50 lakh Term Insurance

Table of Content

1. What is a ₹50 Lakh Term Insurance Plan?

2. Why Buy ₹50 Lakh Term Insurance?

3. Why Sum Assured is an Important Factor When it Comes to Term Insurance?

4. Key Features of ₹50 Lakh Term Insurance

5. How to Determine the Right Coverage Amount for the best term insurance plan for 50 Lakh?

6. Calculator for 50 Lakh Term Insurance

7. What Are the Benefits of ₹50 Lakh Term Insurance?

8. How Does a ₹50 Lakh Term Plan Work?

9. Who Should Buy a ₹50 Lakh Term Insurance Plan?

10. When Should You Buy Term Insurance for ₹50 Lakh?

11. How to Buy 50 Lakh Term Insurance Online?

12. How to Choose the Right ₹50 Lakh Term Insurance Plan

13. Important Things to Know Before Buying Term Life Insurance Plans

14. Is ₹50 Lakh Sufficient Term Insurance Coverage for My Family?

15. Documents Required to Buy a ₹50 Lakh Term Insurance

16. Summary

17. FAQs on 50 lakh term insurance

Every good financial plan includes a term insurance plan. These plans offer life cover for a specific time, providing your family with financial security during a difficult time. Since traditional term policies are pure life insurance products, they do not offer any additional maturity benefit, making them affordable. However, some plans today offer a Return of Premium option, which pays you an amount equal to all premiums paid on maturity if you outlive the policy term. A 23-year-old non-smoker can get a high sum assured of Rs. 50 lakhs for just Rs. 800 each month. Let’s better understand what a Rs. 50 lakhs term insurance plan is and how it benefits you.

What is a ₹50 Lakh Term Insurance Plan?

A ₹50 lakh term insurance plan is a pure life cover policy that offers your loved ones a financial safety net of ₹50 lakh in case of your unfortunate demise during the policy term. This amount, also known as the sum assured, is paid as a death benefit to your nominee and serves as critical support to cover daily expenses, liabilities, or future goals in your absence.

This is a pure protection plan, meaning it does not offer any maturity benefits if you survive the policy term. However, it provides peace of mind that your family’s financial needs are taken care of should anything happen to you.

But how does it work?

You pay a fixed premium over a selected period (monthly, quarterly, or annually) for a specific policy term (say 20 or 30 years). If the policyholder passes away during this time, the insurer pays ₹50 lakh to the nominee. Otherwise, the policy simply expires with no payout (unless you have a Return on Payment Term plan).

Let us look at an example to understand it clearly:

Say a 30-year-old non-smoker opts for a 30-year term plan of ₹50 lakh. The term insurance premium may range from ₹710/month23, depending on factors like age, gender, and health history.

But who should consider it?

Well, a ₹50 lakh cover is ideal for:

• Young professionals starting their careers

• Newly married couples planning a family

• Individuals upgrading from employer-provided or minimal insurance

• Anyone with moderate liabilities, such as education or home loans

Hence, choosing this sum assured gives you an affordable entry point into serious life cover, striking the right balance between protection and affordability.

Why Buy ₹50 Lakh Term Insurance?

If you are earning a modest income, managing some loans, or starting a family, purchasing a ₹50 lakh term insurance policy can be a smart move. It offers significant cover without burdening your finances. Let us dive deeper into the details.

● High Coverage at Affordable Premium

For most young professionals and middle-income households, ₹50 lakh is a solid financial safety net, available at surprisingly low premiums. For instance, a healthy 28-year-old non-smoker may pay just ₹635/month for this coverage for 30 years²⁴. That is less than ₹15 a day, yet enough to protect your family’s financial future.

This balance of high cover at low cost makes the ₹50 lakh term insurance plan accessible and attractive for early earners, gig workers, and salaried individuals.

● Financial Security for Your Loved Ones

The plan ensures that your family has the means to carry on with dignity, even if you're not around. Whether it is paying EMIs, covering rent, managing children's school fees, or handling medical expenses, this lump sum can be used as needed.

A term plan of ₹50 lakh acts as a bridge during a difficult time, giving your dependents the breathing room to adjust without financial panic.

● Ideal for Young Professionals and Families

If you're in your 20s or 30s, your income may be growing, but so are your responsibilities, like EMIs, dependents, and lifestyle costs. A ₹50 lakh term insurance policy helps instil financial discipline and builds a foundation for long-term financial protection.

