Digit Glow Term Life Insurance

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Written By

Fathima Tabasum

Reviewed By

Ashok Manwani

₹75 Lakh Term Insurance Plan Online in India

Term insurance is crucial in financially securing your loved ones when planning for the future. A ₹75 lakh term insurance plan is one of the most sought-after coverages for individuals aiming to provide substantial financial support in case of an untimely demise.

This article explains everything you need to know about term insurance for ₹75 lakhs in simple terms, covering its benefits, eligibility, premium costs, types, and why it could be the right choice for you.

75 Lakh Term Insurance Plan Overview

Here’s a table summarising the key aspects of a 75 lakh term insurance policy:

Feature	Description
Sum Assured	₹75 Lakhs
Purpose	Provides financial security to the family in case of the policyholder’s demise
Eligibility	The average annual income of ₹5 lakhs or more per year.
Premium	Lower premiums due to the lower sum assured
Riders/Add-ons	Options like critical illness, accidental death, waiver of premium, etc.
Premium Payment Options	Monthly, quarterly, half-yearly, or annual
Tax Benefits	Premiums paid are eligible for tax deductions under Section 80C of the IT Act

What is a 75 Lakh Term Insurance Plan?

Term insurance is a pure life protection plan that provides financial coverage for a specific period or "term" of your life. Term insurance offers a straightforward approach: if the policyholder passes away during the policy term, the nominee receives the entire sum assured.

For a 75 lakh term insurance plan, your family will receive ₹75,00,000 in the event of an unfortunate circumstance. However, it does not offer maturity benefits if the policyholder survives the term, making it one of the most affordable options for high coverage.

How Does a ₹75 Lakh Term Insurance Plan Work?

Term Insurance Plan is the essential component of any healthy financial portfolio. More than an investment option, it is a financial tool that secures your family's financial future and provides you with much-needed mental peace. A term insurance plan with a sum assured of 75 lakhs works as follows:

Coverage Amount

The plan provides a sum assured of 75 lakhs, which is the amount your beneficiaries will receive in the event of your death during the policy term.

Policy Term

This is the duration for which the insurance is active. Depending on the plan, it can vary from 5 to 30 years or more.

Premiums

You pay regular premiums (monthly, quarterly, semi-annually, or annually) to keep the policy active. The premium amount is based on age, health, and policy terms.

Death Benefit

If the policyholder passes away during the policy term, the nominee receives the sum assured of 75 lakhs.

Maturity Benefit

Term insurance plans do not offer maturity benefits. If the policyholder survives the policy term, there is no payout.

Rider Benefits

Some plans offer additional riders, such as accidental death benefits or critical illness coverage, for an extra premium.

Tax Benefits

Premiums paid for term insurance can qualify for tax deductions under Section 80C of the Income Tax Act, and the death benefit is tax-free under Section 10(10D).

Illustration of 75 Lakh Term Insurance

Mr Arun, a 40-year-old software developer, decided to secure his family's future. He purchased term insurance that would provide a sum of ₹75 lakhs if something happened to him. He has been committed to paying a premium of ₹19,000 annually for 20 years.

He set up an auto-debit system to ensure he never missed a payment. The premium was deducted from his bank account each year, and he received a confirmation from the insurance company.

Scenarios of 75 Lakh Term Insurance

Scenario 1

Scenario 2

Unexpected Event

If Mr Arun passes away during the policy term, the insurance company quickly processes the claim, and within a few weeks, ₹75 lakhs are transferred to Mr Arun’s family. With the ₹75 lakhs, Mr Arun’s family manages their finances comfortably. They pay off debts, ensure their children's education, and secure their future.

On Survival

If Mr. Arun had survived the entire policy term, he would have simply stopped paying premiums after 20 years, and the insurance policy would have expired without any payouts.

Disclaimer: The above illustration is a hypothetical example created for educational purposes only and does not represent a real-life scenario.

