Personal finance is rapidly changing. Insurance hence becomes one of the very important products which protect your financial well-being, bringing comfort and ease to one’s mind. One of the most simplistic, affordable, as well as sure ways to take care of your dependents in case of your untimely demise, is term insurance. Among the vast variety of insurance products, one of the largest, as well as most sought after, term insurance plans is the term insurance plan worth 1 crore.
This article delves into the best insurance policy options for those seeking the best term insurance plan for 1 crore and provides certain insights into some of the major Indian insurers, such as LIC, Max Life, and SBI.
What is 1 Crore Term Insurance?
A 1 crore term insurance policy is the one that is offering benefits in the form of a sum assured of ₹1 crore to the beneficiaries once the policyholder dies during the policy term. The premium for the policy is usually affordable, more so among the youth and those of good health. In a major way, the issue of appeal about a 1 crore insurance policy is that it affords full monetary security to your family. In the event of premature death, the amount received from such term cover would enable your dependents to lead a similar lifestyle, pay off the loan, or even fulfill future financial requirements like the education or wedding of children.
Key Features of a 1 Crore Term Insurance Plan
High Sum Assured at Very Low Premiums: A 1 crore term insurance is a large amount, assured on death, offered at relatively low premiums as compared with other forms of life insurance. Thus, it would constitute an ideal cover for any person in quest of a high value cover.
Easy to Understand and Straightforward: Term insurance is a pretty straightforward product. You pay regular premiums, and in the event of death during the term of the policy, the insurance company pays the sum assured to your nominees.
Tenure Flexibility with Policy: Most insurers provide a wide range of tenure flexibility in policies, ranging between 10 and 40 years, and you can opt for a tenure that might suit your financial goals.
Tax Benefits: Premiums paid on any 1 crore term insurance policy qualifies as a deduction under Section 80C of the Income Tax Act. The death benefit will be tax-free and comes under Section 10(10D).
Additional Riders: Most term plans allow the coverage to be enhanced through additional riders, such as critical illness coverage, accidental death benefit or even waiver of premium in case of disability.
Who Should Invest in a 1 Crore Term Insurance Plan?
A 1 crore term insurance plan is highly suitable for people having significant financial liability and dependents. It is especially recommended for:
Primarily breadwinners, who would like to financially secure their family in case of their absence
A person having costly debts such as home loans or personal loans as most of that burden wouldn’t lie on the families of the respective individuals.
Earning individuals who want to save for their children’s future education or marriage expenses.
Working individuals who can get the advantage of low premium by purchasing the cover early in their lives
What to Consider While Getting the Best Term Insurance for 1 Crore
Selecting the best term insurance cover for 1 crore needs proper weighing of various factors so that you should get the best policy suited to your requirements.
Premium Affordability: Compare quotes for the same sum assured value of ₹1 crore from various insurance companies. Reasonable and affordable premium quotation to fit your budget for the policy term.
Claim Settlement Ratio (CSR): The CSR is the percentage of claims settled by the insurance company out of the total claims received in a particular financial year. It depicts the reliability of the insurer in processing the claims, the higher the CSR, the better will be the assurance. Choose an insurer that has a CSR of more than 95%.
Rider Benefits: Try to look for policies that offer optional riders such as critical illness cover, accidental death benefit, or income benefit rider. These riders provide extra protection and make the policy more comprehensive.
Policy Tenure: Choose a tenure of your policy which covers till a time when major financial liabilities come up, ideally till the home loan repayment or children’s education is over.
Insurer Reputation: Select the insurers with proper financial background and good reputations in the market. Companies like LIC, Max Life, and SBI have great financial credibility as well as pleasing policies for customers.
Flexibility in Premium Payment: Some of the policies will allow you to pay the premium annually, half-yearly, quarterly, or monthly. That flexibility might also help you in managing your finances. Here are some of the best term insurance plans of 1 crore in India.
Let’s discuss some of the leading 1 crore term insurance plans offered by top insurers such as LIC, Max Life, and SBI.