It is particularly suited for:

● First-time policy buyers.

● New parents who want to secure their child’s education.

● Individuals with ageing parents and no alternate income source at home.

● Covers Major Life Liabilities

A ₹50 lakh term insurance plan offers a practical buffer for families dealing with everyday financial commitments. It can help cover:

● A home loan of ₹25–₹30 lakh.

● Outstanding car or education loans.

● Ongoing household expenses for several years.

This ensures your loved ones are not burdened with debt or forced to compromise on essential life goals in your absence.

● Flexible Policy Options and Riders

You can enhance the ₹50 lakh term policy by adding useful riders like:

● Critical Illness Rider – For added protection against diseases like cancer or heart ailments

● Accidental Death Benefit Rider – Offers an additional payout if death occurs due to an accident

● Waiver of Premium – Ensures the policy continues even if you’re unable to pay due to disability or illness

These riders make the term plan 50 lakh even more versatile, giving you more value for a slightly higher premium.

Key Features of ₹50 Lakh Term Insurance

A ₹50 lakh term insurance plan comes with features that make it both practical and adaptable to your evolving needs. 

It is designed to offer maximum financial protection at a manageable cost, especially for working professionals, young couples, and individuals with mid-level income and responsibilities.

• High Coverage at Low Premium

One of the biggest advantages is the affordability of the ₹50 lakh term insurance premium. A healthy, non-smoking 25 year old male could get covered for 30-years with premium as low as ₹550/month21. That is a significant sum assured for a small monthly outgo, especially when compared to other financial products offering lower returns.

This affordability allows salaried individuals to start insurance early, even on a modest income, without straining their budget.

• Flexible Policy Terms

You can choose a policy term ranging from 10 to 40 years, depending on your needs. For example:

• A newly married couple may opt for a 30-year term to cover the mortgage and children's education.

• A single professional might choose a 20-year term as a stop-gap until retirement savings accumulate.

Premium payment options are also flexible:

• Regular Pay: Pay throughout the term

• Limited Pay: Pay for a few years while staying covered longer

• Single Pay: Pay once and enjoy uninterrupted coverage

This flexibility ensures the term plan of ₹50 lakh fits well with your cash flow and life goals.

• Tax Benefits

Like all term plans, the ₹50 lakh plan qualifies for multiple tax exemptions:

• Premiums paid are deductible under Section 80C of the Income Tax Act, 1861 ¹ up to ₹1.5 lakh/year

• Death benefit is fully exempt under Section 10(10D) of the Incoem Tax Act, 1961 ¹

• Rider premiums (e.g., for critical illness) may be deductible under Section 80D of the Income Tax Act, 1961 ¹

This makes your 50 lakh term plan premium not just an expense but a smart financial planning tool.

• Add-On Rider Options

To enhance your basic plan, you can add riders such as:

• Accidental Death Benefit: Extra payout if death occurs due to an accident

• Critical Illness Rider: Lump sum if diagnosed with illnesses like cancer, heart attack

• Waiver of Premium: Future premiums waived in case of disability or critical illness

These riders boost protection without needing separate policies, offering value and convenience in one plan.

• Easy Online Purchase and Renewals

With HDFC Life, buying a term insurance plan of 50 lakh is completely online:

• Get instant premium quotes via the calculator

• Fill out a simple digital form

• Upload documents online

• Complete medicals (if required)#

• Receive policy e-documentation in your inbox

Renewals and updates are also seamless, with reminders, online payments, and 24/7 policy access via your account.

How to Determine the Right Coverage Amount for the best term insurance plan for 50 Lakh?

Choosing the right life cover isn’t just about picking a round number, it is about matching your coverage to your family’s real financial needs. A ₹50 lakh term insurance plan may be ideal for some but insufficient for others. Use the checklist below to assess if this amount fits your situation.

1. Understand Your Family’s Financial Needs

Start by calculating your family’s monthly expenses: rent, groceries, EMIs, school fees, utility bills, etc.

Multiply this monthly figure by the number of years you would like to support your family in your absence.

Example: ₹40,000/month × 10 years = ₹48 lakh

If ₹50 lakh covers this need, it is likely the right sum assured.

