5 Crore Term Insurance: Young Entrepreneurs Need to Consider!

Life insurance plans are one of the surest ways to secure the future of your loved ones. Young entrepreneurs have dreams to fulfill, and when they succeed, they raise the standards of the household, thus introducing a much higher need for financial stability.

If you are a young entrepreneur, you need to consider the various ways to protect the financial well-being of your family with a safe and sure insurance plan. Term insurance may be that plan.

What is term insurance?

Life insurance policies are available in many forms, and term insurance is one of the most popular variants. The affordability of these plans, with high sum assured and varying tenure options, appeals to young and old entrepreneurs alike.

A term insurance plan is a financial contract in which the insurer promises to pay a death benefit to your beneficiaries in the event of your demise during the policy tenure. You can choose the sum assured based on your and your family’s financial needs. You can choose as low as 75 lakhs term insurance to high amounts of 5 crore term insurance plans to protect your beneficiaries’ future.

Term insurance, unlike most forms of traditional life insurance plans, is available to you for 10-99 years and for very affordable premium rates. You can save money on term insurance tax benefits as well. It is the ideal policy for young entrepreneurs.

What is good coverage for a young entrepreneur’s family?

The coverage for your family or loved ones should suffice to pay for their necessities, goals, and additional emergency expenses. If you are a young entrepreneur building your net worth, then chances are that your household expenses are quite high. On the other hand, if you are a young entrepreneur with an unsteady income, it is likely that you have debts that need to be repaid.

In the event of your demise, consider the financial load that your loved ones will have to bear. They may have the following expenses to think about:

1. Business loans
2. Personal loans
3. Car or house loans
4. Car insurance, home insurance, health insurance, and more.
5. Mortgages
6. Regular household expenses such as livelihood, utilities, etc.
7. Life goals such as children’s education, weddings, and more.
8. Dependents and their related expenses
9. Emergency funds for accidents and other emergencies.

In some cases, grief counselling may also play a role as losing someone they love could be extremely painful. With all the above-mentioned expenses in mind, you need to consider how much coverage would suffice to take care of them.

A 75 lakhs term insurance may be enough to deal with minor expenses, debts, etc. However, estimating the inflation rate, may not suffice to efficiently pay for their expenses. Although the premium for 75 lakhs term insurance may seem very low and affordable, thus making it desirable, you need to consider the value of the INR in the coming years.

A 5 crore term insurance, on the other hand, can be extremely helpful as the settlement amount is huge. It can help cover the expenses mentioned above and still have some leftovers for your beneficiaries. They can use the money to plan their future finances more effectively by opting for higher education, market investments, etc. This would help them grow their wealth after overcoming major financial hurdles.

Why 5 crore term insurance is necessary for young entrepreneurs?

Term insurance is one of the most affordable forms of life insurance policy. Young entrepreneurs building their fortune find it to be a reasonable solution to their life insurance needs.

A 5 crore term insurance plan offers humongous financial benefits to the beneficiaries of the policyholder. If you are a young entrepreneur with a high income or massive debt, the settlement from a 5 crore term insurance can be very helpful to deal with household expenses and future life goals of your loved ones.

Similarly, if you are a young, struggling entrepreneur, handling a household as well as building a business can be financially stressful. This could result in debts and liabilities, even if not in the present but in the future. In the event of your untimely demise, the burden of it all will fall on your beneficiaries. Even if they want to help support the entrepreneurial venture you built and carry on your dream, they require massive funding.

A 5 crore term insurance is the ideal solution to dealing with these financial stresses. The premium for term insurance, be it as low as 75 lakhs term insurance or as high as 5 crore term insurance, is still reasonable and will accumulate over the years. You can opt for term insurance with a return of premium as opposed to the traditional policy. If you survive the policy tenure, you may receive the maturity benefit, which is a lump sum amount of money. You can utilise it as a savings fund to grow your finances, invest, or pull yourself out of financial stress.