Term Insurance November 7, 2019
Table of Contents
- 1 Best Term Insurance Plan of Rs 1 Crore
- 1.1 What is a 1 crore term insurance plan?
- 1.2 choosing the Best Term Plans
- 1.3 Should you buy a term insurance plan of Rs 1 Crore?
Best Term Insurance Plan of Rs 1 Crore
Irrespective of whether you get a hike at your workplace or not, the prices of essentials keep rising. If one were to translate, these increases in prices reduce the purchasing power of your money. Thereby making it a bit difficult to maintain a healthy lifestyle without making minor adjustments. However, since you are still working and have an active source of income, you can make the necessary changes to keep things on track.
What happens if the earning member of the family is not present? In the unfortunate event of the death of the bread earner of a family, keeping up with the lifestyle and taking care of other expenses can be very challenging. Having a backup plan for such times is of paramount importance. If you are on the lookout for one such backup plan, nothing can come close to a term insurance plan.
What is a 1 crore term insurance plan?
There is a very high possibility that you would have come across Rs. 1 Crore term insurance plan. Let’s break it down and see what the plan is all about. A term insurance plan is the vanilla form of a life insurance product. It is a simple transaction between you and an insurer where you pay premiums and the insurer offers life coverage in the exchange.
Should anything unexpected (policyholder losing their life or incurring disability) happen to the policyholder while the policy is active, the insurer will pay the sum assured to the nominees of the policy. Having a term insurance policy in your financial portfolio ensures dual benefits. Firstly, a policyholder has access to death benefits and secondly, they can secure the future finances of the family.
The Rs. 1 Crore tag essentially talks about the sum assured of the policy. While buying a term insurance plan, you must specify the duration for which you want the policy and the sum assured. The premiums of the policy would change accordingly. Thus, a term plan for a sum assured of Rs. 1 Crore is known as the Rs. 1 Crore term insurance plan.
choosing the Best Term Plans
The requirement of a term plan for one individual would vary considerably from another. Looking at your current financial needs and possible future needs, one can decide a plan that fits their needs. There are a few factors that one must consider before zeroing down on a term plan. Factors such as the features, benefits, insurer’s history, claim settlement ratio, etc. play a crucial in deciding policy. The claim settlement ratio indicates the number of claims settled successfully, versus the total number of claims.
Individuals with the intent to buy a term insurance plan can compare policies from different insurers to make the most of their purchase. If you are someone who does not smoke or have any record of alcoholism, have a healthy track record are most likely to get the most basic premium prices.
Here are some of the leading term plans in the country along with certain basic details
E-Term by LIC –
There is no other company in the insurance space that commands as much respect as LIC. It should not come as a surprise that e-Term by LIC is one of the best Term plans out there. The company has one of the highest claim settlement ratios of 98%. As one might figure from the name, the plan is all an online plan and has preferable rates for non-smokers.
iSecure by Bajaj Allianz-
The iSecure by Bajaj Allianz is another go-to term insurance plan for many. Apart from offering term plans for low premiums, it also offers death benefits in installment and joint cover for couples. And it being an online plan only, it is much easier to buy iSecure.
Click 2 Protect Plus by HDFC Life
Click 2 Protect Plus by HDFC life offers great value for your money. You can secure a term insurance plan without paying much and get access to a host of add-ons which can further enhance your policy. You can opt for a rider that acts as a source of income in the event of the disability of the policyholder.
eShield by SBI Life Insurance
The eShield by SBI Life Insurance is another term insurance plan that you can buy without having to research or worry much. The plan has a unique offering in the form of an inbuilt cover. Apart from death benefits and life cover, eShield also offers accidental death benefit cover. The inbuilt feature essential increases the sum assured by a considerable margin.
iCare II by ICICI Prudential
ICICI Prudential has been one of the leading insurers of the country for quite some time now. The insurer has one of the better claim settlement ratios of 93.8 and boasts of a hassle-free experience for its online policies.
Online Term Plan by Max Life
As the name suggests the online term plan by Max Life is exclusively for online purchases. The plan offers several add-ons and policy premiums at reasonable rates. With a healthy claim settlement ratio, there is not much wrong you can do with this plan.
Should you buy a term insurance plan of Rs 1 Crore?
The Rs. 1 Crore term insurance plan is ideal for individuals who are relatively early in their careers. Individuals who belong to the age group of 25 to 35 years will benefit the most from these plans. And if the policyholder is the sole earner of the family, buying a term plan becomes a must. There is nothing specific about this age group, however, they get a good balance between a policy with decent coverage and low premiums.
After the intervention of the IRDAI and the introduction of certain norms, the premium prices of term plans have come down considerably. Thus, making them a much better option now. But it is recommended that you go through the policy coverage and details before investing your money into a plan. Term insurance is a contingency plan that you must include in your financial portfolio for a secured future.