We all know that life is full of uncertainties, still we seek security and stability in every aspect. More importantly, we focus on financial stability more than any other aspect of our lives.
We ensure financial security by investing in different types of insurance to support our family for a better future. We invest in health insurance, car insurance, family insurance, business insurance, life insurance, etc.
What is a Term Insurance?
Term insurance is the purest form of life insurance that provides monetary benefits to the family when the policyholder passes away. Term Life insurance helps us to provide monetary support during uncertainties.
Term insurance is a contract that you need to deposit the premiums for a period. A Sum is Assured to be paid to the beneficiary upon the death of the insurer. Term insurances are the most affordable and offer very large coverage.
In this article, I will be sharing everything you need to know about a 1 crore term insurance plan.
What is a 1 Crore Term Insurance Plan?
As I have mentioned that term insurance is a contract that the beneficiary or nominee (spouse or family) will get the life coverage upon the death of the policyholder.
To know about the 1 crore term insurance below:
- It is as simple as the name of the plan suggests, a 1 crore term insurance helps you to offer live coverage of 1 crore.
- It is slightly different from traditional life insurances in terms of premiums. That means the premiums of a 1 crore term insurance is less than normal insurances.
- A person from the middle class can also afford the term insurance as its price is less as compared to other plans.
- Both government and private insurance organizations offer these plans at affordable prices.
- You can take the term insurance both online and offline.
Well, if you want to invest in such a policy then you should know whether it’s the insurance plan you need or not.
Is Rs. 1 Crore Term Plan Suited for You?
Anybody who is between 18 years and 65 years can have this term plan. However, the age limit varies from company to company. Anyway, if you want to have a 1 crore term plan then here is what you should know.
- It is best suitable if you are between 25 years to 40 years.
- It is best for youths who are the earning members of their families. If you are the only earning member of your family, you can go for the 1 crore term plan.
- If your income is above five lakhs then you can go for it. Although you can have this plan even if your income is less than that.
Now let us know why you should choose this term plan, what are the benefits, and how you will have to pay the premium.
Best 1 Crore Term Insurance Plans
Here are some of the best term insurance plans that offer you 1 crore sum assurance. Look at the list of plans listed below and choose the one that best suits your needs.
1. Max Life Insurance Smart Term Plan
It provides the best 1 crore term insurance plan for a monthly premium around Rs. 500 only. The maturity period for this term plan is up to 85 years. It also offers flexible payment options.
2. LIC Tech Term Plan
It’s one of the best 1 crore term insurance plans because it offers you a minimum sum of 50 lakhs and no upper limit. With a minimum entry age of 18 and a maximum of 60 years, it provides maturity up to 80 years of age.
3. Aviva i-Total Life Plan
It offers a variety of plans for the 1 crore term insurance. It offers you minimum coverage of 50 lakhs with no maximum limit. It has four variants such as illness cover, protect plus, protect assured, protect income. You can check out each variant and choose according to your need.
4. ICICI Prudential iCare II Term Plan
It offers the term plan with an entry age limit from 18 to 60 years and maturity age limit varies according to the premium pay option. That means the maturity limit is 65 years for one pay option, 80 years and 85 years for regular pay option I and II respectively.
5. Bajaj Allianz Term Assurance Plan
The term plan offers the entry age limit from 18 years to 60 years with maturity age limit from 28 years to 70 years. It offers three different term plans for different categories basic life cover, with regular monthly income, with increasing monthly income.
There are many other term plans available, but you need to compare them properly before selecting a plan.
Why Should Buy 1 Crore Term Plan?
Well, there are three many financial benefits of having this term plan. But I have listed only a few of them below.
As people are living with lots of liabilities nowadays, it may be a burden to the family members if the earning member dies. Along with the household expenses, all other financial liabilities such as loans, mortgages and will be paid by the family member. So this term plan helps them to repay the loans and manage expenses to live peacefully.
2. The Impact of Inflation
The inflation is growing around 5-8% every year and it is decreasing the value of money with time. One crore may look a large amount today, but the amount will become a necessity in the future if you look at the increase in inflation.
3. Other Benefits
The 1 crore term plan comes with other perks and benefits other than the sum assured. You may not get the same benefits in any other policy.
How To Choose a 1 Crore Term Insurance Plan?
Before choosing this term plan you need to keep few things in mind. First of all, it is important to consider your financial status and family before you choose this plan. Here are some other factor
1. Check The Premium Rate
The premium amount is one of the most important factors that you need to consider before choosing it. Whether you are paying it on a monthly basis or annual basis, you need to think about it. It has a major impact on our budgeting and financial markets You can use an online calculator for premiums and other online resources to select the best one from different types of policies.
2. Claim Settlement Ratio
This is one of the most important factors that you should check before choosing the 1 crore term plan. It helps you to know the number of policies the insurer settled by paying the sum assured. If you find that the claim settlement ratio is below 90% then don’t go for that.
3. Extra Benefits
Each term insurance policy provides different benefits. Some organizations offer policyholders to pay their premiums at different time limits and frequency. So you need to check the extra benefits of different 1 crore term plans.
Everyone reads the general terms and conditions as well as some features such as age limits, policy terms, etc. But the above factors can help you choose the best plan for 1 crore term insurance. Now let us look at some of the best 1 crore term insurance policies offered by different term insurers.
Well, many people don’t want to invest in a term plan. They think it is unnecessary, but the fact is term insurance can help you live a peaceful and secure life. Presently, a 1 crore term plan is the best one that you should go for.
However, keep the factors in mind and choose carefully which term plan best suits your needs. Consider the premium amounts, claim settlement ratio, and other benefits before choosing a term plan. Hopefully, the article has helped you to know about the 1 crore term insurance plan. Now if you have any queries, please ask in the comments section and share your opinion on this post.