1 Crore Term Insurance Plan is a policy with very low monthly premium and sum insured of 1 crore, which is paid as death benefit to the family/beneficiary in case of an accident. In such a situation, the family will not have to suffer and struggle to get through the emotionally difficult time and the family will not have any kind of financial problem.
Market inflation and volatile stocks cannot make a person dream of a stable and secure life for his family. We understand that sometimes financial needs come unexpectedly and at such times one must be prepared to take care of the family. For this, it is important to invest in insurance that covers the needs of the individual as well as the family so that you and your family never face any financial problems.
You can rest assured that 1 Crore Term Insurance Plan will meet the needs of all the members of your family. Your children can fulfill their educational and career aspirations, and it provides them with a life insurance if you add your family members to the same policy.
What is term insurance?
Term insurance is a true protection life insurance plan that covers the risk of premature death of the insured during the term of the policy. Term plan provides life insurance to the insured at the lowest premium.
Why is a term insurance plan necessary?
Life is very unpredictable and uncertainty can deceive you emotionally, financially and physically as well. This is because no one has control over one’s death, nor can one predict. The death of the breadwinner of the family can cause disturbance in the life of the family member.
To find solutions to these problems, term insurance plays an important role in your life. Moreover, term plans are an excellent way to build a financial safety net and are the simplest and most economical type of life insurance. This will help your family pay off your loans and pay for certain needs in your absence. The death benefit is paid to the beneficiary or nominee only on the death of the insured. So, in simple words, if the insured dies after the expiry of the policy then the death benefit is nil.
Reasons why term insurance is affordable
- This is a true insurance plan with no investment component.
- If the insured dies during the policy term, only then the insurance company will pay the nominee.
- You save a lot of money on administration and other charges when you buy term insurance online.
- For a cover of 20 times your annual income, you pay 2-3% of your annual income annually.
10 Benefits of Buying 1 Crore Term Insurance Plan
- In the event of an accident, the family’s belongings can maintain a standard of living.
- You can easily buy term insurance plans online. The term insurance calculator tells you the premium amount that you will be liable to pay.
- Flexible payment options allow the insurer to select an option as per the current family requirements.
The insured can add his family and get life insurance for an additional amount. - The low premium makes this an attractive offer as it reduces the agent charges that are usually added to offline plans.
- The insured can add rider benefits to his plan to maximize coverage for accidental death, critical illness, permanent disability etc.
- Provides protection against debt in case of emergency.
- The increasing Sum Assured is calculated on the basis of market conditions keeping in view the volatility.
- You can avail tax benefits on the premium. The deduction under section 80C of the Income Tax Act, 1961 can go up to 1.5L.
- You can add international feature to your policy which makes it valid outside India as well.
- Overall, a term insurance plan gives complete financial support to your family, and you can rest assured to keep your loved ones safe.
How to choose the best term insurance plan
The best way to choose the best term insurance plan is to compare different term plans. Factors that you should look at while comparing term insurance plans Let us look at those factors:
Premium according to the size of the life cover: Everyone wants to be adequately covered. Compare the size of the premium for life insurance offered by the insurance company. This will be enough to cover all your debts as well as help your loved ones live a comfortable life after your death. However, the premium should be pocket-friendly even for the cover you choose!
Term Plan Features: Get an in-depth look at the features and benefits offered by insurance companies when you compare term insurance online. Check if the policy you choose to choose offers flexibility in the tenure of your choice, Sum Assured/built-in features like terminal/critical illnesses, accidental death benefit and premium payment mode.
Rider Add-ons: Riders are add-ons that enhance your basic term plan insurance. You can buy a term insurance rider at an additional cost. Before buying a term insurance plan online, make sure to compare the riders offered by different insurance companies. Some of the important riders that you may want to add to your policy are critical illness rider, accidental death benefit cover, etc. However, you are advised to buy only as per the requirement.
Claims Settlement Ratio: The claim settlement ratio of a company shows the ratio of total settled claims against total claims made. The higher the claim settlement ratio, the more likely your term insurance company will settle your claim. It is very important to keep a close eye on the claim settlement ratio to ensure that your claim is settled when required. So, while comparing term insurance plans, keep this important factor in mind.
Reliability of the term insurance company: Before buying a term insurance policy, ensure that the insurance company you choose to choose is reliable and sustainable so that they can develop trust among their customers. Based on the goodwill and financial goodwill of the company, you will get a clear picture of your business and bankruptcy status. So, before you buy term plan insurance online, do not forget to compare term plans based on the stability of the insurance company.
The factors mentioned below are used to calculate your term insurance premium:
Age of the Life Assured: Age is the most important deciding factor in getting your term insurance premium. At a younger age, you are less likely to succumb to lifestyle diseases or death. The insurance company will thus save money in the near future as the chances of making a claim are less.
