What is ₹2 Crores Term Insurance?
A ₹2 Crore Term Insurance Plan is a life insurance policy that provides a lumpsum payout of ₹2 crore to your nominee in case of your unfortunate demise during the policy term. The payout is, however, subject to the circumstances of the claim and terms of the policy.
Term insurance is popular because it offers a high coverage amount at a relatively low cost. A basic version of this plan includes only a death benefit, meaning that there are no maturity or additional benefits. However, policyholders can choose to customise their policy by paying an extra amount for additional features or riders.
Why Buy a ₹2 Crores Term Insurance Plan?
A ₹2 crore term insurance plan provides significant financial protection for your family in the unfortunate event of the policyholder’s passing. These plans ensure that a policyholder’s family can sustain their lifestyle, cover daily expenses, and achieve several long-term goals, such as education and marriage without any financial stress. Opting for a ₹2 crore term insurance plan is particularly beneficial for policyholders involved in high-risk, yet well-paying professions or in areas with a high cost of living.
How Does a ₹2 Crores Term Insurance Plan Work?
A ₹2 crores term plan operates on the principle of pure protection:
Policyholder's Premiums: You pay regular premiums to the insurance company.
Coverage Period: The policy provides coverage for a specified period, known as the term.
Death Benefit: If the life assured passes away during the term, the nominee receives a death benefit of ₹2 crores.
No Maturity Benefit: Unlike other life insurance plans, term plans do not offer maturity benefits if the life assured survives the term.
What are the Benefits of a ₹2 Crores Term Insurance Plan?
Affordable Premiums: Term plans are cost-effective compared to other insurance products.
High Coverage: Offers substantial coverage at a relatively low premium.
Financial Security: Ensures financial stability for your family in your absence.
How to Choose the Right ₹2 Crores Term Insurance Plan?
Choosing the right term insurance plan with a ₹2 crores sum assured involves consideration of several factors. The following tips can act as your guide when it comes to choosing the right policy:
Assess Your Needs: Evaluate your family's financial needs, liabilities, and future goals.
Compare Plans: Use online comparison tools to compare different term plans based on premiums, features, and benefits.
Check Claim Settlement Ratio: Choose an insurer with a high claim settlement ratio to ensure your family's claim is honoured promptly.
Riders and Add-ons: Consider additional riders such as critical illness cover, accidental death benefit, or waiver of premium to enhance your policy.
Policy Term: Select a policy term that aligns with your financial goals and obligations.
Premium Payment Options: Check for flexible premium payment options that suit your financial planning.
Want to calculate the premium amount for your ₹2 crores term insurance plan? Do it with an online calculator here!
Will the ₹2 Crores Term Insurance Payouts Be Taxed?
The payout from a ₹2 crores term insurance plan is typically tax-free under Section 10(10D) of the Income Tax Act, 1961. This means that the death benefit is not subject to income tax. However, it's essential to ensure that the premiums paid do not exceed 10% of the sum assured to qualify for this exemption.
Why Buy ₹2 Crores Term Insurance Plan from IndiaFirst Life
Opting for a ₹2 crores term insurance plan from IndiaFirst Life comes with several advantages:
Comprehensive Coverage: Provides extensive coverage to secure your family's future.
Competitive Premiums: Offers affordable premium rates for high-value coverage.
Additional Riders: Availability of various riders to customise your policy.
High Claim Settlement Ratio: Ensures a hassle-free claim process with a high claim settlement ratio.
Flexible Payment Options: Multiple premium payment options to suit your financial plan.
Customer Support: Robust customer support for policy management and claim settlement.
Need help in choosing the right life insurance plan? Call us now at 8828840199 or book a call here.
Frequently Asked Questions
What are the eligibility criteria to purchase a ₹2 crores term insurance plan?
You have to be at least 18 years of age to purchase a term life insurance plan, irrespective of the sum assured you are trying to secure. Check the eligibility criteria of the term policy you seek to ensure that you may be able to get the plan.
While the final approval lies with the underwriting team, everyone who is eligible for a regular term plan may apply to buy a ₹2 crores term insurance plan.
How do I know if ₹2 crores sum assured will be sufficient?
An ideal sum assured for life insurance is a value that includes 10x your annual income plus all your liabilities. You can calculate this manually, using an online term insurance calculator, or have an expert do it for you.
What is term insurance premium amount for a plan offering a coverage of ₹2 crores?
Premium for ₹2 crores term insurance depends on various factors such as age and gender of the life assured, as well as the sum assured. You can either use a term insurance premium calculator or consult an insurer representative to help you with the same.
What happens if the life assured survives the policy tenure?
If you have opted for a level term insurance policy and survive the policy tenure, there are no maturity benefits of term insurance to be claimed. However, if your plan has a return of premium option, you may claim the premium return upon plan maturity.
Which riders are available with the ₹2 crores term insurance plan?
Availability of riders depends on the plan chosen. You can check which riders can be added to your plan of choice.
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