Term Insurance

Best Term Insurance Plan For 1 Crore

by SMCIB on Thursday, 21 December 2023

Best Term Insurance Plan For 1 Crore

When you build your dream house, you want the structure to be sturdy and last forever. You need to take the time to lay a strong foundation and plan each step carefully. So, it's important to pay attention to detail and build it meticulously with quality materials. Doing so will ensure that your masterpiece will last through the ages, making it a true testament to your hard work and dedication.

Similarly, you should plan every step of the process when purchasing term insurance. You need to pick a plan that’s right for your family by looking at their financial milestones and checking out the benefits offered by different plans.

One of the most significant factors to consider when buying term insurance is the cover amount. The cover amount you choose needs to be adequate to meet your family’s financial obligations. In this article, let’s discuss term insurance plans with a cover amount of Rs 1 crore and how to choose the best one - in detail
 

What is 1 Crore Term Insurance Plan?

A 1 Crore term insurance plan is essentially a term insurance plan with a cover amount of Rs 1 Crore. In simpler terms, if something happens to you during the policy term, the plan ensures that your family receives a sum of 1 Crore as a death benefit if you pass away while it is active. If you outlive the duration of the 1 Crore term insurance plan, you don’t get anything back.
 

Features of 1 Crore Term Insurance Plan

Let's take a look at some key features of a 1 Crore term insurance plan -

1️⃣Financial Protection

Term insurance serves as a crucial financial safeguard for your loved ones in case of your unexpected demise. By opting for a 1 Crore term insurance plan, you create a safety net that ensures your family's financial security. In the event of your untimely demise during the term of the policy, this sum assured becomes a lifeline, empowering them to sustain their lifestyle and pursue their aspirations without financial constraints.

2️⃣Substantial Coverage Amount

A 1 Crore term insurance plan coverage is like having a solid financial backup to keep your family secure if something happens to you. This considerable amount is there to cover essential expenses like outstanding debts, mortgage payments, everyday living costs, etc. But it's super important to figure out the right cover amount by considering your needs and those of your family. That way, you can ensure the coverage is just right for your family's unique situation.

3️⃣Affordable Premium

Term insurance stands out as the most straightforward and budget-friendly type of life insurance. Since it focuses solely on providing protection without any investment elements, the premium is notably lower. This means that even for a substantial cover amount like Rs 1 Crore, the premium for a term insurance plan remains affordable due to its pure risk coverage approach. This affordability factor makes it possible to secure substantial coverage without putting a hole in your wallet.

4️⃣Riders To Enhance Your Coverage

Riders are optional benefits that provide additional payouts in specific situations. You can choose to add them to your term insurance policy by paying a little extra, and the best part is there's no need for additional paperwork or medical tests. Term insurance policies offer a range of riders to choose from, such as Critical Illness Rider, Accidental Death Benefit Rider, Waiver of Premium Rider, Accidental Disability Rider, and more.

5️⃣Ability To Customise

Term insurance gives you the flexibility to tailor it according to your preferences and financial needs. You have the freedom to decide how you want to pay your premiums. You can choose from either of these premium payment term options - single pay, limited pay, and regular pay. Plus, you can choose to make your premium payments either annually, half-yearly, quarterly or monthly. If you prefer your family to receive the claim amount in monthly instalments rather than a lump sum, you have the freedom to customise that, too.

Moreover, if you want your term insurance coverage to grow over time, there's an option to include the increasing cover feature. This level of customisation ensures that your insurance plan aligns seamlessly with your family's requirements and priorities.
 

What is The Need For Term Insurance?

Here are some compelling reasons why term insurance is worth considering -

1️⃣Offers Financial Security

If something unfortunate occurs, it won't just be an emotional burden on your loved ones; they might also face financial challenges. To prevent this, you can take a responsible step by offering a financial safety net through a term insurance policy. Its primary intention is to ensure that your family receives the essential financial support they need in the unfortunate event of your passing during the term of the policy. It's a proactive measure to safeguard their well-being and provide a stable foundation during challenging times.

2️⃣Serves As Your Backup Plan

Having a contingency plan is prudent, especially when your family members depend on you financially, you have pending loans, EMIs, etc. Some might feel they're too young to think about eventualities, but life is unpredictable - you never know what'll come your way. So, being prepared is a sensible way to make sure your loved ones are taken care of, regardless of life's uncertainties.

