₹5 Crore Term Insurance Plan 

Your family’s standard of living and essential living expenses like school fees, healthcare costs, and long-term goals may not be sustainable on a compromised household income if you are no longer around.  

India's inflation rate usually hovers between 2% to 6%. Let's assume an average of 5% annual inflation. What you can buy for ₹1 crore today will cost nearly ₹2.08 crore in 15 years. A ₹5 crore term cover accounts for this loss of value. In case of the policyholder’s death, the nominee receives a corpus that remains genuinely meaningful even two decades from now. 

A home loan in a metro city costs about ₹1.5 crore. You may also have a business loan or a car loan. All considered, high-income earners may carry ₹2 to ₹4 crore in combined liabilities. A ₹5 crore cover absorbs all of it and still leaves a substantial corpus for the family’s ongoing needs. 

At ₹20 LPA, ₹5 crore replaces your income for roughly 25 years at current purchasing power. That is the financial runway a high-income family genuinely needs. Smaller covers replace only a fraction of what your family actually spends at this income level. 

Because term insurance carries no investment component, the premium for ₹5 crore of cover is significantly lower than most people expect, particularly for young, healthy buyers. The level term insurance structure keeps pricing clean and predictable for the full policy term. 

Premiums paid qualify for a deduction under Section 80C (as per IT Act,1961) / 123(as per IT Act,2025) of the Income Tax Act, 1961/2025, up to ₹1.5 lakh per year under the old tax regime. The death benefit received by the nominee is generally exempt from tax under Section 10(10D) (as per IT Act,1961) / 11(1) [schedule-II[table: Sl.No.2]](as per IT Act,2025) of the Income Tax Act, 1961/2025. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor and take independent tax advice for eligibility and before claiming any benefit under the policy. 

Claim Settlement Ratio (CSR) is one of the factors that shows the reliability and trustworthiness of the insurer for paying your family’s claim. You can check a company’s CSR in the Insurance Regulatory and Development Authority of India’s (IRDAI) annual report. 

Compare premiums for your specific profile: age, health, occupation. Do not compare generic brochure figures. Use each insurer’s calculator with identical inputs.

Shortlist plans that offer riders relevant to your situation. At a coverage of ₹5 crore, an accidental death benefit rider can add meaningful protection at a nominal cost. 

Not every family is equipped to manage a large lump sum wisely. A combination insurance payout option, with an immediate lump sum for debts and a monthly income for living costs, can be a more practical choice for most households. 

Plans with flexible benefits add long-term value. Bandhan Life’s iTerm Elite includes features like a Special Exit Value^@ (return of premiums if you choose to exit after a defined period) 

Some plans allow you to increase or decrease your life cover. For instance, the ‘Adapt Assure⁵’ feature with Bandhan Life iTerm Elite gives you the option to increase or decrease the sum assured twice during the premium payment term.   

A high claim settlement ratio^ is necessary but not sufficient. Also, verify the insurer’s solvency ratio (IRDAI mandates a minimum of 150%), financial backing, and track record of claim processing speed. 

Look for reviews that specifically address claim experience, not just purchase ease. The moment of claim is when an insurer’s promise is tested. 

Every year of delay permanently raises your premium for the same cover.

A low premium from an insurer with a poor claim record is a big risk, and it may cost you in other ways later.

Non-disclosure is the most common reason for claim rejection. 

A 15-year policy taken at 40 leaves your family unprotected through their most financially demanding years.

An accidental death benefit` and a waiver of premium on disability cost relatively little but can matter enormously. 

A new home loan, a second child, or a business expansion can all increase your coverage requirement significantly.

An incorrect or outdated nominee detail can delay or complicate a claim at the worst possible time.