Investing in a term insurance policy in India is a great way to financially take care of your family after your unfortunate demise. One such popular plan is the 1 crore term insurance plan, which many individuals prefer as their choice of term insurance policy. There are a lot of reasons why investing in such a plan can be beneficial and if you are in the same boat, considering whether to buy a 1 crore term insurance plan or not, go through this page to get essential details on the matter.
What is a 1 crore term insurance plan?
A 1 crore term insurance is a type of life insurance plan that provides a sum assured of INR 1 crore at reasonable rates. In simple terms, it is a term insurance policy that pays a death benefit of INR 1 crore to your loved ones/the nominees in the event of your death within the selected cover tenure. When choosing this plan, the sum assured is 1 crore, while you can make adjustments to the aspects of the total policy tenure, premium paying frequency, optional riders, premium paying term, etc., which, alongside provided critical details like your age, health, smoking habits, etc., will help determine the premium of the plan.
Who should opt for a 1 crore term insurance plan?
The payout offered under this type of term insurance plan is quite huge and can help your loved ones bear their financial obligations and maintain their lifestyle after your tragic passing. To give you a clearer idea, here are some examples of cases where investing in a 1 crore term insurance plan makes sense;
- Young professionals: As your age increases, new responsibilities stack on your shoulders. Hence, it is wise to prepare for financial security for your loved ones as early as possible with a large cover. If you are in your 20s or early 30s, consider getting a 1 crore term insurance plan, which should be available at affordable premium rates.
- Sole working member of the family: If you are the sole breadwinner in the family, you wouldn’t want your loved ones to suffer from financial burdens in case something happens to you. Having a term insurance plan with a huge cover ensures that the ones dependent on you don’t have to go through any financial stress after your demise.
- Newly married couples: If you are newly married with no kids, you can invest in a 1 crore term insurance plan to financially secure your spouse and dependent parents if anything were to happen to you. It can also act as a financial safety net, allowing you to plan for your future together, which may include buying a car, or a house, safeguarding your children’s education, etc.
- Couples with kids: Couples with young or older kids can invest in a 1 crore term insurance plan, which will enable their loved ones to be covered against any debts or financial obligations in case of the tragic death of the insured. It will also help finance major expenses related to their children, such as their higher education, wedding, etc.
- Individuals with debt: Individuals with existing loans or debts can consider the purchase of a 1 crore term insurance plan. This way, if they were to pass away within the cover tenure without paying off their debts, the payout under the 1 crore term insurance plan can help their family relieve the remaining financial burden.
- Business owners/self-employed: If you are self-employed or a business owner, you should know about the low financial security and liabilities that often come with such professions. In such a case, having a cover of 1 crore in terms of a term insurance plan should be sufficient to ensure the insured’s loved ones’ financial security in their absence.
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Benefits of investing in a 1 crore term insurance plan
There are plenty of term insurance benefits of investing in a 1 crore plan that makes individuals invest in it, such as;
- Long-term security: The INR 1 crore payout under this term insurance plan should shield your loved one’s financial obligations against rising inflation and expenses.
- Huge coverage: The massive cover amount of INR 1 crore can help your loved ones take care of multiple goals and financial obligations after your demise, such as paying out existing loans and debts, higher education, wedding and house, maintaining a present lifestyle, handling emergency expenses, etc.
- Affordability: One of the best term insurance benefits of investing in a 1 crore plan is that you can get such a huge cover at affordable rates, especially if you invest in it early in your life.
- Multiple payout modes: You can secure your loved one’s financial future in your absence the way you see fitting, which can be in the form of a lump sum payout, as regular income or a mixture of both.
- Tax benefits: You can save a lot of money in annual taxes in the form of deductibles with the 1 crore term insurance plan, under Sections 80C, and 10(10D) of the Income Tax Act, 1961. This is one of the best term insurance benefits of purchasing a 1 crore plan.
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Conclusion:
A 1 crore term insurance plan offers a sum assured that is sufficient to meet existing and future financial obligations in most Indian families. People of varying ages, professions and financial goals can invest in such a plan to secure their loved ones’ financial lives in case of their unfortunate death.
