09 Best 5 Crore Term Insurance Plans in India to invest in 2022

The primary reason for anyone to buy a term insurance policy is the high benefit amount paid to the nominee, in case of policyholder encounters death or any other unfortunate events such as accident, critical illness, disability, etc. This is very helpful in cases where the policyholder is the sole earning member of the family, as the lump sum amount received from the insurer will supplement the income in their absence.

Rahul Sharma, a 35-year-old, garments dealer lives as a joint family in their ancestral home in Surat. Being the eldest son, he takes responsibility for finances for the entire family that consists of his wife, two kids, his parents, and his three brothers, who also live in the same house with their partners. With a total of 15 members in the household, Rahul was looking for the proper protection plan when his auditor suggested he buy a 5 crore term insurance plan that shall cover the needs of everyone in the family after he passes away. After calculating the family’s current expenses and considering the future requirements about kids’ education, loans, long-term investments, etc., Rahul felt it was the right policy that fits in his budget with an affordable yearly premium. So, without wasting more time, he immediately bought the term plan with a sum assured of 5 crores to secure him and the family.

Why choose 5 Crore Term Insurance?

When a family loses the primary earning member, they lose the monthly income and have to figure out a way to manage their debts and loans. If you had taken insurance for a lower value, your family must bear the financial strain due to making ends meet. Keeping in mind the rising inflation, many people are eager to buy term plans above one crore as they are not available with affordable premiums and provide a comprehensive cover.

While deciding to buy a term insurance policy, it is essential to consider all the expenses related to your current lifestyle. Similarly, have a clear idea of the goals of each family member and the timeline required to achieve them while being aware of the future market conditions to arrive at the most realistic sum assured. Finally, note that this amount should be sufficient to handle your liabilities, debts, loans, etc. Therefore, if your net worth is above one crore, getting a 5 crore term insurance plan makes a lot of sense.

List of 09 Best 5 Crore Term Insurance Plans in India for 2022

1. LIC Tech Term Plan
2. HDFC Click2Protect Plus Term Plan
3. Max Life Smart Secure Plus Plan
4. Tata AIA Maha Raksha Supreme Term Plan
5. Canara HSBC OBC iSelect Star Term Plan
6. PNB MetLife Mera Term Plan Plus
7. Kotak e-Term Plan
8. Aditya Birla Sun Life Insurance Life Shield Plan
9. India First Online Term Plan

Let’s read some useful information about term insurance plans that offer a sum assured of 1 crore and above, which you can consider if you are looking to buy a 5 crore term insurance plan: 

Benefits of 5 Crore Term Insurance Plans

Who would not want to create a better future for their family, especially after passing away? While buying term insurance for five crores, you are offering financial freedom to live their lives fully. There are few other benefits of purchasing these plans, which are:

• Affordable Premiums: The monthly premium for a 5 crore term insurance plan typically costs between Rs.2500 – 3500, which is very reasonable for a middle-class individual looking for a term plan with high assured. However, any other type of insurance policy for the same value will cost more than double.
• Customization Options: You can choose from a wide variety of plan options under a single policy as per your requirements. Many term plans offer income options, premium waivers, increasing sum assured accident benefit, disability, and critical illness covers, helping you to create the most inclusive protection.
• Simple to Understand: Unlike other insurance plans, a term insurance plan is the simplest and easy to understand. While the concept of insurance is often misunderstood by many due to multiple types of policies, term life insurance sticks to the basics by offering death benefits in case of the policyholder’s demise during the policy term. As a result, they don’t have any complex calculations or jargons to remember.
• Assets Protection: Do you fear losing your assets? Then a term plan with a 5 crore sum assured is your right choice, as the benefit amount will be sufficient to clear all of your loans and debts and still providing your family members with a sizeable corpus for fulfilling their day-to-day expenses.
• Rider Choices: A lot is being talked about; the term plan benefits after your demise, but even while you are alive, these plans can safeguard you against illnesses, disability, and accidents. Riders are extra add-ons that you can attach to the existing policy for a slightly additional premium that protects you from typical uncertainties of life. Some of the most popular riders are Critical illness rider, Accident benefit rider, Waiver of premium rider, etc.

The most exclusive benefit of a term insurance policy can be experienced only when the correct coverage value or sum assured is chosen appropriately. With online policies catching up nowadays, it has become even easier to select the best policy by doing your research, listening to experts, checking reviews, and finally making a decision. You may also consult your spouse in this process, as this involves planning for your family’s future.