A financial plan is incomplete without a suitable life cover, and a term plan is the most affordable life cover that is also the best in terms of coverage. It offers a huge cover at economical costs. Lately, 1 crore term insurance plans have become so popular that most people are comfortable with the standard 1 crore life cover.
But is it actually enough to cover all your future needs? The answer varies from person to person. It may or may not be enough depending on your salary, expenses till you retire, financial goals, including your loans and inflation (which we often forget).
If a 1 crore term plan doesn’t suffice to fulfil your future needs, you can choose a plan with higher coverage amount, which serves the same purpose as a 1 crore term insurance plan. A 2 crore term insurance plan provides a sum assured of ₹ 2 crores as a death benefit in case the policyholder dies during the policy term. The main advantage of such a plan is that it offers high coverage at a very nominal term insurance premium and secures the financial future of the family of the insured. Such a plan is suitable for you if,
In this article, we will discuss the best 2 crore term insurance plans offered by insurance companies in India. Here is a list of Term Insurance offers 2 crore term insurance cover.
Max life insurance is one of the leading insurance companies offering term plans at an affordable premium. Max Smart Secure Plus term Plan is a term plan with two death benefit options: Life Cover and increasing life cover. The plan also provides inbuilt benefits like terminal illness cover and a special exit value (available with minimum 40 years term and not with the Return of Premium option). Optional benefits are available to customise your coverage, like a premium break, joint life cover, accidental payout on accidental death, Return of premium and many more.
HDFC life insurance company offers the best 2 crore term insurance policy online that is HDFC Life Click 2 Protect Life. The plan lets you choose a cover from 3 options which are life protection, life and CI rebalance and income plus. The plan also lets you avail of a cover for your whole life and offers a death benefit, maturity benefit and a combination of death and critical illness benefits depending on the plan option you select. HDFC life also offers certain add-on benefits on payment of an additional premium. These benefits include the Return of Premium Option, Waiver of Premium on CI option, Accidental death benefit option, Alteration of premium payment frequency and option to reduce Premium payment term from regular to limited pay.
One of the top-selling term plans from ICICI prudential, it gives you an option to get whole-life coverage. An optional health insurance cover for 34 critical illnesses, which provides a claim payout on the first diagnosis of any of the listed 34 illnesses. It lets you customise your plan at an affordable premium. The plan is available in 4 variants: Life, Life Plus, Life & Health and All in One. There are special benefits for women, like 18% lower premium rates and an option to include breast cancer and cervical cancer under critical illness coverage.
If you are looking to buy a 2 crore term insurance plan, Sampoorna Raksha Supreme from Tata AIA life insurance can be the best choice for you. The plan offers flexibility to choose from 4 death benefit options: Life option, Life Plus option, Life Income, and Credit protection option. It provides whole-life coverage for up to 100 years. You can choose to receive the death benefit as a lump sum, income or both. The plan also gives discounted premium rates for female lives. You can also enhance coverage at different life stages.
The Smart Protect Goal plan is a 2 crore term insurance cover from Bajaj Allianz that helps in securing your life goals with a number of options and multiple features. The plan provides coverage for upto 99 years and is available in 4 variants which are Life Cover, Life Cover with Child Education extra cover, Life cover with Joint life and Increasing Life Cover. There are add-on covers available to choose from, like Accidental Death Benefits, Critical Illness Benefits, etc. You can also opt to receive maturity benefits with the Return of Premium option.
The coverage level you need for your family is based on your family’s requirements which you can easily calculate. To find out the exact amount of term insurance coverage you should have, here is a simple formula:
Term Insurance Amount = Your Expenses till you retire + inflation + investments towards future goals + liabilities such as loans - savings you already have
In addition to these factors, your annual income also affects how much coverage you can opt for. An individual, irrespective of the family's needs, cannot purchase a plan with coverage more than 20 times his annual income because term insurance coverage is a replacement for your income. You cannot go beyond a specified limit.
Before buying a term insurance plan in India, you should consider certain factors that determine your term insurance premium. You must have used a term insurance premium calculator online, which asks you to provide a specified set of parameters which are used to calculate premiums for you. Here is a list of factors that decide your term insurance premium.
Keep in mind these factors to get the best coverage at the best rates. By recognising factors that can increase your premium, you can make a better choice and save money.
The premiums of a term plan differ for a smoker and a non-smoker. Since a smoker comes in the high-risk category, the premiums are higher.
Yes, you can have more than one term plan in case a single life insurance plan is not sufficient, and also it reduces the chances of claim rejection.
It is always recommended that you buy a policy with maximum tenure. The ideal coverage period is until your retirement, so all your liabilities and goals are covered.
Often employee life insurance plans are not enough to cover all your financial needs and secure your family’s future. Also, it is available only till you are working with that employer. Therefore, you can buy an additional term plan for enhanced and continuous coverage to get a higher sum assured.