Rs. 5 Crore Term Insurance is a term insurance plan that offers a sum assured of Rs. 5 Crore. In the case of the unfortunate death of the policyholder, the sum assured is paid as a death benefit to the family by the policyholder. One of the best benefits is that while the sum assured amount for the plan may be high, the pay the premium is quite low.
Why 5 Crore Term Life Insurance
Term life insurance is a contract between the insurance company and the customer in which the insurance company agrees to pay the claim in the event of death of the policyholder or maturity of the policy in return for a considerable amount to be paid by the policyholder at certain intervals of time. Once the claim is paid the life insurance contract would be terminated and the policy would end. The customer if alive can purchase a new term life insurance policy.
Term life insurance policy provides coverage to the policyholder in the form of sum assured which means the amount mentioned in the policy terms and conditions would be paid to the nominee of the policyholder, in the event of death of the policyholder or to the policyholder at the time of maturity of the policy. The sum assured can be decided by the applicant or with mutual understanding between the applicant and the insurance company.
The sum assured in the life insurance policy is decided based on many factors such as age, annual income, health conditions, and many other factors. The sum assured in the life insurance policy depends on the annual income of the applicant. The sum assured can be selected up to 10 times the annual income of the applicant.
Higher the annual income higher sum assured can be selected by the applicant. There are many instances where the customer's search for 5 Crore sum assured from the insurance companies. The reason for this is that people feel that the 5 Crore sum assured in the life insurance policy would be the minimum requirement to meet all future obligations.
Best Term Insurance Plans for 5 Crore
There is a wide range of term insurance plans available in the market, which can be easily customized as per the requirements of the insurance buyers. Every term insurance plan is different from another plan in terms of features, benefits, and premium rates. Let’s take a look at the offers a sum assured amount up to Rs.5 crore.
When it comes to a term insurance policy, it also works as an income restoration for the family in case of the death of the insured person along with the benefit of life cover. Furthermore, if you choose to purchase term insurance of 5 crores then it can work as a credit to take care of future liabilities in your absence like repaying for a home loan, supporting for child’s higher education, etc.
Benefits of buying Rs. 5 Crore Term Insurance Plan
- Best Protection - For you and your family’s financial protection visit our website to choose the best 5 crore term insurance plan. We are having 20+ top leading insurers tied up with us, can guarantee you with best 5 crore term insurance plan.
- Quick Process – Purchasing a Policy is one of the major concerns of customers. We make sure that our policy issuance process is easy and hassle-free for all customers.
- Broad Product Range - At PolicyBachat, you will find a wide range of insurance policies that you can easily choose from as per your needs.
- Zero Paperwork Not Required – We ensure that customers do not have to entertain the hassles of paperwork.
- Customer Support - We believe in providing the best support to our customers and aim to offer ideal solutions to our customers without fail.
- Premium: Your premium is decided on the age at which you buy the policy and remains the same, which can increase between 4-8% each year.
Other Factors Which Can Affect the Premium
Apart from the regular benefits, amount of cover, and age, many factors determine your final term insurance premium. Following factors can increase or decrease your premium expense:
- Policy term: The higher the policy term the higher your total premium will be.
- Premium payment term: The shorter your premium payment term the higher your immediate premium expense would be. However, your total premium outflow will be lower than regular premium payment options,
- Health condition: If you have an existing medical condition or a disability, your premium would be higher than others.
- Lifestyle Habits: If you are a smoker, or drink heavily, your premium for the same amount of term life cover would be higher.
Life insurers would only charge a higher premium when there is a higher risk to your life. Thus, you should secure the life cover for your family’s financial safety even if at a little higher cost.
Things to Remember before buying 5 Crore Term Insurance online:
1. Claim Settlement Ratio:
The claim settlement ratio of the insurance Company should be almost constant throughout the years of operation, a decrease in the ratio should be analyzed by the customer before purchasing from the insurance company. The claim settlement ratio is the total number of claims paid by the insurance company out of the total claims received by the insurance company in a particular year. The claim settlement ratio may decrease or increase sometimes due to many factors such as the delay on part of the customer in providing the required documents to the insurance company.
