Published on September 10th, 2024
When you’re planning to secure your future and build a financial safety net for your family, nothing surpasses term insurance. It’s one of the purest insurance forms. You simply pay the premium and get coverage in return.
Now, you must be wondering if it’s that simple a plan, then what’s the benefit of opting for it? Well, there are term plans of even 1 crore. A 1 crore term insurance plan can ensure your family has substantial financial support to maintain their lifestyle.
Let’s understand how this plan works, its considerations, and things to keep in mind to find the best 1 crore term plan.
How Does 1 Crore Term Insurance Work?
Term insurance plans vary based on their conditions, but their base functioning is similar across all plans. Now, if you opt for a plan of 1 crore, this may get the beneficiaries a higher amount in case of any unfortunate event.
You will have to pay a regular premium, which can be monthly, quarterly, or annually, as per convenience for a chosen term.
Here’s how insured amount benefits your family is given below:
- Living expenses such as home loan payments, utility bills, and other ongoing costs.
- Children’s education, which might include ongoing expenses or for higher studies in the future.
- Repay any outstanding loans and offer financial freedom.
- Present an investment opportunity.
Why Consider A Term Plan For 1 Crore?
Here are some compelling reasons why a 1 crore term insurance plan might be the right choice for you:
- Higher Protection for Your Family: A ₹1 crore payout ensures that your family is amply covered when compared with the same under a normal term plan. This way, they can have the same living standard and financial independence if something happens to them.
- Inflation: The premium amount is fixed when you opt for the 1 crore term insurance. The amount to be paid in the future will not buy as much as it could buy prior to inflation.
- Tax Advantages: The payment of premiums for term insurance plans is applicable for tax deductions according to Section 80C of the Income Tax Act. Also, as per the terms in Section 10(10D), the payout qualifies for exemption from taxes.
- Add-on benefits: Term insurance plans come with several ride options like critical illness benefit, accidental death benefit, and premium waiver rider. You can add these to your plan based on your financial need.
5 Things To Know About A Term Plan For 1 Crore
There are several aspects of a term plan to know about, especially when you have opted for a 1 crore term plan. It offers significant benefits, but knowing some key factors given below can help make an informed decision:
- Track your financial position carefully, where you must consider your income, expenses, and any existing financial commitments, if any.
- Choose a term insurance duration that matches your financial goals and family’s requirements.
- Gather information if additional rider benefits are available. Add-ons like accidental death benefits, disability benefits, or critical illness cover can increase overall protection.
- Research your insurance company and the claim settlement ratio it offers to gain an understanding of its track record of settling claims efficiently.
- Read the documents very carefully to know the policy exclusions.
Searching The Best Term Insurance Plan For 1 Crore
Several insurance companies offer 1 crore term plans, and it has become a popular plan. You can compare options based on the following tips and get the best plan:
- Get quotes from multiple reputable insurance companies regarding their term plans.
- Go through the reviews and expert opinions on different term insurance plans and companies.
- Consider talking to an insurance company before investing with them.
Have You Applied For The 1 Crore Term Insurance Yet?
Getting insurance is an important part of everyone’s life. Whether it’s the term plan or any other, irrespective of the amount, tenure, and other factors, they must give you adequate benefits. With the right insurance provider like Canara HSBC Life Insurance, you can get that.
When you invest in their 1 crore term insurance plan, you can rest assured when it comes down to settling claims.
They have one of the leading claim-settling ratios, 99.23% in the financial year 2023-2024, in the market. Visit their official website to explore and invest in their online iSelect Smart 360 Term Plan at nominal rates today!