Is a 75 Lakh Term Insurance Plan Sufficient for You?

At first, having a life insurance cover of ₹75 lakh might seem like a lot. Let's look at two scenarios - one where a ₹75 lakh term insurance plan is enough and another where it isn't.

Scenarios Where ₹75 Lakh Term Insurance Is Enough and Where It Falls Short

Scenario 1

Scenario 2

75 Lakh Coverage is Sufficient

Arjun is a 30-year-old teacher who lives with his wife, Meera, and their young son. His annual income is ₹10 lakhs. They own a small house with a mortgage of ₹40 lakh, and Arjun has saved some money for emergencies and his son's education.

Arjun buys a ₹75 lakh term insurance plan to protect his family if something happens to him. Given their current situation, this plan provides:

Mortgage Coverage: ₹75 lakh is more than enough to pay off the mortgage, so Meera can keep the house without financial stress.

Education Fund: It covers their son's education expenses until he finishes college.

For Arjun, the ₹75 lakh coverage is sufficient because it meets his family's immediate and future financial needs.

75 Lakh Coverage is not Sufficient

Priya, age 45, is a successful entrepreneur with an annual income of ₹30 lakhs. She owns a large house with a high mortgage ₹65 lakh, has significant investments, and has big plans for her children's higher education and business expansion.

Priya opts for a ₹75 lakh term insurance plan. However, considering her financial situation:

Mortgage Coverage: The ₹75 lakh is enough to fully pay off her mortgage.

Business Continuity: Her business needs additional funds to keep running smoothly and cover potential losses if she is not around.

Education and Future Planning: The amount isn't sufficient to cover her children's higher education and other long-term goals.

Priya needs more than a ₹75 lakh term insurance plan. She requires a higher coverage amount to fully protect her family's financial future and meet all her commitments.

Note: The golden rule for having enough coverage is to “Review Your Term Insurance Every 5 Years” to ensure it covers all your increased liabilities and expenses.

Why Choose a 75 Lakh Term Insurance Plan?

A 75 lakh term insurance plan strikes an optimal balance between wide coverage and affordable premiums. Let's understand why this specific coverage amount is increasingly popular among young professionals and family heads.

Comprehensive Debt Coverage

For any home loans, personal loans, vehicle loans, and educational loans, your ₹75 lakh coverage ensures that all existing family debts can be comfortably settled, preventing financial burden on your loved ones.

Income Replacement Strategy

Modern financial experts recommend a term insurance cover that is 15-20 times your annual income. For professionals earning between ₹5-10 lakhs annually, a 75 lakh term plan provides Immediate financial support, Medium-term living expenses, Children's education funds, and Future lifestyle maintenance.

Inflation-Adjusted Protection

With rising living costs, a 75 lakh term insurance plan offers a buffer against inflation, ensuring your family's financial needs are met even years after your policy initiation.

Benefits of 75 Lakhs Term Plan

A 75 lakh term insurance plan provides substantial financial coverage to the policyholder's beneficiaries during their untimely demise. Here are the benefits:

High Sum Assured

Provides a significant payout of ₹75 lakhs to beneficiaries in case of the policyholder’s death.

Financial Security

Ensures financial stability for family members or dependents by covering essential expenses.

Affordable Premiums

Term plans generally offer higher coverage at relatively lower premiums than other policies.

Tax Benefits

Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.

Customisable Coverage

Policies can often be tailored with riders for additional protection, like accidental death benefits.

Loan Protection

Can cover outstanding loans or debts, preventing a financial burden on the family.

Long-Term Coverage

It covers the entire term, which can be as long as 30-40 years, depending on the policy.

Simplicity

Straightforward and easy to understand, with no investment component, focusing solely on protection.

Who Should Buy a 75 Lakh Term Insurance Plan?

