Top 5 Benefits Of Buying Rs. 1 Crore Term Insurance
Published On Oct 08, 2021
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Both offline and online term plans offer sum assured amounts as high as starting from Rs.1 Crore to up to Rs. 100 Crore and more also. Sum assured can be picked or selected by an individual depending on their requirements. With a plan like this, you can secure your future and the future of your family.
In simple terms, the sum assured is the value of insurance cover provided by the insurer when you purchase the term plan. It’s the amount that the insurer pays out to the beneficiary in case of death of the life insured. For instance, say you purchase an online term plan where the insurer agrees to pay a sum of Rs. 1 crore in the event of your unfortunate demise. That amount is referred to as the sum assured.
What Are The Benefits Of Term Plans With A Sum Assured Of Rs. 1 Crore?
A high sum assured comes with several upsides. By investing in a Rs. 1 crore term insurance plan, you stand to benefit in a number of ways. Here’s a closer look at the benefits of term plans with a sum assured amount of Rs. 1 crore.
1. A Higher Sum Assured Acts As A Hedge Against Inflation
A quick look at the past shows us that prices have risen significantly over these years. The costs of basic amenities have increased. Medical care is more expensive, as are other facilities like education and housing. This trend is certain to continue into the future. So, if you wish to ensure that your family has sufficient funds to fall back on, you’ll find that a Rs. 1 crore term insurance plan is one of the preferred investment options. However, if you want to take a plan with a sum assured of more than Rs. 1 Crore, you can do that depending on your risk appetite and life goals. A smaller sum may not be enough to get your family through everyday life if the costs soar higher, as they’re bound to.
2. It Helps Your Family Meet Significant Expenses In The Future
If you invest in a Rs. 1 crore term insurance plan in your twenties, your plan will probably expire only when you’re in your fifties or so. Some plans even offer longer coverage, so your insurance remains valid till you’re in your sixties. In case of your sudden demise, there could be situations where your family does not have enough savings, hence your family will have no way to pay for significant expenses in the future without a life cover. Costs like your children’s educational expenses, their wedding outlays, and any serious medical expenditure can be handled more smoothly if your family has the benefits of at least a Rs. 1 crore term insurance plan. They could have a term insurance plan with a higher sum assured also.
3. The Life Cover Offered
The life cover or the sum assured is one of the most important aspects to look into before you put your money on an insurance plan. Take your regular annual expenses into account, make room for inflation, and add a sizable margin to determine the life cover that’s ideal for you. If you have a family with 2 or more children, a Rs. 1 crore term insurance plan is what your family may ideally need to get through in case you’re no longer around. However, this would not be it. It is always a good idea to take a few factors into consideration like liability, age, how long one intends to work etc. before deciding on your sum assured. There are a lot of term insurance calculators available which could give you an idea of what your right insured amount should be depending on multiple factors.
4. The Policy Duration
Since term insurance plans are pure life covers, it’s advisable to opt for policies that come with a longer duration. This way, your life cover is valid for a longer period. Ideally, your plan must extend into your sixties or later, so you’re covered up to your retirement or post retirement age. Some term insurance plans also offer whole life coverage, so you’re protected till you’re 99 years of age.
5. The Rider Options Available
Term insurance plans do not offer any maturity benefits. However, to enhance the cover offered, many insurers now provide rider options on term plans. Some such riders include critical illness benefit riders, accidental death benefit riders, accidental disability riders, and waiver of premium riders. Look for the rider options available before you purchase a term plan, so you can enjoy a wider range of benefits.
You can use an online term insurance calculator to determine your life insurance cover requirement. Rs. 1 Crore term insurance plan would not be the only solution as insurance providers provide sum assured which could be more than Rs. 100 Crore also. Hence one should always evaluate their needs before deciding on their life cover requirement. Adequate term insurance plans help in ensuring security of your loved ones.
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.