We always intend to give the best to our families. Naturally, we labor, economize, and schedule our future. Still, unpredictably, we come to realize life can change drastically. Imagine the scenario where you won’t be able to support your family. Where will your family get the money to pay the rent, buy food items, or support the children’s school? Here, life term insurance comes in handy for you.
You can imagine it as a financial safety net. You give an insurance company a small amount of money every month or every year. Besides, the company assures your family a large sum of money in case something happens to you. For a good number of middle-class Indian families, a 1 Crore cover might be an ideal amount. It is more than enough to keep your family well, secure, and comfortable for a couple of years.
Let us consider the easiest way so that you will be able to choose the best term insurance plan for 1 crore.
Why Choose a 1 Crore Cover?
You may ask, ” Why is the 1 Crore plan being hyped up by everyone? Is 1 Crore a lot of money?” Nowadays, the living expenses in India are going up very fast. If you have a home loan, a car loan, or little children, 1 Crore is very suitable.
If you are away, keeping your family in mind, this amount can be used to settle your outstanding loans. The balance can be deposited in a bank. Your family will be able to meet its daily needs, such as buying groceries and paying electricity bills, from the interest on most of the money.
Key Features to Look For
We suggest that you do not just consider the price when you shop for a plan. In fact, check out these three important features:
- Claim Settlement Ratio (CSR): This shows a company’s reliability at a glance. It means what percentage of their client claims the company has paid. You can rest assured that the higher the CSR the more reliable a company is. We recommend always going for a company whose CSR is 98% or more.
- Riders (Extra Protection): Riders can be compared to pizza toppings. You make a small addition to the pizza price and get additional benefits. Two of the very best riders are the Critical Illness rider, which provides you with a sum of money if you are diagnosed with a serious disease like cancer, and the Accidental Death rider, which pays an extra sum of money if the death is the result of an accident.
- Waiver of Premium: This is a feature that really stands out. If you have an accident and become disabled and unable to work, the insurer will waive all your future premium payments. Your policy will remain active free of charge.
Top 1 Crore Plans in India to Consider
It is best to go with the least complicated methodology. Here is a list of the best insurance providers in the market today and their highlights as far as the insurance aspect goes.
Max Life Insurance
This insurer has been known to be one of the leaders in terms of claim payments, with a ratio often as high as 99.6%. Their Smart Term Plan Plus is a great product as it provides a larger insurance cover in the early years of the policy term when people most often have housing loans and many other financial obligations.
HDFC Life Insurance
The first thing that one may notice about HDFC Life is that it is the most widely reputed insurance company in India. Their Click2Protect Supreme plan is one of the best flexible insurance schemes, which will not only protect you, but at the same time, it will also grow with you. This means it is also possible for you to keep increasing your total insurance cover as you move through the life stages like getting married or having children.
Tata AIA Life Insurance
In India, the name Tata is synonymous with complete reliability. Their Sampoorna Raksha Supreme plan is very well-known because they have made the entire purchasing experience completely hassle-free. Their online paperwork is seamless, fast, and quite accessible even for senior citizens.
ICICI Prudential Life Insurance
Their iProtect Smart Plus is a wonderful all-in-one plan. Besides offering a basic life insurance cover, they also provide excellent health riders. This enables you to merge your life insurance cover and serious illness cover into one single monthly invoice.
Bajaj Allianz Life Insurance
If you want to get the maximum benefit at the lowest price, their eTouch plan is definitely worth considering. It features very attractive rates, especially for young, healthy persons and non-smokers who want to get a low-price level secured early.
Understanding the Payout Options
When the insurance provider hands over the 1 Crore rupees to your family, in what manner should they be given it? You have the following options while purchasing the policy:
1. The One-Time Payout (Lump Sum)
The whole amount of 1 Crore rupees is given to your family at one single time by the company. This is the most suitable option if you have a large home loan that needs to be paid off immediately so your family can live without any financial worries.
2. The Monthly Income Payout
The company disburses a stipulated sum every month to your family over a period of 10 or 15 years. This is really beneficial for families who might find it quite challenging to handle a large amount of money in one go. Basically, it is similar to the old monthly salary.
3. Part One-Time + Part Monthly
This is the most flexible structure. Besides, the family receives a part of the money immediately so that they are able to clear their urgent debts, and the remaining portion comes as a safe monthly income for regular family needs.
How Much Does It Cost?
One of the advantages offered by term life insurance is that it is very cheap if you purchase it at an early age. If you are a 25-year-old healthy non-smoker, a 1 Crore plan can cost you around 500 to 700 rupees per month. That is less than the price of a large pizza!
If you delay your decision until you turn 35, the premium for the same 1 Crore cover can rise to 1,000 or 1,300 rupees per month. The lesson is simple: get it while you are still young to secure the lowest price for your entire life.
Simple Steps to Buy Your Plan
To secure the best term insurance plan for 1 crore, follow these easy steps:
- Check your health: Be totally truthful about your habits. If you smoke or drink, tell the company. Honesty will help your family get the money without any legal issues later.
- Compare online: Buying a plan online directly from the company website is the cheapest way because there are no middlemen or agent fees involved.
- Keep documents ready: You will have to show your PAN card and Aadhaar card besides your income proof, like salary slips. Besides, you might be required to go through a simple medical health check-up, which will be paid for by the insurer.
Summary
Purchasing insurance is the greatest declaration of love for your family. It guarantees that even in your absence, your children won’t be denied their education and your spouse will be able to live with self-respect. Spend a few minutes today, review options above, and decide on a secure future for your loved ones.
