A term insurance policy is one of the best ways to secure your family’s future, ensuring financial stability during unforeseen circumstances. Opting for term insurance for a 2 crore plan takes this security further. It provides substantial coverage to safeguard your loved one’s financial needs, even in your absence.

Why Do You Need a ₹2 Crore Term Insurance Policy?

Term insurance is the simplest type of life insurance that helps protect your family financially for a set period. In case of your unfortunate demise during this time, the insurer gives a lump sum amount to your family, protecting them from financial burdens in your absence.

Now, let’s explore some of the key reasons why such an extensive coverage plan is essential:

  • Financial Protection for Your Family: A ₹2 crore policy ensures that your family will have the financial corpus to sustain their lifestyle.
  • Debt and Loan Repayment: The policy can cover your existing loans or mortgages, so your family won’t be responsible for paying the loan.

●       High Coverage at Affordable Premiums: A ₹2 crore term insurance provides adequate protection with affordable premiums compared to any other life insurance plan.

  • Flexibility: Term insurance plans are highly flexible, allowing you to adjust your policy term and your sum assured to align with your evolving needs.
  • Tax Benefits: Premiums paid towards term insurance are eligible for tax deductions of up to ₹ 1.5 Lakhs under Section 80C of the Income Tax Act. Also, the death benefit from a life insurance policy is tax-free under Section 10(10D) of the Income Tax Act. The term insurance tax benefit section gives it a dual advantage: it provides financial protection while tax savings.

How to Secure a ₹2 Crore Term Insurance Policy?

Now, let’s walk through the steps to get the best ₹2 crore term insurance policy for your family:

1. Assess Your Insurance Needs

First, you must define how much insurance your family needs. Here are some factors to consider:

  • Income and Earning Potential: Evaluate your current and projected earnings, including any expected changes after completing your education or advancing your career.
  • Existing Debts: Consider any home, personal and auto loans you may have.

2. Calculate the Right Coverage

Though ₹ 2 crore looks like a considerable sum, it is necessary to determine whether the coverage amount would be more than enough to meet your family’s needs. A general rule is that the sum assured should be 10-15 times your income level.

4. Compare Premiums Online

Compare policies from various insurers online and identify which companies offer affordable premiums for the necessary insurance.

5. Claim Settlement Ratio

The Claim Settlement Ratio (CSR) is a key indicator of an insurance company’s reliability and efficiency in paying out claims. Ensure you choose the right insurer for your peace of mind.

6. Look for Customisation Options

Including various riders based on your needs can enhance your base coverage. Some of the most common ones include:

  • Accidental Death Benefit Rider: Gives further protection if the death occurs through an accident.
  • Critical Illness Rider: This useful ridder provides additional funds if you are diagnosed with a critical illness, such as cancer, heart problems, or stroke.

Conclusion

Considering a ₹2 crore term insurance policy is a wise step to safeguard your family’s future. By carefully evaluating your coverage needs, premium affordability, insurer reputation (including the Claim Settlement Ratio), and other relevant factors, you can select a policy that aligns with your financial goals and provides the necessary protection for your loved ones and gain peace of mind.

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