Do you worry about your family’s future if something happens to you unexpectedly? Term insurance helps provide financial security to your family in such difficult times. But how much term cover do you need for complete peace of mind? In this article, you will learn why ₹1 cr term insurance is a wise option and how it offers peace of mind.
Who Needs a 1 Crore Term Cover?
With the rising cost of living, securing a ₹1 crore term insurance plan is ideal for many.
- Young professionals who earn ₹10-12 lakhs can easily secure such significant life coverage.
- Business owners
- Individuals with large loans, such as home or car loans.
The main reason is that ₹1 crore coverage allows your family to maintain their lifestyle if you pass away unexpectedly. For example, a young professional’s family can use ₹1 crore to pay off their home loan, car loan, and other debts. The remaining amount can cover their living costs for several years.
Similarly, a business owner’s family can use ₹1 crore to settle business liabilities and fund their living expenses when that income source is gone. Families or individuals with loans can become debt-free with ₹1 crore coverage. So, if your income supports your family currently, a ₹1 crore term plan ensures they aren’t financially destabilised if you’re not around. You can calculate the exact coverage needed using a term life insurance calculator.
Benefits of a 1 Crore Term Insurance
A term policy with ₹1 Crore coverage amount provides the following benefits:
1. Financial Support
A ₹1 crore term insurance policy ensures that your loved ones can manage their living expenses, settle any outstanding loans, and meet future needs for your children, such as education and marriage, even in your absence.
2. Customisable Add-Ons
You can enhance your base ₹1 crore cover with optional add-ons like a critical illness rider, accidental death benefit, etc., per your family’s specific requirements. This provides additional security for you and your loved ones.
3. Affordable Premiums When Young
If you buy a term insurance of ₹1 crore while young and healthy, you will get the lowest premium. Standard premiums range from ₹7,000 to ₹15,000 per annum, depending on the insurance company.
4. Tax Benefits
The yearly premium qualifies for tax deductions up to ₹1.5 Lakhs under Section 80C of the Income Tax Act. This helps in creating wealth for other goals.
How to Choose Your 1 Crore Life Insurance Provider?
There are several factors that must be considered when choosing the best insurer. Some of the key factors include:
- Claim settlement record: You want an insurer who reliably pays death claims when the policyholder dies. Check the company’s claim settlement ratio online – this tells you the percentage of submitted death claims the insurer approved and paid.
- Third-party ratings: See third-party ratings and reviews. These third parties investigate insurers’ operations and policies to score them on how well they serve customers and how fair their practices are.
- Quality of customer service: It’s important to evaluate real customer experiences with the insurer beyond the ratings. Check online reviews and forums to see what existing policyholders say about the application process, filing paperwork and documents, contacting customer support, or going through the claims process after a death.
Conclusion
Nothing is more peaceful than knowing your loved ones will remain financially well-protected in your absence. You can achieve that with a ₹1 crore term plan in place. However, when choosing the right plan, explore insurers based on parameters like claims and service quality, apart from the premium price. This ensures your family gets timely assistance and claims payout if the unfortunate need arises.
