Call to Buy 022 6537 6767
Our Insurance Plans
Term Insurance
Insurance Made EasyPolicy Term PlansAffordable Term PlansTerm Insurance for All AgesInsurance for AllInsurance for Specific Needs
Investment Plans
Tools & CalculatorsTools & Calculators
Customer Services
Policy ServicesPolicy & Account Services
Quick Links
NRI Corner
NRI Plans - UAE
NRI Plans - Saudi Arabia
NRI Plans - Kuwait
NRI Plans - Oman
NRI Plans - United Kingdom
NRI Plans - United States
NRI Plans - Singapore
NRI Plans - Australia
NRI Plans - Canada
NRI Plans - Qatar
Claims
Become a AdvisorAgeas Federal Life Insurance
Use our tools to calculate and plan better.
A 1.5 crore term insurance is a protection plan wherein a pre-established ₹1.5 crore sum assured is paid to the nominee of the life insured if he/she dies before the end of the selected policy duration. It generally does not pay any maturity benefit unless the return of premium option is selected.
The main purpose of the cover is income replacement and providing financial continuity to the dependent's future. This level of cover is usually appropriate for individuals whose annual income is between ₹12–18 lakh, particularly those who have substantial liabilities.
It will typically equate to 8–12 times the annual salary and may be compatible with longer-term financial commitments.
To understand “what is term insurance”, it is important first to examine its basic framework: A term insurance policy is a contract between an insurance company and an individual where the insurer agrees to pay a predetermined value to the insured's nominated recipient in case of death within the specified policy duration. Insurance coverage provided by a term-life insurance policy is good only for the term you selected, and this type of insurance does not typically develop any savings or investment component.
What is 1.5 Crore term plan in practical terms? For example, a term life insurance policy with a ₹1.5 Crore fixed death benefit for a defined length of time, such as 20, 30, or 40 years, would have a ₹1.5 Crore benefit payable if the insured were to die before 20, 30, or 40 years, respectively. However, in most cases, when a term policy reaches its maturity date, it does not pay anything to the insured's nominated recipient unless an option has been selected at the commencement of the policy.
Ageas Federal’s term insurance provides financial protection for a short period, typically 10 to 30 years. This cover is meant to:
The ₹1.5 Crore policy has the following characteristics:
It has a pure protection structure with no savings involved.
It typically has fixed premiums throughout the policy term.
The basic variant can have no maturity benefit.
It can pay out in a: Lump sum option, Structured payout option
An example of this type of policy would be a ₹1.5 crore death (term) policy, which can be either: A level death policy, An increasing death policy
Understanding the difference between these two options can help an applicant properly assess which option best meets their needs before purchasing insurance coverage.
A 1.5 crore term insurance is a protection plan wherein a pre-established ₹1.5 crore sum assured is paid to the nominee of the life insured if he/she dies before the end of the selected policy duration. It generally does not pay any maturity benefit unless the return of premium option is selected.
The main purpose of the cover is income replacement and providing financial continuity to the dependent's future. This level of cover is usually appropriate for individuals whose annual income is between ₹12–18 lakh, particularly those who have substantial liabilities.
It will typically equate to 8–12 times the annual salary and may be compatible with longer-term financial commitments.
1.5 crore term insurance is a pure protection life insurance policy that provides a fixed sum assured of ₹1.5 crore to the nominee if the life assured passes away during the selected policy term. This plan provides financial security for the dependents; it rarely offers a maturity payment unless the return-of-premium option is selected. It primarily provides insurance coverage for death rather than for investments.
This type of coverage is usually considered by individuals with a large amount of debt, such as a mortgage or home loan, child/children's education, and providing for their elderly parents. The goal is to replace the primary earner's income and help maintain long-term financial security if the primary earner dies.
This page clarifies what a 1.5 Crore term plan is, explains how such coverage functions, outlines eligibility considerations, and describes underwriting, premium determinants, tax treatment, and essential policy conditions applicable to a term insurance plan in India.
Existing liabilities such as: Home loan debt, Auto loan debt, Personal loan debt
The costs associated with: Sending children to college, Higher education, planning, Other important life milestones
Current living expenses required to support: Family lifestyle, Household needs, Day-to-day expenses
If the average inflation rate is 5–6% per annum, the real value of the ₹1.5 crore term insurance will decline over time.
The life stage at which the consumer is currently at must be considered. A person who is in their late 20s or early 30s may obtain a lower premium due to being classified as a person with a lower risk of dying. Waiting until later years typically increases cost.
