Everything You Need To Know About A Rs 1 Crore Term Plan

One of the best ways to guard yourself and your family against the many uncertainties of life is to purchase a term life insurance plan. A term plan provides you coverage over a limited period of time. It is a relatively cheaper option and there are hardly any complications involved.

Although a sum of Rs. 1 Crore may seem daunting but it is actually quite achievable. Such judicious investments will help you stay away from squandering your money and put it down for a good and wise cause.

What is a Rs 1 Crore Term Plan?

A term plan is a type of life insurance plan where the cover is provided for a specific period of time as purchased by the policyholder. This period is known as the policy term of the term plan. If the policyholder dies within this time, their beneficiaries receive the pay-out. This death benefit is the sum that was assured by the company on purchase of the term plan.

For a Rs. 1 Crore term insurance plan, the sum assured from the company is Rs. 1 Crore. The policyholder will receive benefits under this amount should you choose to get any rider. Of course, there is the death benefit of Rs. 1 Crore present if the policyholder dies within the term. Although the final sum may seem huge, it is very much possible to gather that amount with steady premiums over a period of time.

Riders Available With A Rs. 1 Crore Term Plan

There are a variety of riders available from all companies that you can add to your basic Rs. 1 Crore term plan namely accidental death benefit rider, permanent and total disability rider, waiver of premium rider and many more. Adding on such a rider ensures you get coverage in case of such incidents even if it does not always result in death. It significantly reduces your financial stress and is very important if you are involved in any high-risk activities.

Rs. 1 Crore Term Plans Are Cost-Effective and Affordable

Term life insurance plans are one of the cheapest and most cost-effective options for life insurance. The premiums are of lower rates and since there is no saving component involved, you are charged less. Plus, you can also opt for a "level term" policy which ensures you the same premium rate for however many years you have your plan for. This helps you save up Rs. 1 Crore effectively and steadily. However, the rates may rise after your policy term is over.

Additional Coverage For A Rs. 1 Crore Term Plan 

Most life insurance companies offer options for extension of cover. Plus, you can also choose to get additional coverage after a point if you are willing to pay a higher premium rate. You can choose to increase your sum assured from Rs 1 Crore to a sum assured amount required by you against the payment of additional premium.

Endnotes

A Rs 1 Crore term plan is one of the most opted for life insurance plans owing to all the host of benefits it offers along with a substantial life cover. It helps you save up a significant amount of money to help you provide a secure future for your family and loved ones in your absence.

Also read 

Why Should We Buy Rs. 1 Crore Term Insurance?

Comparison of Plans Offering 1 crore Term Insurance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.