₹ 2 Crore Term Insurance Plan

What is a ₹2 Crore Term Insurance Plan?

A 2 Crore term insurance plan makes sure that your family will receive ₹2 Crore as a life cover in case of your untimely death during the policy term. This term insurance plan provides financial protection for your family and gives you peace of mind knowing your family's future will be secure.

A ₹2 crore term insurance plan can be opted for at a low premium rate. This payout can be used to cover different expenses and liabilities, including daily expenses, child’s education, outstanding loans, and other financial obligations.

Let’s say a 25-year-old non-smoker can get a ₹2 crore term insurance cover till age 60 for ₹928/month in the first year. The premium may vary based on factors such as age, health, smoking status and other policy details.

Note: A term insurance plan of ₹2 crore doesn't pay out any survival or maturity benefit. If you outlive the policy term, you get nothing back, unless the plan has a "Return of Premium" (TROP) option.

₹2 Crore Term Insurance Plans Compared~

Here is a comparison of life insurance plans offering ₹2 crore term insurance plans, along with their claim settlement ratios:

**Disclaimer: The premiums shown above are indicative monthly premiums for a ₹2 crore term insurance cover till age 60, based on quotes for an 18-year-old male, non-smoker with an annual income of ₹15–25 lakh. Premiums may vary depending on factors such as age, gender, health, lifestyle habits, occupation, city of residence, income, policy term and sum assured. The premiums shown are subject to change and may not include applicable rider costs. Please check the latest premium at the time of purchase.

˜The insurers/plans are listed in highest to lowest order based on the Claim Settlement Ratio (CSR) reported by the respective insurer partners and published by IRDAI.

Why Should You Consider a ₹2 Crore Term Insurance Plan?

If you are still wondering whether ₹2 crore term insurance is actually worth buying, it helps to look at what the cover can do for your family. Apart from providing a large life cover, it can help replace your income, take care of major financial commitments and give your family some breathing room if you are no longer around.

Affordable Premiums

For a young and healthy person, a term insurance policy of ₹2 crore can be had at a reasonably affordable premium. Buying the policy early can work in your favour too as your premium is generally based on things like your age and health when you buy the policy.

The idea is simple: a fixed premium to have a large financial cover. If you die during the policy term, the death benefit can help your family take care of expenses such as children’s education, EMIs on your home loan and regular household expenses.

Replaces Lost Income

Your family doesn’t just lose a person when the primary earner dies. They could also lose a primary source of income.

A ₹2 crore term insurance payout can fill that gap. A 2 crore term life insurance policy can act as an income replacement term plan. The money can be used for day-to-day expenses and at the same time can also be planned for bigger financial needs such as your child’s higher education, marriage or repayment of an outstanding home loan.

Wider Protection with Riders

The basic term insurance cover can be extended with riders as per the offerings of the insurer. You can choose

• critical illness cover,

• accidental death benefit or a

• waiver of premium rider.

Some term plans also offer an option for Return of Premium, whereby, if you survive the term of the policy, the premiums paid are returned to you, subject to plan terms and conditions.

GST Exemption on Individual Life Insurance Premiums

From 22 September 2025, GST on individual life insurance policies, including term insurance, was exempted under the applicable government notification. This means eligible individual policyholders do not have to pay GST on the premium.

This means that the premium you pay for an eligible ₹2 crore term insurance policy can be cheaper than what it would have been before the exemption. The precise premium will still be dependent upon the insurer, your age, health, policy term and other factors.

How Does a ₹2 Crore Term Plan Work? (Real-Life Example)

Let us take an example to understand how a ₹2 crore term life insurance plan secures your family’s future.

Rahul, a 32 year old working professional based in Bengaluru, wants to make sure that his wife and two young children will continue to be financially secure in case something happens to him. His cover is built on three pillars – paying off his home loan, funding his kids’ education and ensuring that his family’s day-to-day life doesn’t suffer.

