What Is a ₹ 50 Lakh Term Insurance Plan?

A ₹ 50-lakh term insurance plan refers to a life insurance policy with a sum assured of ₹ 50 lakh. The plan offers pure financial protection in the unfortunate event of the policyholder's demise during the policy term. The sum of ₹ 50 lakh is provided to the beneficiary which allows them to carry on with their lives with adequate financial protection.

A ₹ 50-lakh term plan can be a suitable amount to help most families cover their essential needs as well as settle any outstanding debts of the policyholder.

Reasons to Buy a ₹ 50 Lakh Term Insurance Plan?

Below are some reasons to purchase a ₹ 50-lakh term insurance plan:
  • Financial Protection:A ₹ 50-lakh term plan offers assured financial protection to your loved ones to ensure they can cover their financial needs and live comfortably in your absence. A life cover` of ₹ 50 lakh ensures that your family is adequately protected and can maintain their standard of living. The money can suffice to cover a number of things, such as outstanding loans, higher education expenses and daily living costs.

  • Affordable Premium:Term insurance plans are a cost-effective way to secure your family financially. A ₹ 50-lakh term plan offers a relatively affordable premium. This can be an ideal way to plan for the future without jeopardising your present financial needs.

  • Customisable Coverage:Term insurance plans can be tailored to meet your needs. You can select the policy term, coverage and premium payment frequency and add additional features like riders. This flexibility ensures the plan caters to your distinct needs at every step of life.

  • Income Replacement:A life cover` of ₹ 50 lakh can be suitable to replace the breadwinner's income in case of an unfortunate event. It can cover a family's day-to-day needs, such as groceries, fuel, utilities and more. It can help families carry on the same standard of living as before without compromising on their essential daily requirements.

  • Debt Settlement:The responsibility to payoff the ongoing loan falls on the members of a family in the absence of the breadwinner. A ₹ 50-lakh term insurance plan can be useful to settle outstanding debts. The plan can provide enough financial liquidity to a family to settle overdue debts and ensure they are not burdened with financial strain.

  • Peace of Mind:A ₹ 50-lakh term insurance plan offers peace of mind, knowing your family will always have a financial security net to fall back on. It can serve as a reminder that you have done the needful to fortify their financial future against all eventualities. This can lower your financial stress and anxiety and help you live a peaceful life.

  • Tax Benefits:Apart from the life cover`, a ₹ 50-lakh term insurance plan also offers tax* benefits. You can claim a deduction of up to ₹ 1.5 lakh for the premiums paid toward your term insurance policy, subject to conditions prescribed under Section 80C* of the Income Tax Act, 1961. Moreover, the ₹ 50 lakh insurance payout given to the nominee is also exempted subject to conditions prescribed under Section 10(10D)* of the Income Tax Act, 1961.

How Does Term Insurance for ₹ 50 Lakhs Work?

Like all term plans, for a ₹ 50-lakh term insurance, you have to pay a regular premium to the insurance provider. Upon purchasing the plan, you select a specific policy term and a premium payment frequency, such as monthly or annually.

The term insurance plan also offers the option to add riders to your base plan to enhance your coverage as per your requirements.

In case of an unfortunate demise of the insured during the policy term, the beneficiary can raise a claim. The nominee receives the payout depending on the payout option selected during the policy purchase.

Who Should Buy a ₹ 50 Lakh Term Insurance Plan?

A ₹ 50-lakh term insurance plan can be considered by a wide range of individuals across various demographics. Below are some categories that can benefit from this plan:

Age group

The plan is ideal for individuals for everyone regardless of their age. The need for financial protection remains crucial at every stage of life.


The plan is suitable for self-employed people, business owners and salaried individuals. The plan offers flexible premium payment terms to suit all income and professional groups.


The plan is suitable for both men and women who wish to secure the financial interests of their loved ones.

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` Life cover is the benefit payable on the death of the Life Assured during the policy term.

* Tax benefits are subject to conditions prescribed under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.

ICICI Pru iProtect Smart UIN (A Non-Linked Non-Par Life Individual pure risk premium product)


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