2. Hidden Clauses/ Conditions:
There could be certain conditions in the policy which are hidden or not explained to the customer by the agent of the insurance company and these conditions may continue the claim settlement process. It might sometimes be difficult for the nominee of the policyholder to submit the documents related to the policyholder after his death.
Many insurance companies offer disability coverage, terminal illness coverage, etc. apart from the death cover. This extra coverage is known as the Riders or Add-ons which can be availed on payment of extra premium. While some insurance companies offer the extra coverage without charging extra premiums, few insurance companies charge extra premiums for the extra coverage.
4. Solvency Ratio:
The solvency ratio is the most important thing to look at in an insurance company while buying a life insurance policy. The solvency ratio indicates the ability of the company to meet its future liabilities and long-term commitments with the available cash flow. The higher the solvency ratio, the stronger is the company. A company with a lower solvency ratio may default on its financial obligations while the company with a higher solvency ratio indicated its financially secure trustworthiness.
5 Crore Term Insurance Premium Calculator:
The premium calculator for 5 crore term insurance can be done by using the online portal in 3 simple steps and the premium can be paid online before the issuance of the policy. The below steps are to be followed to arrive at the premium of 5 crore sum assured term insurance policy.
Step 1:The first step in using the life insurance premium calculator is to click on the online life insurance premium calculator link and proceed to the life insurance section.
Step 2: The next step in using the life insurance premium calculator is to 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 income or Quarterly or 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 the 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.
Documents required for buying a 5 Crore Term Insurance Policy Online:
There are certain documents required to buy the 5 crore term life insurance policy.
- Age proof
- Address Proof
- Photo Identity Proof
- Income Proof
- Medical Reports
Claim settlement process for 5 Crore term insurance policy
1. Claim Intimation
- In the case of Maturity claims, the policyholder should inform the insurance company regarding the maturity of the policy or survival of the policyholder.
- In case of Death claims, the nominee of the policyholder or the immediate family members can lodge a claim with the insurance company.
2. Submission of Documents
The following documents are to be provided by the nominee or the policyholder:
- Certificate of Death (Death Claim)
- Panchanama report (Death claim)
- Statement from the hospital if the insured is admitted
- Certificate from medical attendant stating that the illness of the insured
- F.I.R Report (Accident death claim)
- Cremation or burial report
- Certificate from an employer if the deceased is an employee.
- Age proof
- Residence proof
- Relation proof with the policyholder(Death claim)
- Deeds of assignment (if any)
- Policy document
- Duly filled claim form/ claim intimation number
- Bank account details
- Any other documents as required by the insurance company.
3. Claim Settlement
This procedure has to be completed within six months from the date of receiving written intimation of the claim. After receiving all the documents the claim is processed and the insurance company releases the funds into the account mentioned in the claim intimation form.
Advantages & Disadvantages of 5 Crore Term Life insurance:
Advantages of 5 Crore Term Life Insurance Plan:
- Add-ons/ Riders: Add-ons or riders are the extra coverage available under the life insurance policy to the policyholder on payment of additional premium. There are certain add-ons available under the life insurance policy such as Critical illness, Waiver of premium due to accidental disability or Critical illness rider, Disability cover, etc. The riders under the life insurance policy are intended to provide extra coverage to the policyholder.
- Affordable Premiums: The most affordable product in life insurance is the term insurance product which comes at cheaper premiums when compared with other life insurance products such as Annuity insurance, ULIPs, etc. The 5 crore term life insurance premium for a 25-year-old person with no adverse health conditions and non-smoker would be around Rs.20k for one year. While the other life insurance products charge anywhere between Rs.1 lac to Rs.3 lacs for the same sum assured to be provided.
