We live in a time when having robust financial protection is essential to not only safeguard one’s family from financial crisis during an emergency but also to have peace of mind. As a result, more people are purchasing an insurance policy as a part of their financial planning, which is understandable given the benefits such plans bring along. Today, we can purchase pure protection plans that come with comprehensive cover and a high sum assured applicable for a significant period of time. Since a major part of this depends on the size of the cover, it is important to seek insurance policies with high cover amount and lucrative features. So when looking for insurance look for the best term insurance plan for 2 crore and check their features. The high sum of 2 crore will prove beneficial for you in more than one way.
Features of 2 Crore Term Insurance Plan
Term insurance with a sum assured of 2 crores can help you build a financial safety net for your family members and help account for obligations in your absence.
These are the features of the best term insurance plans for two crore –
A high cover value: The high sum assured will serve as a potential financial buffer that can help lower your family’s burden in case of emergency or your absence. The amount of money will help adequately meet immediate expenses and help tide over a significant share of future obligations. Your dependents can use the sum assured to meet daily living expenses, loans, EMIs, and bills without the need to depend on others. This high sum of two crores would prove more beneficial if you have multiple dependents and the only member supporting them financially. The policy will help cover their financial needs, offering peace of mind that your family members will be well taken care of in your absence.
Rider benefits: Besides the cover amount, term plan insurance offers the feature of adding rider benefits to the base policy. In such cases, you can add one or more add-ons to your policy and increase the scope of coverage based on your needs. For instance, based on the insurance company’s terms and conditions, you may add a critical illness cover or a premium waiver. However, note that while the add-ons increase your coverage it will also inflate the premium. This is why you should add only those riders that are extremely crucial for your needs. You may use an online term life insurance calculator to understand how coverage can impact your premium amount.
Affordable policy premium: The high sum assured amount often throws off people, who assume these plans would come at a high premium. However, term insurance plans with a two crore sum assured come with an affordable premium amount, so that more people can benefit from it. Also, the premium amount would depend on several variables such as age, income, coverage, and add-ons. To understand the premium you have to pay for coverage, you can use an online premium calculator.
Things You Should Factor When Buying a Term Insurance Plan
When looking for the best term insurance plan for 2 crore keep these in mind –
Income: You must factor your income when you seek to purchase a term insurance plan. Your income reflects your standing and your ability to pay a premium. Having an idea about the same can help you determine whether a premium amount is suitable for your pocket and budget or not. Additionally, an idea about your total annual income will help you compute the amount of money you would need to create a replacement for your earnings so that your family members’ needs are met even in your absence.
Financial obligations You must also factor all your expenses and future obligations. This must include your current loans, living expenses, EMI, and upcoming dues such as child’s education cost, mortgage, and marriage.
Obligations: Individuals should also factor in their current and upcoming obligations such as ongoing loans, EMIs, and due payments to compute their expenses. In addition, they should consider their upcoming obligations like their child’s school or college admission, exam fees, and mortgages to gain a full picture of the expenses and liabilities. Computing these expenses will help you figure out your actual disposable income and understand your liability. Based on this you should look for a term plan with a high cover so that your family members can account for these expenses independently.
Should You Get a Term Insurance Policy?
If you are between the age of 18-65 you can consider getting a term insurance plan. However, if you get a term insurance plan for two crore sum assured you could avail a high cover at an affordable premium.
Insurance companies associate high age with increased risk as older adults have more financial responsibilities and health complications than younger individuals. This is why older adults pay more premium for the same cover than young applicants.
Additionally, at a young age, you have less responsibility and fewer dependents. You can leverage this opportunity to put a part of your savings to good use and avail a comprehensive cover that will benefit your family members in your absence.
If you have multiple dependents, the high cover amount can help you build a financial safety blanket for your family members. The high sum assured will help meet immediate expenses, take care of sudden needs, and allow us to cater to planned obligations with much ease. Since the death benefit will act as the insured’s income replacement, the money can help dependents get back on their feet without depending on others or dipping into their savings.
The high sum of money will also help you build an inflation-adjusted financial cover for your loved ones and supplement their savings.
In this way, the best term insurance plans for 2 crores can help account for financial needs and protect the future of their loved ones. When seeking a term plan make sure to check other features and terms and conditions of the insurance plan to understand their merit.