In summary

A Rs. 20 crore term insurance plan provides a Rs. 20 crore sum assured to the nominee if the life insured passes away during the policy term, subject to the policy terms.

• Eligibility for a Rs. 20 crore sum assured depends on the insurer's underwriting rules, income, age, health and financial profile.
• A high sum assured can help cover large loans, family expenses, education costs and business liabilities.
• Premiums depend on factors such as age, health, policy term, sum assured and selected features.
• Eligible premiums may qualify for a deduction of up to Rs. 1.5 lakh under Section 123 of the Income Tax Act, 2025, subject to applicable conditions.

If you are assessing a large life cover requirement, compare available term insurance plans and check your premium estimate before applying.

Term insurance is primarily designed for protection. A standard term plan generally does not provide a maturity payout if the life insured survives the policy term, although some products may offer eligible Return of Premium options.

The required cover should relate to your income, outstanding liabilities, dependants, future expenses and existing assets rather than the cover amount alone.

• Home loans and other outstanding liabilities
• Business loans and business-related commitments
• Children's education expenses, including overseas education
• Household expenses that depend on your income
• Financial support for dependants
• Long-term estate and succession planning

For example, a business owner may need to consider personal loans, business obligations, family expenses and existing assets when calculating the required life cover.

Once you estimate the financial gap, you can compare term insurance plans and get a quote based on the cover you need.

Occupation alone does not determine eligibility. The insurer may assess age, health, income, financial information, existing cover and the proposed sum assured before issuing a policy.

Term plans are simple, but when the sum assured is Rs. 20 crore, the process and benefits become even more valuable. Here's how term insurance works:

A Rs. 20 crore term insurance policy provides life cover for a selected policy term in return for the premiums you pay. If the life insured dies while the policy is active, the nominee receives the applicable death cover according to the policy terms. If the life insured outlive the policy, there’s no payout, unless you opt for return of premium in term insurance.

What do you choose when buying a Rs. 20 crore term plan?

You generally choose the following when applying for the policy:

• Policy term: Select a term based on your age, income, liabilities and the period for which your family needs financial protection. The available term varies by product.
• Premium payment option: Depending on the plan, you may be able to pay premiums regularly or for a limited period. Monthly, annual and other payment frequencies may be available under eligible products.
• Payout structure: Depending on the product, the death cover may be paid as a lump sum, regular income or a combination of both.
• Riders: Eligible plans may allow you to add protection such as Critical Illness Benefit, Accidental Death Cover or Waiver of Premium Benefit. Riders have separate terms and may increase the premium.

For a Rs. 20 crore cover, the insurer may require medical tests and financial information as part of its underwriting process. The final premium and policy terms are decided after the insurer assesses the proposal.

Key benefits of term insurance include:

• Income replacement: Helps support the family's future financial needs.
• Loan protection: Can account for outstanding home or business liabilities.
• Education funding: Can protect planned education expenses.
• Business protection: Can form part of a wider financial continuity plan.
• Payout options: Eligible products may provide lump sum, regular income or a combination.
• Additional protection: Eligible products may offer Critical Illness Benefit, Accidental Death Cover and Waiver of Premium Benefit.

What tax benefits are available?

Eligible term insurance premiums may qualify for a deduction of up to Rs. 1.5 lakh per financial year under Section 123 of the Income Tax Act, 2025, if you choose the old tax regime and meet the applicable conditions. Section 123 corresponds to Section 80C of the Income Tax Act, 1961, which ceased to apply from 1 April 2026.

Eligible death cover payouts may also qualify for tax exemption under Section 11, read with Schedule II of the Income Tax Act 2025, subject to applicable conditions. This provision replaces Section 10(10D) of the Income Tax Act, 1961.

Tax laws are subject to change. BFL does not provide tax or investment advisory services. Please consult your advisers.

Consider:

• Current income and future earning capacity
• Outstanding loans and liabilities
• Number of dependants
• Children's education and other long-term goals
• Policy term and premium payment period
• Health and medical history
• Available payout options
• Policy exclusions and conditions

For a large sum assured, accurate income, health and financial information is particularly important during the application process.