He will pay a monthly premium till he turns 60 years of age and also add a Critical Illness Rider for more protection. In case Rahul dies during the policy term, his family can choose to receive the ₹2 crore payout in a lump sum, monthly income or a combination of both. Here’s how that money could be spent roughly:

That remaining ₹1.25 crore, invested reasonably, can generate an estimated monthly income of around ₹70,000–75,000 — enough to cover:

A simple thumb rule is to multiply your yearly income by 10–15 times, and then add your outstanding loans and future goals to estimate the coverage you actually need. Look for an affordable term plan of ₹2 crore with useful riders, good claim settlement ratio and Return of Premium option if it matters to you.

What are the Benefits of a ₹2 Crore Term Insurance Plan?

Here is a list of benefits of buying the best term insurance plan for 2 crore in India:

• High cover at low premiums
  With a 2 cr term insurance plan, you can secure a large sum assured for your family in your absence at affordable premiums. The term insurance premiums for a 18 year old buying a 2 crore life cover start at just ₹640 per month.

• Family’s financial stability
  The 2 crore term insurance offers your family the required financial stability by providing them with a large life cover to take care of their needs like paying the rent, child’s fees, paying off remaining loans, etc.

• Flexible premium payments
  2 Crore Term insurance plans provide you with flexible premium payment options, wherein you can choose to pay the premiums in the mode most suitable to you. You can pay the premiums in limited, regular, or single pay for monthly, quarterly, annual, or semi-annual modes.

• Customisation with riders
  You can customise the 2 crore term insurance by adding riders to the base plan at nominal premiums. The most common riders available in India are terminal and critical illness riders, accidental death benefits, accidental total and permanent disability, and waiver of premium riders.

• Tax-saving benefits
  You can save on your yearly taxes with term insurance tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act of 1961.

Who Should Buy a ₹2 Crore Term Insurance Plan?

Here is the list of individuals who can benefit from buying the best term insurance plan for 2 Crore:

How to Determine the Right Coverage Amount

Consider these factors when deciding if ₹2 crore is the right number for you:

• Look for the needs of Financial Dependents: It is important to calculate the financial needs of your loved ones. In order to do that, consider calculating the daily expenses of your family such as educational or marriage expenses

• Your age: At young age, you have less responsibilities and you need to pay a lower amount of premium. This helps you to get higher coverage at a low cost. With age, your responsibilities increase and you need a high amount of coverage to meet future expenses.

• Annual Income: Your current income and your expected future income determine the amount of coverage you need. Ideally, your Sum Assured should be 10 to 15 times your annual salary. For instance if you are earning ₹5 lakh a year, you should get a cover of ₹50 lakh to ₹75 lakh.

• Inflation: Inflation decreases the purchasing power of your money as time goes by. So, it definitely is a key component of the expected inflation rate when you calculate the required coverage. Because this allows your family’s payout to retain enough real value to cover their daily expenses years down the road, even if prices increase.

• Check for your future milestones: It’s important to think beyond today's immediate needs and consider your long-term responsibilities. What are your biggest concerns? Will you be funding your child’s higher education or their wedding? Do you want to guarantee your spouse's retirement income or maintain your family’s current lifestyle in your absence? If these major goals are part of your life plan, opting for a higher cover, perhaps ₹2 crore, makes far more sense than settling for a low amount that won't last.

• Get prepared for Uncertainties: You should definitely include a financial safety cushion for life’s emergencies. Things like unexpected medical bills, urgent financial needs, or any other sudden, additional costs can strain a family's finances immediately. Adding this term plan gives your loved ones an extra layer of protection when they need it most.

• Premium Affordability: When looking for the right coverage amount, it is also important that premium should be low at the time of buying a term plan. To calculate the estimated price for different amounts of coverages you can use an online term insurance premium calculator. Always opt for a plan that provides financial protection at low premium rates without straining your budget.

How to Choose the Best ₹2 Crore Term Plan?

