In summary

A Rs. 25 crore term insurance plan provides a Rs. 25 crore sum assured to the nominee if the life insured passes away during the policy term, subject to the policy terms.

• Eligibility depends on the insurer's underwriting rules and your income, age, health and financial profile.
• Large life cover can help address substantial loans, family expenses, education costs and business liabilities.
• Your premium depends on factors including age, health, sum assured, policy term and selected options.
• 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 your financial responsibilities require substantial life cover, compare term plans and check the premium applicable to your profile.

A Rs. 25 crore term insurance plan is a high-value life insurance policy with a Rs. 25 crore sum assured. If the life insured dies during the policy term, the nominee receives the applicable death cover under the policy terms. Term insurance primarily provides protection rather than savings. A standard term plan generally does not provide a maturity payout when the life insured survives the policy term.

The required sum assured should be linked to income, liabilities, dependants, future expenses and existing assets.

It can account for:

• Large home loans and other liabilities
• Business loans and financial commitments
• High household expenses
• Children's long-term education costs
• Multiple financial dependants
• Estate and succession planning needs

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

Once you identify the financial gap, you can compare plans and get a quote based on your protection needs.

Occupation alone does not determine eligibility. The insurer can assess age, health, income, financial profile, existing insurance and proposed sum assured.

Understanding how term insurance work makes it easier to see how a Rs. 25 crore cover secures your family by offering financial protection in return for regular premium payments over a chosen policy term.

A Rs. 25 crore term insurance policy works on a simple protection-first approach. You pay a fixed premium for a selected tenure, and in return, the insurer provides a life cover of Rs. 25 crore. If an unfortunate event occurs during the policy term, your nominee receives the sum assured, helping them manage expenses, repay liabilities, and continue long-term financial goals without disruption.

Here is how the policy generally works:

• Choose the policy term: Select a term based on your age, income and financial responsibilities.
• Select the premium payment option: Depending on the plan, you may choose monthly, annual or limited premium payments.
• Complete underwriting: For a high sum assured, the insurer may ask for financial information and medical tests.
• Add eligible riders: Depending on the plan, you may choose options such as Critical Illness Benefit, Accidental Death Cover or Waiver of Premium Benefit.
• Stay covered: The life cover remains active as long as the policy is in force and applicable premiums are paid.
• Claim the death cover: If the life insured dies during the policy term, the nominee can claim the applicable sum assured.

• On survival: A standard term insurance plan generally does not provide a maturity payout. An eligible Return of Premium option may work differently, subject to its terms. 

  
  

You can review the available term options, compare your requirements and get a quote based on your profile.

A Rs. 25 crore term plan can provide substantial life cover for families with significant financial responsibilities. Here are the core term insurance benefits:

• Income replacement: Can support future family expenses.
• Loan protection: Can account for outstanding liabilities.
• Business continuity: Can support financial obligations linked to a business.
• Education funding: Can help protect planned education expenses.
• Estate planning: Can form part of a wider succession plan.
• 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.

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

• Coverage: Consider income replacement, loans, education costs and future financial commitments.
• Policy term: Choose a term that covers your major financial responsibilities and earning years.
• Premium: Compare the premium and payment frequency to ensure the policy remains affordable.
• Payout option: Check whether the plan provides lump-sum, monthly or staggered payout options.
• Riders: Review eligible options such as Critical Illness Benefit, Accidental Death Cover and Waiver of Premium Benefit.
• Exclusions: Read the policy exclusions and conditions before purchasing.
• Insurer: Review the insurer's claim settlement record and other published financial information.
• Inflation: Account for rising household, education and healthcare costs when assessing whether Rs. 25 crore will remain adequate over time. 

Also consider how your nominee could manage the payout. Depending on the product, you may get a lump sum, regular income, or a combined payout.

• You are in your 20s or 30s: Starting early may help you access longer coverage at premiums based on your age and health.
• You get married or become a parent: New dependants can increase your family's future financial needs.
• You take a large loan: Home, business or other substantial liabilities may increase your required life cover.
• Your income increases: A higher income may warrant a review of your existing sum assured.
• You start or expand a business: Personal and business-related financial commitments may require additional protection.
• Your financial goals change: Reassess your cover when education, retirement or other long-term financial commitments increase.

• Age: Generally 18–65 years, depending on the insurer and plan.
• Income: Your income should support the proposed cover. Insurers may use income multiples to assess financial eligibility.
• Health: Medical tests and health disclosures may be required, particularly for high-value cover.
• Occupation: Your profession and associated risks may be considered during underwriting.
• Documents: Age, identity, KYC and income proofs may be required.
• Existing cover: Existing life insurance policies can be considered when assessing the total eligible cover.
• Financial profile: Loans, assets, liabilities and the purpose of the proposed cover may be reviewed.

For a Rs. 25 crore cover, eligibility is therefore not based on age alone. The insurer assesses whether the proposed sum assured is justified by your income, financial responsibilities and overall risk profile. Requirements can differ significantly between insurers.

A Rs. 25 crore term insurance plan can provide substantial financial protection when income, liabilities, business commitments and family responsibilities require a high sum assured. Before choosing the cover, assess your financial needs, policy term, premium payment option, payout structure, riders and underwriting requirements.

If Rs. 25 crore aligns with your protection needs and financial profile, compare suitable term insurance options and get a quote based on your requirements.