Every family in India needs proper financial planning and a reliable life insurance policy. A ₹7 crore term insurance plan can help cover essential needs, like your child’s education, loan repayments, and securing your loved one’s financial future. With its affordability and wide coverage, it’s a practical way to ensure peace of mind and long-term security for your family.
Why Do You Need a 7 Crore Term Insurance Plan?
Term insurance is a reliable and affordable way to provide financial security for your family in case of unforeseen events. Before diving into how to secure a 7 crore term insurance policy, it’s essential to understand its significance.
1. Financial Cushion for Your Family
Life is full of uncertainties, and losing the head of a family during their prime years is really unfortunate. A ₹7 crore term insurance plan can ease the financial burden, ensuring your loved ones can continue to live comfortably without worrying about money.
2. Debt and Loan Repayments
If you have obligations like a home loan, car loan or other dues, a 7 crore term insurance policy ensures the family is not monetarily stressed to repay it.
3. Inflation Protection
With the cost of living rising due to inflation, a ₹7 crore term insurance plan gives your family the financial protection they need, no matter how long it takes.
Key Features of a 7 Crore Term Insurance Plan
When choosing a 7 crore term insurance policy, there are a few features you should keep in mind:
- Adequate Coverage: A ₹7 crore term insurance plan provides strong financial protection for your family.
- Flexible Policy Terms: Choose a policy term that aligns with the expected timeline for settling your major financial obligations, like college education fees for your children or outstanding loans.
- Tax Benefit: You are eligible for tax exemptions on the premiums paid to a 7 crore term insurance policy under section 80C.
Steps to Buy a 7 Crore Term Insurance Policy
Getting a 7 crore term insurance plan doesn’t have to be complicated. Here’s a step-by-step guide:
1. Evaluate Your Coverage Amount
- Your Income: A good place to start is when selecting a sum. It should be between 10-15 times your annual income.
- Liabilities: Existing loans, such as home loans, car loans, or personal loans, must be considered when evaluating the sum assured. Ensure that the sum assured (coverage amount) is sufficient to pay off these debts to prevent burdening your family during an already difficult time.
2. Research and Compare Insurers
Research and compare options before buying a term insurance plan of 7 crores. You can use online calculators to garner each insurer’s quotes and choose the best one at the most competitive price. In addition, research the insurer’s claim settlement ratio, which is the percentage of claims the company has managed to pay out.
3. Customise Your Policy with Riders
Enhance your 7 crore term insurance policy by adding riders for additional protection:
- Accidental Death Benefit Rider: This provides an additional amount in case of accidental death within the policy term.
- Critical Illness Rider: This provides financial aid if diagnosed with listed critical diseases such as cancer or heart disease.
- Waiver of Premium Rider: This ensures that the policy stays in force even if premiums cannot be paid due to illness or disability.
Conclusion
A term insurance plan worth ₹7 crore provides your loved ones a great financial safety net. However, to ensure complete protection, it is crucial to assess your needs carefully and consider different policy options to choose the best one. Also, adding the right riders based on your requirements can further enhance your financial protection.
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