A term insurance plan for 1 Crore provides an insured with a death benefit to the policy nominee or beneficiary in the event of the policyholder’s sudden death during the policy term. The best term insurance plan for 1 crore helps individuals ensure that their family’s financial needs, such as repaying loans, meeting living expenses, and funding goals, are taken care of when the policyholder is not around.
On that note, let’s find out more about the best term insurance for a substantial amount and why one should get it.
Who Should Get a Term Insurance Plan for 1 Crore?
Young adults in their 20s and 30s who are starting their professional careers should consider a 1 crore term insurance plan. This is because their age will act in their favor and help them avail of large sum assured for the long term but at an affordable premium. Individuals who have multiple dependents, like their kids, parents, or in-laws, should avail of a 1 crore term insurance plan for comprehensive coverage to take care of their family’s financial future and security. Sole earners can consider checking out the best term insurance plan for 1 Crore to ensure their family members have a financial safety net in case of the insured’s untimely death. Individuals with outstanding debts should get a 1 crore term insurance to enable their loved ones to repay their existing debts and future liabilities with ease even in the insured’s absence.
How to Pick the Best Term Insurance Plan for 1 Crore?
This is how to pick an extensive term cover –
- Financial needs and goals should be considered: When choosing a term insurance plan that extends 1 Crore cover, individuals need to consider their needs and their annual income. The payout from the 1 Crore term plan will eventually replace the insured’s income in case of their sudden death. Individuals should ensure they don’t forget to consider the financial obligations that their family members may have in case of the policyholder’s absence.
- Pick a plan that suits their budget and comes with affordable premiums: Unless the insurance premium amount fits one’s budget, they are better off without the 1 crore term plan as they may struggle to pay for its premium. This is why, it is advised to choose an insurance plan with an affordable premium that one can afford to pay on time.
- Factor in inflation levels: A term insurance plan can cover the insured for decades. During that time, inflation levels and the cost of living are very likely to soar. Hence, choosing the best term insurance plan for 1 Crore can offer enough coverage for the insured’s family’s immediate and future needs.
- Compare leading term insurance plans: Compare term insurance plans from different insurance providers online on the basis of their premium amount, Claim Settlement Ratio, coverage, riders, exclusions, and policy terms. Checking and comparing these features will help make an informed choice that benefits the insured and helps them protect their family’s interest.
- Riders: These are essentially add-on covers that are optional and can be added to existing plans to provide additional coverage. Typically, such coverage is made available for critical illnesses, disability, or accidental death, but at an added cost.
- Tax benefits: Term insurance plans’ premiums are deemed eligible for tax returns under Section 80C and Section 10(10D) of the Indian Income Tax Act. This will lower their tax burden and help mobilize savings to protect their and their loved one’s family’s interest and financial safety.
Reasons to Buy 1 Crore Term Insurance Plan
These benefits make it a smart choice to buy a term insurance plan with 1 crore coverage –
Cost-effectiveness: Term insurance plans are more affordable than life insurance. This means individuals who opt for term insurance for 1 Crore can avail of the extensive cover amount at a much lower premium than what they would have paid to avail of life insurance cover for the same value.
Comprehensive coverage: Term insurance plans can be customized as per individuals evolving requirements to help them meet their changing needs. For example, individuals can increase their insurance coverage when they plan to get married, have kids, or purchase a home loan. Individuals can also include add-ons or riders to their existing plans to cover critical illnesses, partial or full disability, accidental death, etc.
Long-term protection: These plans provide coverage to the insured for their entire life, ensuring their family is financially secured even in their absence.
Rider benefits: These insurance policies extend the option to add a variety of riders that can extend one’s coverage, such as cover for critical illness, personal accident insurance, or waiver of premium benefits. These add-ons can be included in the existing base plan for a certain fee, which inflates the current premium.
Pay off liabilities: If an individual has any outstanding liabilities, a term insurance plan with extensive cover can help ensure the same is paid off without burdening their family in the event of the insured’s death. This can extend the financial protection of their loved ones and keep them away from financial hardship.
The best term insurance plan for 1 crore is a valuable component of financial planning that helps secure the insured’s family’s financial future. By extending affordable and comprehensive cover, a term insurance plan offers the insured peace of mind who would otherwise be worried about their family’s future.
This way, a term insurance plan for 1 Crore can help individuals secure their financial future and build a safety net for their families. Such a cover empowers the nominee or the beneficiary to take charge of the liabilities and repay them without straining their budget or dipping into savings. However, to ensure the nominee has timely access to the sum assured, policy buyers must read the terms and conditions of claims and check the track record of the insurance providers. This will help them pick a plan that follows a hassle-free approval and settlement process and provides quick access to the sum assured to the nominee.