- High coverage at a low premium
- Financial protection for your family’s future
- Tax benefits up to Rs. 46,000`` under Section 80C and 10(10D)
- Dedicated claim assistance
- Customisable plans to suit your needs
-
People’s trust in Bajaj
-
10 million+
Customers
-
3
Insurance partners
In summary
Key takeaways
- Offers a sum assured of Rs. 5 crore during the policy term.
- Suitable for individuals with higher financial responsibilities and long-term financial goals.
- Premiums depend on factors such as age, health, occupation, lifestyle, and policy tenure.
- Most plans offer flexible premium payment and payout options, along with optional riders.
- Eligible premiums may qualify for tax benefits under applicable income tax laws, subject to prevailing tax laws and your individual circumstances.
A Rs. 5 crore term insurance plan can help provide financial protection for your loved ones by offering a high sum assured during the policy term. It may be suitable for individuals with significant financial responsibilities and long-term financial goals.
What is a 5 crore term insurance plan?
Long Term Profit Plan Secrets
A 5 crore term insurance plan is a life insurance policy that pays Rs. 5 crore to your nominee if you pass away during the policy term. The payout helps your family manage financial commitments and maintain their standard of living.
This level of cover is generally suitable if you have significant financial responsibilities, such as large loans, dependent family members, or long-term financial goals.
Unlike savings-oriented insurance products, a standard term insurance plan primarily focuses on providing financial protection. There is typically no maturity benefit if you outlive the policy term. But you can get a refund of your premiums paid using the return on premium option in term insurance.
Why should you buy a Rs. 5 crore term insurance policy?
Secure Your Family’s Future
Key reasons to consider this cover
| Benefit | How it helps |
|---|---|
| Income replacement | Helps your family continue their existing lifestyle |
| Loan protection | Assists in repaying home or business loans |
| Future planning | Supports children's education and marriage expenses |
| Inflation support | Helps address rising living costs over time |
| Tax benefits | Premiums and payouts may qualify for applicable tax benefits |
| Financial security | Reduces the financial burden on your dependents |
A higher life cover can be particularly valuable if your financial responsibilities are expected to increase over the coming years.
As your financial commitments grow, your life cover may need to grow too. Check your premium estimate to see whether a Rs. 5 crore cover aligns with your protection needs. Get quote!
How does a Rs. 5 crore term insurance plan work?
A 5 crore term insurance plan works like a standard term insurance policy but provides a significantly higher sum assured.
You pay premiums for the chosen policy term. If you pass away during this period, your nominee receives the agreed Rs. 5 crore death cover.
The payout can help your family:
- Meet day-to-day living expenses
- Repay outstanding loans
- Fund children's education
- Manage future financial obligations
- Maintain their standard of living
If you survive the policy term, there is generally no maturity benefit unless you have selected a return-of-premium variant.
What are the key benefits of a 5 crore term insurance plan?
Key benefits
| Benefit | Details |
|---|---|
| High life cover | Provides Rs. 5 crore financial protection for your nominee. |
| Affordable premiums | Premiums can be comparatively economical, especially when purchased at a younger age. |
| Rider options | Depending on the insurer, you may enhance protection with riders such as critical illness cover or accidental death cover. |
| Flexible payout choices | Nominees may receive benefits as a lump sum, regular income, or a combination, depending on available options. |
| Premium payment flexibility | Choose from single, limited, or regular premium payment options. |
| Legacy planning | Helps create financial security for future generations. |
| Tax advantages | Eligible tax benefits may apply as per prevailing tax laws. |
| Online purchase | Compare plans and purchase policies digitally with convenience. |
A comprehensive term insurance plan can also allow you to focus on building wealth through other investments while ensuring your family's financial protection remains in place.
Comparing coverage options can help you decide whether Rs. 5 crore is the right sum assured. Explore coverage options based on your financial goals and responsibilities. Get quote!
Who should buy a 5 crore term insurance plan?
You may consider a Rs. 5 crore cover if you are:
| Profile | Why it may be suitable |
|---|---|
| Young professionals | Buying early can help you secure lower premiums and longer policy tenure. |
| Individuals with large loans | Helps protect your family from repaying home, business, or other significant liabilities. |
| Parents | Supports future expenses such as children's higher education and marriage. |
| Primary earning members | Replaces lost income and helps maintain your family's lifestyle. |
| High-net-worth individuals (HNIs) | Assists with estate planning and preserving your family's financial well-being. |
Choosing an appropriate life cover depends on your income, liabilities, and long-term goals rather than your age alone.
If your financial responsibilities have increased over time, assess your coverage needs to determine whether a Rs. 5 crore sum assured is appropriate.
Who can buy a 5 crore term insurance plan?
Eligibility criteria:
| Eligibility parameter | Typical requirement | Why it matters |
|---|---|---|
| Age | Usually 18 to 65 years (varies by insurer) | Determines policy eligibility and premium. |
| Income proof | Mandatory for high-value cover | Justifies the need for a Rs. 5 crore sum assured. |
| Medical examination | Usually required | Helps insurers assess your health profile. |
| Occupation and lifestyle | Evaluated during underwriting | High-risk occupations or habits like smoking may affect premiums or eligibility. |
Eligibility requirements differ across insurers, so always review the policy terms before applying.
What affects the premium of a Rs. 5 crore term insurance policy?
