Life and death can always be unpredictable. While you might cherish one’s life, you might mourn the death of your loved ones the next moment. Due to the unpredictability of life, many of you might be constantly worried about securing your family’s future in your absence. During your active working years, you might not only save money but also purchase life insurance for your loved ones.
Term insurance is a protection plan, which offers financial security to your loved ones. However, a term insurance policy offers financial protection only for a specific time. Under a term policy, you can receive substantial coverage at low costs. At times, the selected coverage might not be adequate, depending on your financial requirement of your dependants. Therefore, select a 1 crore term plan that can secure your future even though it is for a stipulated time.
Before purchasing an insurance policy, let’s first understand why you need to buy a one crore term plan:
As you grow older, your financial requirements might increase. Moreover, your financial dependants might increase after you cross a particular stage of your life. If you are the breadwinner of your family, you should purchase a term plan for 30 years along with a sum assured value of Rs. 1 crore to meet everybody’s financial needs. That way, you can secure your family’s financial future in the case of your untimely demise at a young age.
Today, there are numerous options in the market that offers different term insurance benefits. Due to the diverse range of products, you might fail to understand which product is suitable for you. Selecting the right term insurance policy plays a major role in building a secure future. Therefore, let’s understand how to select the best 1 crore term insurance policy:
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Consider the premium rate
Although term insurance can be available at low costs, you should check with your insurer about the premium rate in return for the coverage. As a policyholder, you can pay your premium either monthly or annually. Before purchasing a term policy, you should compare the arate of term insurance plans and determine the premium rate on an online term insurance premium calculator.
Look at the claim settlement ratio
The claim settlement ratio of your insurance company determines the number of claims that they have settled every year. When you are purchasing a term policy, you should select an insurance company, which has a high claim settlement ratio. Every credible insurance company can have a high settlement ratio.
Use additional benefits
Many insurers might offer additional benefits in the form of add-on covers or riders. These add-on covers can also be called as riders, which are used to enhance the base term policy. When you purchase riders like personal accident rider or critical illness rider, you can receive an extra coverage apart from the actual insurance cover.
Every term insurance policy can have different features. Therefore, let’s go through these most common features of every 1 crore term plan:
A term policy provides high coverage at a nominal rate. However, online term insurance is relatively cheaper than an offline term plan.
A term policy offers a death payout to your loved ones in your absence. As the nominees, your family can choose from the multiple payout options given below:
- Monthly income
- Lump-sum amount
Riders are an essential element under a term insurance policy. Check with your insurer to confirm if they offer riders on top of the term policy. However, select a rider wisely since it might cost extra.
To sum up, the selection of a one crore term plan can be relatively difficult. However, it can be essential for every family as it can offer maximum coverage. When you buy a one crore term plan, read the term and conditions carefully. Consult a professional in case you need help or if you have any queries regarding the term policy.