Know Everything About 1 Crore Term Plan

A term plan is a type of life insurance policy wherein you get coverage against the uncertainties of life for a specific period. If you, as a policyholder meets with an unfortunate incident, which results in your death, the insurer will pay the death benefit to the beneficiary. For instance, if you have purchased a 1-crore term plan, then the insurance company will pay the amount to the nominee, as per the policy terms.A term plan is the best way to secure your family’s financial future at a nominal cost. It is particularly a must-have investment in your portfolio if you are the sole breadwinner. Today, many people opt for buying a 1-crore term plan based on the assumption that an Rs. 1 crore pay-out will be sufficient to help the family meet their financial needs while they are gone.

• Cost-effective Term insurance policies are one of the cheapest forms of life insurance available in the market. Since it is a pure life cover and has no savings component, the premium for such plans are affordable as compared to other life insurance policies. Today, you can buy a 1-crore term plan for as less as Rs. 500 per month, subject to terms and conditions.
• Accessible Since the premium for 1-crore term plans is affordable, the plan is accessible for a larger pool of people. On the other hand, a life cover of Rs. 1 crore for a ULIP may not be accessible for all as the premium for such plans are high. Thus, a term plan is an affordable way for anyone who wants to protect their family against various life risks. Many experts recommend this plan for individuals aged between 25-35 years.
• Additional coverage options If you can afford to pay a higher premium as you grow old and your income increases, many insurance companies allow you to widen the coverage. For example, if you have a basic 1-crore term plan, you can choose to increase the sum assured when you get married or have a child, by paying a slightly higher premium.
• Riders Apart from increasing the sum assured of the policy, you can also enhance the scope of coverage by purchasing riders like a critical illness plan . This means that you are entitled to get pay-out if you are diagnosed with any critical illness like cancer over and above the death benefit to the nominee.

Since the 1-crore term plan has an affordable premium and is accessible for all, it is one of the best ways to protect your family against unpredictable events and give them financial security while you are gone.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.