1. LIC Term Insurance 1 Crore
LIC (Life Insurance Corporation of India) is one of the biggest and most recognized brands in life insurance among all the insurance providers across the country. For those seeking a product with a strong claim settlement ratio, LIC Term Insurance 1 crore plans can be ideal, offering the results they desire.
Plan Name: LIC Tech Term Plan
Sum Assured: ₹1 crore and above
Benefits
Online, hassle-free application process.
Flexibility to choose between regular, limited, or single premium payment options.
Accidental death benefit rider available.
An inflation-busting option, wherein the sum assured increases annually at a certain rate of interest.
Claim Settlement Ratio (CSR) in FY 2020-21 stood at an impressive 96.69%.
LIC’s Tech Term Plan is that insurance plan in which you get the best insurance for the individuals who are interested in a sum assured of ₹1 crore with a balance of affordability and reliability backed by the legacy of LIC.
2. Max Life Term Plan
Max Life Insurance gives competitive term insurance policies customized according to your demands with a variety of added benefits.
Plan Name: Max Life Smart Term Plan
Sum Assured: ₹1 crore and above
Features:
Multiple payment at maturity, monthly income, or any combination of both
Sum assured increase options for marriage and birth of a child
Critical illness and waiver of premium rider
Flexibility on policy term and premium paying terms available
Claim Settlement Ratio: 99.35% (FY 2020-21)
It will suit those who like more flexibility and personalization over an insurance product. It is among the best term insurance plans 1 crore as it offers dozens of add-on benefits and competitive rates.
3. SBI Term Insurance 1 Crore
SBI Life Insurance is another insurance house in India known and trusted alike. The SBI term insurance 1 crore plan provides wide cover through attractive premiums.
Plan Type: SBI Life eShield Next
Sum Assured: ₹1 crore and above
Features:
The option to increase the sum assured automatically at age or milestone events like marriage or birth of a child.
Accidental death and permanent disability rider are available.
Pure term plan with no savings component, so the premium has been kept economical.
The option of flexible premium payments-periodic, single, or limited.
Claim Settlement Ratio (CSR): 94.52% (FY 2020-21)
SBI Life’s eShield Next is for people who are planning a 1 crore term insurance plan along with that resultant benefit of increase in coverage with time also. It’s best suited for those whose financial liability may increase with time.
Why Choose 1 Crore Term Insurance Plan?
There are many reasons why a 1 crore term insurance policy is an intelligent financial choice:
Affordable Premiums: The premium amount, although large in terms of the sum assured, is relatively smaller compared to other life insurance products such as endowment plans or whole life insurance. Term insurance secures your family’s future at a very affordable cost.
This policy will take care of your family’s financial needs in case you are no more. It ensures that they can enjoy the same lifestyle and service the debt obligation beside meeting long-term financial goals.
It provides a handsome sum assured, thus taking care of the long term even accounting for inflationary factors. The same amount at ₹ 1 crore will suffice, considering any increase over the years due to inflationary factors. Many term insurance plans come with add-ons to enhance the sum assured at different phases of life, to cope with rising expenses in life.
Saving tax: A 1 crore term insurance plan provides financial security besides tax savings under Section 80C that allows a deduction of up to ₹ 1.5 lakh from your taxable income. The corpus received by the beneficiary is free from tax under Section 10(10D).
Conclusion
A 1 crore term insurance plan may become an intrinsic element of a complete financial plan for large responsibilities for individuals holding responsibility. It makes you peaceful to know your loved ones will be free and financially secure even in your absence. The factors that you need to look out for when selecting the best term insurance plan for 1 crore include premium affordability, claim settlement ratio, as well as the additional riders that would ensure it met your needs. Top players like LIC, Max Life, and SBI can avail you with the best priced and guaranteed term plans, which shall bring in proper financial security to your family.
When you finally decide on a suitable policy, you must make sure that you are completely considering your financial situation and future obligations. This well-chosen term insurance policy will prove to be a strong safety net assuring you of confidence enough to live life as you wish.