Term insurance is, essentially, a life insurance plan which is taken out for a specific period of time. The policyholder pays premiums as stipulated by the policy contract and upon the death of the policyholder, the beneficiaries of the plan will be paid the predetermined Sum Assured. Term insurance plans are thought to be the purest form of life insurance. Term insurance plans offer a high amount of coverage for extremely affordable premium rates.
What is 1 crore term insurance?
-A 1 crore term insurance is a term insurance plan that provides a life cover worth Rs.1 crore.
-Although traditional life insurance plans with Sums Assured of Rs. 1 crore may demand high premium rates, term insurance plans offer affordable rates. These plans are strictly regulated by the IRDAI (Insurance Regulatory and Development Authority of India). As per their directions, premiums for 1 crore life insurance plans have been considerably reduced and made affordable for the middle class.
-A number of government as well as private insurers provide competitive premium rates for such plans.
-1 crore life insurance plans are available online as well as offline.
Who is a 1 cr term plan suited for?
-A 1 cr term plan is best suited for individuals aged between 25 and 35 years of age, since the term for such a high sum assured can extend up to 30 odd years.
-Youngsters who are primary or sole breadwinners in their families are ideally suited for a 1 cr term plan.
-These plans are usually targeted at individuals who fall in the income slab of 5 to 7 lakhs.
Why should you opt for a 1 crore term plan?
-Inflation: Inflation in India rose from 5.54% in November straight to 7.35% in December. Although Rs. 1 crore might seem like a humongous amount now, after factoring in rising inflation, it will start to seem like a necessity.
-Liabilities: While determining the sum assured for a term insurance plan, not only should one’s utility and household expenses be taken into account, but financial liabilities like loans and mortgages too. In the absence of the policyholder, the burden of paying off loans and mortgages falls on the shoulders of the rest of the family. Thus, to ensure timely repayment, a high sum assured can come in handy.
-Extra Benefits: A sum assured of Rs. 1 crore can give policyholders access to extra perks and benefits that they might not be able to avail in a plan with a lower sum assured.
How to select a 1 crore term plan?
Term plans of any sum assured are not a one-size-fits-all affair. There are certain things that need to be taken into consideration keeping your financial situation and family in mind.
-Your premium paying capacity is the primary deciding factor here. You can use online premium calculators and list down premium rates and compare 1 crore life insurance policies.
-Carefully take note of the additional benefits. Different insurers offer different riders and benefits like flexible premium payment and death payout modes for 1 crore term insurance policies. Policyholders should opt for benefits which secure your family well and take care of your future.
-The claim settlement ratio of your insurer plays an important role in the selection of a 1 crore term plan. This ratio basically tells you the number of policies which have been settled i.e. death benefit has been paid to the beneficiaries. It is best to select an insurer with a claim settlement ratio higher than 90%.
A 1 crore term plan can help bring peace of mind to policyholders by thoroughly financially securing their family. A sound term insurance plan replete with a high sum assured at nominal rates as well as multiple benefits is Canara HSBC Oriental Bank of Commerce’s iSelect+ Term Plan.
iSelect+ Term Plan
Canara HSBC Oriental Bank of Commerce’s new iSelect+ Term Plan is a comprehensive plan that offers benefits like the option of increasing the sum assured over the course of the policy term on certain special occasions like weddings, childbirth, and purchase of a house. The benefit payout can be opted as a lump sum, monthly income, or even lump sum + monthly income. It comes with 4 rider options which include Accidental Death Benefit, Accidental Total & Permanent Disability (Premium Protection), Accidental Total & Permanent Disability (Premium Protection Plus), and Child Support Benefit.