1 Crore Term Plan
1 Crore Term Insurance Plan
Life is full of uncertainties like death, disability, illness, etc. such events can leave us financially and mentally drained. However, we humans love to be hopeful and secure about the future. We often plan to safeguard our lives and plan to create financial safety for the family in our absence. There are many options that help us to create a financial corpus for our loved ones and one such tool is the Term insurance plan. A term insurance plan is one of the best tools for ensuring financial safety for loved ones. One of the most popular insurance policies is the 1 crore term insurance plan. Let’s read to know all the details about this plan.
What is a 1 Crore Term Insurance Plan?
A term insurance plan is a tool to mitigate the financial risk that an insured’s family and loved ones would face in the event of an unfortunate demise of the insured. A 1 crore term insurance plan is a way to ensure that a substantial financial corpus is saved for the loved one. A 1 Crore term insurance plan guarantees that this sum assured amount is paid to the nominee by the insurance company to safeguard their financial needs and aspiration.
1 Crore Term Insurance: Why is it needed?
A term insurance plan is a pure life cover that promises to pay the death benefit to the nominee in the event of the death of the insured. A 1 crore term insurance plan is designed to provide financial security of the family. Seeing the current trend of inflation, it is essential to buy a 1 crore term insurance as it will help to cover most of the financial needs of the family. Additionally, the best part of a 1 crore term plan is that the plan is highly cost-effective and provides large financial corpus thereby ensuring that the financial needs are taken care in the event of the demise of the insured.
Benefits of 1 Crore Term Insurance
The benefits of 1 crore term insurance plan are as under:
- A term plan allows longer coverage as the policy tenure is usually longer
- A term plan is available at a lower premium as it only covers death risk
- As a term plan premium is low so an insured can buy higher coverage to ensure that all the financial needs of the family are taken care in his/her absence
- Rider facility is available for a term insurance plan, insured can avail rider benefit to make the term plan robust and comprehensive
Who Should Opt for 1 Crore Term Insurance?
There are multiple reasons to opt for high insurance coverage, but the question is should you really opt for a 1 crore term insurance plan?
The answer is YES! A 1 Crore Term insurance plan is designed to cover the ever-increasing financial needs of a family. With inflation, the value of INR 1 crore has reduced significantly. So, INR 1 crore seems to be the minimum coverage that any prudent and financially savvy person would like to opt for so that the family’s financial future is secured.
- A 1 crore term insurance plan is a must-buy for every working professional within the age bracket of 25 to 35 years because when you are young. You can purchase higher coverage at a lower premium.
- Additionally, if you are a sole bread-winner of the family consisting of dependent members, buying a 1 crore term insurance plan is utmost necessary as it ensures financial security for family and peace of mind for you. Additionally, a term insurance plan is cost-effective to secure the family’s future financial needs.
- A 1 crore term insurance plan is also highly recommended for individuals who have liabilities like housing loan, education loan, car loan, etc. because in the occurrence of any untimely death of the insured, the death benefit received can be utilized by the nominee to pay off the liabilities and suffice the immediate need of funds. In this manner, an insured can plan to safeguard the family’s future by taking care and planning for all the future arising financial needs.
- Additionally, it is recommended that every working professional must avail a 1 crore term insurance plan because it comes at a very reasonable cost. Lastly, it is always best to check all the features, benefits and terms of the policy before purchasing. A 1 crore term insurance plan is offered by many leading insurance companies at competitive rates, it is wise to do necessary research by keeping in mind the financial needs and goals of your family.
How to Find the Right 1 Crore Term Insurance Plan?
Finding the best 1 crore term insurance plan is a tedious task as there are many insurance companies offering it at a competitive rate. However, if you have decided to purchase a 1 crore term insurance plan to secure your family financially in your absence then here are some important factors that you need to consider to find the right 1 crore term insurance plan.
