Life
General
Quick Services
Resources
En
Digit Glow Term Life Insurance
I agree to the Terms & Conditions
Written By
Fathima Tabasum
Fathima Tabasum
Senior Marketing Associate
Fathima defines Digit's voice in life insurance with her strong command of language. Her creative, clear writing and research skills simplify complex concepts and build trust and engagement.
Reviewed By
Ashok Manwani
Ashok Manwani
Vice President - Products
Ashok is an insurance professional with extensive experience in product development and management. In his role at Digit, he focuses on creating innovative life insurance solutions tailored to meet diverse customer needs.
Why You Need a 4 Crore Term Insurance Plan in India?
A term insurance plan for ₹4 Crore has become a popular choice among individuals looking to secure their family's financial future with a substantial safety net. In the event of the policyholder's untimely demise during the policy term, this plan ensures that the loved ones receive a lump sum amount of ₹4 Crore, offering them much-needed financial stability.
But is a ₹4 crore term plan right for you? How does it work? What factors should you consider before buying? This detailed guide will answer all your questions in simple, easy-to-understand language.
Quick Summary
AI Generated
- Suitable for individuals earning ₹25 - 30 lakhs annually, based on the 12 - 15x income rule for high-income protection.
- If applying between ages 30 and 40, insurers may limit coverage to 20 - 25x the annual income.
- Covers extensive financial responsibilities, including premium education, advanced healthcare with add-ons, lifestyle continuity, and large-scale liabilities.
- Require strict financial underwriting and income proof; salaried buyers may need Form-16 or ITR for the past 3 years.
- Smart riders like permanent disability or income benefit rider can convert the lump sum into steady payouts, ideal for families with EMI or schooling expenses.
Table of Contents
What is a 4 Crore Term Insurance?
A ₹4 Crore Term Insurance plan is a type of life insurance policy where the insurer promises to pay your nominee a lump sum of ₹4 crore if you, the policyholder, pass away during the policy term. It is a pure protection plan, meaning it offers no maturity or survival benefits; its sole purpose is to provide financial security to your family in case of your untimely death.
Since term insurance is a no-frills product, the premiums are quite affordable, making it one of the most cost-effective ways to secure a large cover. For instance, a healthy 30-year-old non-smoker can get a ₹4 crore cover for as low as ₹1,500 - ₹2,000 per month. You can also enhance the policy by adding riders like critical illness, accidental death, or waiver of premium benefits.
Why You Might Need a ₹4 Crore Term Insurance Plan
You might be wondering, “Why 4 crore? Isn’t that a huge amount?” Well, it depends on your lifestyle, financial goals, and family’s needs. Here’s why a 4 crore term insurance plan could be the right fit for you:
Takes Care of Liabilities and Debts
Having a Term Plan in your financial bucket means that in case of any unforeseen circumstance, when you are no longer with your family, the Term Plan will help them repay all debts and liabilities. It ensures they do not have to deal with any debts you might leave behind. With a Term Plan, you can ensure a debt-free legacy for your family.
Future Financial Goals
Education for children, their marriages, or your spouse's retirement planning are long-term goals that require substantial funds. A well-chosen term plan ensures that these aspirations aren't derailed due to unforeseen circumstances.
Covers Rising Costs of Living
India’s cost of living is increasing every year, especially in cities like Mumbai, Delhi, and Bengaluru. A ₹4 crore sum assured can help your family maintain their lifestyle, pay for daily expenses, and cover big-ticket costs like education or housing loans without financial strain.
Replaces Your Income
If you’re the primary breadwinner, your family depends on your income. A 4 crore term plan can act as a financial safety net, replacing your income for years to come. For example, if you earn ₹30 lakh per year, a 4 crore payout could cover 20 years of your income, giving your family time to adjust.
High Coverage at Affordable Premiums
One of the most attractive features of term insurance is that it offers a high sum assured at relatively affordable premium rates compared to other life insurance products. This affordability makes it accessible for individuals who want to provide substantial financial protection without breaking the bank.
Premium Payment Flexibility
Many insurers offer various premium payment options, allowing you to choose what suits your financial situation best. You can opt for regular payments, limited pay (paying premiums for a shorter period than the policy term), or even a single lump sum payment.