2. Factor in Your Current Age

Buying term insurance in your 20s or early 30s ensures lower premiums and better eligibility. Even if your current liabilities are low, your family’s future needs may grow.

A ₹50 lakh policy is a cost-effective base that can be upgraded later as your income and responsibilities increase.

3. Align Cover with Your Annual Income

Experts recommend having a life cover that is 10–15 times your annual income.

● If you earn ₹4–5 lakh/year - ₹50 lakh is 10x and a suitable target

● If you earn ₹8–10 lakh/year - you may need a higher sum assured

Use this as a benchmark to decide your coverage amount.

4. Account for Inflation Over Time

Inflation steadily reduces the value of money. What covers expenses today may not be enough in 10–15 years. A ₹50 lakh cover may seem adequate now, but rising education, healthcare, and lifestyle costs must be considered.

Always factor in inflation to ensure that your coverage retains its real value over the policy duration.

5. Plan for Short- and Mid-Term Goals

Apart from long-term planning, consider immediate responsibilities. Think about expenses like:

● Children’s school and college fees

● Ongoing EMIs for home/car

● Supporting a spouse or parent

Will ₹50 lakh be enough to meet these goals? If yes, it is the right plan. If not, consider a higher cover or add riders.

6. Add a Cushion for Emergencies

Unexpected situations such as hospitalisation, legal expenses, or job loss for dependents can create additional strain. It’s wise to add a buffer of ₹5–10 lakh beyond your calculated needs. This extra cushion helps your family manage surprise expenses without compromising on essentials or dipping into long-term savings during crises.

7. Subtract Existing Assets and Savings

Take stock of your existing resources, such as mutual funds, fixed deposits, employee benefits, or any existing life cover. Subtract this amount from the total your family would need if you are no longer around. If the shortfall is around ₹50 lakh, then a term plan of ₹50 lakh is likely the right amount.

8. Make Sure Premiums Fit Your Budget

While higher covers like ₹75 lakh or ₹1 crore are appealing, affordability is key. Ensure that the premium fits your monthly budget without affecting other financial goals. A ₹50 lakh plan offers a practical balance between protection and affordability, helping you maintain consistent coverage over the long term without financial strain.

 Calculator for 50 Lakh Term Insurance 

Wondering how much your ₹50 lakh term insurance plan will cost? Use HDFC Life’s easy-to-use online term insurance calculator to get a real-time premium quote in just a few clicks.

Here is how the calculator works:

1. Enter your age, gender, income, and lifestyle habits (like smoking).

2. Select the desired coverage amount (₹50 lakh in this case) and policy term (e.g., 30 years).

3. Get an instant premium estimate, monthly, quarterly, or annually, based on your profile.

4. Add optional riders like critical illness or accidental death to customise your cover.

Let us take some examples to better understand how the calculator works:

● A 30-year-old non-smoker choosing ₹50 lakh cover for 30 years may pay approx. ₹710/month²³.

● A 25-year-old might pay slightly less, while premiums are higher for older applicants or smokers.

This tool helps you balance coverage, affordability, and long-term protection—all before committing.

What Are the Benefits of ₹50 Lakh Term Insurance?

A ₹50 lakh term insurance plan strikes a meaningful balance between affordability and adequate life cover, especially for young earners, families with moderate liabilities, and those looking to start their financial planning journey.

Let us break down its core benefits:

1. Financial Protection for Your Family

● The most important benefit of a ₹50 lakh term plan is financial continuity for your dependents. In your absence, this payout can support:

● Basic household expenses like rent, groceries, and utility bills

● Loan EMIs for a home, car, or education

● School and tuition fees for your children

● Healthcare costs or emergencies

If you currently spend around ₹40,000 per month (₹4.8 lakh/year), a ₹50 lakh cover can help your family sustain their lifestyle for 8–10 years, giving them time to adjust financially.

2. Covers Major Life Liabilities

Most Indian families today carry some level of debt. A ₹50 lakh term policy for 50 lakhs can help your family clear significant dues like:

● Home Loan: ₹25–30 lakh

● Education Loan: ₹5–10 lakh

● Car Loan or Credit Card Debt

For example, if you have a ₹25 lakh home loan and a ₹5 lakh education loan, your family still has ₹20 lakh remaining from the term cover to manage other expenses. This keeps your assets (like your house) secure and debt-free for your loved ones.

