A ₹1 crore term insurance plan is a popular option for many as it offers a significant cover of ₹1 crore. Since term insurance is the most affordable type of life insurance, this extensive coverage is available at a cost-effective premium. Moreover, the policy can be customised per an individual’s financial requirements. So, if you are considering buying a ₹1 crore term life insurance, let’s understand how to calculate your term life insurance premiums and the benefits of investing in one.
Advantages of 1 Crore Term Life Policy
Below are the key benefits of opting for such a ₹1 crore term life policy:
Broad Coverage
You obtain a broad life coverage amount of ₹ 1 crore for your selected policy tenure. This coverage amount can help clear debts, replace lost income, and maintain financial independence for your family.
Reasonable Premium
The policy can be highly affordable if you purchase it early in your career, like in your 20s or early 30s. This is because insurers consider younger individuals to be at lower risk.
Customisable Policy Tenure
You can easily adjust the policy tenure according to your dependents’ requirements and future money goals. You can also consult an insurance expert who will recommend customising the policy tenure.
Flexibility to Expand Life Cover
These insurance plans are uniquely designed to safeguard your family members financially in case of your untimely demise. Most term plans allow you to increase the amount of coverage at various life stages to benefit from better financial protection.
Multiple Payout Options
In addition to expanding the coverage, you also get flexibility regarding payout options. Some prevalent payout options are lump sum, regular monthly income, and a combination of the two.
In the lump sum option, the sum assured is paid as a one-time payment. If you opt for the regular monthly income option, the sum assured is distributed as a fixed monthly income for a specified period. The third choice lets you combine having some of the sum assured paid as a lump sum and the rest paid as a regular monthly income.
Riders Convenience
With optional riders, you can enhance the benefits of a ₹1 Crore term life policy. They provide funds that help your family financially during situations like accidental death, hospitalisation, critical illness, etc. You can add these riders to the plan for a nominal premium. Adding a return of premium rider, you can get the premiums paid at the end of the policy duration.
Easy to Understand and Buy
No investment or saving components are involved in a ₹1 cr term policy. You just have to choose a suitable policy option and pay premiums timely. Subsequently, you are assured of significant financial protection for your family. Besides, all steps involved in the purchase are easy to follow.
Guide To Calculating Insurance Premium of Your 1 Crore Term Life Policy
Let’s understand all the steps involved in calculating the insurance premium of a ₹1 Crore term life policy.
Step 1: Enter Your Data
The first step in using an insurance premium calculator for your ₹1 Crore term life policy is to enter your data. These include your age, gender, and whether you smoke.
Step 2: Choose Policy Details
Once you have entered the required basic details, you must select policy details like the sum assured (₹1 crore), premium payment option, and policy tenure. For the premium payment option, you must decide whether to pay for a limited period or all through the policy term. Furthermore, you must finalise the policy tenure for which you need coverage.
Step 3: Calculation of Premium
After inputting the above details, the insurance premium calculator will display an estimated premium amount. You can further explore and compare available plans based on your needs.
Conclusion
The key benefit of ₹1 crore term life insurance policy is that it provides broad coverage to help your family financially. You can follow the steps discussed above to calculate the premium amount of your policy. Depending on the policy tenure, premium payment options, payout options, and inclusion of riders, you can personalise the policy offered.
