Gone are the days when people would just believe in maximizing their savings which they with their family could use during the time of need. These days, people do savings but along with that take extra measures to make the future of their family secured. If you are also planning to take similar steps, you can go ahead and buy a term insurance plan.
What is a term insurance plan?
Term insurance is a life insurance policy that you can buy to secure the future of your family. When you buy a term insurance plan, you have to pay a certain premium, which can be monthly or half-yearly, or yearly. The tenure of the term plan can vary from one policy to another. However, no matter what the tenure is, if you happen to pass away within the tenure of the term plan, the beneficiary of the plan will get the sum assured. On the other hand, if you survive through the term plan, you will not get anything; although it also depends on the kind of plan you have chosen.
The one thing you need to consider is that the sooner you purchase a term plan, the better return your family will get in the time of need. Also, it is better to get a 1 crore term plan, so that even if there is any loan for which you are paying EMI every month, your family can repay it.
Who should get a 1 cr term plan?
If you are the sole breadwinner of the family or an individual in the 30-35 years age range, you should get a 1 cr term plan. This will help your family to fulfill the requirements in an event of the sudden demise of the only earning member of the family.
Which are the best term policies for 1 crore cover?
When we talk about term policy for 1 crore cover, several companies offer that kind of coverage. According to the new regulations that have been passed by IRDA, the premium rates for 1 crore insurance have to be less. Therefore, if you choose a private insurance company like Birla Sun Life, ICICI Prudential Life, or HDFC Life, the premium rates would be around Rs. 15000. While LIC offers a premium rate of around Rs. 25000 to Rs. 30,000. As you compare the various term insurance policies, you must check the underwriting norms as there are quite many private companies that will certainly ask for a lower premium rate but the rules can be stringent.
Plans offering term insurance of 1 crore coverage
- Max Life Insurance
This is one of the trusted brands that you can stay associated with for at least 35-40 years. You can choose Smart Term Plan, which can be bought online.It is a one-time payment and the premium you have to pay per year for this plan is Rs. 7080 depending on your age and other factors.
Another plan that is offered by the same brand is Online Term Plan Plus Life Cover monthly Income. You can pay a yearly premium of Rs. 9440 for this plan. The beneficiary can get a monthly income of Rs. 40,000 for 10 years. And the one-time payout is Rs. 10,000,000 which is paid on death.
- HDFC Life
The name of the plan is Click2Protect 3D Plus Life Option. The yearly premium that you would need to pay is Rs. 8344. This plan does not offer any monthly payout and the payment is one-time.
- ICICI Prudential
The plan offered by ICICI Prudential is Iprotect Smart Lump Sum Plan. The yearly premium to be paid for this is Rs. 9238. The plan benefits that you can get are inbuilt terminal illness cover or a monthly income or a lump sum benefit. If you want to compare more plans from different life insurance companies, you can visit the IIFL website today. Going through the plans thoroughly will help you choose any one.