Ensuring the financial security of loved ones is a crucial decision. If you want to secure the future of your family and loved ones in case you face an untimely death, having a term insurance plan can help you achieve just that. Buying a term life insurance policyensures that your dependents do not face any financial loss if you pass away untimely.
Besides, when it comes to better financial safety, a comprehensive term insurance plan of 1 Crore is always advisable. However, if you are wondering which term insurance plan would be the best for you, this blog is for you.
Which Term Insurance Plan is the Best for You?
There are different types of term insurance plans that satisfy the varied preferences of different clients. These include the following:
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Saturday 23 Nov. 2024
● Level Term Insurance
It is the most common type of term insurance plan, where the premium amount remains the same throughout the policy tenure. This basic plan offers a predictable cost structure and guarantees a fixed payout for the chosen policy duration.
● Increasing Term Insurance
Under the increasing term insurance policy, the sum assured keeps on increasing throughout the policy duration. This is beneficial in countering the effects of inflation since it lowers your purchasing power with time. Even though the premiums can be a bit higher for these plans, it is all worth it for the coverage it provides.
● Decreasing Term Insurance
Just the opposite of the former, in the decreasing term insurance plan, your sum assured keeps on decreasing throughout the policy tenure. These plans are specifically designed for people who have a few financial commitments, such as debts, loans, etc. so that the sum assured gets adjusted as the financial obligations get reduced.
● Term Insurance with Return of Premium
Under this type of term insurance, all your previously paid premiums will be returned to you if you survive the entire policy duration. This type of insurance policy acts well as a savings component; thus, the premiums can be a little high.
● Convertible Term Insurance
As the name suggests, this type of term insurance allows you to convert your existing plan to a whole life policy or endowment plan at a later time. This type of policy is perfect for people who require change over time and can benefit from this adaptability.
Why is a 1 Crore Term Insurance Plan So Important?
Go through the following to find out the major advantages of having a 1 Crore term insurance plan:
● High Coverage
A 1 Crore term insurance plan means a high sum assured to fulfil any financial liabilities you or your family may have. This gives you peace of mind as your loved ones will be protected from sudden financial stress or inflation in the event of your passing, ensuring their financial stability.
● Do not Break the Bank
A 1 Crore term insurance plan does not come with high premiums. It is a cost-effective way to ensure your family’s financial stability with a high sum. Even though the premium amounts may vary depending on several factors, it will not be something that breaks the bank. You can also use a term life insurance calculator to determine the premiums.
● Additional Benefits
The comprehensive term insurance plan worth 1 Crore comes with multiple options to add other benefits to enhance your existing plan further. These include critical illness coverage, accidental death coverage, etc., offering you layers of financial safety.
● Meets Long-term Financial Goals
Having a high sum assured is beneficial in fulfilling any long-term financial objectives that you may have. These include your kids’ higher education, their marriage, buying a house or similar aspirations that require a large sum of money.
● Maximise Tax Savings
Purchasing a 1 Crore term insurance plan also maximises the tax benefits of your term insurance plan. Under Section 80C of the Income Tax Act, you can maximise your savings by claiming a deduction from your total taxable income annually up to ₹ 1.5 Lakhs.
Final Words
To sum it up, having a term insurance policy is no luxury in the present scenario of inflation. Being the need of the hour, you must consider investing in a 1 Crore term insurance plan to efficiently cover your family’s financial requirements in the long run. Make sure to understand your financial liabilities and expenses, and opt for a suitable term insurance policy today.
