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
1 Crore Term Insurance
A 1 Crore term insurance policy works the exact same way as any other term insurance policy. All you need to do is make sure you pay the premiums on time to keep the policy active. If you pass away during the policy term, the insurer pays your family a sum of Rs. 1 crore as the death benefit.
The main purpose of term insurance is to ensure the financial stability of your loved ones. It serves as a financial safety net in the event of your untimely demise, assuring that your family can cope with the loss and move forward. The death benefit helps them meet financial obligations such as children's education, loan repayment, everyday expenses, etc. - without compromising on their current lifestyle.
The downside is that, if you survive the policy term, you won't receive any maturity benefit.
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.
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.
All you have to do is simply visit our website, select 'Life Insurance', and enter your name, date of birth, and mobile number.
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.
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.
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.