are an accessible and affordable way for anyone to protect their family against the uncertainties of life.
- Tax Benefits: Life insurance policies are also often tax-deductible which means that the premiums paid for it can be deducted from your taxable income on your tax return each year.
- Loan Availability: You can avail of a loan against the life insurance policy these days is the best option to meet all your emergency expenses. The process of availing loan from the life insurance policy is hassle-free when compared to other traditional loan types.
- Riders: You can also choose additional riders to enhance your term plan with additional policies such as a critical illness rider, accidental disability rider, etc. This means that the insured person is eligible to receive a payout if diagnosed with a critical illness, or accidental death.
Best Term Insurance Plans with Rs. 5 Lakhs Cover
Earlier, most of the term life insurance plans come with Rs. 25 lakhs coverage only. To avail of such a high cover, insurers usually require buyers to have an annual income of Rs. 3-5 Lakhs. Therefore, most of the Indian population does not qualify for term insurance plans. However, IRDAI introduces a term plan of Saral Jeevan Bima minimum life cover of Rs. 5 Lakhs at an affordable premium.
The term insurance plan is the best option for people who are looking for low-cost, long-term protection that can cover their needs. It is also available with a wide range of coverage options. A term plan with Rs. 5 lakhs cover will give you financial security in case anything happens to you and your family members in the future. Here are the best term insurance plans with Rs. 5 Lakh Coverage.
Tata AIA Sampoorna Raksha Supreme
Tata AIA Life Insurance Sampoorna Raksha Supreme Plan provides financial protection to your family and offers you the flexibility to choose the plan that suits your need.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maximum age at Maturity: 65 years to 100 years
- Sum Assured: Minimum Rs. 1 lac and Maximum as per Board approved guidelines.
- Premium Payment Term: Limited Pay, Single Pay, Regular Pay
- Premium Payment Mode: Yearly, Half-Yearly, Quarterly, Monthly, Single
Bharti AXA Life Smart Jeevan Plan
Bharti AXA Life Smart Jeevan Plan provides a return of premium option where 100% of the premiums paid are returned at the end of the policy term as a lump sum and family protection for 12 years at a nominal premium when an unexpected event happens to you.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 50 years
- Maximum age at Maturity: 62 years
- Sum Assured: Minimum Rs. 50,000 to 5 lakhs
- Premium Payment: 12 years
- Policy Term: 12 years
- Premium Mode: Annual, Semi-annual, quarterly, Monthly
HDFC Life Saral Jeevan Bima
HDFC Life Saral Jeevan Bima is to cover flexible premium payment terms, additional protection through add-ons/riders, and financial protection for your family. Again HDFC Life Saral Jeevan Bima has two variants HDFC Life Click 2 Protect 3D plus and Click 2 protect health.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maximum age at Maturity: 23 years to 70 years
- Sum Assured: Minimum Rs. 5 lakhs
- Premium Payment: Single Pay, Regular Pay
- Policy Term: 40 years
- Premium Mode: Annual, Semi-Annual, Quarterly, Monthly
Canara HSBC OBC POS Easy Bima Plan
POS Easy Bima Plan is designed to provide an affordable premium and hassle-free protection. This plan offers a return of premium on the date of maturity.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 55 years
- Maximum age at Maturity: 28 years to 65 years
- Sum Assured: Minimum Rs. 5 lakhs
- Premium Payment: 5 pay with 10 years policy term, 10 pay with 15, 20 years policy term
- Policy Term: 5 to 40 years
- Premium Mode: Annual, Semi-Annual, Quarterly, Monthly
Exide Life Smart Term Edge
Exide Life Smart Term Edge plan provides comprehensive protection cover and helps you ensure a secure future for your family. This plan offers 3 different plan options.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 60 years
- Maximum age at Maturity: 75 years
- Sum Assured: Minimum Rs. 5 lakhs to No limit
- Policy Term: 12 to 30 years
- Premium Mode: Annual, Semi-Annual, Monthly
Ageas Termsurance Life Protection Plan
This plan safeguards assured monthly income. A term plan which helps you secure your family’s financial future in your absence.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maturity Age: 70 years
- Policy Term: 10 to 30 years
- Sum Assured: Rs. 5 lakhs
- Premium Payment Period: Annual, Yearly, half-yearly, and Monthly.
IndiaFirst Life Guaranteed Protection Plan
Guaranteed Protection Plan is a comprehensive term insurance plan that offers you a host of innovative coverage options and affordable premium prices. This plan provides financial security for your family's future needs like child marriage, home loans, traveling abroad, etc.
Features & Eligibility:
- Entry Age: Minimum: 18 Years, Maximum: 65 years
- Premium Payment Mode: yearly, half-yearly, quarterly, monthly
- Sum Assured: Minimum Rs. 1 lakh to Maximum No limit
- Policy Payment Term: Single pay, Limited pay
Table of 5 Lakhs Life Insurance Policies
Here is the list of the term life insurance plans for 5 lakhs cover and a table with sum assured information about these plans so that you can compare them easily.
How to Buy Life Insurance for 5 Lakhs
You can buy a 5 lakh term life insurance policy by using the online portal in 4 simple steps and the premium can be paid online before the issuance of the policy. The below steps are to be followed for a term insurance policy cover for 5 lakhs.
Step 1: Go to the PolicyBachat website and click on the life insurance tab and then select the type of plan you want to buy.
Step 2: Next enter the below details clearly and correctly
- Gender of the applicant
- Tobacco consumption; Yes or No
- Annual income from the options given in the calculator
- Occupation type; Salaried or Self Employed
- Age of the applicant; to be entered as Date of Birth
- Name of the applicant and email id of the applicant.
Step 3: In this step, you can enter your requirements such as:-
- Sum assured required under the life insurance policy
- Tenure: maximum age the coverage is required
- Premium payment type: Regular or Lump sum or Limited pay
- Premium payment frequency: Monthly, Quarterly, Half-yearly, or Yearly
- Payout type: Lump sum or Income or Combination of both
- Add-ons such as Critical illness cover, Waiver of premium, and Accidental disability cover can be selected and the premium would change accordingly.
Step 4: The final step is where you need to make payment to the insurance company and it only takes a few minutes to finish this process. The premiums displayed may be changed subject to medical underwriting. Once the premium payment is made, the customer receives confirmation regarding the same and the next step would be the tele medicals or physical medical verification where the customer needs to undergo medical tests or declare health condition on the telephone to the insurance company before policy purchase.
Conclusion
Choosing the best coverage amount is one of the most important decisions you will make. However, choosing the best cover for your needs is not always easy. There are various factors to consider when choosing the right cover.
The best way to find out which type of life insurance policy suits you best is by contacting a qualified advisor who will take into account all these factors and provide advice on the best type of plan for you. PolicyBachat is an online insurance web aggregator that will help you to choose the best life cover at affordable premiums.