3. Peace of Mind at Low Cost

One of the biggest emotional benefits of a ₹50 lakh term plan is peace of mind, knowing that your family is protected even if life takes an unexpected turn.

For as little as ₹13–₹20/day (depending on age and health), you can secure your loved ones' financial future. That’s less than the cost of a cup of coffee, but with far greater long-term value.

This makes the term insurance plan of 50 lakh a smart and accessible investment for anyone starting out in life or career.

4. Tax-Saving Benefits

This plan is not just about protection; it also offers income tax benefits:

● Under Section 80C of the Income Tax Act 1961¹, you can claim deductions up to ₹1.5 lakh per year for the premiums paid

● Under Section 10(10D) of the Income Tax Act, 1961 ¹, the death benefit received by your nominee is completely tax-free

● If you add health-related riders (like critical illness), the premiums for those can be claimed under Section 80D of the Income Tax Act, 1961.¹

These benefits help you reduce your tax outgo while building a protective financial layer for your family.

How Does a ₹50 Lakh Term Plan Work?

A ₹50 lakh term insurance plan follows a simple structure designed to provide financial protection to your family in case of your untimely demise. Let’s understand the process step-by-step with relatable examples:

1. Selecting The Plan And Life Cover

Let us take the example of Amit, a 32-year-old IT professional with a 2-year-old daughter and a home loan. After reviewing his annual income and family needs, he opts for a ₹50 lakh term insurance plan. This amount aligns with his current liabilities, future responsibilities, and ability to pay premiums without straining his monthly budget.

2. Sum Assured

The ₹50 lakh sum assured ensures that in case of Amit’s death during the policy term, his family receives the lump sum amount. This payout can help:

● Repay the remaining home loan

● Cover monthly living costs for several years

● Fund his daughter’s education

In short, it helps replace Amit’s income and maintain his family’s lifestyle even after his absence.

3. Policy Term

Amit chooses a 30-year policy term, which coincides with his working life, ensuring that his family is protected until he retires or accumulates enough savings. The term length should ideally match your income-earning years or key responsibilities like children’s education and loan tenure.

4. Premium Paying Term

You can choose a payment mode that aligns with your financial comfort:

● Regular Pay: Pay premiums throughout the entire policy term.

● Limited Pay: Pay for a shorter duration (like 10 or 15 years), while the coverage continues.

● Single Pay: Make a one-time lump sum payment for full-term coverage.

For example, Amit chooses Regular Pay to keep his yearly premiums more affordable and spread out.

5. Premium Calculation

The premium for a ₹50 lakh term insurance plan depends on several personal and policy-related factors:

● Age – Younger applicants pay lower premiums

● Health & Lifestyle – Non-smokers and individuals without medical conditions get better rates

● Occupation & Income – Riskier jobs may lead to higher premiums

● Policy Term & Sum Assured

● Chosen Riders – Adding benefits like critical illness cover increases the cost.

For example, Amit, a healthy non-smoker aged 32, pays approximately. ₹804/month for a 30-year ₹50 lakh term plan²².

6. Riders⁷

To strengthen his ₹50 lakh term plan, Amit adds useful riders that offer extra protection without buying separate policies:

● Critical Illness Rider – Offers a lump sum payout if Amit is diagnosed with a listed major illness, helping cover medical costs and income loss.

● Accidental Death Benefit Rider – Provides an additional ₹25 lakh to his nominee if death occurs due to an accident.

These riders enhance coverage meaningfully at a low extra cost.

Who Should Buy a ₹50 Lakh Term Insurance Plan?

To understand who should buy a term plan of 50 lakh, read the pointers below:

• Young Professionals Starting Their Career

For those in their 20s or early 30s, making between ₹4 and ₹8 lakh a year, this plan is perfect. At this point, securing a ₹50 lakh policy guarantees financial security at extremely modest premiums, ranging from ₹400 to ₹600 each month. Benefits of early acquisition include reduced rejection chances and lifetime affordability because of improved health and younger age.

• Married Individuals or New Parents

For newlyweds or parents starting to make long-term commitments, a ₹50 lakh term cover provides a financial safety net. In addition to protecting objectives like a child's basic education or a spouse's living expenditures, this coverage may replace 4 to 5 years' worth of income. As India's education inflation rate as of May 2025 is 4.12%, it emphasises the importance of prompt preparation.