For a high sum assured, check these factors before applying:

• Sum assured: Assess whether Rs. 20 crore is supported by your income, outstanding loans, education costs, household expenses and other financial responsibilities. A common starting point for life cover is 10 to 15 times annual income, adjusted for loans and future goals.
• Policy term: Choose a term that continues through the period when your family has major financial responsibilities. This can include outstanding loans, children's education and the period when dependants rely on your income.
• Premium payment term: Compare regular pay, limited pay and other available options. Look at the total premium payable, not only the monthly or annual instalment.
• Payout structure: Depending on the product, the death cover may be paid as a lump sum, regular income or a combination. Consider which format your nominee can manage effectively.
• Claim settlement record: Review the insurer's claim settlement ratio over multiple financial years rather than relying on one year's figure.
• Solvency ratio: Check the insurer's solvency ratio against the IRDAI minimum requirement of 150%. Bajaj Life Insurance reported a solvency ratio of 266% as at 31 March 2026.
• Riders: Add only riders that address risks not already covered. Depending on the product, these can include Critical Illness Benefit, Accidental Death Cover and Waiver of Premium Benefit.
• Exclusions and disclosures: Read the policy document and disclose your medical and financial information accurately during the application process.

For a Rs. 20 crore cover, the insurer may carry out financial and medical underwriting before deciding the premium and policy terms. Once you have assessed these factors, you can compare available term insurance options and get a quote based on your protection needs.

A higher sum assured generally increases the total premium, while the premium per rupee of cover can reduce as the sum assured increases.

For example, suppose a 30-year-old non-smoking individual with a healthy medical profile applies for Rs. 20 crore cover for 30 years. The premium cannot be assumed from the sum assured alone. The insurer may consider the applicant's income, existing insurance, health details and other underwriting factors before providing the final quote. 

This means two people seeking the same Rs. 20 crore cover can receive different premium quotes. A longer policy term, higher-risk lifestyle or additional riders can also affect the cost. For an accurate premium, enter your personal details into the insurer's quote process and review the premium offered after underwriting.

Common eligibility criteria include:

• Age: Most term insurance plans generally accept applicants from 18 to 65 years. The exact minimum and maximum entry age can vary by insurer and product.
• Income: You should have a regular and verifiable source of income. The insurer may assess your income and financial profile to determine the sum assured you can qualify for.
• Health: Your current health, medical history and lifestyle may be assessed during underwriting. Medical tests may be required for a high sum assured.
• Occupation: Your occupation and associated risks can influence the underwriting assessment.
• Lifestyle: Smoking, tobacco use and other lifestyle factors may affect your premium and eligibility.
• Existing insurance: The insurer may consider your existing life insurance cover while assessing the proposed Rs. 20 crore sum assured.
• Financial profile: Existing loans, liabilities, assets and other financial commitments may be reviewed to assess whether the proposed cover is appropriate.
• Documents: You may need to submit age, identity, address, income and financial documents, along with medical reports where required.

These are general eligibility criteria, and the actual requirements can differ between insurers and plans. For a Rs. 20 crore cover, the insurer's underwriting assessment ultimately determines whether the policy can be issued and the terms applicable to it.

1. Assess your cover: Consider your income, loans, dependants and future financial commitments.
2. Get a quote: Enter your basic details to view an estimated premium.
3. Share your details: Provide information such as age, income, occupation, lifestyle and other required details.
4. Choose your plan: Select the Rs. 20 crore cover, policy term, premium payment option and eligible riders, where available.
5. Complete underwriting: Submit the required documents and undergo medical tests if requested by the insurer.
6. Pay the premium: Complete the payment after your application is approved.
7. Receive the policy: Review the policy document and check the sum assured, term, premium and nominee details.

The exact online process can vary by insurer and product, particularly for a high sum assured such as Rs. 20 crore.

• In your 20s or 30s: Starting during your earning years can help you secure a longer policy term and potentially lower premiums.
• After marriage or parenthood: New dependants can increase the amount of financial protection your family may need.
• When taking a large loan: A home loan, business loan or other major liability can increase your required life cover.
• When starting or expanding a business: Business owners may need to consider personal income, business liabilities and family responsibilities together.
• After a significant income increase: A higher income can change your family's future financial needs and may warrant a review of existing life cover.
• When education costs increase: If you have children, future education expenses can be included when reassessing your protection needs.

Review the required cover whenever your income, liabilities or family responsibilities change. A Rs. 20 crore sum assured should be based on the financial gap your family may need to manage, rather than the size of the cover alone.

A Rs. 20 crore term insurance plan can provide substantial financial protection when your income, liabilities and family's future needs require a high sum assured. Assess your coverage requirement, policy term, premium, payout option and underwriting requirements before choosing a plan. Once you have identified the cover you need, compare available term insurance plans and get a quote based on your profile.