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The 1 cr term plan is a well-known insurance policy that is mentioned everywhere, from newspapers to social media. Because it is so widely used, people all over the world have begun to associate insurance with this 8-digit sum, as they have grown accustomed to it.
Life insurance plans provide a significant safety net for an individual or family in times of financial difficulty or the death of the sole breadwinner. The 1 crore term plan is an insurance policy that provides an assured sum of Rs. 1 crore to the nominee in the event that the insured individual dies. This amount helps family members in difficult times and with the financial consequences of loss. However, you must determine whether this 1 crore term plan is suitable for you in reality.
In this article, we will tell you whether the 1 cr term plan is good enough for you.
Who Should Get the 1 CroreTerm Plan?
There are numerous reasons to choose high insurance coverage, but should you really choose a 1 crore term insurance plan?
The answer is YES! A 1 Crore Term insurance plan is intended to meet a family’s ever-increasing financial needs. The value of INR 1 crore has decreased significantly due to inflation. So, INR 1 crore appears to be the bare minimum of coverage that any reasonable and financially savvy individual would choose to ensure the financial security of their family.
- A 1 crore term insurance plan is a must-have for any working professional between the ages of 25 and 35, because when you are young. You can get more coverage for a lower premium.
- If you are the sole provider of a family with dependent members, purchasing a 1 crore term insurance plan is critical because it guarantees financial security for the family.
- A 1 crore term insurance plan is also advisable for individuals who have liabilities such as home loans, student loans, car payments, and so on, in the event of the insured’s untimely death, the death benefit received can be used by the nominee to pay off the liabilities and satisfy the immediate need for funds.
What are the Benefits of the 1 Crore Term Plan?
There are various benefits of the 1cr term plan.
- A term plan provides more coverage because the policy tenure is usually longer.
- It is less expensive because it only covers death risks.
- Since term plan premiums are low, an insured can purchase more coverage to ensure that his or her family’s financial needs are met in his or her absence.
- A rider facility is available for a term insurance plan, and the insured can use it to make the term plan more reliable and thorough.
What are the 1 Crore Term insurance Riders?
The rider is a benefit that is added to the base plan to make it more extensive and reliable. Here is a list of the most popular term insurance riders that you can add to your 1 crore term insurance plan to enhance the coverage.
- Accidental Death Rider
- Accidental Disability Rider
- Critical Illness Rider
- Accelerated Death Benefit Rider
- Waiver of Premium Rider
- Income Benefit Rider
The Bottom Line
A 1 cr term plan offers numerous advantages and can cover your family’s financial needs in the event of your untimely death. This plan is easily accessible to a 30-35-year-old with more earning years who is the sole breadwinner in the family. Also, premium rates have been reduced, so you must review all underwriting criteria, as only a few insurers can offer lower premiums.
Note: The final term insurance life cover (sum assured) accepted by an insurance company would depend on the current annual income of the proposer and also various other factors.