Term insurance has paved the way for it to become one of the essential requirements to ensure your family’s financial security. The higher the sum assured of a term insurance plan, the better the protection. Term insurance policies offering coverage of ₹1 Crore are increasingly popular. These plans provide substantial financial security for your loved ones. If you are wondering how? Read the following blog to discover the reason behind the growing demand for 1 Crore term insurance and its significant features.
What Led to the Growing Popularity of 1 Crore Term Insurance Policies?
The demand for comprehensive term insurance plans has led to the increasing popularity of policies with high sum assured, like the 1 Crore term plans. Here are the reasons why:
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● Increased Awareness
The millennials, or the present generation, tend to be more conscious of their health and planning to manage their finances better. With the increasing inflation rate in the market, the country’s youth are more aware of the risks in life and hence opt for term insurance plans with high sum assured to ensure they remain protected.
● More Flexibility
The insurance industry now offers more flexibility to its clients, allowing them to customise their term plans as per their preferences. You can determine the sum assured and the duration of the policy, opt for additional benefits, or even convert your plan to other types based on the policies. Such flexibilities have added to the convenience of the policyholders.
● Digital Avenues
With technological advancements and digitalisation, the insurance industry has gone fully digital. This has enabled people from various parts of the country to purchase term plans, customise them, claim coverage, or surrender anytime remotely. It has also eliminated lengthy paperwork, allowing you to access your plans without complications.
● Aligns With Lifestyle Choices
The present generation, millennials, is at a phase where they are building their careers and earning and are always on a hectic schedule. Their sedentary lifestyle can cause health problems or even reduce their lifespan. Thus, term insurance plans with high sum assured are the ideal choice for them.
● Save Taxes
Term life insurance policies are beneficial for covering you financially and serve to increase savings. This is because term insurance plans allow you to save on taxes under Sections 80C and 80D of the Income Tax Act 1961.
What are the Major Features of 1 Crore Term Insurance Policies?
Some of the significant features of 1 Crore term insurance policies include the following:
● High Sum Assured
A term insurance policy with a sum assured of 1 Crore enables your loved ones to remain financially covered during major unforeseen events, like your untimely demise. Such a high sum assured comes in handy in successfully fulfilling financial commitments and liabilities. Thus, even if you pass away prematurely, your dependents will never face any financial crisis.
● Affordable Premiums
Term insurance is the most affordable type of life insurance product. Thus, there is nothing more ideal than to invest in a 1 Crore term plan against affordable premium amounts. It is a cost-effective way to strengthen the financial stability of your family in the long run.
● Effective Riders
You can also add riders or additional benefits to your plan to enhance coverage. These include critical illness coverage, accidental death coverage, etc., ensuring multiple layers of financial safety.
● Ideal for Long-term Goals
Investing in a term insurance plan with a high sum assured is ideal if you have long-term financial goals requiring a huge sum of funds. These include your kids’ higher education, their marriage, buying a house, or similar financial objectives.
● Increased Tax Savings
When you invest in a 1 Crore term insurance plan, it also allows you to maximise the tax benefits of your term plan. Under Section 80C of the Income Tax Act of India, you can claim a deduction from your total taxable income annually up to ₹1.5 lakhs, increasing your savings.
Final Words
To sum it up, the rising demand for 1 Crore term insurance plans can be attributed to various factors, with inflation being one of the reasons. These plans are increasingly crucial as they help address unexpected life events, cover unforeseen risks, and secure your family’s basic needs for the future.
