If you are financially sound, and are providing for your family, it doesn’t mean you always will. Death is uncertain. That’s why it’s essential to be prepared for life’s unfairness in advance -for the sake of your family at least.
That said, an integral aspect of financial planning is to be prepared for the future – even the future you wouldn’t be a part of, but your family will be. Ergo, making sure that they are financially secure is crucial.
Getting the best term insurance plan for Rs 1 crore would ensure more than just that. They wouldn’t be only living a comfortable lifestyle but fulfilling their expensive career dreams at the same time without having any financial woes.
So, if you seem to agree, here’s your guide on getting the best term insurance plan for 1 crore. How to shop for the best term insurance plan for 1 crore?
Know if it is the right plan for you
The best term insurance plan for Rs 1 crore might seem a good enough plan for you but think again. Is the plan offering you enough benefits as other insurers are offering? Even with the same plan, different insurers offer different benefits, so know for sure if you have all the benefits you can get.
Select the right insurer
Going for an obscure insurer that offers excessively low premiums at higher coverage won’t be a wise choice. You wouldn’t want your family to struggle while filing a claim only to be rejected in the end for some petty reasons. So, go for the reliable ones. Here’s how you need to look for an insurer to know if they are right for you:
Claim Settlement Ratio: The ratio indicates the ability of the insurer to settle claims that have been filed. A high claim settlement ratio would ensure that the company is reliable and doesn’t procrastinate or reject settling claims.
Solvency Ratio: An insurer should be financially capable of settling insurance claims. A high solvency ratio would indicate that the insurer is financially-well off and can settle your claims efficiently.
Know what your plan covers and what it doesn’t
Before you go ahead with purchasing the best term insurance plan for 1 crore, ensure that you know everything there is to know.
For instance, not all deaths are covered by your Rs 1 crore term plan. Suicides, accidental deaths due to intoxication and natural disasters, and deaths caused due to adventure activities like paragliding, river rafting are not covered in a term insurance plan. This means your family wouldn’t be entitled to the death benefit if the cause of your death is one of them.
This also goes out for benefits and other trivial questions about how to change nominee. In a nutshell, whatever there is to know, make sure that you are well aware.
Choose the suitable riders
As we mentioned before, term insurance too can have a few benefits of life insurance. To be specific here, the best term insurance plan for 1 crore can serve as the base policy, on top of which you can get riders or add-ons to reap extra benefits against an extra premium payment. The most commonly available riders are critical illness riders, a disability rider, and a waiver of premium rider. So, think about all the suitable riders you can get to gain extra benefits at economical prices before you purchase the best term insurance plan for 1 crore.
The benefits of a Rs 1 crore term plan
1. You get an adequate amount against affordable premiums
Term insurance premiums are not like life insurance premiums. You don’t have to pay expensive premiums out of your pocket for coverage that you wouldn’t know for sure would be adequate for you.
Conversely, in the case of term insurance, the premiums are affordable, and the coverage is high all because a term plan doesn’t come with survival benefits but death benefits. That said if you are a family of 3-4 members living a moderate lifestyle and no significantly heavy expenditure lined in the future, getting the best term insurance plan for 1 crore would be an ideal choice.
2. Some term insurances come with survival benefits
If you really want to have some benefits of life insurance, but no do not want extra expensive premiums, you are in luck. With TROP (Term Insurance with Return of Premium), you can get the survival benefit by getting back the premiums you paid out if you survive the term.
3. Tax benefits
All insurance premiums, up to the limit of 1,50,000 annually, are tax deductible.
4. Longer life cover
Term insurance comes with a longer life cover that can go for 40-50 years or even a lifetime, depending on the insurer you choose. A longer life cover ensures that your family is financially protected for a longer period of time.