Introduction
Rahul was the only breadwinner in the family. His father was a government retired employee who earned his pension to make for his retirement. Rahul was married and had a son. His sudden death left the family in distress, giving them feeble chances to understand how to make up for their living and other expenses. The grief-stricken family hardly knew anything until a representative from the life insurance company came up to tell them that they had earned a death benefit payout under the term plan. Rahul had taken the insurance policy when he started earning in his first job. A 1 crore term insurance gave back the family their hope of living. Despite the loss of Rahul, the policy sum assured provided hope to the family to start their life again.
Ever since the life insurance policy was introduced, individuals have taken it to support their families if any unfortunate event occurs. As a result, gradually, the term plan gained importance amongst buyers. Why did that happen, let us explore in detail.
Table of Contents
What is Term Insurance?
What is a 1Cr Plan?
Who should opt for a Rs.1 crore term insurance plan?
Best term insurance plan for 1 crore.
Conclusion
What is term insurance?
A term insurance is a life insurance policy issued for a specified time. The insurance policy provides coverage at the fixed premium rate for the policy term. The term plan keeps the family from any financial crises if the life insured passes away during the policy term.
There are other life insurance policies too, but why did the term life insurance gain relevance? Let us read this here.
Why did the term life insurance plan gain importance?
Term life insurance plan gained importance as it offered several advantages. These are the benefits of the term insurance policy :
- It is cost-effective: The term life insurance policy is cost-effective because there is no investment component. The insurance premium is affordable for a high sum assured. The premium remains the same for the duration of the policy term. For example, you can get Rs.1 crore term insurance for just Rs.480/per month.
- High-life cover: A term life insurance is a high-life cover. The policy provides a high life cover of Rs.1 crore. The sum assured helps you manage several medical or non-medical expenses.
- Provide simple and flexible solutions: The term insurance provides high cover per your financial needs.
- When young, the premium is less: The term insurance policy comes at comparatively less premium when young. This is why individuals liked the term plan.
- Return of premium option: Though the term plan does not come with a maturity benefit, the insurance policy provides an opportunity to return the premium. The premium for this cover type is higher, but it returns all the premium paid at the end of the policy term.
The term insurance plan provides a lot of benefits. However, the insurance type is often replaceable, called a Rs.1 cr plan. Let us see why?
What is the 1 crore plan?
1 crore plan or term insurance plan is synonymously used. No other life insurance policy provides life cover for such high limits of Rs.1 crore at a pocket-friendly premium. The 1 crore term insurance policy guarantees to pay the sum assured of Rs.1 crore to the nominees of the life insured. The benefit is paid to the nominee on the death of the life insured.
Who should opt for a Rs.1 crore term insurance plan?
A term insurance plan can help your family manage financial liabilities like car loans, home loans, education loans, etc. The relevance of the insurance policy is profound and more than you can imagine. The policy provides financial security and hopes to the dependents in the family after you (life insured) passes away. Anyone who is above 18 years old can buy the term insurance plan.
These are the individuals who can take an Rs.1 crore term plan:
- Young and healthy: Anyone at the beginning of their career can buy an Rs.1 crore term plan. This is the time in life when you are unburdened with any financial loan liabilities. When young, the premium is also less for the entire policy duration.
- Sole breadwinners: The sole breadwinners in the family can buy a term insurance policy. The term policy can help the dependent in the family if anything unfortunate happens.
- Individuals with salaries of more than Rs.5 lakhs: The premium for the term insurance policy can be easily afforded by individuals who earn more than Rs.5 lakhs. Possibly, they will easily be able to pay the premium for the entire policy duration.
- One’s with loan liabilities: If you are an individual with loan liabilities of your expensive car, home, student loan, you must buy a Rs.1crore term plan. In the event of an unexpected disaster, the sum assured will help the family manage the loan liabilities.
Best term insurance plan for 1 crore.
The market is flooded with several term insurance plans. For the best term insurance plan for 1 crore comes, you may consider one from Aditya Birla Sun Life Insurance Company. They offer three-term plans, each with its distinct features. For 1 crore cover, the best term insurance plan is ABSLI DigiShield Plan. Let us next look at the features of the plan.
Features of ABSLI DigiShield Plan
- The insurance policy offers 10 plan options to choose from. One of the plan types provides coverage up to 100 years of age.
- Flexible death benefit payout is allowed. The life insured can choose the payout at the inception of the policy. It can be either in a lump sum, monthly income or a combination of both.
- The policy comes with the in-built accidental death cover.
- Survival benefit is also available as monthly income if the life insured survives till age 60 years. It ensures a worry-free retired life.
- The policy pays terminal illness benefits if the life insured is diagnosed with one up to an age of 80 years. The benefit will be payable if the policy is in force. A maximum of Rs.2 crore will be paid, subject to a maximum of 50% of the sum assured on death.
- Accelerated Critical Illness is paid on the first diagnosis of specified critical illness.
- Enhanced Life Stage Protection is a benefit for which the life insured has to opt at the inception. The benefit indicates that you can increase the life cover sum assured on the occurrence of events like marriage, first child, or house loan.
- ABSLI DigiShield Plan comes with rider options to enhance the life cover by adding riders at an additional cost. Some of the riders that the life insured can buy are Accidental Death and Disability Rider, Critical Illness Rider, Surgical Care Rider, Hospital Care Rider, Waiver of Premium Rider, and Accidental Death Benefit Rider Plus.
Conclusion:
Buy a term insurance plan to prevent your savings from suddenly draining when you are not around to take care of your family. Rs.1 crore term plan helps the family survive the hardships and financial crunch when they lose the sole breadwinner in the family. The high cover amount of the term plan will help the family resolve their financial requirements. For more details on the term plan, please read here.