Considering the current lifestyle and inflation, 75 lakh term insurance might not be sufficient coverage. However, it can be useful in certain scenarios for a few people:

Those Looking for Financial Protection on Their Debts

A loan is an essential financial companion in times of need. Be it a lifestyle elevation like buying a new car, moving into a new house, renovation or some life goal like marriage or education, a term insurance policy serves as a reliable shield against unforeseen circumstances.

Pre and Post Retirees

As people approach retirement, most of their liabilities are over home loans, child education, etc. In most cases, they just need to take care of the basic lifestyle and necessities for themselves and their dependents. Thus, a 75 lakh term insurance plan can provide sufficient coverage, alleviating the stress of financial commitments for dependents in the unfortunate demise of the policyholder.

Those Pursuing Higher Education

Pursuing higher education can be costly, given that most higher education courses are highly expensive. It becomes even more difficult for people with dependents, given the liability it brings along. Term Insurance ensures that the dependents don’t have to deal with the financial turmoil of the education loan liability in case of their unfortunate demise.

Those Looking for Charitable Contributions

Individuals with philanthropic inclinations can utilize a 75 lakh term insurance policy to support charitable causes. They can designate the death benefit payout to charitable organizations or causes, ensuring peace of mind that they have done their part for society and made a positive impact.

Those Looking to Supplement their Existing Coverage

You might have a term plan covered by your employer or one from the younger days that now seems insufficient due to added liabilities. In such a case, you can get 75 lakh term insurance. This supplementary coverage offers extra protection for the family's long-term financial well-being. It acts as a prudent measure, addressing unforeseen circumstances that may surpass the existing policy's coverage.

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.

Why Choose DIGIT Life Insurance?

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.

How to Choose the Right Life Coverage for Yourself?

Choosing the right life insurance is essential for securing your financial future and giving you and your loved ones peace of mind. But how much coverage do you need? Let's break it down:

Assess Your Life Goals

Start by thinking about what you want to achieve in life. Are you focused on supporting your family, paying for your children's education, or leaving something behind for your loved ones? Your goals will guide you in deciding how much coverage you need.

Consider Your Financial Liabilities

List your debts, like mortgages, loans, and other financial commitments. Your life insurance should be enough to cover these, so your family won't be burdened if anything happens to you.

Evaluate Your Health and Lifestyle

Your health and habits can affect your insurance costs. For example, if you smoke or have pre-existing health conditions, your premiums might be higher. Being upfront about your health helps you find the right coverage.

Factors to Consider Before Buying a 75 Lakhs Term Insurance Plan

When considering a 75 lakh term insurance plan, it’s crucial to examine several factors to ensure it adequately meets your needs and provides sufficient coverage for your family. Here are the primary aspects to consider:

Financial Assessment

Determine the appropriate coverage by evaluating your personal needs, current liabilities, future expenses, and the amount required to protect your family. Ensure the plan aligns with your financial objectives.

Claim Settlement Ratio

The claim settlement ratio indicates the percentage of claims an insurer has settled in a given year. A higher ratio suggests a greater likelihood of your claim being processed smoothly.

Premium Affordability

Ensure the premium is within your budget. Compare options from different insurers and decide on a payment plan that suits you, whether it's regular payments, a single lump sum, or various frequencies like annual, biannual, quarterly, or monthly.

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.

Eligibility Criteria for ₹75 Lakh Term Insurance

The exact eligibility criteria may vary slightly between different insurance providers. The following table provides a general overview.

Eligibility	Description
Age	Typically, between 18 and 65 years
Income	A minimum income to issue a term plan is above ₹5 lakhs. Your income also affects the maximum sum assured you can obtain.
Occupation	Professionals, salaried individuals, self-employed persons, and housewives. Certain high-risk occupations may be restricted.
Medical History	Insurers may require medical tests to assess health risks before issuing a policy. Your medical history can influence term insurance premiums and the maximum sum assured.
Citizenship	Indian citizen

Documents Required for ₹75 Lakh Term Insurance Plan

To purchase a 75 Lakhs term insurance plan, applicants are required to submit the documents listed below:

Identity & Address Proof

Income Proof

Age Proof

Medical Report

How to Calculate the Premium for a 75 Lakhs Plan?

