What is the Best Term Insurance Plan for ₹5 Crore in India?
A ₹5 crore term insurance plan is for anyone whose financial responsibilities have grown beyond the basic ₹1–2 crore coverage. As living costs rise and liabilities increase, many families find that a higher cover is essential to ensure proper long-term security. This guide breaks down everything, from eligibility to the best plans, to help you find the right ₹5 crore term insurance policy.
How Does a ₹5 Crore Term Insurance Work?
A ₹5 crore term plan works like any other term policy:
- You pay regular premiums.
- Your nominee receives ₹5 crore if you pass away during the policy term.
- The cover remains consistent and is payable as a lump sum, a monthly income, or a combination of both, depending on the chosen payout option.
However, due to the high coverage, insurers thoroughly assess:
- Income eligibility
- Medical fitness
- Education and occupation
- Lifestyle habits (smoking, drinking, risky hobbies)
Despite the higher sum assured, premiums are still reasonable for young, healthy individuals. However, keep in mind that some insurers may require approval from their reinsurer to provide you with a large sum assured. In our experience, we have witnessed this approval process pan out for sum assured amounts more than ₹5 crores.
What is the Best Term Insurance Plan for ₹5 Crore in India (Ditto’s Cut)
Disclaimer: These recommendations are based on Ditto’s six-point product evaluation framework (product quality, claims experience, underwriting transparency, flexibility, affordability, and operational reliability) and our three-point insurer assessment (financial strength, claims track record, and service reliability).
These criteria help ensure that the plans recommended here strike the right balance between protection, claims confidence, and long-term service quality.
Premiums of the Best Term Insurance Plans for ₹5 Crore in India
Note: The annual premiums below are for 30-, 40-, and 50-year-old male non-smoker profiles. The sum assured is ₹5 crore, the policy term is till age 70, and no riders have been added. These represent premiums from the second year onwards, without any first-year discounts.
Insight: Premiums for a ₹5 crore plan rise steadily with age. 30-year-olds enjoy significantly lower rates, while costs increase sharply after 40 due to higher risk.
Among the top insurers, BALIC eTouch II offers the most affordable premiums across age groups, while others remain competitive with only moderate variations. Choosing early can help lock in substantial long-term savings.
Premiums for Different Sum Assured Amounts
Note: The premiums below are for a 30-year-old male non-smoker , with coverage up to age 70 and no riders added. These values represent second-year onward premiums, without any discounts, for the ₹1 crore, ₹2.5 crore, and ₹5 crore sum assured options.
Insight: Premiums don’t rise in proportion to higher coverage. Moving from ₹1 crore to ₹5 crore increases premiums by roughly 3.5–4.5×, making larger covers far more cost-efficient.
BALIC eTouch II consistently offers the most affordable pricing across all sums assured, while other top insurers remain competitive with only moderate differences. Upgrading from ₹1 crore to ₹2.5 crore or ₹5 crore often provides significantly better value per rupee of coverage.
Who Should Buy a ₹5 Crore Term Insurance Plan?
A ₹5 crore plan is ideal for:
- Individuals earning ₹20lakh+ annually
- People with large home loans or business loans
- Families with multiple dependents (Children/parents)
- Parents planning foreign education for their children
- Business owners, NRIs, and CXOs with a lavish lifestyle
- High-net-worth individuals looking to avoid forced liquidation of assets.
In short, it suits anyone with significant financial responsibilities and long-term wealth protection needs.
Factors to Consider Before Buying the Best Term Insurance Plan for ₹5 Crore
- Your Annual Income: Ensure your income justifies the cover; insurers usually only provide a cover that’s 20x-30x your annual income.
- Existing Liabilities: Home loans, business loans, and future borrowings should shape your coverage choice.
- Lifestyle & Future Expenses: Factor in higher education, healthcare, and long-term financial obligations. Use a cover calculator for a precise assessment.
- Medical History & Habits: Smoking, pre-existing conditions, or family history impact premiums and approval.
- Insurer Reliability Metrics: Review CSR, Solvency Ratio, Complaint Volume, Settlement Amount Ratio, and Business Volumes before selecting a plan.
- Premium Factors: Age, gender, term length, riders, and health profile affect pricing.
Note: For high-value covers like ₹5 crore, it’s generally wiser to stick to larger insurers, such as those doing annual business of ₹10,000 crore or more. These insurers will not find a ₹5 crore policy a significant underwriting risk. These companies generally have stronger processes, better solvency, and more experience handling large-sum policies.
Eligibility Criteria for a ₹5 Crore Term Plan
Before buying a ₹5 crore cover, insurers assess your financial stability, education level, and medical health. Here's what you need to know:
- Education & Work Profile: Insurers generally prefer applicants who are graduates or above for high-value term covers. Individuals who have completed Class 12 are also eligible, but they may need to meet a higher income threshold, and the maximum cover available to them might be slightly limited based on the insurer’s underwriting rules.
- Age Range: Most insurers accept applicants aged 18 to 60 or 65 (rare).
- Income Requirement: A ₹5 crore cover generally requires an annual income of ₹20 lakh or more.
- Medical Fitness: Mandatory medical tests, such as TMT, 2D Echo, chest X-ray, ECG, etc., are required to assess risk for high-value policies. The insurer bears the cost for organising these.
Documents Required to Purchase a ₹5 Crore Term Insurance Plan
- Income Proof: Salary slips, Form 16, ITRs, & bank statements (Last 3-6 months).
- Identity & Address Proof: Aadhaar, PAN, passport, driving licence, voter ID, or utility bills.
- Age Proof: PAN card, birth certificate, passport, etc.
- Medical Reports: CBC, HbA1c, lipid profile, TMT, chest X-ray, abdominal ultrasound, and past medical records.
Why Choose Ditto for Term Insurance?
At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Vijay below love us:
- No-Spam & No Salesmen
- Rated 4.9/5 on Google Reviews by 15,000+ happy customers
- Backed by Zerodha
- Dedicated Claim Support Team
- 100% Free Consultation
Confused about the right term insurance? Speak to Ditto’s certified advisors for free, unbiased guidance. Book your call now, slots fill up fast!
Conclusion
Having walked through the best term insurance plan for ₹5 crore in India, it’s equally important to recognise that a cover this large can be excessive for some financial profiles.
While it is a smart and affordable financial choice for individuals with high incomes, significant liabilities, and long-term family responsibilities, keep in mind that policy issuance for such high covers may take longer, usually 2 to 4 weeks, as insurers carefully review paperwork, medical reports, and your overall profile.
The right insurer, riders, and coverage amount make all the difference, and Ditto’s advisors can help you choose wisely.
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