Additional Benefits with Riders
You can add riders or additional benefits, such as critical illness cover or accidental death benefits, for enhanced protection.
Inflation
The cost of living and education rise over time. A higher sum assured, like ₹4 crores, accounts for future inflation, ensuring that the payout retains its purchasing power when your family needs it most.
For Non-Resident Indians (NRIs)
Term insurance is especially vital for NRIs who support their families back in India. A ₹4 crore plan can be an ideal solution, offering comprehensive coverage that transcends geographical boundaries and provides a robust financial safety net for dependents in their home country.
Tax Benefits
Premiums paid towards term insurance plans are eligible for tax deductions under Section 80C of the Income Tax Act in India. The death benefits the nominee receives are tax-free under Section 10(10D).
Illustration of 4 Crore Term Insurance
Let us take the Example of Mr Rajesh.
Rajesh, a 30-year-old, purchases a term life insurance plan with a sum assured of ₹4 crores and a policy tenure of 35 years. He diligently pays his premiums, and his wife is the nominee for this policy.
Understand the Scenarios of 4 Crore Term Insurance
Death During the Policy Term
Outliving the Policy Term
If Rajesh outlives the policy and it’s a pure term plan (without return of premium), no payout is made. The premiums paid solely covered the insurance protection throughout the policy duration.
Is a 4 Crore Term Insurance Plan Enough for You?
Selecting an appropriate term insurance amount is crucial. While ₹4 crores offers robust protection, its relevance depends on your family's financial needs and future goals.
Begin by assessing your household’s annual expenses, like daily living, education, and any debts. Then, estimate how long your family would need financial support, such as until children become financially independent or loans are repaid. Multiply the yearly expenses by the support duration to get a coverage baseline.
Online tools like Digit’s term insurance calculator can help tailor estimates based on your age and income. A general rule suggests coverage of about 15 times your annual income. For instance, if you earn ₹30 lakhs annually, a ₹4 crore plan (15 x 30 Lakhs) aligns well with this guideline.
Why You Shouldn’t Wait to Buy Term Insurance?
Here’s a concise 4‑point breakdown of the video:
1. Lock in Low Premiums Early: Buying term life insurance in your 20s or early in your career secures much lower premium rates, which remain fixed over the policy term.
2. Guarantee Term Conversion Options: Many term policies offer conversion to permanent insurance later, providing flexibility as your financial needs evolve.
3. Fixed Coverage Meets Essential Needs: A term policy locks in coverage for 20–30 years, ensuring protection for dependents during critical income-earning years.
4. Buying Now Beats Waiting: Delaying can mean higher costs or health changes that increase premiums or disqualify you, so early purchase is a smart financial decision.
Who Should Buy a Term Insurance Policy?
Any individual with financial dependents, such as a spouse, parents, retirees with liabilities, or business people with financial liabilities, must invest in a term insurance plan.
High-Income Professionals
If your annual income is ₹25–30 lakhs or more, you likely need higher coverage to match your financial profile. This helps protect your family’s lifestyle, assets, and future goals. Tailored plans ensure you're covered for life’s bigger responsibilities.
Individuals Juggling Debts
Individuals with large liabilities, such as home or education loans exceeding ₹1-2 crore, should consider a ₹4 crore term plan. It ensures debts are fully covered in case of untimely death, protecting family members from financial strain and preserving assets like property or education investments.
Business Owners
Running a business often involves credit and liabilities. A ₹4 crore term plan can help settle outstanding debts if something happens to you, shielding your family from financial stress during an emotionally difficult time.
Senior Investors
Those nearing retirement, with major life goals already achieved, can opt for a ₹4 crore cover to protect their spouse and dependents. It can also help fund remaining milestones like children’s weddings or medical needs.
NRIs
Non-Resident Indians (NRIs) who have financial dependents in India, such as aging parents, spouses, or children, should strongly consider a ₹4 crore term insurance plan. This coverage ensures that in the event of their untimely demise, their loved ones in India are financially protected and can maintain their lifestyle without disruption.
Young Parents
Young parents must buy a term plan of at least ₹4 crore to secure their child's future. This will ensure that your child's education and other needs do not go for a toss if you are not there with them.