• People with Home or Personal Loans

An unexpected death might leave the family responsible for repaying any debt, whether it be a ₹5 lakh personal loan or a ₹35 lakh property loan. By paying off existing debts, a ₹50 lakh term plan can save your family from financial hardship. This sum, for instance, is enough to pay back the average Indian home loan amount of ₹24.7 lakh (as of 2024)

• First-Time Insurance Buyers

A ₹50 lakh coverage balances cost with sufficiency for those who are new to term insurance. Without requiring large premium commitments, it offers comprehensive coverage for three essential needs: emergency help, debt protection, and income replacement. For the salaried middle class in particular, this makes it a smart and low-risk step towards long-term financial planning.

• Working Women 

  A ₹50 lakh term plan safeguards a woman’s financial contribution, supporting her family’s lifestyle, children’s education, and dependent parents, ensuring financial security and independence, regardless of whether she’s the primary or secondary earner.

  When Should You Buy Term Insurance for ₹50 Lakh? 

  A common question many people ask is - "Should I wait until I earn more to buy term insurance?"

  The short answer? No.

  The best time to buy a ₹50 lakh term insurance plan is as early as possible, that is, ideally in your 20s or early 30s. Here is why buying a term plan early can be beneficial:

• Lower premiums: Premiums are significantly cheaper when you're young and healthy.
•  Higher eligibility: No medical issues = easier approval and better terms.
•  Locked-in costs: Premium stays fixed for the entire term, even if your health changes.
•  Early habit formation: Encourages long-term financial planning from the start.

Moreover, waiting to buy insurance later, when you have more responsibilities or health concerns, can lead to higher costs or even policy denial. Premiums are indicative and may vary based on plan, medical history, and riders.

So, as shown, buying in your 20s can save you up to 60% over the policy term compared to waiting until your 40s.

 How to Buy 50 Lakh Term Insurance Online? 

Buying a ₹50 lakh term insurance plan with HDFC Life is quick, transparent, and completely online. You can secure your family's future from the comfort of your home in just a few simple steps:

Step 1: Visit the ₹50 lakh term insurance page on HDFC Life

Step 2: Click on ‘GET A FREE QUOTE’

Step 3: Fill in your details such as full name, date of birth, gender, tobacco consumption, mobile number, and email ID

Step 4: Click on ‘Calculate Premium’ and check the premium you would need to pay for a ₹50 lakh term insurance plan

Step 5: Select riders/add-ons like critical illness or accidental death, and then check the final premium amount.

Step 6: Fill in the necessary details, upload the required documents, and then proceed to secure online payment

The process is 100% paperless and designed to make insurance accessible, secure, and hassle-free.

How to Choose the Right ₹50 Lakh Term Insurance Plan

Choosing the right ₹50 lakh term plan involves more than just comparing prices. To ensure you are selecting a policy that genuinely meets the future needs of your family, it is important to evaluate multiple factors like the insurer’s credibility, coverage benefits, riders, policy duration, and the ease of the claim process.

Hence, the details are discussed below on how to choose the right term plan for 50 lakh: 

• Check the Claim Settlement Ratio

The number of claims that an insurer successfully settles in a given year is indicated by the Claim Settlement Ratio (CSR). According to IRDAI's standard, a CSR above 95% indicates, more trust and a decreased likelihood of claim rejection. For instance, in FY 2024-2025, HDFC Life's CSR was 99.68%. Make sure to look up CSR on the official websites of the IRDAI or the insurer.

• Compare Premiums and Coverage

While choosing a low-cost plan may seem ideal, it is essential to balance affordability with adequate protection. Review and compare ₹50 lakh term insurance plans across insurers, considering factors like riders, premium payment options, and policy flexibility. A slightly higher premium could offer more comprehensive benefits. Use online tools like HDFC Life’s Term Insurance Calculator to evaluate features and make an informed, value-driven decision.

• Evaluate Available Riders

Riders are optional add-ons that enhance your base cover. The common add-ons include critical illness, accidental death benefit, and waiver of premium. Choose riders based on your life risks, for instance, a frequent traveller may consider accidental death cover. Riders offer extra safety at a small extra cost and can be added when you buy the policy.

• Select a Suitable Policy Term

Choose a policy term that aligns with your key financial responsibilities, such as covering your working years, repaying long-term loans, or securing your child’s future. Opting for a longer term early in life ensures extended coverage at a lower premium, as insurers offer better premium rates to younger individuals in good health.

