Term insurance is the purest form of life insurance, offering life coverage protection of up to INR 1 crore in exchange for a pre-determined premium for a pre-fixed tenure. It ensures safeguarding your family’s financial security against challenging circumstances, considering inflation. There are usually no investment or savings components in these sorts of plans.
They are designed to offer death benefits to the dependent family members of the insured individual, provided he/she happens to be the policyholder, in case he/she passes away during the plan tenure, according to the plan terms.
Who should buy a 1 Crore term plan?
1 crore term insurance plan proves to be a perfect security solution for people from various genres who are seeking family financial security at every step. The affordability and benefits have made it a very popular choice when compared to standard life plans. However, these term plans prove to be particularly more beneficial for the following individuals:
- Young professionals:
Term plans are ideal for young professionals as they offer stable financial security to their families at a reasonable rate while substituting their income to a large extent during their absence. Apart from this, the premium payable amounts also remain comparatively lower when purchased early. - New couples and new parents:
Both marriage and parenthood are significant milestones in family life. They increase your familial and financial responsibilities to a considerable extent. Term plans prove to be ideal for such people to ensure the financial security of their spouse and children, even when they are absent. - Youths with incurred debts:
Youths who are running active debts like education loans, personal loans, vehicle loans, etc., might consider buying a 1 crore term insurance as it will ensure that these debts are not carried forward, burdening the family members in future. - Persons with home loans:
A home loan is a significant amount. During any unfortunate event, your family has to face challenges to repay the outstanding dues, straining the overall economic condition. To avoid such perils, you can consider buying 1 crore term insurance. - Sole breadwinners:
The financial life of the family is heavily jeopardised if anything happens to the sole breadwinner. To ensure an intact financial net even during their absence, they must invest in a 1 crore term plan. However, considering the situation, they can even enhance this coverage protection by purchasing term plans with higher limits like 5 crore term insurance. - Business owners:
if you own a business, and buy term insurance, it will ensure the uninterrupted continuity of the business despite challenging circumstances and without compromising your family’s financial safety and security. - Self-employed individuals:
The income of self-employed individuals is often not guaranteed and the family members often have to face severe economic challenges if anything happens to the owner. To ensure ample income substitution and future financial security, they must choose to purchase at least a 1 crore term plan. - Investors:
During any unforeseen unfortunate event, the regular course of wealth creation subscriptions gets abruptly hampered. Reliable term plans ensure the continuity of these aspects so that your family does not have to face any further challenges related to finances. - People with elderly parents:
Adult and responsible children who are concerned about their ageing parents must always consider investing in term insurance. This ensures financial stability despite the parents’ sudden demise. - Retirement planners:
If you are nearing your retirement age and have dependent family members, you must consider investing in a 1 crore term plan. This will enhance the family’s financial stability and will continue to ensure protection till the dependents become financially stable. - Senior citizens:
Any senior citizen who is concerned about the financial future of his/her partner must consider opting for a term plan with whole-life coverage protection. - Homemakers:
The cost of all the services offered by a standard homemaker is quite significant. To make up for the cost of all those activities, they must choose to invest in a term insurance plan to prepare for their sudden demise. - Women:
Working women usually contribute to the total family income. To continue with this security despite their absence, they must consider investing in a 1 crore term insurance policy. - Taxpayers:
A 1 crore term insurance allows tax benefits. Therefore, to reduce your overall tax burden and ensure the financial security of your family, you must invest in term insurance.
Conclusion
Term plans, including 1 crore plans, allow substantial coverage at reasonable rates. The premium rates remain consistent throughout the tenure. It is best to opt for it as early as possible as the premium amounts remain lower, without compromising on the coverage extent. You can further enhance the overall protection with additional riders. With a reliable term plan, you can ensure a debt-free legacy, easily fulfil future financial goals and optimise your overall tax benefits.