To calculate the premium for a ₹75 lakh term insurance plan, you need to consider several factors such as the policyholder’s age, health, lifestyle, occupation, and the policy term. Additionally, you might want to explore extra coverage options like critical illness riders or accidental death benefit riders.

For a quick estimate, you can use Digit’s term insurance calculator by entering your age and annual income to get an estimate. This will give you a more accurate idea of the potential premium.

Let’s assume a 75 lakh term insurance plan details for Anita as an example:

Age: 30 years
Health Status: Non-smoker
Policy Term: 15 years
Sum Assured: ₹75 Lakhs
Riders: No additional riders

Common Reasons for 75 Lakhs Term Insurance Plan Rejection

Certain factors can lead to rejecting a 75 Lakh term insurance plan. By understanding these reasons, applicants can better prepare and address potential issues in advance.

Attempting Suicide

Insurance policies typically include a suicide clause, which often states that if the insured commits suicide within a specified period (usually one or two years) from the start date of the policy, the claim will not be paid.

Additionally, if the insurer suspects that the application is an attempt to exploit this clause, they may reject the policy.

Participation in Hazardous Activities

Individuals involved in high-risk activities such as skydiving, scuba diving, motor racing, and other extreme sports are deemed high-risk. Insurers may reject applications or impose higher premiums to account for the increased risk of death.

Self-Inflicted Injuries

Policies generally exclude coverage for deaths resulting from self-inflicted injuries. If there is evidence that the applicant has a history of self-harm or suicide attempts, coverage may be denied.

Criminal Activities

Deaths resulting from criminal activities, including involvement in illegal acts, violence, or membership in criminal organisations, are usually excluded from coverage. Insurers may also reject applicants with a criminal record to mitigate risk.

Tax Benefits for 75 Lakhs Term Insurance Policies

If you hold a term insurance policy valued at 75 lakhs in India, you can benefit from various tax advantages as outlined in the Income Tax Act of 1961. Below is a breakdown of these key benefits:

Section 80C: Premium Payments

Under Section 80C, you can claim a tax deduction on the premium paid for your term insurance policy, with a maximum limit of 1.5 lakh INR annually. This benefit applies to both individuals and Hindu Undivided Families (HUFs).

Eligibility:

The premium should 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 April 1, 2012.

Section 10(10D): Maturity Benefits

According to Section 10(10D), any amount received from your term insurance policy, including the death benefit, is exempted from tax.

Conditions to Qualify:

The premium must not exceed 10% of the sum assured for policies issued on or after April 1, 2012.
The premium must not exceed 20% of the sum assured for policies issued before April 1, 2012.
If your policy does not meet these conditions, a Tax Deducted at Source (TDS) of 5% will apply if the payout surpasses 1 lakh INR in a financial year.

Section 80D: Health Riders

Section 80D provides additional tax deductions if your term insurance policy includes health-related riders such as critical illness or accidental death coverage.

Deduction Limits:

If you are below 60, you can claim a deduction of up to 25,000 INR.
As a senior citizen, you can claim a deduction of up to 50,000 INR.

Discover Other Suitable Term Insurance Plan Coverages

Choosing the right sum assured is crucial for selecting the best term life insurance plan to protect your family’s financial future. Here are other available options for sum assured amounts that might suit your needs:

25 Lakh

Term Insurance Plan

50 Lakh

Term Insurance Plan

75 Lakh

Term Insurance Plan

Recommended

1 Crore

Term Insurance Plan

3 Crore

Term Insurance Plan

5 Crore

Term Insurance Plan

10 Crore

Term Insurance Plan

15 Crore

Term Insurance Plan

20 Crore

Term Insurance Plan

A ₹75 lakh term insurance plan is a vital investment for anyone looking to secure their family's financial future. It offers high coverage at affordable premiums and ensures peace of mind during uncertain times.