• Ease of Purchase and Claim Process

Select insurance companies that provide easy online purchasing, prompt paperwork, and medical appointment scheduling. A seamless, open claim settlement process is also crucial. So, look up online reviews, complaint logs, and customer support options. During a difficult moment, a trustworthy claim procedure guarantees that your family will get the ₹50 lakh payout without unnecessary delays or hassles.

Important Things to Know Before Buying Term Life Insurance Plans

Here is a list of the important things to know before getting a term life insurance plan:

• Understand Your Coverage Needs

Before buying term insurance, assess how much coverage you need by considering your income, number of dependents, outstanding debts, and future goals like your child's education or your spouse's retirement. For instance, if your annual income is ₹8 lakh and you have a home loan and a child's future education to fund, a ₹50 lakh term plan could offer an income replacement plus debt coverage for 6 to 7 years.

• Know the Policy Term and Premium Commitment

Choose a policy term that covers you until retirement or until your major responsibilities (like home loan EMIs or children’s education) are complete. Also, choose a premium you can sustain for the long term. Starting financial plans at a young age helps. For instance, you can lock in a 30-year term at age 25 to keep premiums low. Missing premiums later can cause the policy to lapse, beating its entire purpose.

• Prepare Required Documents and Medicals

Before applying, keep certain documents ready, such as ID proof (like Aadhaar), address proof, income documents (ITR, payslip), and medical history. For a term insurance premium of 50 lakhs and above, insurers often mandate medical tests. Always disclose pre-existing health conditions truthfully. Non-disclosure of any critical information is a leading reason for claim rejection, according to IRDAI’s claim-related grievance data. 

• Be Aware of Exclusions and Limitations

Term insurance has certain exclusions, like suicide within the first policy year, undisclosed medical issues, or risky lifestyle habits like substance abuse. For example, failing to disclose smoking habits can void your claim. Always review the exclusions section in your policy brochure. Knowing these beforehand avoids emotional and financial distress for your loved ones during claim settlement.

• Read the Policy Terms Carefully

It is very important to read the terms and conditions of your term plan to understand your premium payment frequency, grace periods, revival conditions, and how each rider (like critical illness or waiver of premium) works. Make sure you know how to file a claim and what documents your nominee would need. A recent study by the Life Insurance Council revealed that most claim rejections come from policyholder misunderstanding or incomplete disclosures.

Is ₹50 Lakh Sufficient Term Insurance Coverage for My Family?

Everyone’s life situation is different. While ₹50 lakh may seem like a solid sum, its sufficiency depends on your family size, income, liabilities, and future plans.

Let us help you evaluate your coverage needs in detail.

1. Number of Dependents

If you are supporting a spouse, children, or parents, the more dependents you have, the higher your coverage should be.

₹50 lakh may be sufficient if you have:

● A single dependent and low debt

● Younger children with expenses still ahead

For a larger family or sole-earning members, it might not be enough for long-term support.

2. Current Income

Your term insurance coverage should ideally be 10–15 times your annual income. For example, if you earn ₹5 lakh annually, a ₹50 lakh sum assured offers reasonable protection. However, if your income is ₹8–10 lakh or more, this coverage may only offer 5–6 times protection, likely insufficient for long-term family needs, inflation, and financial goals. Review income annually before deciding.

3. Outstanding Loans

Your term plan must be large enough to cover your outstanding debts. Add up current liabilities like home loans, car loans, and education loans. If these total ₹35–40 lakh, a ₹50 lakh policy may leave just ₹10–15 lakh for your family’s ongoing expenses.

Evaluate all dues carefully so that your family isn’t left with unpaid EMIs or forced asset liquidation.

4. Children's Education/ Marriage Goals

Education and wedding costs are among the biggest financial responsibilities for parents. Quality higher education, especially abroad, can cost ₹20–30 lakh per child. Add to that marriage expenses, and ₹50 lakh may fall short.

If your children are still young, consider inflation and plan at least 10–15 years ahead to ensure this sum assures future milestones are comfortably met.

5. Lifestyle Expenses

Monthly household expenses like rent, groceries, school fees, and bills can add up quickly. If your family needs ₹40,000/month to sustain their current lifestyle, that is nearly ₹5 lakh annually. A ₹50 lakh payout may last around 8–10 years.

