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₹5 Crore Term Insurance and Above (2026): Plans Compared
How to buy ₹5 crore or more of term insurance: plans with no upper limit, how insurers decide large covers, terminal illness caps and protecting the payout.
Can you buy ₹5 crore of term insurance in India?
Yes. The top-rated term plans from Tata AIA, HDFC Life, Axis Max Life, ICICI Pru and Bajaj Life have no fixed upper limit on cover, so ₹5 crore or more is available subject to underwriting. The insurer decides how much it will accept on your health, your income and the cover you already hold. LIC's Digi Term and Yuva Term list cover up to ₹5 crore and refer larger amounts to underwriting.
Individual life insurance has attracted nil GST since 22 September 2025, so there is no GST to add on top of the premium the insurer confirms.
Which plans sell ₹5 crore and above?
Five top-rated plans sell ₹5 crore and more; what separates them at this size is the terminal illness benefit and how the payout can be shaped.
| Plan | Upper limit | Paid early on a terminal illness, on ₹5 crore | Claim settlement ratio |
|---|---|---|---|
| Tata AIA Sampoorna Raksha Promise | No upper limit, decided case by case | ₹2.5 crore (half), with every future premium waived | 99.5% |
| HDFC Life Click 2 Protect Supreme Plus | No upper limit, subject to underwriting | Up to ₹2 crore, if diagnosed before 80 | 99.6% |
| Axis Max Life Smart Term Plan Plus | No upper limit, subject to underwriting | ₹1 crore; the rest is paid on death | 99.3% |
| ICICI Pru iProtect Smart Plus | Unlimited, subject to underwriting | The full ₹5 crore; the policy then ends | 98.5% |
| Bajaj Life eTouch II | No upper limit, subject to underwriting | ₹2 crore; the remaining ₹3 crore stays in force with premiums waived | 99.2% |
Plan features from each plan's brochure, prospectus or policy document, as recorded in nyvo's policy database. Claim settlement ratios: IRDAI data, weighted average of the last three financial years, latest available as of March 2026.
Two LIC plans list a narrower range. LIC Digi Term and LIC Yuva Term list sums assured from ₹50 lakh to ₹5 crore, refer anything above that to underwriting, and take entrants from 18 to 45. HDFC Life's Click 2 Protect Ultimate stops at ₹3 crore, so it cannot reach this size.
How do insurers decide whether to accept ₹5 crore?
For cover this large, underwriting is the real limit: the insurer weighs your health, your income and the life cover you already hold before deciding how much to accept. A brochure may say "no upper limit", but the amount you are offered is the underwriter's decision.
- Be ready to evidence your income. If you are self-employed or your income is irregular, read term insurance without an ITR.
- Declare every existing policy. The insurer counts cover you already hold when deciding how much more to accept.
- Answer every proposal question fully and accurately, including those about your health.
Why does the terminal illness benefit matter more at ₹5 crore?
Because the caps are fixed amounts, the larger the cover, the smaller the share paid on diagnosis. On ₹5 crore, Axis Max Life's ₹1 crore cap releases a fifth of the cover early and the ₹2 crore caps on HDFC Life and Bajaj Life release two fifths, while Tata AIA releases half and ICICI Pru all of it.
If an early payout on a terminal illness matters to you, compare this line before the premium. With two policies from different insurers, each pays its terminal illness benefit under its own terms.
Should you buy ₹5 crore in one policy or several?
One policy is simpler for your family to claim on; two or more spread the cover across insurers, each paying under its own terms. Neither is wrong, and at this size the choice is worth making deliberately.
| Approach | Worth considering because | Watch for |
|---|---|---|
| One ₹5 crore policy | One premium and one claim; plans such as ICICI Pru iProtect Smart Plus bring the whole cover forward on a terminal illness | The whole payout depends on a single insurer's claim process |
| Two or more policies | Each policy pays its terminal illness benefit under its own terms, and each insurer assesses its claim separately | More premiums to track, and every insurer counts the cover you hold elsewhere |
How do you make sure a ₹5 crore payout serves your family?
A payout of this size is best planned at purchase: who receives it, in what shape, and what sits alongside it.
- Consider the MWP Act if you are a married man. A policy taken under Section 6 of the Married Women's Property Act, 1874 is held in trust for your wife, your children or both, which keeps it out of creditors' reach.
- Shape the payout. Tata AIA can pay a staggered income for up to 30 years, level or rising; Bajaj Life can pay instalments over 5 to 40 years; Axis Max Life lets your nominee choose between a lump sum, income or a split at claim stage; ICICI Pru offers a 10-year income or a rising income, fixed at purchase.
- Check rider limits. Axis Max Life caps its critical illness and accident riders at ₹1 crore. Tata AIA's Enhanced Accidental Benefit doubles its accidental death rider, or adds ₹5 crore if that is lower, but only for accidents on licensed public land transport or in a listed public building.
- Understand nominations. Read how nominees and legal heirs differ: nominee vs legal heir.
Planning ₹5 crore or more of cover? A nyvo advisor can compare the plans that fit, walk you through what the insurer will ask for, and help you decide whether to split the cover. Book a free call. It costs you nothing; here is how nyvo is paid.
FAQs
Is there a maximum cover on term insurance in India?
Not on most top plans. Tata AIA Sampoorna Raksha Promise, HDFC Life Click 2 Protect Supreme Plus, Axis Max Life Smart Term Plan Plus, ICICI Pru iProtect Smart Plus and Bajaj Life eTouch II have no fixed upper limit; the insurer decides on your health, income and existing cover. Some plans set limits: HDFC Life Click 2 Protect Ultimate stops at ₹3 crore, and LIC Digi Term and Yuva Term list cover up to ₹5 crore, referring larger amounts to underwriting.
Which plan pays the whole ₹5 crore early on a terminal illness?
ICICI Pru iProtect Smart Plus, which brings the whole death benefit forward and then ends the policy. Tata AIA pays half the sum assured and waives future premiums, HDFC Life and Bajaj Life pay up to ₹2 crore, and Axis Max Life pays up to ₹1 crore.
Can LIC give ₹5 crore of term cover?
Yes, within limits. LIC Digi Term and LIC Yuva Term list sums assured from ₹50 lakh to ₹5 crore, with anything above ₹5 crore referred to underwriting, and both take entrants aged 18 to 45. LIC settles 98.3% of individual death claims (IRDAI data, weighted average of the last three financial years, latest available as of March 2026).
Should I buy ₹5 crore in one policy?
It depends on what matters most to you. One policy is simpler for your family to claim on. Two policies from different insurers each pay under their own terms and spread the claim across two companies, though each insurer will count the other policy when deciding how much to accept.
How can I make sure the payout is used well?
Decide the payout shape when you buy, or on Axis Max Life let your nominee decide at claim stage. Staggered income options run for up to 30 years on Tata AIA and up to 40 years on Bajaj Life. If you are a married man, buying under the MWP Act keeps the money for your wife and children.
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