A₹1 crore term insurance policy guarantees your loved ones a sizeable amount in case you meet an untimely death within the policy period. This amount ensures financial stability, allowing your family to pay off debts, your child’s education, and other expenses.
Selecting an appropriate term insurance plan for 1 crore will secure your family financially and prepare them for rising costs. If you are perplexed about what to consider when choosing this plan, continue reading the below section.
Things to Keep in Mind Before Buying a Term Insurance Plan for 1 Crore
You should know the following aspects before purchasing a 1 Crore term insurance plan:
Evaluate Your Needs
You should first assess your family’s monetary needs. The policy coverage should be sufficient to support your family’s financial needs and lifestyle in your absence.
Comparison of Premiums
You should compare policies online from different insurance providers and choose a suitable plan. Use Life Insurance Calculator India to check the premium amount for identical policies. A low-cost term insurance policy comes with affordable premiums but may offer limited benefits, so explore your options carefully and proceed with the purchase.
Check Insurer’s Credibility
To ensure an insurer’s credibility, check its claim settlement ratio (CSR), which represents the number of claims it pays out. A CSR above 95% reflects the insurer’s reliability in handling claim payments efficiently. You can also ensure the insurer’s credibility by reviewing its customers’ reviews, feedback, and ratings on Google or other financial forums.
Review Policy Tenure
The duration of the policy should match your financial goals and liabilities. Certain term insurance plans come with policy tenure up to 75 years or higher. Such plans are more suitable for people with long-term dependents.
Inclusion of Riders
Including riders helps you get comprehensive coverage for your particular term insurance plan. Some common riders include accidental death coverage, critical illness coverage (offers a one-time payment if diagnosed with a critical illness), and waiver of premium (waives premium in case of disability).
Check whether the riders you chose suit your lifestyle and budget. A life insurance calculator can help you determine how the inclusion of riders impacts the final premium amount.
Additional Details to Know
You must go through the policy features to get all the necessary details. In addition to the basic coverage, term insurance policies for 1 Crore may entail additional features, as listed below:
- Coverage Boost: Some policies provide the flexibility to increase the sum assured.
- Return of Premium: If no claim is made during the policy tenure, you will get your premium back.
- Joint Coverage: You can use this feature if you want both spouses covered under a single policy.
Analyse Payout Options
Insurance providers support multiple payout options. The ‘Lump Sum’ option provides the entire benefit amount in one go. The ‘Monthly Income’ option distributes a fixed amount each month for a fixed period. You can also choose a combination of the two, i.e., the balance is paid as a lump sum, while the remaining amount is paid as monthly income. Remember to choose an option that fits your family’s financial capabilities.
Consult an Advisor (Optional)
Contact a proficient financial advisor or an experienced insurance expert to eliminate confusion. They can better clarify information related to term insurance policies. Subsequently, they can recommend the best 1 crore term insurance plan to meet your financial goals. Remember to choose a reliable and experienced advisor.
Conclusion
To make the most of your investment in a term insurance plan for 1 crore, you can begin by evaluating your needs and exhaustively comparing premiums. Consider your family’s financial needs, current financial situations, and expenses you plan to incur. You should choose a reliable insurer with a strong claim settlement record.