If you want to secure your family for a longer period or ensure lifestyle continuity, a higher cover might be wiser.

Documents Required to Buy a ₹50 Lakh Term Insurance

Here are the documents necessary to purchase a ₹50 lakh term insurance plan:

• Identity Proof

- Passport, Driving Licence, etc.

- PAN is Mandatory Document 

• Address Proof  

• Passport

• Voter’s Identity Card issued by Election Commission of India

• Permanent Driving License

• Aadhaar Card 

• Central KYC Identifier (can be accepted, if the downloaded documents are from the list of Officially Valid Documents (OVD) reflecting across Sr. No. 1 to 4 and there is no change in the address basis the document downloaded from Centralized KYC Registry (CKYCR) database as mentioned on the proposal form)

• Income Proof

IT Returns, Bank Statement, Salary Slips, etc.

• Medical Reports (If Required) 

It is important to show all your medical reports to your insurance provider when purchasing a ₹50 lakh term plan. For instance, HDFC Life officials may ask for your medical reports to help understand what premium will be suitable as per your health condition and ssfuture financial goals.

Summary

If financial stability for loved ones is a priority, a 50 lakh term insurance is what you need. With an option to enhance coverage with add-on benefits like return on premium riders, accidental death and riders, accidental disability riders, terminal illness riders, critical illness riders, and premium payment flexibility, the term plan can be tailored according to your needs. If the life cover is adequate considering aspects like income, current financial obligations, and number of dependents, a term plan is a reliable choice. 

FAQs on 50 lakh term insurance

Q: What are the eligibility criteria to purchase a Rs. 50 lakh term plan?

You must be at least 18 and earning to buy a term plan. If you're over 65, you might not be able to purchase a policy.

Q: What is the premium amount for a term plan offering coverage of Rs. 50 lakhs?

The premium amount for the term policy depends on your lifestyle, age, health, income range and more.

Q: What happens if I survive the policy tenure?

Term plans do not offer any maturity benefits. However, if you selected a Return of Premium policy, you will get the premiums back on maturity.

Q: How can I purchase a Rs. 50 lakh term plan?

You can purchase a term policy worth Rs. 50 lakhs directly from our website.

Q. Is 50 lakh term insurance enough?

To decide whether 50 lakh term insurance is enough, you should consider your income, number of dependents and their needs, outstanding liabilities, and human life value. It is generally recommended for the sum assured to be 10 to 20 times your annual income to beat the inflation. 

Q. Are there tax benefits in a 50 lakh Term Insurance Plan?

Yes. The premiums paid towards the 50 lakh term insurance plan are eligible for deduction under Section 80C of the Income Tax Act 1961, and the death benefits are tax-exempt under Section 10(10D) of the same Act. These term insurance tax benefits make the plan financially efficient for policyholders.

Q.  How much income is required for a 50 lakh term insurance?

Term insurance providers generally allow term insurance coverage of 10–15 times your annual income. So, to qualify for a ₹50 lakh term plan, your annual income should ideally be around ₹3.5 to ₹5 lakh. Nonetheless, the exact eligibility may vary based on age, health, and insurance guidelines.

Q. How can I calculate the premium for my ₹50 lakh term insurance policy?

You can use the HDFC Life online term insurance premium calculator to calculate the premium for your ₹50 lakh term plan. Just enter your age, gender, smoking habits, policy term, and sum assured (₹50 lakh), and the tool will estimate your premium instantly. Riders and payment frequency can also impact the final premium amount.

Q. What Documents Are Required to Buy a ₹50 Lakh Term Insurance Plan?

To buy a ₹50 lakh term insurance plan, you will generally need to provide identity proof (Aadhaar, PAN), address proof (utility bill, Aadhaar), income proof (salary slips, ITR, bank statements), and medical reports if required. These help assess eligibility and risk.

Please note that document requirements may vary slightly depending on your profile, plan type, and any chosen riders.

Related Article

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• 4 Simple Methods to Calculate : How Much Term Insurance You Need

References:

1. https://economictimes.indiatimes.com/markets/expert-view/what-should-be-the-criteria-for-selecting-the-right-kind-of-term-plan-dinesh-dilip-bhoi-answers/articleshow/110001188.cms?from=mdr

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