What is a ₹1 Crore Term Insurance Plan?
A ₹1 Crore Term Insurance is a type of life insurance policy where the sum assured, or the payout amount, is ₹1 crore. It offers the same features as a regular term life insurance policy.
The premium you pay for this cover depends on factors like your age, lifestyle, gender, and location. You can use a term insurance calculator to estimate your premium cost according to your needs.
How Does a ₹1 Crore Term Insurance Plan Work?
A ₹1 Crore Term Insurance Plan provides a life insurance cover where the insurer pays ₹1 crore to the beneficiaries in case of the insured's untimely demise while the policy is still active. This lump sum payout provides financial support to the family that's left behind, helping them manage expenses, pay off debts, and secure their future.
Let’s look at how this works with an example:
At Age 31:
Ambika, a working professional, decides to secure her financial future by purchasing a ₹1 Crore term insurance plan. Even though she currently has no dependents, she plans to marry the following year. Ambika reviews various policies online and uses term insurance calculators to get premium estimates, ultimately choosing a single premium payment option that best aligns with her financial plans.
From Ages 32 to 40:
Ambika marries and becomes the mother of two children. During these years, she juggles her career and family responsibilities, with more family members starting to depend on her. The term insurance plan serves as a key financial safeguard for her growing family, giving her peace of mind knowing that they are protected.
At Age 58:
Tragically, Ambika and her spouse are involved in a fatal accident. Ambika had wisely named her children and mother as the beneficiaries of her ₹1 Crore insurance cover. After her passing, the claim process is completed, and her children receive the funds, ensuring that they can pursue their education and life goals. Her mother also receives financial support for her senior years, just as Ambika had intended.
If you’re thinking about purchasing a term insurance plan like Ambika, consider exploring the options available through IndiaFirst Life. We provide a variety of plans with ₹1 Crore coverage, allowing you to choose one that fits your needs and secures your family's future.
Who Should Buy a ₹1 Crore Term Insurance Plan?
₹1 Crore term life insurance is suitable for a range of individuals across age and income groups. Some sections of the demographic who may benefit from a ₹1 crore life insurance sum assured are:
Individuals with dependents relying on their income should secure their family's future with a significant life cover. Those with substantial financial obligations, such as home loans or children's education, may also benefit from this coverage. ₹1 crore life insurance can help a nominee take care of multiple responsibilities without having to worry about financial stress after the passing of the life insured.
Young individuals can lock in lower premiums by purchasing the policy early in their career, ensuring long-term coverage at a more affordable rate. This allows them to chase their dreams without worrying about any liabilities they may leave behind for their loved ones in the future.
Individuals with Liabilities
It is not ideal for one’s liabilities to be passed onto their loved ones. One’s family can be protected from the burden of loans or other significant debts. For someone burdened by significant loans, a ₹1 crore term plan can help keep the family protected.
High-Net-Worth Individuals
Matters such as wealth transfer and estate planning can be secured with adequate coverage for heirs. One’s loved ones will be supported financially after they are gone.
Why Should You Buy ₹1 Crore Term Insurance?
There are several reasons why you may find term insurance for ₹1 crore a suitable option for yourself.
High Coverage at Affordable Premiums
Financial Security for Dependents
Provides a substantial amount to cover daily expenses, education, and future needs.
Ensures your family maintains their lifestyle in your absence.
Customisable Plan
Offers options to add riders for enhanced protection, such as critical illness or accidental death.
Flexible premium payment terms to suit your financial planning.
How to Select the Right 1 Cr Term Insurance Plan?
Determine the Right Policy Tenure
Choose a term insurance policy period offering coverage when you most need it.
Ensure the plan allows you to pay premiums comfortably for the entire duration.
Use a term insurance calculator to determine the premium for your chosen plan.
Ensure the premium is affordable for the entire policy tenure, allowing for a well-informed financial decision.
Research and compare ₹1 crore insurance policy options based on features and eligibility criteria.
Select a plan that meets your financial requirements.
Analyse and compare term insurance plans based on features, benefits, and premium rates.
Choose an insurer with a high claim settlement ratio to ensure your family receives the benefits of term insurance with ₹1 crore sum assured.
Customise the Term Insurance Policy
Customise the plan by selecting suitable premium payment options, payout options, and adding riders for enhanced coverage.
Choose a convenient premium payment mode (such as monthly, half-yearly, or annual).
Consider Including Riders
Riders offer additional benefits, such as an accidental death benefit, to enhance coverage in specific scenarios.
How to Determine the Right Coverage Amount?
If you are wondering whether ₹1 crore is the right sum assured for you, here are a few things to consider:
The coverage should be at least 10x your annual income, so it may sustain your loved ones for a significant time while they get back on their feet.
