75 Lakh Term Insurance Plan

A Rs. 75 lakh term insurance plan offers a balance of affordability and sufficient financial protection for your family. It ensures that your loved ones can sustain their lifestyle, achieve future goals, and cover liabilities in your absence. With rising costs of living, such a plan acts as a reliable financial shield, especially for those with moderate to high financial responsibilities. This term insurance plan is suitable for individuals seeking comprehensive coverage without the burden of excessive premiums. In this article, explore the features, benefits, premium details, tax advantages, and claim settlement process for a Rs. 75 lakh term insurance plan.

A 75 lakh term insurance plan is a pure protection life insurance policy that offers your loved ones a financial payout of Rs. 75 lakh if something happens to you during the policy term. It’s designed to offer peace of mind by ensuring your family can manage expenses like EMIs, children’s education, or lifestyle needs in your absence. Whether you’re a salaried professional, a self-employed individual, or the sole earner, this plan can offer substantial support without going overboard on the premium.

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How does a Rs 75 lakh term policy work?

A 75 lakh term insurance plan is straightforward — you pay regular premiums for a chosen term (say 20–40 years). If you pass away during this term, the insurer pays Rs. 75 lakh to your nominee. There's no payout if you survive the policy term, as it's not an investment plan but a pure risk cover. However, some variants offer return of premium or added riders like critical illness or accidental death for wider protection.

A Rs. 75 lakh term insurance plan provides significant coverage, similar to other life insurance plans, secure your family’s future, ensuring financial stability during challenging times.

Key features and benefits:

• High sum assured: Provides adequate coverage to meet future expenses such as higher education, weddings, or loan repayments.
• Affordable premiums: Offers high coverage at reasonable premiums, making it accessible for a wide range of income groups.
• Customisation options: Riders such as critical illness, accidental death, or waiver of premium enhance the protection level.
• Peace of mind: Ensures that your family’s financial needs are met even in your absence.
• Flexible tenure: Choose a policy term that aligns with your financial goals and responsibilities.

Here are the top reasons why choosing a 75 lakh term insurance plan makes sense:

• Affordable premiums: You can get large coverage for a low monthly cost, especially if you start young.

• Family security: The payout helps your family maintain their lifestyle, pay debts, or achieve life goals.

• Tax benefits: Premiums are eligible for deduction under Section 80C, and payouts are usually tax-free under Section 10(10D).

• Customisable add-ons: Add riders like critical illness or waiver of premium to enhance your plan.

• Peace of mind: Knowing your loved ones are protected financially, even if you're not around, is truly priceless.

Who should buy a 75 lakhs term insurance plan?

75 Lakh Term Insurance Plans are ideal for:

• Young professionals with growing responsibilities who want early financial protection.

• New parents planning long-term security for their child’s education and care.

• Salaried individuals with EMIs, loans, or dependents relying on their income.

• First-time insurance buyers who want decent coverage with budget-friendly premiums.
   

How to buy a 75 lakh term insurance?

Buying a 75 lakh term insurance policy is easier than ever today:

• Compare plans online from top insurers.

• Use a premium calculator to estimate your monthly/annual payments.

• Fill out basic details like age, income, and health status.

• Choose add-ons like critical illness, accidental cover, or return of premium.

• Pay securely online and get instant policy issuance in many cases.

Opting for a Rs. 75 lakh term insurance plan is a strategic choice to provide your family with adequate financial protection. It balances affordability with substantial coverage.

Reasons to choose:

• Sufficient financial security: Covers immediate and long-term expenses, ensuring your loved ones are financially secure.
• Ideal for moderate liabilities: Suited for individuals with loans, mortgages, or dependents requiring sustained financial support.
• Budget-friendly: Offers high coverage without burdening your finances, making it suitable for a variety of income levels.
• Tax-efficient: Helps save taxes while safeguarding your family’s future.
• Future-proof planning: Prepares your family for inflation and unforeseen expenses.

The premium for a Rs. 75 lakh term insurance plan depends on factors such as age, health, policy tenure, and lifestyle. Younger applicants generally enjoy lower premiums.

Factors influencing premiums:

• Age: Younger individuals pay lower premiums as the risk of mortality is lower.
• Health status: Good health results in lower premiums, while pre-existing conditions may increase costs.
• Policy term: Longer tenures slightly increase premiums but ensure extended coverage.
• Lifestyle habits: Smokers or individuals with high-risk lifestyles typically pay higher premiums.
• Additional riders: Adding riders like critical illness or accidental death covers will increase the premium amount.

For example, a 30-year-old non-smoker might pay around Rs. 5,000 – Rs. 7,000 annually for a Rs. 75 lakh term insurance plan.

Apart from providing financial security, a Rs. 75 lakh term insurance plan offers attractive tax benefits under Indian tax laws.

Tax advantages:

• Premium deductions: Premiums paid qualify for deductions under Section 80C of the Income Tax Act, up to Rs. 1.5 lakh annually.
• Tax-free payouts: The death cover received by the nominee is exempt from taxes under Section 10(10D).
• Health-related rider benefits: Premiums for health riders such as critical illness cover are deductible under Section 80D.
• No tax on maturity: If conditions under the Income Tax Act are met, the maturity amount (for specific plans) is tax-free.

Ensuring a smooth claim settlement process is crucial to providing timely financial support to your family. Insurers typically have a streamlined process to assist nominees.

Steps to settle a claim:

• Inform the insurer: Notify the insurance company about the claim by submitting the claim intimation form.
• Submit documents: Provide essential documents like the death certificate, policy details, and nominee’s ID proof.
• Verification: The insurer verifies the claim and reviews the submitted documents for accuracy.
• Approval and payout: Once the claim is approved, the insurer disburses the sum assured to the nominee within the stipulated time.
• Track the process: Many insurers provide online tracking to monitor claim status, ensuring transparency.

A Rs. 75 lakh term insurance plan offers a well-rounded financial safeguard for your loved ones. With its affordable premiums, tax benefits, and flexible options, it is a practical choice for individuals seeking reliable coverage. By understanding its features, benefits, and claim process, you can make an informed decision to secure your family’s financial future.

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