3️⃣Settles Your Outstanding Loans

Say you decide to pursue higher studies with a student loan, and out of nowhere, a tragic accident occurs, putting your parents under financial strain. Opting for a term insurance policy becomes a thoughtful choice to spare your loved ones from this unexpected burden. It ensures that, in the unfortunate event of your passing before repaying the loan, your portion of the financial responsibility is taken care of. So, term insurance acts as a protective shield for your loved ones when you're not around, ensuring they won't bear the weight of settling outstanding debts.

 

How Does 1 Crore Term Plan Work?

A 1 Crore term insurance functions much like any other term insurance plan. To keep the 1 Crore term insurance policy active and unlock its benefits, it's essential to pay the premiums on time. Should the worst happen during the policy term, the insurer will provide Rs 1 Crore to your nominee, offering significant financial protection for your family. This substantial coverage under the 1 Crore term insurance plan ensures their financial security and helps them meet various obligations in your absence. However, it is important to note that if you outlive the tenure of the 1 Crore term insurance plan, you will not receive anything back.

 

Who Should Go for 1 Crore Term Insurance Plan?

If you have people who are financially dependent on you – be it your parents, spouse, children, etc. considering a term insurance plan is a prudent step. And its main idea is to safeguard your family's financial future, ensuring they can maintain a comfortable life even without your support. The amount of coverage you choose should be tailored to address their specific needs and aspirations.

Whether Rs 1 Crore is enough hinges on your family’s specific financial goals and dreams. As mentioned earlier, choosing the right term insurance cover for your family is not a one-size-fits-all decision. To determine the appropriate cover, you need to calculate the difference between what you plan to leave behind and your family's actual financial needs.

Having said that, a term insurance plan is worth considering if you -

  • Have financial dependents, particularly non-earning family members like retired parents, a wife, children, etc., who depend on your income for their living expenses.
  • Hold a substantial loan that could pose a burden on your family in the unfortunate event of your passing,
  • Have not created enough wealth to ensure the financial stability of your family in your absence.
  • Have large financial commitments such as funding your child's education, wedding, etc.
     

Will Rs 1 Crore Be Adequate for Your Family?

Your basic intention in purchasing term insurance is to make sure it secures the financial future of your family and that they live a comfortable life even if you are no longer around to support them. So, the cover amount you need to achieve this depends on their needs and requirements. Whether or not Rs 1 Crore will be enough for them depends on what their financial goals and dreams are.

The apt term insurance cover for your family is not some pre-decided amount. You should do the math to arrive at the right cover amount because having an insufficient cover is equal to having no cover at all. So, in order to find the cover amount, you need to calculate the gap between what you intend to leave behind and your family's actual needs.

Let’s have a look at some scenarios to understand this.

Case 1: Manav, 30, is a single father living with his 5-year-old son and 10-year-old daughter. He wishes to create a financial safety net for their future. Besides that, he also has an outstanding personal loan of Rs 20 lakhs. Considering his financial obligations, he decides that a cover of 1 crore would be sufficient for him.

Case 2: Ravi is a 35-year-old government employee. He lives with his wife, 3-year-old son and retired parents. All four of them rely on him financially. Additionally, he has an outstanding home loan as well. In light of his financial responsibilities and liabilities, he may require cover greater than 1 crore. And, if he buys a 1 crore cover, his family might be left with insufficient coverage in the future.
 

Is it Better to Buy a Term Plan With High Coverage?

To guarantee that your family maintains their lifestyle even if you are not around, it is crucial to purchase a term insurance plan with a cover amount that will adequately support them in the future. Remember, buying an insurance policy is a personal decision. Each individual has distinct needs and preferences. The term 'high coverage' is subjective, as the amount that might be sufficient for one person could fall short for someone else.

While a figure of Rs 1 Crore may initially seem quite high, it is crucial to recognise that for an average person residing in a city, employed in a private company, and supporting school-going kids, this financial requirement is realistic. Additionally, considering the substantial and continuing inflation in India, Rs 1 Crore might appear significant now, but it could evolve into a necessity in the future. To tackle this, you will have to opt for a term insurance plan that offers an increasing cover option.