Personal Habits: If you are addicted to alcohol, drug or smoking habits, your insurance company will charge you more for your premium. Sometimes, there are changes in policy denial as well. People who are not addicted to these habits pay around 30 to 70% lower premiums than those who are addicted.
Health Record: If you do not have a family history of cancer, Alzheimer’s, etc., you will be able to enjoy lower premiums.
Term of the insurance policy: The insurance premium calculator will be adversely affected if you buy a term plan that covers your retirement age as well till you pay off all your liabilities.
Coverage/Sum Assured: It is advisable to choose the coverage as per your requirement. Higher the sum assured, higher will be the insurance premium.
Frequently Asked Questions on Term Insurance
What is the right age to buy a term insurance plan?
There really is no right age to invest when it comes to term insurance. Like any other insurance plan, the earlier you opt for it, the better. If you are able to buy the plan at an early age. The premium will be relatively low. This is a position of profit.
What are some things you should know when you are investing in a term insurance plan?
You take out a term insurance plan with the sole purpose of ensuring that your family members are adequately supported in the event of your death. In a case sensitive like this, you should always value your options on all possible components:
Coverage: You can rest assured that the coverage offered will be sufficient for your family or nominee. Never settle for a lower premium.
Claim Settlement Ratio: The insurer’s claim settlement ratio and market goodwill will ensure that your claims are taken care of when needed, so always keep that in mind.
Inflation: Keeping inflation in mind, always consider how substantial the coverage amount will be in future.
Add-on Convenience: Always pair your term insurance plan with suitable riders for the most comprehensive coverage.
What is term insurance with maturity benefit?
Primarily, a term insurance plan with maturity benefit is different from a real term plan. In a true term insurance plan, if a policy holder survives during the term, he or his nominees are also not eligible to receive any benefits. However, a TROP (Term Return of Premium) plan offers maturity benefit which is equal to the premium paid by the policyholder if he survives till the end of the term.
The premiums that you will pay for your term insurance policy are completely decided by the following factors:
- your age and gender
- sum insured
- Health Conditions
- Policy Term Term
- Frequency of premium payment
- Selected Payment
Needless to say, the premium will remain unchanged during the term of your policy. And the good news is that you do not have to invest huge amounts for premium every year. The sooner you buy a term plan, the cheaper it is.
How much sum assured/cover should I take in a term plan?
The determination of your sum assured depends on various factors. It varies depending on the number of dependents you have, your investment needs, affordability, the lifestyle you want to provide for your family, and the education of your children. Try to analyze your needs by adding the cost of living to the living. Subtract this with the salable investments already available. The difference you find is the required sum assured that you should take.
What will I get on maturity under term insurance?
There is no maturity under term insurance so you will not receive anything. The only benefit you will receive is the death benefit. If you die, your loved ones can receive the sum assured.
Once the policy is issued to you, the premium amount remains the same throughout the term of the policy. It also depends on the tax controls declared by the Government of India.
Smoking has a huge impact on term insurance. It is believed that your expenses are more than what you spend on a pack of cigarettes. This goes on increasing in the form of medical expenses as well as insurance premiums. While applying for a term insurance policy, inquiries will be made about your consumption of tobacco products in the last 12 months. As a smoker, your risk pool will be different. Although the premium may be considered higher for smokers, the premium is available at a reasonable price.
What if I want to leave my policy during the policy tenure?
If you want to leave your policy during the policy tenure, you are at a loss! Remember that this is a term insurance plan. If you leave your policy, you will not get any benefits.
Can I insure my wife/child instead of myself?
If you want to buy a term plan for yourself, you can do it in your own name. If you want to cover your family members, you have to buy separate term policies for them.
Can I switch my term plan from one company to another if I get better benefits in other term plan?
No, it is not possible to switch your term plan from one term insurance company to another. This is applicable even if you are assured of better benefits in any other plan.
What are the mandatory documents required to buy term plan online?
List of documents required to buy term insurance online. They are listed below.
- Proof of Income / Employment
- proof of age
- proof of education
- Address Proof – Residence & Contact
- proof of identification
- Photo
- pan card copy
What happens if you die within one year of buying the policy? Will the claim still be settled
Normally, once the policy is issued, the claim will be settled even if the death occurs within one year of purchase of the policy. Once again, it depends on the terms and conditions of the insurance company. You have to look carefully at the policy document and keep it clear with the insurer.
Why is term insurance important?
Term insurance is a death benefit product. Yep, we get that ‘death’ and ‘gain’ don’t look so close to each other. This means that in case of premature death, the term plan ensures that the dependents of the insured get some financial protection to emerge from the sudden loss of income.
Apart from acting as a financial safety net for your family, term insurance has benefits for you as well. These include tax benefits and very low premiums as compared to other life insurance products.
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