RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • 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

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

What is ₹ 5 lakh Term Insurance?

Rs. 5 lakh term insurance policies provide financial stability and support. When you purchase such a plan, you ensure your family receives financial support if something happens to you. Investing in a term insurance plan is like investing in your family's future. Regardless of what happens to you, the payout will help them achieve their future financial goals and maintain their standard of living.

10 Lakhs Term Insurance20 Lakhs Term Insurance25 Lakhs Term Insurance30 Lakhs Term Insurance

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.

CALCULATE PREMIUM TALK TO OUR ADVISOR
Term Insurance

GET A FREE QUOTE

We respect our customers' privacy and do not spam them.

I authorize HDFC Life and its representatives to contact me through Call, Email, SMS or WhatsApp. This consent overrides my registration under DNC / NDNC (this would mean we would contact you even if you are registered on any Do Not Disturb list).
Term Insurance

Why Do I Need Rs 5 Lakh Term Insurance?

5 Lakhs Term Insurance
March 06, 2024

Table of Content

 

Each one of us strives to provide our family with safety and security. A term plan enables you to do this even if something happens to you. These policies are pure life insurance plans. They offer coverage for a specific tenure. If anything happens to the policyholder during that time, their loved ones receive the sum assured payout. Let’s look at the benefits of having a Rs. 5 lakh term insurance plan.

What Is a Rs. 5 Lakh Term Insurance?

A Rs. 5 lakh term plan will provide your beneficiary with Rs. 5 lakhs if anything happens to you, the policyholder, while the plan is active. The amount should enable your loved ones to replace the lost income and deal with pending debts.

Why Buy Rs. 5 Lakh Term Insurance?

Generally, people advise you to purchase a term plan worth at least ten times your current income. Plans offering a sum assured of only Rs. 5 lakhs are often supplementary plans that provide enhanced financial protection over and above an existing policy. Individuals who have recently opted for a loan can choose a Rs 5 lakh term insurance policy to help their loved ones repay the debt if anything happens to them.

How Does a Rs. 5 Lakh Term Plan Work?

Mohit purchased a term plan in his early 30. He opted for a high sum assured and a long tenure of 30 years. In his 40s, he faced financial hardships and took a loan worth Rs. 5 lakhs. Mohit did not want his loved ones to face financial trouble if anything happened to him. So, he purchased a Rs. 5 lakh term plan for just ten years, which was the loan tenure. His loved ones will receive the amount if anything happens to him, enabling them to pay off the outstanding amount and quickly become debt-free.

What Are the Benefits of Rs. 5 Lakh Term Insurance?

Purchasing a Rs. 5 lakh term plan lets you enjoy:

  • Affordable premiums
  • Premium payment flexibility
  • Customize plans with additional benefits to meet unique requirements.
  • Maximize tax benefits under Income Tax Act.*
  • Ensure the financial security of your family.

How to Choose the Right Rs. 5 Lakhs Term Insurance Plan

Before purchasing a Rs. 5 lakh term policy, you should consider the:

  • Premiums

    Several insurance providers offer term plans. Identify companies that provide the coverage you want at a pocket-friendly price.

  • Claim Settlement Ratio

    Ensure the insurance company has a high claim settlement ratio. It provides peace of mind that your beneficiary will likely receive the amount after filing a valid claim request.

  • Add-ons

    Check the add-ons on offer and select the ones that enhance your coverage and suit your lifestyle.

Frequently Asked Questions

Q: What are the eligibility criteria to purchase a Rs. 5 lakh term plan?

A: All working individuals between 18 and 65 can purchase a Rs. 5 lakh term plan.

Q: What is the premium amount for a term plan offering coverage of Rs. 5 lakhs?

A: Premiums depend on your age, medical history, income, and policy term. You can use an online calculator to understand your premiums.

Q: What happens if I survive the policy tenure?

A: Term plans do not offer payouts on survival. However, if you select a Return of Premium plan, you get a payout equal to all premiums paid until maturity.

Q: How can I purchase a Rs. 5 lakh term plan?

A: You can purchase a term life insurance plan worth Rs. 5 lakhs directly from our website.

Related Article

ARN - ED/04/23/1532

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

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:

Here are a few more articles about Term Insurance.

We help you to make informed insurance decisions for a lifetime.

Best Term Insurance Plan For 2 Crore

Best Term Insurance Plan For 2 Crore

2 crore term insurance: Buy the best term insurance plan for 2 crore at just Rs.35 per month to protect your family's financial future.

Best Term Insurance Plan for 1 crore

Why is Term Insurance Important for Senior Citizens?

Why Do I Need Rs 5 Crore Term Insurance?

5 crore term insurance provides life coverage to the policyholder. If something happens to you during the policy period, your family will receive a payout of Rs. 5 crores.

Why Do I Need Rs 5 Crore Term Insurance?
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.

Life Insurance Popular Search

Popular Searches

Disclaimers

##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

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