- Return of premiums: Another advantage of a term life insurance policy is that the premiums paid by the customer would be returned to the policyholder in certain types of term insurance policies such as Return of premium policies. The premiums would be returned to the policyholder at the end of the policy period or during certain events of life such as Marriage, Childbirth, Purchase of house, Child education, etc.
- Death Benefit: Term life insurance products offer death benefits to the nominee of the policyholders in the event of death of the policyholder due to any unforeseen circumstances. The death benefit paid to the family members of the deceased would not be more than the sum assured mentioned under the policy.
- Maturity Benefit: Term life insurance products offer maturity benefit in which the policyholder would get a lump sum amount at the time of maturity of the term insurance policy. There are certain term insurance plans in which the premium paid by the policyholder would be returned to the policyholder after the expiry of the term insurance policy.
- Loan Availability:
The loan should be repaid during the term of the policy. The policyholder has the option of either paying back the principal along with the interest or only the interest amount. If the policyholder only pays the interest amount, then the principal amount due will be deducted from the claim amount at the time of claim settlement. In addition to this, if the policyholder chooses to pay only interest during the policy period and if he/she dies during the loan term, then only the remaining sum assured will be paid to the nominee of the policyholder.
- Retirement planning: The other major advantage of having a life insurance policy is the pension or retirement planning that can be done with the help of a life insurance policy. Life insurance policies can be taken to get a pension after retirement; these kinds of policies are known as Annuity policies.
Disadvantages of 5 Crore Term Life insurance:
- Lapsed policy means waste of premiums paid: Life insurance premiums are to be paid continuously every year/ month or as per the option chosen by the customer. If there is a break in between the payment of two installments the life insurance policy would lapse after 30 days from the payment due date. The frequency of premium payments can be monthly/ quarterly/ half-yearly/ annually which can be selected by the customer at the time of purchasing the life insurance policy.
- Expensive for certain people: The major disadvantage of a life insurance policy is the premium that has to be paid by the customers with certain conditions such as Old aged customers, adverse disease conditions, etc. For instance, old age people have to shell out more premiums when compared to younger people.
- Premium payment capability reduces with age: Life insurance policies are generally taken for a long period such as 25 years or 30 years. The premium payment capacity of a policyholder might increase or decrease with an increase in age. This can be due to many reasons such as increased expenditure, inflation, etc. For instance, there would not be good earning after the retirement of a person. After retirement, the expenditure might be the same but the earning would be less.
- No guarantee of wealth: The major disadvantage of the 5 Crore life insurance policy is that the policy would not guarantee the creation of wealth. When compared to traditional investments the wealth-building in life insurance policy comes with a limited guarantee. For example, the term life insurance policy provides only protection without any generation of wealth. There are other types of life insurance policies such as ULIPs and other market-related policies which can be used to create wealth but the returns are not guaranteed as the wealth generation depends on the market conditions.
Pre-Existing Medical Conditions
Before you receive your policy, you must reveal all the health conditions that you are suffering from or are likely to suffer from, owing to pre-existing conditions or even hereditary conditions. Your term insurance policy will always be drafted keeping in mind these conditions and it will affect your term insurance premium amount.
Participation in Criminal Activities
This exclusion applies when the policyholder’s death has been caused owing to their participation in criminal activities, the sum assured benefits will not be able to claim term insurance benefits.
Suicide and/or Death due to a hazardous activity
Cases of suicide are always listed as exclusions on term life insurance policies. In addition to this, cases, where participation in dangerous activities may lead to death, are also included in the exclusions. This could include adventurous sports that may commonly result in death.
Death under the influence of alcohol or drugs
Life insurance companies in India mostly refuse to provide term insurance cover to habitual drinkers and drug abusers. One cannot hide this claim from the insurer. Even if you hide your drinking problem and drug addiction, buy a term insurance plan, and die due to an accident or some other incident under the influence of drugs or alcohol, the insurance company may reject your life insurance claim as per the terms and conditions specified therein.