Therefore, it is strongly recommended that you thoroughly evaluate and understand your needs and objectives. Take the time to choose your cover amount and customise your policy with features like riders, increasing cover, etc., ensuring that it aligns precisely with your and your family's requirements. This thoughtful approach helps you avoid the pitfalls of both over-insuring and under-insuring.
 

How to Determine The Right Coverage Amount?

It is essential to opt for the right term insurance cover for your family. You need to calculate the appropriate amount because having inadequate coverage is essentially like having no coverage at all. And if you choose a higher coverage than what is needed, you will have to pay more premiums than necessary.

Also, instead of relying on a generic rule like the 20X annual income, take the time to tailor the cover to your family's specific needs and circumstances. To determine the right term cover, the key is to figure out the difference between what you will be leaving behind and what your family truly requires. How do you do this?

  • Firstly, calculate what you owe,

Consider your short-term expenses, long-term financial goals, outstanding loans, and other commitments.

  • Next, calculate what you own,

Include your savings, fixed deposits, investments, etc. at their appropriate risk factors.

Once you subtract the total amount you owe from what you own, it is crucial to account for inflation, typically around 6-8%. Why? This ensures that the cover amount remains adequate for your family's future needs.

If you already hold a life insurance plan, consider deducting its sum assured from the intended term insurance cover amount. The sum you end up with represents the gap that a term insurance policy needs to fill.
 

 

The Best Term Insurance Plan for 1 Crore

If you think Rs 1 Crore is sufficient for your family, you can buy a term plan with a sum assured of Rs 1 crore at SMC. We have some of the best term plans available in the market.

  1. All you have to do is simply visit our website, select 'Life Insurance', and enter your name, date of birth, and mobile number.

  2. Once you are done with those details, you will be taken to another page where you need to answer certain questions including -

    • Smoking habit – whether you smoke or chew tobacco
    • Annual income
    • Policy duration
    • Cover amount – In this provision, you need to choose Rs 1 crore.
  3. After you fill in the details, click on 'Compare Quotes'. The following page will display the best term insurance plans with a sum assured of 1 crore.

You can customise, compare and select the plan that fits your needs the best - to ensure your loved ones have the protection they need.
 

Comparison: Best Term Insurance Plans For Rs 1 Crore in India 2023

Here is a list of some top term insurance plans available in India -

 

ABSLI DigiShield Plan

Bajaj Allianz Life Smart Protection Goal

Canara HSBC iSelect Smart360 Term Plan

HDFC Life Click 2 Protect Super

ICICI Pru iProtect Smart

Kotak e-Term Plan

LIC New Tech Term

Max Life Smart Secure Plus Plan

SBI Life eShield Next

TATA AIA Sampoorna Raksha Supreme

Maximum Maturity Age

85 years

85 years

99 years

85 years

99 years

85 years

70 years

85 years

85 years (99 years if entry age is > 45 years)

100 years

Increasing Cover Option

Not Available

Not Available

Available

Available

Not Available

Not Available

Available

Available

Available

Not Available

Limited Pay Option

Available

Available

Available

Available

Available

Available

Not Available

Available

Available

Available

Claim Payout Options

Lumpsum Payout

Lumpsum Payout

Lumpsum Payout

Level Monthly Income Payout

Increasing Monthly Income Payout

Lumpsum + Level Monthly Income Payout

Lumpsum + Increasing Monthly Income Payout

Lumpsum Payout

Level Monthly Income Payout

Lumpsum + Level Monthly Income Payout

Lumpsum Payout

Level Monthly Income Payout

Increasing Monthly Income Payout

Lumpsum + Level Monthly Income Payout

Lumpsum Payout

Lumpsum + Level Monthly Income Payout

Lumpsum + Increasing Monthly Income Payout

Lumpsum Payout

Level Monthly Income Payout

Increasing Monthly Income Payout

Lumpsum Payout

Lumpsum Payout

Level Monthly Income Payout

Lumpsum + Level Monthly Income Payout

Lumpsum Payout

 

Level Monthly Income Payout

Lumpsum + Level Monthly Income Payout

Early Exit Option

Not Available

Not Available

Available

Available

Available

Available

Not Available

Available

Not Available

Not Available

CSR of insurer (FY 2022-23)

98.12%

99.04%

99.01%

99.39%

95.28%

98.25%

98.52%

99.51%

97.05%

99.01%

Please note that the data in the table is as of November 2023.