By understanding the nuances of term insurance, comparing plans, and selecting the right insurer, you can provide a safety net for your loved ones that safeguards their dreams and aspirations.

Whether you are a young professional, a parent, or someone with financial liabilities, this plan ensures your family's financial stability even when you are not around. Start today because protecting your loved ones is a responsibility worth prioritising.

FAQs about 75 Lakh Term Insurance Plan

All

Coverage & Suitability

Policy Duration & Benefits

Premiums & Documentation

Add-ons & Claims

What is the premium amount for a ₹75 lakh term insurance plan?

The premium amount for a ₹75 lakh term insurance plan can vary based on factors such as the policyholder's age, health, lifestyle, and the insurer's terms. For instance, a 30-year-old non-smoker might pay around ₹7000 to ₹15000 per month. It's advisable to use an online term insurance calculator to get a precise estimate tailored to your specific details.

Who should consider buying a ₹75 lakh term insurance policy?

A ₹75 lakh term insurance policy is suitable for individuals who are the primary breadwinners of their families and have dependents, such as a spouse, children, or elderly parents. This coverage amount can help replace lost income and cover major financial obligations like loan repayments, education expenses, and daily living costs.

What is the ideal term duration for a ₹75 lakh term insurance plan?

The ideal term duration for a ₹75 lakh term insurance plan depends on the policyholder's age and financial goals. Generally, it's recommended to choose a term that lasts until your retirement age or until your major financial obligations, such as a mortgage or children's education, are fulfilled.

Can I add riders to a ₹75 lakh term insurance policy?

Yes, you can add riders to a ₹75 lakh term insurance policy to enhance its coverage. Common riders include critical illness, accidental death, disability, and waiver of premium riders. These riders provide additional financial support in case of specific events, such as being diagnosed with a critical illness or becoming disabled.

What happens if I outlive my ₹75 lakh term insurance policy?

If you outlive your ₹75 lakh term insurance policy, the coverage simply expires, and no benefits are paid out. However, some term insurance plans offer a return of premium (ROP) option, where the premiums paid are returned to you if you survive the policy term. This option typically comes with higher premiums compared to standard term plans.

Is ₹75 lakh term insurance sufficient for a high-net-worth individual?

For high-net-worth individuals (HNIs), a ₹75 lakh term insurance policy might not be sufficient due to their substantial financial responsibilities and lifestyle. HNIs often require higher coverage to ensure their family's financial security and to cover large debts, business obligations, and estate planning needs.

How do I file a claim for a ₹75 lakh term insurance policy?

To file a claim for a ₹75 lakh term insurance policy, the nominee must inform the insurance company about the policyholder's death and submit a claim form along with the necessary documents. These documents typically include the death certificate, original policy document, identity proof, and bank details. The insurer will then verify the claim and process the payout.

Can I increase my coverage amount from ₹75 lakh to a higher sum assured?

Yes, you can increase your coverage amount from ₹75 lakh to a higher sum assured, usually at the time of policy renewal or by purchasing additional coverage. This process may require you to undergo medical underwriting and provide updated financial information. It's important to check with your insurer for specific procedures and requirements.

What documents are required to purchase a ₹75 lakh term insurance policy?

To purchase a ₹75 lakh term insurance policy, you will need to provide several documents, including proof of identity, address, age, income proof, and recent photographs. Additionally, depending on the insurer's requirements, you may need to undergo a medical examination.

Are there tax benefits associated with a ₹75 lakh term insurance plan?

Yes, there are tax benefits associated with a ₹75 lakh term insurance plan. Premiums paid for the policy are eligible for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh per year. Additionally, the death benefit received by the nominee is tax-exempt under Section 10(10D) of the Income Tax Act.