This article delves deep into the realm of holding multiple term insurance policies, highlighting the benefits and answering your pressing queries regarding this facet of financial planning.
When it comes to the financial safety and security of your loved ones, term insurance can surely come in handy. It is a type of insurance policy that provides coverage to the policyholder’s dependents/ family members in case of their untimely death. Term life insurance is usually more affordable than permanent life insurance because it offers pure death benefit coverage without any savings or investment components.
In this article, we will discuss 5 crore term life insurance in detail, whether it is suitable for you and your family, and other factors to keep in mind.
Term insurance plans provide the sum assured amount to the beneficiaries of the policyholder in case of the unfortunate demise of the policyholder within the policy tenure. With a 5 crore term insurance, dependents of the policyholders can get a sum assured up to the mentioned figure and avail of financial protection to take care of their regular needs and existing liabilities.
Refer to the table below to know more about the best 5 cr term insurance plans -
|Name of the Plan||Entry Age||Term of the Policy||Maturity Age|
|TATA AIA Maha Raksha Supreme||18 years/ 70 years, 65 years, and 45 years||
||100 years, 85 years|
|SBI Life eShield||18 years/ 65 years or 60 years||5 years, 10 years - 80 years, 75 years (minus age at entry)||80 years, 75 years|
|Reliance Digi Term Plan||Whole life secure -25 years/ 60 years Other options - 18 years/ 60 years||
|PNB Metlife Mera Jeevan Suraksha||18 years/ 65 years||10 years - 40 years, 30 years (for ROI option)||80 years|
|Max Life Smart Term Plan||18 years/ 44 years or 60 years||10 years - 50 years||85 years or 75 years|
|Kotak e-Term Plan||18 years/ 65 years||5 years - 50 years or 75 years minus the age at entry||75 years|
|India First e-Term Plan||18 years/ 55 years||10 years -40 years||80 years, 60 years, 65 years|
|ICICI Prudential iProtect Smart Plan||18 years/ 55 years, 65 years||
|HDFC Life Click 2 Protect Plus||18 years/ 65 years||NA||85 years|
|Future Generali Flexi Online Term||18 years/ 55 years||10 years - 30 years/ 12 years - 30 years||
|Exide Life Smart Term Comprehensive||18 years/ 60 years||12-30 years||NA|
|Edelweiss Tokio Zindagi +||18 years/ 65 years, 55 years||10 years, 15 years - 65 years||80 years|
|Canara HSBC iSelect +||18 years/ 65 years||Life option - 5 years – 62 years, Life Plus Plan option - 10 to 30 years||80 years|
|Aditya Birla Life Shield Plan||18 years/ 65 years||10 years - 50 years||80 years|
|Aegon Life iTerm Plan||18 years/ 65 years or 50 years||5,15,20 - 82 years||100 years|
The answer to this question would depend on certain factors based on which one can determine the sum of term life insurance that they require. This is because the financial requirements of each family vary as per multiple factors such as the total number of family members, their financial obligations, current financial status, and more.
In addition to that, rising inflation can also affect the regular financial requirements of a family. Even though 5 crore term insurance is sufficient for a nuclear family, individuals with a family with more members may require a plan with a higher sum assured.
Mentioned below are the key aspects that influence term life insurance -
Term life insurance provides coverage for a specified tenure, which usually ranges from 1-30 years. This period indicates how long the coverage will last and also affects the premiums. If you have a longer policy term, your premiums will be higher. A short tenure, on the other hand, may lead to lower premiums.
An important point to note here is that as the policyholder ages, it may become more challenging for them to secure a new term policy at an affordable premium. For this reason, it is advisable to get a term insurance plan early and choose an ideal policy term to ensure adequate coverage and affordability.
The current health condition of the applicant has a significant influence on term life plans. Your respective provider assesses your health status to determine the premiums and eligibility for opted coverage.
If you have a pre-existing medical condition such as heart disease or cancer, you will fall under the category of higher-risk candidates - this means that you will be charged higher premiums. On the contrary, if you don’t have any history of such diseases, you may be considered a low-risk candidate and offered the plan at lower premiums. Thus, by maintaining good health, you can potentially reduce the cost of your term insurance plan.
Lifestyle habits have a considerable impact on term life insurance. Providers take multiple factors into account such as tobacco use, alcohol consumption, and physical activity level to determine premiums.
Individuals with such habits come under higher-risk candidates, which results in higher premiums and vice versa. Adopting a healthy lifestyle and eliminating the consumption of alcohol, tobacco, etc., can not only improve one's overall health but also potentially reduce the cost of life insurance premiums.
The premium payment term simply refers to how long the policyholder must pay premiums for the coverage. As a policyholder, you will generally get the option to choose between annual, semi-annual, quarterly, or monthly premium payment schedules. A longer premium payment term (such as annual payments) usually leads to lower premiums overall and vice-versa.
As the payment term considerably affects the plan’s cost and the amount that you will have to pay each time, it’s crucial to select a payment term that fits your budget and lets you have the coverage without burdening your pocket.
Policybazaar UAE: Helping you navigate the wilderness of the insurance world!