Here are the key things to look at before deciding:

• Compare Premiums
  Term insurance plans offer high life cover at low prices. But not all plans are the same price. Find the best term insurance plan for 2 crore premium rates from different insurers to choose a plan that fits your budget without compromising on coverage.

• Check Claim Settlement Ratio
  This is one of the important things to check. The claim settlement ratio (CSR) indicates the number of claims an insurer has successfully paid out. Higher CSR means a higher probability of your family receiving the claim amount without any hassle. Look for a CSR above 95%, preferably published by IRDAI every year.

• Look for Rider Options
  Term insurance riders are add-ons that give you extra protection for a small additional cost. Useful riders include:

  • Accidental death benefit

  • Critical illness cover

  • Accidental total and permanent disability

  • Terminal illness cover

  • Hospicare Rider

  • Waiver of premiums

• Buy Early for Lower Premiums
  Your age plays a big role in how much premium you’ll pay. The younger you are, the lower the cost of your term plan. Buying early also means you are less likely to have health issues, which keeps your premiums low and approval easy.

• Consider Your Financial Dependents
  Think about who relies on your income, your spouse, children, or ageing parents. If you're the sole earning member, you may need higher coverage for a longer duration to ensure your family stays financially stable even in your absence.

Things to Keep in Mind Before Buying a 2 Crore Term Insurance Plan

Decide on a Suitable Policy Term

The duration of your insurance is important. It should match exactly how long your family will be financially dependent on your income. If the policy tenure is short, your cover can end soon. If it is too long, your premium amounts might be higher. Ideally, your term insurance should run until your planned retirement age (when you expect to be debt-free) or until your biggest financial responsibilities are completely over.

Read the Policy Exclusions Carefully

Every plan has some exclusions, situations where the insurer won’t pay (like suicide within the first year, or death due to undeclared health issues). Understanding the exclusions prevents major shocks later.

Understand the Claim Process

Choose a company known for its simple and fast claim settlements. Look for dedicated claims support services that promise to help your family during the most difficult time.

Flexibility to Upgrade or Modify

Your life situation might change, and so might your insurance needs. Choose a term plan that lets you increase the cover or add riders later if required. This flexibility means you won’t have to buy a new plan every time your financial responsibilities grow.

When is the Right Time to Buy ₹2 Crore Term Insurance?

The best time to buy ₹2 crore term insurance plan is earliest possible. The term insurance premiums are calculated based on a number of factors like age, health etc. Therefore if you buy a policy when you are younger, you can get lower premiums for the entire term of the policy. Insurance advisors usually recommend buying a term insurance plan as soon as you start earning after the age of 18, so that you can get higher coverage at a more affordable premium. As your responsibilities grow over the years, a life cover of ₹2 crore can offer greater financial security to your family.

Here's how a ₹2 crore term insurance plan fits different stages of life:

How to Buy Term Insurance Online from Policybazaar?

You can buy term plan insurance online by following the steps mentioned below:

STEP 1: Visit Policybazaar and go to 'Term Insurance' plan

STEP 2: Enter your name, gender, contact number, and date of birth

STEP 3: Fill in your smoking habits, educational qualifications, occupation type and annual income

STEP 4: Select the most suitable plan and proceed to pay

Documents Required to Buy a ₹2 Crore Term Insurance Plan

• Identity proof: Aadhaar, PAN, or passport

• Address proof : Aadhaar, passport, or a recent utility bill

• Income proof: salary slips, Form 16, ITR, or bank statements showing salary credit

• Medical test results, where applicable based on age and sum assured

Is 2 Crore Term Insurance Worth It?

Yes, a ₹2 crore term insurance plan is a good option for those who want to give their family a big financial safety net at a low premium. It can help your loved ones to supplement your income, pay off any unpaid loans, meet daily expenses and fulfill long-term financial aspirations, all in your absence. If you’re taking on more responsibilities or expect to do so in the future, buying the plan early will help you lock in lower premiums and secure higher life cover. Compare the various plans, features, riders and premiums before you decide to pick a policy that caters your financial needs and goals.

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