- Policy Features:
One of the basic and the most important things to consider while purchasing a 1 crore term insurance plan are the features, benefits and terms of the policy. These are the most important aspects as it will give you a clear understanding of the inclusions and exclusions of the policy.
Premium is the amount paid to the insurance company for the 1 crore term insurance coverage. Even though the premium amount of a term insurance plan is relatively less as compared to other insurance products, one needs to take into consideration one’s financial convenience. Before purchasing a 1 crore term insurance plan go online and compare the premium rates of all the leading insurance companies along with the features and benefits. Online term insurance calculators are freely available to take an idea about the premium rate for a 1 crore sum assured. Once you have done thorough research, you can shortlist the ones that offer good features and benefits at an affordable rate.
- Claim Settlement Ratio:
A claim settlement ratio is an important aspect to be considered while choosing an insurance company. A claim settlement ratio as the name suggests is a ratio (determined in percentage) of the number of claims settled by the insurance company to the number of claims registered with the insurance company. It is best to select the insurance provider with a higher claim settlement ratio because the higher the claim settlement ratio, higher is the probability of honouring the claim. Of course, you would not want your family to go through the pain of claim rejection in times of distress, therefore, opt for insurance providers who have a claim settlement ratio more than 90%.
Riders are the add-ons that can be attached to the base policy to make the coverage more wide, covering all major situations of life like critical illness, permanent or temporary disability, waiver of premium, etc. Apart from riders, it is important to check additional benefits like extended cover or other attractive benefits that the 1 crore term insurance plan is offering. However, it is best to examine the benefits and riders to select the best plan that is satisfying all your needs.
1 Crore Term Insurance Plan Premium Comparison
All the leading insurance companies in India are offering 1 crore Term insurance plan that is available with various benefits as per the customers preferred customisation. We have curated a list of a few 1 crore term insurance plans especially for you. The premium amount stated in the table is applicable for applicants who are non-smoker, non-drinker and with no history of pre-existing illness. For this sample illustration, we have curated the data for a 35-year-old male with an annual income of INR 9 Lakhs with no history of smoking, alcoholism, or pre-existing illness.
|Sr. No||Name of the Insurance Company||Name of the Term Plan||Claim Settlement Ratio||Premium|
|1||Life Insurance Corporation of India||LIC e-Term Plan||98%||INR 14,600|
|2||Max Life||Online Term Plan||95.50%||INR 9,046|
|3||Star Union Dai Ichi Life Insurance||Premier Protection Plan||94%||INR 22,000|
|4||ICICI Prudential||iCare II Term Insurance||93.8%||INR 18,293|
|5||PNB Metlife||Metlife Mera Term Plan||92.9%||INR 9,011|
|6||Bajaj Allianz Life Insurance||iSecure Term Plan||91.9%||INR 14,513|
|7||HDFC Life||Click 2 Protect Plus Plan||90.5%||INR 11,145|
|8||AEGON Life Insurance||iTerm Plan||89.8%||INR 8,892|
|9||SBI Life Insurance||SBI eShield Plan||89%||INR 6,400|
|10||Reliance Life Insurance||Online Term Plan||83.8%||INR 7,950|
Best 1 Crore Term Insurance Plans in 2020
Few of the important perquisites of the best term insurance plan includes features, benefits and premium amount. Features and Benefits of term insurance play an important role as they define the scope of the term insurance plan. Therefore, to make your search streamlined, we have curated a list of best 1 crore term insurance plans in 2020.