More dependants usually mean a higher coverage requirement.
Consider how many years you will need to support your family financially.
Include: Home loan, Other loans, Education costs, Future financial goals
Evaluate how much corpus you already have to meet future needs.
The suitability of a term plan depends on coverage adequacy rather than premium affordability alone.
| Age | Approx. Monthly Premium | Policy Term |
|---|---|---|
| 25 years | ₹1077 | 30 years |
| 30 years | ₹1409 | 30 years |
| 35 years | ₹1987 | 30 years |
| 40 years | ₹2761 | 30 years |
| 45 years | ₹4347 | 30 years |
Age significantly affects premium rates. Younger applicants usually receive lower premiums.
To determine premiums, an insurer reviews your complete medical history, including: Height, Weight, Blood tests, Existing chronic conditions
Smoking or tobacco use increases the premium. High-risk hobbies may also affect pricing.
Risky jobs sometimes lead to higher insurance premiums.
The selected policy term can influence premium pricing. Longer coverage periods may result in different premium calculations based on risk exposure.
This HLV method calculates the present value of future earnings. An individual who earns ₹20 lakhs each year and works for 25 years will generate total income during his or her career of over ₹5 crores.
Example:₹20 lakhs × 25 years = ₹5 crores +
Many financial advisors use the income multiplier method, suggesting that life insurance should be equal to 10–15 times your annual income.
Example:₹20 lakhs × 25 years = ₹5 crores+
The expense replacement method uses your annual household expenses to determine how much life insurance is necessary. Multiply your total household expenses by the number of dependents you have, and multiply this total by the number of years you expect your dependents to rely on you financially.
Example:
Annual Expenses: ₹10 lakhs
Dependents: 3
Years of Dependence: 15
Required Cover: ₹10 lakhs × 3 × 15 = ₹4.5 crores
If you have outstanding loans or other debts, then you must add these amounts to your income replacement needs.
Example:
Income Replacement Need: ₹1.2 crores
Total Outstanding Loans: ₹40 lakhs: 3
Required Cover: ₹1.2 crores + ₹40 lakhs = ₹1.6 crores
Additional benefits may increase the total benefit you would receive from the policy. However, each of these riders will add to the costs of the policy.
Premiums paid for a term life insurance policy are eligible for tax deduction under Section 80C of the Income Tax Act, 1961.
Maximum tax-deductible amount per year is ₹1.5 lakh.
The death benefit paid to the nominee is generally tax-free, subject to the conditions specified under Section 10(10D) of the Income Tax Act, 1961.
This ensures that the entire sum assured reaches your nominee without tax liability.
Medical underwriting for insurability will be done based on the applicant's age and medical history. This may include blood work, ECGs, or stress testing.
A company will assess the risk associated with writing a policy prior to writing the policy. Truthfully, providing information about the applicant's history is crucial to the risk assessment process. Non-disclosed information will impact claims.
The claim settlement ratio reflects the percentage of claims settled in a financial year. The company's previous claims experience is a good indication of the type of company it is, but previous claims do not guarantee that claims on your new policy will be paid.
An assignment or beneficiary nominee signifies the person designated to receive policy benefits.
The first year of the policy is subject to potential restrictions, with the most common being that suicide may not be covered, among other exclusions or restrictions that may apply per the underwriting rules of the insurance carrier.
These items should help clarify the benefit of having term-life insurance and respective obligations.
A ₹1.5 crore cover may provide substantial financial protection for individuals with long-term obligations and dependents. Suitability depends on income level, liabilities, age, and health profile. When looking at buying the best term life insurance policy, applicants should focus on the adequacy of coverage, clarity of policy provisions or requirements, and the reliability of the insurance company; rather than looking only at what the premium will be every month.[Text Wrapping Break][Text Wrapping Break]The benefits of 1.5 cr term insurance benefits versus their affordability will help to ensure you are well informed and make balanced decisions. This is general information. Please consult a licensed insurance advisor before making a decision. Premium rates vary by insurer and individual risk profile.
Ageas Federal Life Insurance
Endorsed by Life Insurance Experts
At Ageas Federal Life Insurance, we are dedicated to creating meaningful insurance solutions that help individuals build a secure and confident future. With over a decade of experience, we offer a wide range of plans across protection, pension, savings, investment, annuity, and health, designed to support evolving financial needs at every stage of life.
Let us help you make the right decision
Call Now : 1800 209 0502For all your needs, we’re here with expert assistance
Copyright © 2026 Ageas Federal Life Insurance Co Ltd. All Rights Reserved.
