Expenses have risen in tandem with inflation, as has the level of living. If you are the sole breadwinner in your family and do not want your loved ones to suffer due to life’s uncertainties, you must invest in their safe future. And purchasing at least an Rs. 1 Crore term insurance policy is one of the finest methods to provide a secure financial future to your dependents in your absence. A term plan is one of the most cost-effective types of life insurance policies available.
What is a 1 Crore Term Insurance Plan?
A term plan serves the twin purpose of delivering a death benefit to the insured and assuring financial stability to his or her family in the event of his or her death within the policy’s term. An Rs. 1 Crore term insurance policy guarantees to pay the sum assured of the specified amount to the nominee in the event of the insured’s death. This plan acts as a guardian for the policyholder’s family, assisting them in meeting their financial requirements and objectives.
Who Should Opt for a 1 Crore Term Plan?
Since the policy premium grows with the applicant’s age, it makes sense to purchase it early. You should get at least an Rs. 1 Crore term insurance policy if you have any dependent family members. You may use the term insurance premium calculator to calculate the premium amount for an Rs.1 crore term plan.
Also, here is a simple calculation that can help you determine whether Rs. 1 Crore in term insurance coverage is adequate for you.
Term Insurance Sum Assured = [Family’s Lifelong Expenses (annual expenses considering inflation till your retirement age) + Expenses on Future Goals + Debts/Loans] – Saving
Several term life insurers provide term insurance products with a sum insured of Rs. 1 Crore or higher. Previously, the premium for an Rs. 1 Crore term plan was on the higher side. However, due to the new IRDAI rules, insurance firms have drastically decreased premium costs for a cover of Rs.1 Crore or more.
Even private insurers are providing significantly cheaper premium prices. Considering the underwriting standards when comparing various term insurers is essential since cheaper rates may come with more rigorous criteria. There are also offline term plans. Term insurance premium costs may vary based on the inclusion of riders, for example.
Best Rs. 1 Crore Term Insurance Plans
The five finest Rs. 1 Crore term insurance policies are listed here. Please keep in mind that the plan specifics may differ depending on the option selected –
1. Max Smart Secure Plus Plan
Max Smart Secure Plus Plan is particularly developed to cover all financial requirements and provide dependable help to policyholders in the case of an emergency. This term plan is a non-linked, non-participating life insurance policy that offers fantastic advantages such as death benefits and various additional built-in features such as special exit value and terminal sickness protection. It also provides combined life insurance, supplementary compensation in an accident, and premium cuts. As a result, it is a complete protection cover tailored to the customer’s needs.
2. Canara HSBC Oriental Bank Of Commerce – iSelect Star Term Plan
Canara HSBC Oriental Bank Of Commerce – iSelect Star Life Insurance Plan is a non-linked and pure term plan that assists the policyholder in dealing with life’s uncertainties. This insurance plan provides complete coverage and is conveniently accessible online at a very low premium cost. This term plan is adaptable and tailored to the policyholder’s unique needs, such as premium payment, coverage, and benefit payout options. It includes whole-life insurance, but it also allows the policyholder to choose coverage for a set period. It also comes in three varieties: Life Plus, Life, and Life with Return of Premium.
3. HDFC Click 2 Protect Plan
The HDFC Click 2 Protect Term Insurance plan is a sort of life insurance policy mainly intended to provide full financial security to you and your family members at a low cost. This life insurance plan may be tailored to the needs of the policyholder and includes a plethora of add-ons and perks to assist protect the policyholder’s future and the future of their family members. It is available in three distinct plan variants: Life Protect, Life and CI Rebalance, and Income Plus.
A death payment, surrender benefit, and tax advantage are among the primary benefits provided to policyholders under this term plan.
4. Aegon iTerm Insurance Plan
The Aegon iTerm Insurance Policy is a non-participating, non-linked life insurance policy. This term plan is inexpensive and comes with adding on to choose from a variety of plan alternatives. This insurance plan comes in three flavours: Protect Plus, Life Protect, and Dual Protect. This term insurance policy provides a base sum insured of Rs 25 Lakh. It offers two premium payment options: regular pay and single pay. Furthermore, keep in mind that no maturity benefit is available under this insurance plan. If you live until the maturity date, your insurance plan will be cancelled, and you will get no more benefits.
5. ABSLI Life Shield Insurance Plan
Aditya Birla Capital Ltd and Sun Life Financial Corporation provide the ABSLI Life Shield Insurance plan, a term plan. This insurance plan intends to provide full coverage to the policyholder’s family members while he or she is away. There are eight distinct plan options available for this plan. If the policyholder suffers from a serious illness or total and permanent incapacity, he or she may be eligible for premium waiver benefits. The duration of this insurance plan varies from 10-55 years, depending on the plan chosen.
Wrapping It Up
So, suppose you are the sole breadwinner in the family. In that case, you must have adequate financial protection in place to minimise economic hardship for your family in the event of your unexpected death. The selection of an Rs.1 Crore term insurance policy may appear difficult, but you can quickly calculate the appropriate coverage amount using the technique shown above.
You must pay close attention to the advantages, inclusions, and exclusions of the term insurance policy. The premium rate is crucial to examine, but it should not be the sole one. Consider a term plan that is beneficial to you and your family’s future.
Examine the term insurance riders and, most significantly, the insurance providers’ claim settlement ratio. This will make your task easier.