It is only natural for you to want to ensure adequate financial support for your family in the case of any future mishap. A 10 Lakh term insurance is a term insurance policy that offers a assured sum of Rs. 10 lakh in the event of the death of the life insured during the policy term. Such a policy is a pure risk plan that is meant to protect your family financially in your absence, however there is no maturity benefit if you outlive the policy term. The primary benefit of a Rs. 10 Lakh term insurance policy is that it is very affordable even though the life cover offered is quite low.
This plan is helpful for those who have limited means and are the sole breadwinners of their family. The pay-out from a 10 lakh term policy can help your dependents manage their expenses to some extent in case the event of loss of income occurring due to the death of the family’s breadwinner....Read More
Written by
Kriti Arora
Insurance Writer
Kriti is a content marketing and branding expert with more than 13 years of rich experience across BFSI and Telecom industries. She is currently leading Digital Creative Strategy for Axis Max Life Insurance.
Reviewed by
Vaibhav Kumar
Insurance Expert
With over 15 years in life insurance, Vaibhav is a recognized products and digital leader for driving innovation at Axis Max Life. He's played a pivotal role in developing new business lines and implementing successful D2C strategies.
The major reasons why you should consider buying a term plan of Rs. 10 lakh include the following:
The above mentioned benefits are just a snapshot of what makes a 10 Lakh term insurance plan a desirable choice for financial security as well as tax savings for many individuals.
The working of a 10 Lakh term insurance policy is similar to term plans with higher sum assured such as Rs. 3 crore term plan and Rs. 5 crore term plan. Initially, at the time of policy buying, you choose the amount of life cover, the policy tenure (e.g., 20 or 30 years), the premium payment term and calculate the premium payable.
Second, you pay due premiums whether monthly, quarterly, bi-annually or annually over the selected premium payment term, to continue the policy for the applicable policy tenure.
Last but not least, in case of the life insured’s death during the policy term, the insurer will pay the nominee the amount assured of Rs. 10 Lakh as death benefit subject to applicable terms and conditions. However, this type of policy does not have any maturity benefits if the life insured outlives the policy term, the policy terminates without any payment being made.
High life coverat affordable premiums
Death Claims Paid Ratio99.70%^
Worldwide Claims
Coverage against64 critical illnesses@
Below are some of the key benefits of a term plan offering Rs.10 lakh sum assured that one needs to keep in mind:
The short list of benefits mentioned above show how a term insurance plan of 10 Lakh can be a smart and effective way to secure your family's financial future.
Below are some of the key factors that one should consider when choosing a suitable 10 lakh term insurance policy to purchase:
A 10 Lakh term insurance policy is an inexpensive means of securing your family's financial future. Young couples with liabilities that are expected to increase in the future, such as, bringing up children and paying off home loan, can choose to opt for this affordable option.
Moreover, those with outstanding debt can utilise the payout from such a policy to ensure that their family members are not saddled with unpaid debts if the policyholder passes away unexpectedly. Additionally, even with the relatively small sum assured offered by these plans, the payout from such a plan would provide replacement for any income lost due to death of the life insured.
Due to its affordability, this plan is beneficial to anyone who wishes to secure the financial future of their loved ones without adversely impacting their finances.
Below is a comparison of the key features of a Rs.10 Lakh term insurance plan vs other popular life insurance schemes:
| Feature | 10 Lakh Term Insurance | Whole Life Insurance | Endowment Insurance |
|---|---|---|---|
| Coverage Amount | Rs. 10 Lakh | Differs according to plan chosen | Differs according to the plan chosen |
| Premium Amount | Very Affordable | Relatively High | Higher than comparable term plans |
| Duration | Fixed term (usually extends up to 85 years of age) | Lifetime i.e. up to age of 100 years | Fixed term |
| Death Benefit | Lump sum payout | Lump sum payout + savings | Lump sum payout + savings |
| Tax Benefits | Section 80C benefit on opting for the old tax regime | Section 80C benefit on opting for the old tax regime | Section 80C benefit on opting for the old tax regime |
While a 10 Lakh term insurance policy might offer a very affordable way to secure your family’s future finances, the downside of such a plan is the relatively low payout on offer. In view of the current inflationary trend a higher sum assured such as 1 crore or higher would definitely offer superior protection for your loved ones.
ARN NO: PCP/10LTIP/060525
1)*On payment of additional premium
2)**On payment of additional premium. Upon policyholder's selection of Return of Premium variant, this product shall be a Non-Linked & Non participating Individual Life Insurance Saving Plan
3)#Applicable riders available on the payment of Additional Premium are Axis Max Life Critical Illness & Disability Rider | Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN 104b033V02 and Axis Max Life Waiver of Premium Plus Rider | A Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider | UIN 104B029V05
4)##Available at an additional premium for policies with Policy Term greater than 30 years & premium payment term greater than 21 years. Option to skip paying premium for 12 months, 2 premium breaks will be available during the Premium Payment Terms separated by interval of at least 10 years.
“Subodh Mishra helped me a lot in getting the money. He personally collected the documents and helped me at every step. I am extremely thankful to him and I would like to buy another Axis Max lIfe policy in future”
Subodh Mishra
“I already have a policy and buying this was a nice experience. This is according to my requirement. Completely satisfied with details shared by customer care executive before purchasing the policy.”
Gaurang Kumar Pawar
“I visited Amritsar branch after the demise of my son. My family was not left with a single penny and it was getting impossible to make the ends meet. Vinay Sharma gave me the right direction and helped me at every step to receive the claim amount and gave a source of income to my family. I thank him and bless him from the bottom of my heart.”
Vinay Sharma
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