 

How to Select The Best Term Insurance Plan For 1 Crore?

If you have settled on Rs 1 Crore as sufficient for your needs, you need to consider these three key factors while buying a 1 Crore term insurance plan for your loved ones -

1️⃣Customisation Options

Choosing the ideal term insurance policy is all about finding one that fits your family's specific needs. As mentioned earlier, with term insurance, you have the flexibility to customise the plan, ensuring it aligns seamlessly with your preferences and your family's unique requirements. Here are some ways to tailor your coverage -

  • Premium Payment Frequency
    Term insurance provides you the flexibility to personalise your premium payment terms. As per your convenience and financial situation, you get to choose from four payment options -
    • Annual option
    • Semi-annual option
    • Quarterly option
    • Monthly option
  • Premium Payment Term
    The term insurance policy also allows you to choose the duration for which you can pay your premium. There are three main options available here -
    • Limited Pay Option
      With this option, you can complete your premium payments early in life. It allows you to speed up premium payments with larger and faster instalments.
    • Single Pay Option
      Under this option, you need to pay the entire premium in one lump sum in one go at the time of policy purchase.
    • Regular Pay Option
      If you choose this option, you need to pay your premiums on a regular basis till the end of the policy period.
  • Claim Payout Options
    With term insurance, you get the flexibility to customise how your family receives the claim amount. You can pick from a range of claim payout options that suit your preferences. Some of them include -
    • Lump-sum Payout Option
      Opting for a lump sum payout means you receive the entire claim amount in one go. This is a great choice if you have ongoing loans or financial commitments to address.
    • Monthly Income Payout Option
      Choosing monthly instalments means your family receives the claim amount over a set period. This option is ideal if you want to provide ongoing support for your family's day-to-day needs and do not have any outstanding loans or financial obligations.
    • Lump-Sum With Monthly Income Payout Option
      This choice combines the best of both worlds. A part of the claim is given as a lump sum, while the rest is distributed in monthly instalments over a specified period.

By choosing the right payout option, you have the power to tailor the benefits of your term insurance policy to align with your family's financial situation.

  • Increasing Feature
    As life progresses and you take on more financial responsibilities, your expenses and liabilities will continue to grow. To ensure your family remains adequately protected, it might be time to think about enhancing your term insurance coverage. That is where increasing cover comes in.

With this choice, your sum assured gradually increases at specified intervals until it reaches a set maximum limit. This ensures that your insurance coverage evolves in sync with the changing needs of your family over time.

  • Riders

Riders are essentially optional benefits you can include in your basic term insurance policy at an additional premium. They come into play to provide additional payouts under specific circumstances. For instance, consider the Critical Illness Rider – it kicks in to offer extra financial support if you get diagnosed with a critical illness listed in the policy document. Term insurance plans offer a variety of riders, including -

  • Critical Illness Rider
  • Accidental Disability Rider
  • Accidental Death Benefit Rider
  • Waiver of Premium due to Critical Illness Rider
  • Waiver of Premium due to Accidental Disability Rider
  • Hospital Care Rider
  • Surgical Care Rider

Note: This is just an indicative list. There could be additional types of riders depending on the insurer. Before making a purchase, it is crucial to review the policy wording thoroughly to know the available riders and make an informed decision.

 

2️⃣Customer Service

When you are in the process of getting term insurance, it is easy to miss out on something crucial – customer service! It is essential to think about this because you might have questions, need to make policy adjustments or your nominee may need assistance during the claim settlement process. Having a customer service team that is responsive and helpful can really be a game-changer in those moments.

3️⃣Claims Experience

When you are considering term insurance, pay special attention to the quality of the claims experience. Keep in mind, if there is a claim, it is your family who will handle the entire settlement process, not you. Therefore, it is essential that the process is both efficient and effective. A positive claims experience ensures that your family's claim gets settled smoothly and quickly, giving them the financial support they need during a tough time. It is all about making sure the journey for your loved ones is as seamless as possible.

