• Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

₹ 50 lakh Term Insurance

A Rs. 50 lakhs term insurance policies provide your loved ones financial stability and support. When you purchase such a plan, you ensure your family receives a payout of Rs. 50 lakhs if something happens to you. Investing in a term life insurance plan means investing in your family's future. Regardless of what happens to you, the payout enables them to achieve their future financial goals.

To delay is to regret

You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.

50 Lakh Term Insurance @Rs.13/day*

Customer rating 4.1/5

Complete Star Complete Star Complete Star Complete Star Half Star

Rated by 13437 customers

call-icon :1800-266-9777
(ALL DAYS, FROM 9AM TO 9PM, TOLL FREE)

ROP

Return of Premium^

Same Day

Claim Processing#

99.50%

Claim Settlement Ratio##

Rishab Pant buy term Insurance
Lives Insured

66 Million

Lives Insured@

Assets under management

Trillion

Assets under
management@

Total Premiums

630 Billion

Total Premiums@

Why Do I Need Rs 50 Lakh Term Insurance?

50 Lakhs Term Insurance
December 19, 2024

 

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 Rs. 50 Lakh Term Insurance?

A 50-lakh term policy offers life insurance coverage of Rs. 50 lakhs for a given time. If anything happens to the policyholder during the plan tenure, the beneficiary receives a payout of Rs. 50 lakhs, ensuring financial security through life insurance protection.

Why Buy Rs. 50 Lakhs Term Insurance?

None of us knows what life has in store for us. An unexpected illness or accident could take us away from our loved ones. Term plans provide our loved ones with the finances they require during this uncertain time. The payout from the term plan should be enough to help your family maintain their standard of living in the future or pay off any outstanding loans. You can calculate your Human Life Value or HLV to better understand how much your family requires. HLV refers to the present value of future income expenses, investments, and liabilities. Individuals who earn around Rs 5 lakhs per year should get a term plan that offers at least Rs. 50 lakhs as the sum assured.

Here are some of the main reasons to consider buying this term plan: 

  • Affordable:

A 50 lakh term plan premium is usually considered a reasonable investment by most people. This is because it does not disrupt the overall budget much and allows one to opt for a longer tenure. Not to mention, you can work and live your life in peace, knowing your family is financially secure. 

  • Complete Protection:

With riders and add-on options, a 50 lakh term insurance plan provides comprehensive protection. You can add suitable riders as per your specific needs, including a critical illness rider or an accidental death benefit rider or go for a return on the premium rider, among others. These riders boost your insurance cover for a nominally extra premium. 

  • Greater Coverage

Considering the coverage provided for a nominal premium, term insurance 50 lakhs is perfect to secure your family financially. They can maintain the existing lifestyle and live comfortably even in your absence.

  • Protection Against Loans and Debts

If you have availed of loans to meet financial goals like owning a dream house, buying a car, going on a vacation, or higher education for children, the onus of repaying the loans shifts to your family in case of your untimely death. If you invest in a 50 lakh term plan, your family can repay the outstanding liabilities with the death benefit they receive. 

Key Features of ₹50 Lakh Term Insurance

Here are some of the main term insurance 50 lakhs features that you must remember to make an informed decision: 

  • Cost Effective

Term insurance premium for 50 lakhs is cost-effective considering the coverage it provides. This makes it an affordable option to secure your family financially. You can opt to remain invested for a longer period, considering the reasonable premium.

  • Complete Protection

With options to avail of additional coverage alongside Rs.50 lakhs are available in the base plan with specific riders as per your requirements, easy claim settlement, etc. The 50 lakh term plan provides complete protection to you and your family.

  • High Coverage

The term insurance 50 lakhs offers extensive coverage and gives you peace of mind that your family has enough funds for sustenance and to meet children’s education expenses, pay off outstanding loans and debts, and any unforeseen expenses in your absence.

How Does a Rs. 50 Lakh Term Plan Work?

We can understand how a Rs. 50 lakh term insurance works with an example. Rahul is a 24-year-old who just started working. His salary is enough to cover his basic monthly expenses. Rahul stays with his parents. Both of them are still working and have saved up for their retirement. Rahul purchases a term plan offering Rs. 50 lakh coverage for 30 years. After three years, he takes a loan to buy a two-wheeler. About a year later, while still repaying the loan, he meets with a fatal accident. His mother, the term policy beneficiary, receives the payout of Rs. 50 lakh. She can use the amount to pay off Rahul’s pending loan. The money helps her and her husband maintain their finances at a difficult time.

What Are the Benefits of Rs. 50 Lakhs Term Insurance?

When you purchase a term insurance policy worth Rs. 50 lakhs, you benefit from:

  • High coverage at affordable premiums
  • Premium payment flexibility
  • Customise your plans with of add-ons benefits of term insurance.
  • Tax benefits under the Income Tax Act1
  • Financial stability for your loved ones

How to Choose the Right Rs. 50 Lakhs Term Insurance Plan

When looking for a Rs. 50 lakh term policy, you should consider the following crucial points:

  • Premiums

    Term policies are popular since they provide high coverage at affordable rates. Ensure you look for plans that offer the best benefits at a pocket-friendly premium.

  • Individual Death Claim Settlement Ratio

    The IRDAI regularly releases the individual death claim settlement ratio for various life insurance companies. It lets you know how many claims the company settled of all requests received. The higher the ratio, the better.

  • Add-ons

    Always check the add-ons that various insurance companies offer. You could boost your coverage and enhance your family’s financial future by selecting the add-ons that suit your needs. There are several types of term insurance like the term insurance with return of premium which can be availed with the TROP add-on rider.