Legacy Builders
High-net-worth individuals and professionals seeking to preserve wealth across generations can use a ₹4 crore term plan to maintain family assets, support long-term goals, and leave behind a strong financial legacy.
Primary Breadwinners
If your family depends entirely on your income, this plan ensures they can maintain their lifestyle and pay off debts if something happens to you.
Why Choose Digit?
- Transparency Policy Wording - No hidden clauses. No jargon. Just clear terms and real coverage. What you see in your policy is exactly what you get, so there’s no second-guessing when it counts.
- Quick Online Processes - From policy purchase to claim filing, everything happens online; no paperwork, no running around. You get a smooth, fast process backed by human support when you need it.
- Worldwide Claim Support - Your family can still claim online if something happens to you outside India, without running around with fast claim process and support across time zones. T&C*.
- Eligible for NRIs of Indian Origin - NRIs of Indian origin can buy a plan while in India and manage it from anywhere. Premiums can be paid through NRE/NRO accounts, and coverage remains valid globally.
Complimentary Wellness Benefits for Digit Life Customers
With your Digit Life Insurance, you also get exclusive access to a wide range of wellness perks, making taking care of yourself easier and more affordable:
Unlimited 24×7 Teleconsultations with General Physicians
Get expert medical advice anytime, anywhere.
Mental Health Consultation & Services
Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!
Diagnostic Tests & Health Check-Ups
Specialist Teleconsultations
Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!
Women's Health Care Programs
Pregnancy Care Programs, access to Mum Support Group, PCOS/PCOD Care Programs, Maternity Support and much more!
Physiotherapy Sessions
Stress and Pain relief covered with exclusive discounts on Physiotherapy consultation and session bookings.
Dental Consultation Offers
Avail unlimited, free dental consultations and exclusive discounts on dental treatments.
Sexual Wellness
Chronic Care Support Programs
Personalized assistance for long-term health conditions.
Eligibility Criteria for a 4 Crore Term Insurance
Documents Required to Buy a Term Life Insurance Policy
When buying a term life insurance policy, you must provide several important documents. Here's a list of the key documents typically required:
Identity Proof
Age Proof
Address Proof
Income Proof
Photographs
Medical Reports
How to Buy Digit Term Insurance Policy Online?
The five easy steps to buy term life insurance plans are as follows:
Visit Digit Website/App
Visit the official Digit Life Insurance website or app and compare the types of life insurance policy options.
Enter Details
Fill in your personal information, share your lifestyle habits, date of birth, annual income, and mobile number.
Coverage & Payment
Now it’s time to choose your ideal coverage, premium payment methods, and any additional benefits you want!
Payment & KYC
Complete your payment, and then finish the KYC process and fill in your nominee details.
Access Documents
Congratulations! Your policy documents will be sent to your email and WhatsApp. You can also access it 24/7 on the Digit App.
Things to Consider When Choosing a 4 Crore Term Insurance Plan
Selecting a ₹4 crore term insurance plan is a major financial decision. To ensure it meets your needs and offers reliable protection, consider the following essential factors:
Claim Settlement Ratio (CSR)
The CSR reflects the percentage of claims an insurer settles annually. A consistently high CSR (above 95%) indicates the insurer’s reliability and commitment to honoring claims. Check the latest IRDAI report to compare insurers.
Coverage Amount Suitability
Ensure ₹4 crore is the right coverage for your financial responsibilities. Consider your income, liabilities (like loans), dependents, and future goals. Use online calculators to estimate the ideal sum assured.
Policy Tenure
Choose a term that covers your earning years and major financial obligations, like children’s education or loan repayments. Some plans offer coverage up to age 99, while others are limited to 30–40 years.
Premium Affordability
A high cover like ₹4 crore can come with significant premiums. Ensure the plan fits your budget long-term to avoid policy lapse. Compare quotes across insurers for the best value.
Read More
Understanding Term Insurance Premium Calculation
The premium for a ₹4 crore term insurance plan is not a fixed amount; it depends on several individual factors:
- Age: Younger individuals generally pay lower premiums because they are considered less risky. As you age, the premiums tend to increase.
- Health and Medical History: A healthy individual with no pre-existing conditions will typically pay lower premiums. If you have any medical issues or a family history of certain diseases, premiums might be higher.
