Consistently rising prices of even the basic essentials are burning a hole in our pockets. It has become a challenge for us to maintain a certain lifestyle without raising the income. While we live our present lives, we cannot possibly lose sight on planning for our future expenses and unforeseen exigencies. And that too with a term life insurance plan that is affordable for everyone across the financial strata.
What is Rs.1 Crore Term Insurance?
Term insurance plans serve the dual purpose of offering death benefit to the policyholder and ensuring the financial stability of the family in the case of an unexpected death of the policyholder. A Rs.1 Crore Term Insurance plan is one that guarantees a sum assured of the mentioned amount to the beneficiary on the death of the policyholder. It acts as a guardian for the family in the absence of the policyholder, helping them in fulfilling their dreams and aspirations.
Who is it for?
A Rs.1 Crore term Insurance plan is the best suited for any working professional between the age bracket of 25 years to 35 years as well as any individual that is the sole-earner in the family. It includes a policy term of 30 and more years and is designed for individuals with an income slab of 5 lakhs to 7 lakhs. It is a cost-effective and reliable insurance plan to financially secure the family’s future in case of the demise of the policyholder.
Regulated by the stringent norms passed by IRDAI, the premium amount on Rs.1 crore term insurance plans have now been reduced substantially, making them more reasonable than ever before. Different government-backed and private insurance players offer varied premium rates on a Rs.1 crore term insurance plan.
It is highly recommended that applicants thoroughly check the features, benefits along with the policy terms and conditions . The term insurance plans are available at comparatively lower premium amounts for Rs.1 crore term insurance policies, and are available in both online and offline channels.
How to Select the Best Rs.1 Crore Term Insurance Plan?
Choosing the best term insurance cover of Rs.1 crore might appear to be a challenging task. However, there is no term plan that is one-size-fits-all. The best term insurance plan that is suitable for you is one that meets your current financial capacity, your unique investment objectives and the expected future needs of your family. Carefully read through the features, benefits and terms and conditions of a term insurance plan in the policy document to make a conscious and well-informed choice. What’s more, the claim settlement ratio of the insurer also plays an important role in deciding the term insurance cover of Rs.1 crore that you should be opting for.
Comparison of Term Insurance Cover of Rs.1 Crore
Leading insurance companies in India offer a range of term insurance plans that are customized for varied needs of customers. These insurers usually specialize in Term insurance companies of Rs.1 crore and above, each with different features, benefits and premium amounts. The basic premium amount is applicable only to applicants who are non-smokers, do not suffer from alcoholism, do not have a track record of pre-existing illnesses, and other terms and conditions. The premium amount increases when applicants have a history of lifestyle, medical and health issues, and also on opting for additional riders.
The below illustration shows some leading insurance companies offering term insurance covers of Rs.1 crore, along with their payable premium amount.
|Name of Insurance Companies||Names of Term Insurance Plans||Claim Settlement Ratio (%)||Premium*|
|LIC||e-Term Plan (Basic Plan)||98||Rs.14,600 p.a|
|Max Life||Online Term Plan (Basic Plan)||95.5||Rs.9,046 p.a|
|Star Union Dai Ichi Life Insurance||Premier Protection Plan (Basic Plan)||94||Rs.22,000 p.a.|
|ICICI Prudential||iCare II Term Insurance (Basic Plan)||93.8||Rs.18,293 p.a.|
|PNB Metlife||Metlife Mera Term Plan (Basic Plan)||92.9||Rs.9,011 pa.|
|Bajaj Allianz Life Insurance||iSecure (Basic Plan)||91.9||Rs.14,513 p.a.|
|HDFC Life||Click 2 Protect Plus (Basic Plan)||90.5||Rs.11,145 p.a.|
|AEGON Life Insurance||iTerm (Basic Plan)||89.8||Rs.8,892 p.a.|
|SBI Life Insurance||eShield (Basic Plan)||89||Rs.6,400 p.a.|
|Reliance Life Insurance||Online Term (Basic Plan)||83.8||Rs.7,950 p.a.|
A quick overview of the above-mentioned plans are given as follows:
LIC, the public sector insurance company, is acclaimed for holding the highest claim settlement ratio for more than 3 consecutive years and e-Term is renowned as being one of the best insurance products with a term insurance cover of Rs.1 crore. e-Term is a pure insurance policy.
LIC's e-Term is a pure term plan which can be easily availed online from the official website of LIC. It also offers differential premium rates for Smoker/Non-Smoker Lives. In case of unfortunate demise, the death benefit payable will be equal to the sum assured. This plan does not come with any maturity benefit.
Max Life Online Term Plan
This term insurance cover of Rs.1 crore is known for having one of the most reasonable premium rates. Apart from the benefits of a term insurance plan, it also offers a few add-on rider options. Another advantage of this term insurance plan is that it offers the convenience of being purchased online.
Star Union Dai-ichi Premier Protection Plan
The term insurance cover of Rs.1 crore is among the plans that have higher priced premium amounts. However, what makes this term insurance score over many others is that Star Union (SUD Life) is the joint venture of some of the most competent banks in India like Bank of India, Union bank of India and Dai-ichi Life and a renowned Japanese life insurance company.
ICICI Prudential iCare II
Belonging to one of the leading insurers in India, ICICI Prudential Life, includes the reliability of a healthy claim settlement ratio and the convenience of a quick and seamless online purchase facility. PNB Metlife Mera Term Plan: Another term insurance cover of Rs.1 crore that is available at one of the lowest premium amounts makes it one of the most in-demand term insurance plans in India.
Bajaj Allianz iSecure
A high sum assured amount, coupled with the goodwill of one of the leading private insurance companies, iSecure offers one of the best term insurance covers of Rs.1 crore and above.
HDFC Life Click 2 Protect Plus
One of the mid-level plans as per the premium rates are considered, a blend of a basic term insurance plan and an add-on rider that acts as a stable source of income in case of total permanent disability contributes to the uniqueness of this plan that offers a term insurance cover of Rs.1 crore.
AEGON Life Insurance iTerm
Armed with an economically priced premium amount, this term insurance plan offers death benefit till the age of 75 years and also has an in-built terminal illness benefit.
SBI Life Insurance eShield
This term insurance plan is an amalgamation of a life insurance cover and an in-built accidental death benefit. Not just that, it offers all these benefits at a low premium payment.
Reliance Life Online Term Insurance
This term insurance plan includes unique advantages like special discounts for non-smokers and life coverage till the age of 75 years. What’s more, the insurance company offers the convenience of conducting medical tests at home for applicants.
Your absence will not only be the root cause of emotional turmoil for your family, but will also leave a void in terms of financial stability. So, why not plan well in advance rather than being caught in the wrong foot in the eventuality of an unfortunate event, right? Choose a term insurance cover of Rs.1 crore and keep your family secured, come what may!