So, these were some things to keep in mind while you go about looking for the best term insurance plan for 1 Crore. Now, let us look at why you should buy the 1 Crore term insurance policy from SMC.
 

Why Should You Purchase 1 Crore Term Insurance Plan from SMC?

Getting term insurance is a rare event in your life – you probably only do it once, maybe twice. It is a choice that is going to shape how your family lives when you are not around. Term insurance steps in to provide financial support to your family in your absence, ensuring that their big dreams and life goals are not just aspirations but realities waiting to unfold. So, choosing the right term insurance is more than a decision - it is a cornerstone in securing your family's future.

However, with a multitude of insurance plans in the market, it can be quite a challenge to find the perfect one for your family's needs. But, worry not! At SMC, we are here to lend a helping hand and make this crucial decision a whole lot easier for you.

Here are 3 reasons why you should buy 1 Crore term insurance plans from us - SMC -

  • Unbiased Guidance

At SMC, our recommendations are totally impartial, with no favouritism towards any particular insurer. Your and your family's financial security is our top priority - count on us to have your back, ensuring your needs come first throughout the process of finding your ideal coverage.

  • Your Privacy Matters!

At SMC, your privacy is a big deal to us. We get how annoying it is to be bombarded with spam calls, especially when you are dealing with important stuff. We won't be buzzing your phone unless you have specifically asked us to. Our goal is to keep your insurance-buying experience hassle-free and totally non-intrusive.

  • Streamlined Claims Support

At SMC, we are on a mission to be your unwavering support throughout the entire claims process. We get it - insurance matters most when it fulfils its intended purpose. Our commitment is to ensure your family gets the financial support they need without the unnecessary hassle.
 

How do You Buy 1 Crore Term Insurance Plan from SMC?

Here are the steps you need to follow to ensure a smooth buying process -

  1. Visit https://www.smcinsurance.com/.
  2. Select the 'Life Insurance' option and provide some basic information such as your gender, full name, date of birth, mobile number, etc.
  3. In the following steps, you will be asked a few lifestyle questions, including whether you smoke or use tobacco, details about your annual income, the coverage amount you are looking for, and your preferred policy term.
  4. After entering this information, proceed to 'Compare Quotes.'
  5. You will then have the opportunity to view various term insurance plans.
  6. Feel free to adjust different aspects of the policy, such as the policy tenure, coverage amount, premium payment frequency, etc. and see how these changes impact the premiums.
  7. For more in-depth information about the plans, you can download their brochures.
  8. Once you have identified the term insurance plan that suits your needs, you can click on 'Buy Now' to initiate the application process.
     

Wrapping Up!

The cover amount required for an individual depends on their financial requirements. For some, 1 crore may be adequate, while for others, it may be insufficient. It is important to evaluate your financial needs and make a calculated decision to ensure the right cover amount. This will give you peace of mind knowing that your family will be taken care of - should the worst happen.
 

FAQs:

  1. What is 1 Crore term insurance?
    A 1 Crore term insurance policy provides coverage of Rs 1 Crore to your family - should the unexpected happen during the policy term.

     
  2. How much income is required for 1 Crore term insurance?
    The income eligibility criteria can differ between insurers. Your maximum eligible cover is calculated by the insurer based on your income and the age at which you purchase the policy. Typically, this involves multiplying your income by specific factors, like 25X or 20X, depending on your current age. If you already hold a life insurance policy, the cover amount of that policy is subtracted from the eligible term cover.

     
  3. What are the benefits offered by 1 Crore term insurance policy?
    A 1 Crore term insurance policy provides crucial support, ensuring peace of mind and alleviating the financial burden on your family in challenging times. If, unfortunately, something happens to you during the policy term, this significant sum ensures that your loved ones can maintain their way of life, settle debts, cover day-to-day expenses, and fulfil other financial responsibilities.

     
  4. Who should purchase a 1 Crore term insurance plan?
    Choosing the right term insurance coverage, like Rs 1 Crore, depends on understanding your family's needs. It is not a one-size-fits-all decision. To determine the appropriate cover, you need to calculate the difference between what you plan to leave behind and your family's actual financial needs. Ultimately, consider a term plan if you have dependents, outstanding loans, significant financial commitments or have not created enough wealth.

 

Insurance Knowledge Videos