- Lifestyle Habits: Smoking, excessive alcohol consumption, or engaging in hazardous occupations can lead to higher premiums due to increased risk.
- Policy Tenure: A longer policy term might result in slightly higher overall premiums, as the risk coverage extends for a longer period.
- Riders Chosen: Adding riders to your policy will increase the premium amount, as they provide additional benefits.
- Gender: In some cases, premiums might vary based on gender, with women often paying slightly lower rates due to higher life expectancy.
Common Reasons for 4 Crore Term Insurance Plan Rejection
Certain factors might lead to rejection when applying for a term insurance plan. Knowing these can help you prepare and address any issues before applying.
- Suicide: Most insurance policies include a suicide clause, stating that if the policyholder commits suicide within the first one or two years, the claim won’t be paid. If the insurer suspects the application is an attempt to exploit this, they might reject it.
- Self-Inflicted Injuries: Policies often exclude coverage for death due to self-inflicted injuries. If there's evidence that the applicant has a history of self-harm or attempted suicide, the insurer may deny coverage.
- Criminal Activities: Death resulting from criminal activities is usually not covered. If you have a criminal record, insurers may reject your application to reduce their risk.
Read More
How to Download Term Insurance Policy Document With Digit App?
Need a copy of your term life insurance policy document? You can download it easily through the Digit App by following these simple steps:
Login Your Account
Visit the Digit website or app and click on ‘Login’ at the top-right corner. Enter your registered mobile number and verify with OTP.
Visit ‘Active Policies’
Once logged in, navigate to the Active/My Policies section. Here, you can check the policy number, end date & start date.
Download the Policy
Done! You can save, share, print or email the policy for future reference anytime, anywhere.
How to File Term Insurance Claim with Digit?
Filing a Claim for your Digit Term Insurance can feel overwhelming during challenging times, but understanding the step-by-step process can help ensure ones receive the financial support one needs promptly and efficiently:
Inform Digit Immediately
Notify us about the occurrence of the claim event as soon as possible. You can do this by contacting via helpline at 1800-296-2626 or emailing lifeclaims@godigit.com.
Submit Required Documents
Provide necessary documents such as death certificate, policy document, valid ID proof of the nominee and claim form duly filled and signed.
Receive Claim Acknowledgment
After submitting the documents, you will receive an auto-generated ticket number for your claim.
Claim Settlement
Digit will verify the documents and assess the claim. Once the claim is approved, you will receive updates via SMS, email, or through the app, and the company will process the payout to the beneficiary's account.
99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY 2024-25
When life takes an unexpected turn, every second matters. With a 99.53% Claim Settlement Ratio (CSR), Digit Life Insurance stands as a pillar of trust and reliability. This isn’t just a statistic; it’s a promise to our policyholders.
Every claim tells a story. Whether it was a salaried parent overcoming loss, a child’s future hanging in the balance, or a spouse seeking stability, we acted fast to bring peace of mind to grieving families.
That’s why we are committed to settling genuine claims swiftly, transparently, and with compassion, ensuring that your loved ones receive the support they need when it matters most.
₹2.88 Billion Worth Claims Paid in FY 2024-25
At Digit, we don’t just talk about protecting families; we actually do it. In the last financial year, we paid ₹2.88 billion to families who lost a loved one. That’s a big jump from ₹351.52 million a few years ago, showing how much we have grown and how seriously we take our promise.
Every payout represents a family supported, a future safeguarded, and a promise fulfilled. We make sure claims are settled quickly and clearly, with zero confusion, so families don’t have to worry during tough times.
15,000+ Claims Settled in FY 2024-25
Solvency Ratio for Digit's Life Insurance in FY 2024-25 is 3.85
At Digit, being financially strong isn’t just a goal; it’s how we earn your trust. Our solvency ratio has grown from 2.07 to 3.85, which means we are more than ready to keep every promise we make.
This number shows we have more than enough funds to pay claims and support families, even in tough times. In fact, our ratio is nearly double the required limit, giving you extra peace of mind.
Because when you choose life insurance, you are not just buying protection; you are trusting us with your family’s future. And we take that seriously.
