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Here’s Why Your Life Insurance May Need To Be More Than Rs. 1 Crore

Published On May 17, 2021 12:00 PM By InsuranceDekho

Purchasing a life insurance plan is a crucial part of anyone’s life. It offers financial security and stability for the future as well as serves as a great investment in the present. You can choose the sum assured under your life insurance plan.

Common Reasons Why Should You Get A Term Insurance of More Than Rs. 1 Crore

An Rs. 1 Crore life insurance plan is a popular choice. It does seem sufficient for a life insurance plan. However, you might just need more and here’s why:

  • Outstanding Loans

     As a policyholder of a life insurance plan, you can get loans faster and easier. However, if you die before paying them off, your family will have to settle your debts and with the life insurance money. Therefore, a chunk of the benefit might go into repaying loans. This is even more of a concern if you have multiple loans. In that case, Rs. 1 crore might not be enough.
  • Growing Children

    If you have growing children with expenses like education and job training still ahead of them, you might just have to rethink your decision about getting an Rs. 1 crore life insurance plan. It may not seem too necessary if you have a single child, but it becomes very important when you have more than one child. Even the marriage of your children is a crucial factor to be considered.

You may also like to read:- Is Rs. One Crore Life Insurance Cover Good Enough For You?

  • Inflation Rates

     Increase in inflation rates and costlier lifestyle habits are imminent. Although Rs. 1 crore may seem like a huge amount today, it might not hold its value in the near future. You must take this into consideration and prepare your amount of sum assured accordingly. What you may think is enough today, may not sustain your family for long, in the future.
  • Ailing Family Members

     If you have ailing family members that you might leave behind, you need to carefully plan, keeping in mind their possible medical expenses. Even if an Rs. 1 crore life insurance is enough under normal circumstances, having beneficiaries who are terminally or critically ill may complicate matters.

Also Read:- Best 5 Rs.10 Crore Life Insurance Policies

Endnotes

Carefully evaluate your, as well as your beneficiaries' needs and circumstances before you declare a life insurance plan to be a perfect choice for yourself. As evident from above, there are several, very subjective factors that must be taken into consideration when you are planning to buy an Rs. 1 crore life insurance plan.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.           

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