|Sr. No||Name of the Plan||Features|
|1||Aegon Life iTerm Insurance Plan|
Age at Entry: Minimum 18 Years, Maximum 65 Years;
Policy Tenure: Minimum 5 Years, Maximum 40 Years
Age at Maturity: Maximum 70 Years
|2||Aviva iLife Total|
Age at Entry: Minimum 18 Years, Maximum 65 Years (for Protect Plus and Protect Income variant);
Policy Tenure: for Protect, Protect Plus, Protect Income Variant - Minimum 10 Years, Maximum 57 Years; for Protect Assured variant minimum 15 years, maximum 30 years
Age at Maturity: Maximum 70 Years with rider benefits and Maximum 75 years without rider benefits
|3||Bajaj Allianz iSecure Term Assurance Plan|
Age at Entry: Minimum 18 Years, Maximum 60 Years;
Policy Tenure: 10 years, 15 years, 20 years, 25 years, 30 years
Age at Maturity: Minimum 28 Years, Maximum 70 Years
|4||Canara HSBC iSelect + Term Plan|
Age at Entry: Maximum of 65 years while the Minimum is 18 Year
Age at Maturity: Maximum 80 years, except whole life coverage option, where it is 99 years and the Minimum is 28 Years
|5||HDFC Life Click 2 Protect Plus Plan|
Age at Entry Minimum 18 year, Maximum 65 Years
Policy tenure: Minimum 10 Years, Maximum 40 Years
Age at Maturity: Maximum 75 years
|6||ICICI Prudential iCare II Term Plan|
Age at Entry Minimum 18 year, Maximum 60 Years
Policy tenure: for one pay option Minimum 5 Years, Maximum 10 Years; For regular Pay minimum 5 years, Maximum 67 years
Age at Maturity: For One Pay Option Maximum 65 years; Regular Pay Option I Maximum 85 years, Regular Pay Option II 80 Years
|7||LIC Tech Term Plan|
Age at Entry: Minimum 18 Years, Maximum 65 years
Policy Tenure: Minimum 10 Years, Maximum 40 Years
Age at Maturity: Maximum 80 Years
|8||Max Life Smart term Plan Online|
Age at Entry: Minimum 18 Years, Maximum 60 years
Age at Maturity: Maximum 85 Years
|9||SBI Life eShield Term Plan|
Age at Entry: Minimum 18 Years, Maximum 65 years (level cover) and 60 years (increasing cover)
Policy Tenure: For level cover Minimum 5 years, Maximum 80 Years LESS entry age
For Increasing cover Minimum 10 years, maximum 75 years LESS entry age
Age at Maturity: Maximum 80 Years (level cover); Maximum 75 years (increasing cover)
|10||Star Union Dai Ichi premier protection plan|
Age at Entry: Minimum 18 Years, Maximum 60 years
Policy Tenure: Minimum 10 Years, Maximum 30 Years
Age at Maturity: Maximum 70 Years
Tax Benefits of Buying 1 Crore Term Insurance
Term insurance plan is eligible for tax benefit. Both the premium paid towards a cover as well as the death/maturity benefits received are eligible for tax exemption as per the provisions of the income tax act. Under Section 80C of the Income Tax Act, tax benefits up to a limit of INR 1.50 Lakhs per year can be claimed for the premium paid towards term insurance plans for self, spouse or dependent children. Additionally, the death benefit received by the nominee under section 10(10D) of the income tax act is fully exempted from the tax ambit. However, term insurance also offers tax benefits of up to INR 25,000 (INR 50,000 in case of senior citizens)under Section 80D of the Income Tax Act on the premiums paid for health-related riders.
What are the 1 Crore Term Insurance Riders?
The rider is an add-on benefit applied to the base plan to make the coverage more comprehensive and robust. Here is a list of most common term insurance riders which you can apply to your 1 crore term insurance plan to amplify the coverage of your term plan.
- Accidental Death Rider
- Accidental Disability Rider
- Critical Illness Rider
- Accelerated Death Benefit Rider
- Waiver of Premium Rider
- Income Benefit Rider
Selecting a 1 crore term insurance plan is a tedious task, however, buying it is a need of the hour as it will secure the financial future of your loved ones in your absence. Thus, buying a 1 crore term insurance plan is beneficial because it is affordable, offers higher coverage, and safeguards family’s future financial needs. There are numerous 1 crore term insurance plans available in the market, so it is advised to read and understand all the terms of policy in detail to make the most of your investment.