1 Crore Term Plan – What should you know about it?

Vishal (31-years-old) lives in Ahmedabad with his wife (27-years-old) and a daughter (4-years-old). Vishal purchased a term policy of Rs. 25 lakh 6 years ago when he was single. At that time, the responsibilities were limited, so Vishal thought that a term insurance policy of Rs. 25 lakh could be sufficient for his requirements and needs. But, now Vishal is a family person, and his life is crammed with the responsibilities of his wife and daughter. Moreover, he took out a home loan just 2 years before. With these growing responsibilities, Vishal now thinks that Rs. 25 lakh term insurance is inadequate for his current requirements and financial responsibilities. But not only Vishal, but many others also think that they need a higher term plan because of rising inflation and healthcare expenses.

If you are the sole bread earner of your family, then you always try to safeguard your loved ones from uncertainties. So, you should try to invest wisely to secure your family’s future. And buying a 1 Crore term insurance plan, you can secure your family’s financial future in the best possible way.

 A term plan is a budget-friendly life insurance plan where you will receive coverage for a pre-specified period known as “term”. Suppose the insured policyholder dies within this specific period. In that case, the beneficiary will receive the sum assured amount that can be utilized in many ways, including repaying the loans, children’s education, marriage, and other financial expenses. Thus, a policyholder should prudently choose an adequate term insurance coverage amount that can fulfill all these responsibilities.

Purchasing the best term insurance plan for 1 Crore will ensure that your family members can lead a healthy life even when you can’t support them financially. The 1 Crore term plan is the best way to secure your family’s future at a nominal cost if you are the only breadwinner of your family. Though there is no fixed amount or benchmark, you can choose a higher sum assured term plan for your family that can cover up all future liabilities of your loved ones.

What is a 1 Crore insurance term plan?

A term insurance plan offers dual benefits to policyholders. This plan offers a death benefit and ensures the financial stability of your family in your absence. A 1 crore policy for a family offers a guaranteed sum assured to the beneficiary on the death of the insured policyholder. This plan acts as a shield to the family members of the insured policyholder and inspires them to fulfill their financial needs and goals.

Some intriguing features of a Rs 1 Crore term plan

• Cost-Effective: Term insurance plans are the most budget-friendly insurance products that will give you the utmost protection against all uncertainties. Since a term plan is a pure protection plan and has no savings component, the premiums are also affordable compared to other life insurance products. For a 1 crore term insurance plan, you need to pay only Rs. 414 per month as a premium amount.
• Steady Premiums: Many term insurance policies embrace customers with a steady premium during the policy period. If you choose a level term policy, your premium will stay the same (irrespective of the policy term i.e., 20 years or 30 years). After your term plan expires, many term policies also give you the benefit of transitioning to a permanent life insurance policy. As a result, the premium will enhance exponentially once your policy expires.
• Accessible: Since term insurance premiums are budget-friendly; hence many people can opt for Rs. 1 Crore term insurance plan. But only a few people can afford a cover of Rs 1 crore for an endowment plan. Hence, term plans are the most preferable plan for anyone to protect their family against all ill-fated events. People who are between 25 – 35 years of age with income between Rs 5 lakh to Rs 7 lakh per annum should choose term insurance plans to protect their families.
• Additional Cover: If you can pay higher premiums as you grow older, many insurance companies will offer you to increase your coverage at important stages of your life. If you have purchased a basic Rs 1 crore term plan, you are free to enhance the sum assured once you get married or have a child by paying higher premiums.
• Riders: Over and above the Rs 1 crore term cover, you can uplift your term plan with additional policies such as a critical illness plan. If the insured policyholder is diagnosed with a critical disease, he/she will receive a lump-sum amount above the death benefit to the nominee.
• Attractive Features: to make their term plans lucrative, insurance companies include many attractive features. For example, these companies offer rebates and low premiums to certain categories of people, like non-smokers, to entice their customers.

Earlier, selecting the right coverage term plan could be a daunting task for customers because of the value of the premium. However, by comparing various term plans from different companies, you can select the right term plan that will resonate with your needs and requirements. Once you understand your basics and requirements, it will be easier for you to compare various term plans. Thus, you will be in an apt position to select the most suitable term insurance plan that will fulfill your family’s financial requirements.