Affordable 50 Lakh Term Insurance Plans: How to Use Premium Calculators Effectively
Pune, 26th February 2025: As the name implies, a ₹50 lakh term insurance offers substantial life coverage with a sum assured of ₹50 lakhs. Upon your unfortunate demise during the policy tenure, your family members can obtain the payout to cover daily expenses, child education, etc. Moreover, it assists them in maintaining their lifestyle and also tackles financial obligations. So, if you are considering purchasing, a 50 lakh term insurance plan premium calculator can help you accurately determine the premium, helping you make informed decisions.
Benefits of Investing in an Affordable 50 Lakh Term Insurance Plan
Let’s explore the key advantages of investing in an affordable 50 Lakh term insurance plan:
Extensive Coverage
The comprehensive coverage of a ₹50 lakh term insurance helps you cover diverse expenses like children’s education, daily expenses, outstanding debts, etc. So you can ensure significant financial coverage for your family member in your absence. If you need higher protection, options like life insurance for 1 crore are available.
Affordable Premiums
The reasonable premium makes it a budget-friendly option for acquiring considerable coverage for your family. It ensures financial protection without straining your budget.
Flexible Payment & Payout Options
The plan provides flexibility in premium payment options. You can select monthly, quarterly, semi-annual, or annual premium payments at your convenience.
Note that the plan also provides flexibility in payout options. Various payout options for the sum assured include lump-sum payments and staggered payouts. These options help your dependents manage their funds according to their financial needs.
Supports Customisation
One of the enticing benefits of these plans is they support customisation options that allow you to alter the plan as per your requirements. You can select additional riders to maximise the plan’s benefits. If you’re unsure about premium affordability, use a term insurance premium calculator to see how adding or removing riders affects the final premium amount. A list of common riders includes critical illness benefits, accidental death benefits, or premium waivers.
Guide to Using a Term Insurance Plan Premium Calculator
The key steps involved in using this calculator are described below:
- Firstly, you must enter your personal information, such as age, gender, marital status, annual income, number of kids/dependents and smoking habits.
- You must then enter the anticipated sum assured and particular tenure and select the payment mode.
- Finally, the calculator will compute the premium amount based on the details entered. Compare and select the right plan that meets your financial requirements and expectations.
Factors Affecting The Premium of 50 Lakh Term Insurance Plans
Some of the major factors affecting the premium of 50 lakh term insurance plans are discussed here:
- Age: You will pay lower premiums if you are young and healthy. Hence, it is recommended that you buy this plan at a young age.
- Gender: Some insurers charge lower premiums for females than males. So, gender does affect the premium.
- Medical History: When buying this policy, you must submit information regarding your medical history. If your family has a previous record of critical illness, diabetes, or cancer, then the premium amount will be higher.
- Policy Duration: A longer policy duration generally increases premiums but ensures extended financial protection.
- Payment Term: Choosing a limited payment term involves paying more premiums in a shorter time. On the other hand, making payments over the whole policy period yields lower individual premiums but a higher total cost over time.
- Lifestyle Habits: If you have poor lifestyle habits, such as smoking, alcohol consumption, tobacco consumption, etc., you will be charged a higher premium.
Conclusion
If you aim to protect your family in your absence financially, you can consider purchasing a ₹50 lakh term insurance. Having such a term plan in place, you get considerable coverage that helps your family maintain living standards and fulfil their aspirations in your absence. With the help of a term insurance plan premium calculator, it becomes easy to know the premium amount based on various factors, including policy tenure, sum assured, age, lifestyle habits, and financial situation.