Disclaimer: This report offers an overview of Digit Life Insurance’s performance, highlighting the growth in premiums, solvency ratio, and claims settlement metrics (CSR, claims paid, and claims settled), based on the company’s FY 2024-25 internal data. The information is intended for general awareness only and should not be considered financial advice. Past performance may not reflect future outcomes.
Why a 4 Crore Term Insurance is a Smart Investment?
In a world filled with uncertainties, a 4 crore term insurance plan serves as a vital safety net for your family. With inflation projected at 5-6% annually, the value of ₹4 crore today will diminish over the next 20 years. Having a high coverage amount ensures that your family's financial needs are met, even as costs continue to rise.
The risks of road accidents, health issues, and other unforeseen events are very real; for instance, in 2023, India recorded an average of 474 road accident deaths per day, underscoring the importance of protection. A payout of 4 crores would provide your family with the financial freedom to manage expenses, whether it's paying bills, funding education, or investing for the future, without the burden of financial stress.
What Happens if You Survive the Policy Tenure?
A key characteristic of a pure term insurance plan is that if you outlive the policy tenure, the life coverage ends, and you do not receive any benefits. The premiums you paid covered the cost of insuring your life for that specific period.
However, some term plans come with a "Return of Premium (ROP)" option. If you opt for a Term Plan with Return of Premium and survive the policy tenure, you will receive all the premiums paid back at maturity.
While this sounds appealing, ROP plans generally have higher premiums than pure term plans, as they offer this additional benefit. It's crucial to weigh the cost difference against the benefit of receiving premiums back.
Top Alternatives to a ₹4 Crore Term Insurance Plan
If ₹4 crore coverage feels excessive or out of budget, here are smart alternatives that still offer strong protection:
₹2-3 Crore Term Plan
If ₹4 crore feels excessive or unaffordable, scaling down to ₹2 - 3 crore can still offer robust protection. With more budget-friendly while still covering major liabilities like home loans or education expenses.
Example: A 30-year-old non-smoker might pay ₹18,000-₹25,000 annually for ₹2 crore term insurance coverage, compared to ₹35,000-₹45,000 for ₹4 crore.
Multiple Policies
Another strategic approach is to diversify your coverage with multiple policies. For instance, taking out one ₹2 crore term plan from one insurer and supplementing it with an additional ₹2 crore term plan from another insurer. This can often result in lower premiums compared to a single large policy. Also if one insurer rejects the other may approve keeping you safe.
Term Plan + Health Insurance
Combining a term plan with health insurance offers a comprehensive safety net for you and your family. While term plans focus on life insurance, health insurance provides essential coverage for medical expenses, ensuring that you are financially protected in case of health issues alongside life's unforeseen events. This combination means that in addition to having life cover, your family won't face financial strain due to health-related costs during your lifetime.
You can explore this bundled protection through the Digit Term & Health Combo Plan, which simplifies coverage and offers dual benefits under a single policy.
Tax Benefits for 4 Crore Term Insurance Policies
Section 80C: Premium Payments
- Deduction Limit: Under Section 80C, the premium paid for a term insurance policy is eligible for a tax deduction, subject to a maximum limit of 1.5 lakh INR per financial year.
- Eligibility: To qualify, the premium must not exceed 10% of the sum assured if the policy is issued on or after April 1, 2012. The premium should not exceed 20% of the sum assured for policies issued before this date.
- Applicability: This deduction is applicable to individuals and Hindu Undivided Families (HUFs).
Section 10(10D): Maturity Benefits
- Tax Exemption: Any sum received under a term insurance policy, including the death benefit, is fully exempt from tax under Section 10(10D).
- Conditions: This exemption is applicable only if the premium paid does not exceed 10% of the sum assured for policies issued on or after April 1, 2012. The premium should not exceed 20% of the sum assured for policies issued before this date.
- TDS: If the policy does not meet the criteria mentioned above, a 5% tax deduction at source (TDS) will be applicable on the payout if it exceeds 1 lakh INR in a financial year.
Section 80D: Health Riders
- Deduction for Health Riders: If the term insurance policy includes health-related riders such as critical illness or accidental death benefit riders, the premium paid towards these riders is eligible for a tax deduction under Section 80D.
- Deduction Limit: The deduction limit under Section 80D is up to 25,000 INR for individuals under 60 and 50,000 INR for senior citizens. This limit is in addition to the limit under Section 80C.