Factors affecting premiums
| Factor | Impact on premium |
|---|---|
| Age | Younger applicants generally pay lower premiums because of lower mortality risk. |
| Health condition | Good health and the absence of pre-existing illnesses may result in lower premiums. |
| Policy term | Longer policy terms may increase the overall premium while extending protection. |
| Riders | Optional benefits such as critical illness cover or accidental death cover increase the premium. |
For example, the premium for a Rs. 5 crore term insurance policy for a 30-year-old non-smoker may start from Rs. 8,000 to Rs. 10,000 per year, depending on the insurer.
Comparing premium estimates across policy options can help you balance affordability with the level of protection you need. Get quote!
How do you calculate the right term insurance coverage?
Follow these steps:
- Estimate your annual income requirement: Multiply your annual income by 15 to 20 to estimate the base amount of life cover your family may require.
- Add outstanding liabilities: Include home loans, vehicle loans, business loans, education loans, and any other outstanding financial obligations.
- Calculate future financial goals: Estimate the funds needed for your children's education, marriage, your spouse's retirement, and other planned milestones.
- Deduct existing assets: Subtract investments, savings, fixed deposits, and existing life insurance policies that would support your family's finances.
- Consider inflation: Factor in the rising cost of living so your family's purchasing power remains protected over the coming decades.
A comprehensive assessment helps ensure your life cover is sufficient without being excessive.
Your insurance needs may change as your income and responsibilities grow. Get a quote to explore coverage options aligned with your financial goals.
What are the tax benefits on a 5 crore term insurance plan?
Tax benefits at a glance:
| Applicable provision | Benefit | Condition |
|---|---|---|
| Section 123 of the Income Tax Act, 2025 | Premium deduction up to Rs. 1.5 lakh per financial year | Applicable from 1 April 2026. Replaces Section 80C of the Income Tax Act, 1961. Premiums qualify for tax benefits only if you opted for the old tax regime. Premium tax benefits are not available under the new tax regime. |
| Section 11 of the Income Tax Act, 2025 | Death and maturity benefits | Applicable from 1 April 2025. Replaces Section 10(10D) of the Income Tax Act, 1961. Death and maturity benefits may qualify under both the old and new tax regimes, subject to applicable provisions. |
| Eligible riders | Additional tax benefits | Premiums paid for eligible riders may qualify for applicable deductions, subject to prevailing tax laws. |
Note: Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors.
How do you file a claim for a 5 crore term insurance plan?
Claim settlement process:
- Inform the insurer: Notify the insurer by submitting a claim intimation along with the required details.
- Submit the documents: Provide the policy document, death certificate, nominee identity proof, and any additional documents requested by the insurer.
- Claim verification: The insurer verifies the submitted information and supporting documents before processing the claim.
- Benefit payout: Once the claim is approved, the insurer releases the policy benefits to the nominee according to the policy terms.
Review your nominee details periodically to help avoid delays during claim settlement.
Conclusion
A 5 crore term insurance plan can provide substantial financial protection for families with significant financial responsibilities. It helps safeguard your loved ones against income loss while supporting long-term commitments such as loan repayment, education expenses, and future financial goals.
Before choosing a policy, evaluate your income, liabilities, and future obligations to determine whether a Rs. 5 crore cover matches your protection needs. Comparing policy features, premium options, and available benefits can help you make a well-informed decision.
Explore more and stay informed
Frequently asked questions
Frequently asked questions
What are the benefits of choosing a term plan with high coverage?
A high-coverage term plan like Rs. 5 crore ensures robust financial security for your family, covering significant expenses such as education, loans, and future goals. It also offers peace of mind, cost-effective premiums, and options for customisation through riders.
Who can apply for a Rs. 5 crore term insurance plan in India?
Individuals aged 18–65, with sufficient income to justify the high coverage, are eligible. A medical examination and income proof are typically required, while factors like occupation and lifestyle may influence eligibility.
What determines the premium for a Rs. 5 crore term insurance policy?
Premiums depend on factors such as age, health condition, policy tenure, and lifestyle habits. Younger, healthier individuals pay lower premiums. Additional riders, like critical illness cover, also impact the premium amount.
What tax benefits come with a Rs. 5 crore term insurance plan?
Premiums qualify for deductions under Section 80C (up to Rs. 1.5 lakh), and payouts are tax-free under Section 10(10D). Premiums for health-related riders can be deducted under Section 80D, providing extra tax savings.
How can nominees claim the Rs. 5 crore sum assured?
Nominees must notify the insurer, submit necessary documents (e.g., death certificate and ID proof), and complete the claim form. Once verified, the insurer disburses the sum assured promptly, ensuring a smooth process.
Is it possible for NRIs to purchase a Rs. 5 crore term insurance policy in India?
Yes, NRIs can buy a 5 crore term insurance plan from Indian insurers. They may need to complete medical tests and documentation either in India or abroad, based on the insurer’s process.
What if I miss paying the premium for my Rs. 5 crore term plan?
If you miss a premium, most insurers offer a grace period (15–30 days). If the payment isn’t made within this window, the policy may lapse, and your coverage will be temporarily or permanently discontinued.
Can I enhance my Rs. 5 crore term insurance coverage in the future?
Some insurers allow increasing your coverage through top-up options or life-stage benefits. However, it may require fresh underwriting or medical checks. Check with your insurer for flexibility in upgrading your plan.