If you have any liabilities, it is ideal to include those in the sum assured calculation.
Your specific responsibilities, such as the education of your child, can also be considered for the calculation.
Use an online term insurance calculator to help you arrive at the right sum assured value and understand whether a ₹1 crore plan is right for you.
Is it Recommended to Select a Term Plan Offering Broader Coverage?
Let's explore how selecting a higher sum assured, such as ₹1 crore, can impact you.
Term insurance policies, including those offering a ₹1 crore sum assured, provide substantial coverage at very affordable premiums. The cost remains manageable whether you opt for a ₹50 lakh plan or a ₹1 crore plan. This allows you to benefit from higher coverage without straining your finances.
Term plans ensure your premiums remain consistent throughout the policy term. Choosing a ₹1 crore policy for up to 30 years means you'll pay the same annual premium. Purchasing term insurance early in life, ideally in your 20s or early 30s, ensures long-term affordability and financial predictability.
A ₹1 crore term insurance plan offers robust financial protection. Opting for this higher sum assured can help your loved ones achieve future financial goals and maintain their standard of living, even amidst high inflation rates.
Increasing your sum assured isn’t the sole method to enhance coverage. You can customise your policy with riders that provide additional benefits. Critical illness riders and other options offer flexibility, tailoring your insurance policy to suit specific needs and circumstances.
Why Buy ₹1 Crore Term Insurance Plan from IndiaFirst Life
IndiaFirst Life offers affordable premiums for their 1 crore term life insurance plans, making it a cost-effective choice for comprehensive coverage.
Our plans provide financial security by ensuring a lump sum payout of ₹1 crore to your beneficiaries in the event of your untimely demise. Together, we can help them maintain their lifestyle and meet financial obligations.
IndiaFirst Life's ₹1 crore term insurance plans come with flexible policy terms and options. We allow you to tailor the coverage to suit your specific needs and financial goals.
We offer additional benefits such as critical illness riders and accidental death riders, enhancing the coverage to provide comprehensive protection against various unforeseen circumstances.
IndiaFirst Life is known for its efficient customer service and hassle-free claims process. Your loved ones can receive the financial support they need during difficult times without unnecessary delays.
Things To Consider Before Buying a ₹1 Crore Term Insurance Plan
Coverage Assessment: Evaluate your family's financial needs, including loans, future expenses, and lifestyle aspirations, to ensure adequate coverage.
Policy Duration: Select a tenure aligning with your financial goals, considering loan terms, children's education, and retirement age.
Premium Affordability: Choose premiums fitting your budget throughout the policy period, with a payment frequency suiting your financial plans.
Claim Settlement Ratio: Research the insurer's claim settlement ratio for efficient claims processing and peace of mind.
Riders: Explore additional options such as a critical illness rider or accidental death rider to enhance coverage tailored to your needs.
Purchase Requirements: Understand any medical examination requirements based on age and coverage amount.
Policy Exclusions: Review and understand specific conditions not covered by the policy to clarify the extent of your coverage.
Claims Process: Familiarise yourself with the insurer's claims process for transparent and efficient settlements.
How to Buy ₹1 Crore Term Insurance Plan from IndiaFirst Life?
Term insurance policies from IndiaFirst Life can be purchased online. Choose the plan you like and head on to the buying page.
Choose the details of the plan and then input your personal details.
Review the plan and confirm the details.
You will then be required to submit the relevant documents and pay the premium.
You will receive your copy of the policy document.
Need help in choosing the right life insurance plan? Call us now at 8828840199 or book a call here.
Frequently Asked Questions
What is the minimum income requirement to purchase term insurance of ₹1 crore?
There are no stringent income requirements. However, the underwriting team may reserve approval based on your income and other liabilities. It is ideal to consult the insurer to understand this aspect as it may differ from case to case.
Who is eligible for a ₹1 Crore Term Plan?
While the final approval lies with the underwriting team, everyone who is eligible for a regular term plan may apply for a ₹1 crore term insurance plan.
What is the average premium value for a ₹1 crore term insurance policy?
The premium for term insurance depends on various factors such as age, gender, and lifestyle. You may use a calculator to get estimates based on your personal details.
How to buy a ₹1 crore term insurance plan online?
You can go to the insurance provider’s website to purchase a plan. You will be required to submit digital copies of relevant documents and make the premium payment online to complete your purchase.
Can two term insurance plans be purchased for higher coverage?
There is no regulation against having more than one term insurance plan. However, it is ideal to assess your needs and see if your current plan can be altered to suit all your needs before you put your money into another policy.
Can NRIs buy term insurance with ₹1 crore sum assured?
Yes, term insurance for NRIs, with ₹1 crore sum assured, may be available for purchase.
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