Importance of 1 crore term insurance for the family – Is this really required?
We all know the advantages and the need to own term insurance. But now, something that is trending is about a 1 crore term insurance.
What is a 1 crore term plan? Is everyone eligible for this value? Should everyone certainly think of buying a term plan worth 1 crore?
It is not only these questions, but many people come across even more with such questions.
Rakesh, a 35 years young family man, was planning to buy a term plan to secure his family. However, he has a girl child, who is eight years of age and has to plan for his daughter’s higher education. At the same time, his wife is a homemaker, for whom he needs to create a secure future. So, will the term plan he is planning to buy be sufficient to meet his family’s future financial requirements? Or, should he plan to go for a 1 crore policy?
Let us see the importance of a 1 crore term plan.
What is a 1 Crore Term plan?
A few years ago, the general insurance companies offered large-sized family floater health insurance plans of more than 1 crore worth. The main aim of this plan is to provide high net worth for individuals. However, in present days, most insurance companies have also started selling insurance with such big covers to middle-income group people.
Perhaps, such high insurance plan turns to be a significant financial burden to middle-income group people. Therefore, a question arose among them, if such plans are really worth buying.
Factors emphasizing the need for 1 crore insurance:
If you are planning to buy a 1 crore term plan, then there are a few factors that you should undoubtedly take into your consideration, and here they are;
1. Consider the total number of family members, whom you want to give financial protection.
2. Consider the total number of earning members in your family.
3. Try to consider your medical history because since this is going to be a term plan for a considerable amount, your health condition will also be taken into consideration to evaluate your eligibility.
4. Try to consider the mode of premium payment you are flexible with, such as monthly premium, quarterly premium, and half-yearly or yearly premium options.
These are the fundamental factors that you need to consider before deciding on a term plan for the family of value 1 crore.
Features of 1 crore policy for the family
The following features of a 1 crore term plan can further help you understand its benefits and advantages of buying:
- Cost-effective: There is no doubt that the term plan is affordable to buy compared to any other insurance plan. This is because this is a pure life cover, which does not include the saving component. Therefore, the premium paid is less. In this aspect, buying a 1 crore term plan will become cost-effective for you. However, this amount may vary with the type of plan you choose.
- Easy to buy: Since the premium, you pay for a 1 crore term plan is significantly less and affordable, it becomes easy for almost everyone, even with a low income, to easily buy. Therefore, regardless of your income and age, you become eligible to easily buy the 1 crore term plan and give your family complete protection with no hassle.
- Added cover: If you feel you want some extra cover, you can certainly opt for it by paying some additional premium. This becomes feasible too for anyone who is seeking extra cover at a lower premium. In addition, such cover will help to meet out added financial securities like child higher education, marriage, and others.
- Rider option: The 1 crore term plans have rider options too. Riders such as a critical illness plan can be easily included in your term plan worth 1 crore. Therefore, you are never limited to such rider options.
- More best features: Compared to any other regular term plans, the 1 crore plans have the flexibility of gaining more features such as discounts in premium, low premium options for certain people like non-smokers, young age, no serious family medical history and more.
The increase in the cost of living and fluctuating inflation rates will undeniably affect the value of money over the decades. Therefore, in this scenario, if you plan for a shorter life cover for a few lakhs today, it may have no use after 10 or 15 years of the period when a claim is made. Whereas, at the same time, if you are opting for a high-value cover like 1 crore, this may give you some meaningful cover and financial protection to your family after one or two decades to some reasonable extent. Therefore, consider buying a term plan with higher cover if you want to give complete protection to your family.
Many top insurance companies are providing the best term insurance plan for 1 crore. However, comparing those plans will help you gain a better idea and choose the best one. First, however, try to ensure if the premium for the term plan is eligible to you and you can afford it. Most importantly, ensure that the premium you choose to pay for a 1 crore term plan will continue without any defaults because any missed premium may lead to a lapse of the term plan. Now along with Rakesh, you would have got a better idea about the 1 crore term plan. So don’t wait; react immediately, and give complete financial security to your loved ones.
