Reasons Why You Need Rs 1 Cr Term Insurance Cover

Term insurance plans have progressed substantially over time, and now they include a variety of features and perks that are pretty beneficial. Since you can get such a large cover without burning a hole in your wallet, the figure of Rs. 1 Crore term insurance has become relatively popular and is referenced everywhere. So, today, let's look into different factors that add to its popularity and why you should have a term insurance plan with a coverage of Rs. 1 Crore.

Why Should You Purchase a Rs. 1 Crore Term Insurance Plan?

Here are some reasons which can convince you to purchase a Rs. 1 Crore term insurance plan. 

• To Build a Stronger Financial Safety Net For Your Family

People often make the mistake of choosing a plan with a low premium rate to save money, but they do not realize that the low coverage might not be enough to maintain their family's lifestyle and pay for their daily expenses in the long run after their demise. Therefore, choosing a Rs. 1 Crore term insurance plan can be a smart financial decision since the significant coverage of Rs. 1 Crore can help your family sail through tough times smoothly.

• To Fulfil Long Term Goals

Every person has certain long term goals like their children’s higher education, marriage, retirement plans etc. A Rs. 1 Crore term insurance plan can help achieve these long term goals by providing your dependents with financial support until they become independent. It must be noted that the higher the sum assured, the higher the benefits. 

• To Repay Loans and Debts

Since the coverage is of an enormous amount, the money can help repay your loan and debt repayment obligations if you die before the policy term completion. This way, you can ensure that your loved ones would not have to carry the burden of your personal loans.

• To Beat Inflation

A brief review of the history reveals that costs of living have risen dramatically in recent years. The cost of basic necessities has risen. Medical treatment, as well as other services such as education and housing, has become more expensive. Moreover, this pattern will almost certainly continue in the future. So, if you want to ensure that your family has enough money to fight inflation, a Rs. 1 Crore term insurance plan is the way to go.

• To Get Additional Rider Benefits

You can choose to supplement your Rs. 1 Crore term insurance plan with additional rider benefits such as a critical illness cover, accidental death cover, permanent or partial disability cover etc. This means that if the life assured is diagnosed with a critical illness, they are eligible for a payout in addition to the death benefit to the beneficiary if he/she dies during the policy's term.

Take Away

A Rs 1 crore term plan is the finest approach to protect your family against unforeseeable future tragedies due to its cost, accessibility, and high coverage. Moreover, you can even get coverage up to Rs. 100 Crore. Hence, before choosing a term insurance policy, you should carefully assess your needs. It is worth remembering that an appropriate term insurance policy can help protect your loved ones.

Also read 

Term Insurance Riders and How They Benefit You

5 Best Long Term Investment Options In India

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.