Explore Essential Term Life Insurance Tips
A 4 crore term insurance plan is more than just a policy - it’s a promise to your family that they will be okay, no matter what. With affordable premiums, flexible features, and tax benefits, it’s one of the smartest financial decisions you can make. Whether you are a young professional, a parent, or a business owner, this plan offers the peace of mind you deserve.
Don’t wait for the “right time” to buy term insurance. Premiums only get higher as you age, and life’s uncertainties don’t wait. Compare plans online, choose a trusted insurer, and take the first step toward securing your family’s future today.
FAQs about 4 Crore Term Insurance Plan
What factors affect the premium for a 4 crore term insurance plan?
Can I add critical illness cover to a 4 crore term plan?
Is the 4 crore death benefit tax-free under Indian law?
What is the return of premium option in a 4 crore term plan?
How does the claim settlement ratio impact a 4 crore term plan?
Can I increase the 4 crore coverage during the policy term?
Yes, some plans allow coverage enhancement at life stages like marriage or childbirth. For a 4 crore plan, this may require additional premiums and medical checks, depending on the insurer’s terms.
What payout options are available for a 4 crore term plan?
You can choose lump sum, monthly income, or a combination. For a 4 crore plan, monthly payouts can provide regular income upto ₹2-3 lakh for 10-15 years, In a combination payout option the nominee receives part of the sum assured as a lump sum immediately (example ₹2 crore) after the policyholder’s death, and the remaining amount is paid as a monthly income over a fixed period (₹1-2 lakh per month for 10-15 years, from the remaining ₹2 crore) helping nominees manage finances effectively.
How does smoking impact premiums for a 4 crore term plan?
What is the terminal illness benefit in a 4 crore term plan?
The terminal illness benefit in a ₹4 crore term insurance plan allows the policyholder to receive a portion, or sometimes the full sum assured, if diagnosed with a terminal illness that is deemed incurable and likely to result in death within six months
Can I buy a 4 crore term plan online easily?
Yes, buying a ₹4 crore term insurance plan online is simple and convenient. You can compare plans, calculate premiums, customise coverage, and complete the application digitally. Online platforms offer transparency, quick processing, and often lower premiums, making it an efficient way to secure high-value life insurance.
What is the grace period and revival process for a ₹4 crore term plan?
Most insurers offer a 30-day grace period on annual modes (15 days on monthly/quarterly) to pay missed premiums without losing coverage. If you miss this window, the policy lapses. Revival is typically allowed within two years of lapse: you must submit a revival form, pay all overdue premiums with interest, and may need to furnish a fresh health declaration or undergo medical tests.
How can I update or change beneficiary details in my ₹4 crore term policy?
What are common policy exclusions in a ₹4 crore term insurance plan?
Can I assign or mortgage my ₹4 crore term plan to secure a loan?
Yes, under Section 38 of the Insurance Act, you can assign the policy’s ownership or beneficial interest to a bank or financier as collateral. You must inform the insurer in writing, and the assignee’s details will be recorded on the policy. In case of claim, proceeds first settle any outstanding loan and the balance goes to your nominee. Assignment is irrevocable unless consented by the assignee.
Are there options to increase my sum assured annually in a ₹4 crore term plan?
Many insurers offer an “Increasing Sum Assured Rider” or Automatic Cover Enhancement Benefit, which boosts your sum assured by a fixed percentage (typically 5–10%) each year to offset inflation and growing liabilities. Premiums rise correspondingly. You can also apply for a separate top-up cover at key milestones (marriage, childbirth), subject to underwriting and medical checks.
How are suicide cases handled under a ₹4 crore term insurance plan?
If the policyholder commits suicide within 12 months of policy inception (or revival), the insurer typically pays only 80%–100% of premiums paid, not the full sum assured. After 12 months, the full death benefit is payable upon suicide. Exact terms vary by insurer, so review the suicide exclusion clause carefully to understand when full coverage begins.
Can I convert my ₹4 crore term plan into a permanent life insurance policy?
Other Important Articles Related to Term Insurance
Latest News
Read More
Renew & Download Policy Document, Check Challan, Credit Score, PUC & more
Anytime, Anywhere. Only on Digit App!
Rated App
Rated App
Scan to Download
