How Much Does 2 Crore Term Insurance Cost
Updated On Jan 19, 2023
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Ever since the outbreak of the global pandemic happened, the need to do the right financial planning has become important more than ever. While planning the financial portfolio, there are certain things that need to be kept in mind such as age, income, health risks, and more. To stay protected against uncertainties, it is best to invest in a term insurance plan that provides coverage in case the policyholder succumbs to an unfortunate death. But, while buying a term insurance plan, one thing that often pops into mind is what should be the ideal coverage. So, in this blog let us understand how much a 2 crore term insurance exactly costs.
What is a 2 Crore Term Insurance Plan?
A 2 crore term insurance plan is such a plan where the sum insured is 2 crore. As the sum insured is 2 crore, which is why it is popularly called as 2 Crore Term Insurance Plan. Many people might think this type of term plan would cost a lot. However, this is not the case, so let us understand this with an example.
For instance, Mr. XYZ who is 40 years of age and has dependent parents, wife, and children. He also has to repay a loan of 30 lakhs and his monthly income at the moment is 15 lakhs INR. In this scenario, since his liabilities are a lot, it makes sense to buy a term insurance plan with 2 crore term insurance plan. This will help him in securing the financial needs of his dependents in the apt manner, even when he is not around.
Features of A 2 Crore Term Insurance Plan?
As we all know, a term insurance plan is the purest form of life insurance that offers death benefits in the event of a policyholder's death. So, listed below are some of the features of a 2 crore term insurance plan:
- A 2 crore term insurance plan provides life insurance coverage for a fixed term
- If the policyholder dies during the policy tenure, then the sum assured of 2 crores will be paid out the beneficiaries of the policyholder
- The benefits offered under 2 crore term insurance plan will cease to exist, if the policyholder fails to pay the premium on time
- There is no maturity benefit offered under the 2 crore term insurance plan, unless a maturity benefit rider is added to the plan.
How Much Do a 2 Crore Term Insurance Plan Cost
The premium cost of a 2 crore term insurance plan largely depends on your age, lifestyle habits, and other factors. So, let us understand different factors that will affect how much the 2 crore term insurance plan will cost:
- Age: It is best to buy a 2 crore term insurance plan at an early age as with increasing age, the premium costs increase. This is because with increasing age, the chances of being affected by different types of health issues also increases and so does the term insurance premium.
- Lifestyle changes: Lifestyle plays a very important role in determining your term insurance premium. For instance, if you lead an unhealthy lifestyle and are involved in smoking or drinking, then in such a case, the premium of the 2 crore term insurance plan will be higher.
- Income: The premium of a 2 crore term insurance plan also depends on your income. So, keep your income in mind while buying a 2 crore term insurance plan.
- Existing liabilities: If you have taken a loan or have any other financial liabilities, then that also affects the premium of 2 crore term insurance plan.
- Dependants: The more will be your dependants, the more will be the premium of your 2 crore term insurance plan.
Thus, the premium of a 2 crore term insurance plan largely depends on the above-mentioned factors. You can also get in touch with us to know more about the 2 crore term insurance plans.
Also read: Steps To Revive Lapsed HDFC Life Policy