Why Should We Buy Rs. 1 Crore Term Insurance?
Updated On May 12, 2021
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Given the current inflation rate, if you are a young adult and a significant breadwinner for your family, a term insurance cover of at least Rs. 1 Crore, with a policy term of 30 years or more, is ideally tailored to your needs. Rs. 1 Crore term insurance plans are extremely cost-effective and broad enough to secure the future of the family and guarantee stability of income in the event of an accident or an early demise of the policy holder.
Why Should We Buy 1 Crore Term Life Insurance?
However, what is the reasoning for choosing this default amount? Why the magic number of Rs.1 Crore? Let us try to explain the logic behind this mental barrier. There are a lot of explanations for this listed below.
Cost-effectiveTerm insurance policies are one of the best types of life insurance you can receive. Since the term cover is a pure life insurance policy that has no savings aspect, the term plan rates are very inexpensive, particularly as opposed to permanent life insurance. For eg, you can get a Rs. 1 Crore term plan for as little as Rs. 14 a day, subject to terms and conditions.
Steady premiumsA variety of term insurance plans give a steady premium for the lifetime of the contract. If your insurance term is 10, 20 or 30 years, the premium would remain the same as you have a "level term" policy. Many term plans even give you the option of a transition to a fixed life insurance policy after your term contract has expired. However, once the term ends, the premium will grow exponentially.
AccessibleAs long-term premiums are so cheap, a fixed amount of Rs. 1 Crore would be open to a much wider pool of citizens. On the other hand, the Rs. 1 Crore cover for an endowment scheme would not be feasible for many individuals.Term plans are also an open and inexpensive way for everyone to shield their families from the complexities of life. In fact, this package is recommended for individuals between 25 and 35 years of age with income between Rs. 5 lakh and Rs. 7 lakh per year.
You may also like to read:- Should I Get More Than One Term Insurance Plan?
Additional coverageIf you are able to afford higher premiums as you get older, certain insurance companies would also allow you the option to expand coverage at important stages in your life. For eg, if you have a simple Rs. 1 Crore term cover, you can opt to increase your insurance when you get married or have a child with marginally higher premiums.
RidersOver and beyond Rs. 1 Crore life cover, you can also opt to improve your term coverage with additional policies such as the Critical Illness Plan. It ensures that the insured applicant is entitled to collect a reward whether he or she has been hospitalised with a serious condition, above and above the death payout to the nominee if the insured person dies within the lifetime of the plan.
Attractive benefitsIn order to promote the uptake of term policies, insurance companies offer certain attractive features. For example, discounts and reduced prices are given to some groups of individuals, such as non-smokers.
Thanks to its affordability, accessibility and massive coverage, the Rs 1 Crore Term Plan is the perfect way to shield the family from unforeseeable incidents in the future. The rates for this package are especially low and can be purchased online and offline. Rs. 1 The Crore Package will have coverage up to the age of 75 years with relatively reasonable premiums, which are much cheaper if you are a Woman.
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.