  • Reputation of the Insurance Company

Every insurance company has different terms and conditions as well as additional services and benefits for their 50 lakh term insurance. Make sure that you have checked all aspects in detail and compared them well before deciding. You must also go through company and plan reviews and recommendations from previous or existing customers. The claim settlement process and ratio are also important aspects to assess before finalising the plan.

  • Policy Term

Your existing liabilities, financial goals, and the time required to settle the dues and fulfil the goals should be the yardstick for choosing the coverage period for Rs. 50 lakh plans. It is recommended you buy the policy from an insurance company that offers whole-life coverage. 

  • Riders

Riders are add-on benefits that enhance the life coverage of Rs. 50 lakhs term plan and provides customisable insurance options. If you anticipate any critical illness in the future, considering your lifestyle habits, family history, etc., opting for a critical illness rider will save you from digging into your savings to manage treatment costs. 

  • Type of Policy

Every insurance company’s directory has varied types of 50 lakh term insurance plans. Before confirming your choice you should compare the plans available with different players. Every plan has certain advantages and disadvantages. Read between the lines and understand the terms and conditions of the plans to make your selection resourceful.

Important Things to Know Before Buying Term Life Insurance Plans

Some factors impact your 50 lakh term insurance purchase, and you should focus on them before identifying the best plan. They are:

  • Claim Settlement Ratio

Claim settlement ratio indicates the number of claims settled without a fuss in proportion to the claim applications received. The reliability in terms of claim settlement is measured by the ratio. The data can be obtained from the report generated by IRDA every financial year. A 99% ratio indicates that the insurance company seldom rejects any claims filed. 

  • Max Limit

The maximum coverage period for term insurance 50 lakhs, which varies with the insurer. Generally, it is between 75 to 100 years. Those who aim at affordable premiums for Rs. 50 lakh coverage should consider the fact that premiums are higher for extended periods before deciding on the policy term. 

  • Life Cover

The sum assured represents the life cover provided for 50 lakh term insurance i.e., the death benefit that is provided to the nominees. Consider the financial needs of your family vis a vis the monthly expenses, your outstanding debts to enable loan repayment with insurance benefits, children’s education expenses, etc., before deciding the sum assured to ensure that your family does not face a financial crisis when you are not around. 

  • Additional Coverage Options or Riders

The 50 lakh term insurance plans have various add-on benefits like critical illness riders, accidental death or disability riders, return of premium riders etc., that enhance the coverage for an additional premium. The survival benefits in return of premium policies make the plan a combination of protection and savings. 

  • Premium Waiver Benefit

Premium waiver benefits are available in some 50 lakh term insurance plans. This benefit allows waiver of premium for a further period while retaining the life cover when the policyholder encounters any incident that results in loss of income. 

  • Factors That Cause Premiums to Increase

One of the critical factors that impact premiums is age. The insurance policy for young earners is more cost-effective than the policy for older adults. Also the lifestyle, the existing health conditions, and the sum assured also impact the premium. The policyholder has to disclose every piece of information since the suppression of facts may result in claim rejection. You can calculate the applicable premium using the term insurance calculator.

  • Tax Benefits

Section 80C of the IT Act 19611 allows the deduction of the premiums paid towards life insurance plans from the taxable income and the death benefits are tax-free under Section 10(10D)1 exempts death benefits from tax. 

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

Whether 50 lakh term insurance coverage is adequate for your family depends on the following:

  • Your Yearly Income and Current Lifestyle

The life cover should be adequate to beat inflation and enable your family to maintain the existing lifestyle. 10 to 20 times the annual income is the recommended life cover to serve the purpose of insurance.

  • Your Dependents and Their Needs

If you are the sole earning member of your family it is imperative to consider the number of dependants and their financial requirements like living expenses, education costs, marriage expenses, loan repayments, etc., for arriving at the sum assured. 

  • Current Financial Obligations

Taking over the responsibility of repaying the debts you have incurred like home loans, car loans, personal loans, education loans, etc., in unprecedented times is the last thing you would wish for your family. You should consolidate all the outstanding liabilities at the time of purchasing a term plan and consider them while arriving at the sum assured for the term plan. 

  • Human Life Value (HLV)

Human life value is a tool that enables insurance companies to determine the funds required for the family for sustenance if the policyholder expires during the policy term. It is an estimation of the economic worth of the policyholder considering his future income, liabilities, and expenses.   

Documents Needed to Buy a 50 Lakh Term Insurance

Submitting all the documents needed is as important as complying with the eligibility criteria for term plans. The mandatory documents required are:

  • 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.

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. 

Frequently Asked Questions

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 IT Act 19611 and the death benefits are tax-exempted under Section 10(10D).

Related Article

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

Tomorrow's Assurance, Today's Investment!

Get

₹ 50 Lakh

Term Insurance at just ₹ 13/Day*

  • Claim Settlement Ratio of 99.50%##
  • Save more with 5% Discount*
  • Same Day Claim Processing*

T&C Apply

Talk to an Advisor right away

Not sure which insurance to buy?

Talk to an
Advisor right away

Talk to an Advisor right away

We help you to choose best insurance plan based on your needs

Share your Valuable Feedback

Was the Information Helpful?

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile

Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile

Reviewed By Reviewed By:
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2023-24.

#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved

^ Available under Life & Life Plus plan options

1.As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.

*Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 25 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Monthly premium of 379/30=12.6)

@As per integrated annual report FY23-24, available on www.hdfclife.com. As of May 2024

ARN- DM/12/24/19047