The pandemic has surely generated a global panic and emphasised the importance of financial planning that would shield the family no matter what. Amidst the COVID-19 crises, one thing that the world has surely understood is the importance of insurance.
Having life insurance protection is of utmost importance to safeguard the financial interest of the family in case of any adversity. Any individual who wishes to do so should consider buying a term insurance plan rather than going for any traditional policies such as the endowment plan and so forth.
Investing in a term plan is beneficial as it offers a high sum assured at a cost-effective premium specifically when the individuals buy the policy at a young age.
This would also free up more money, which then can be invested in multiple instruments aligned with the risk appetite and liquidity necessities to generate returns and meet the financial objectives within time. But one similar question that would pop up in the mind of every potential buyer of the policy is the coverage that would be required.
In this article, let us discuss buying a 2 crore term insurance plan. Yes, read it right!
2 crore... Sounds huge? Well, before getting onto the 2 crore term plan let briefly understand the basics.
To help an individual, the table below shows the list of insurance companies in India that offers 2 crore life cover.
It is to be noted that the premiums have been calculated for an individual who is 30 years of age, smokes, is salaried and earns ranging from Rs 7 lakh to Rs 10 lakh annually. Moreover, various factors determine the term insurance premium such as age, lifestyle, gender, income, and so forth as laid by the chosen insurance company.
|Insurer||Plan Name||Coverage Age||Claim Settled||Monthly Premium|
|Aditya Birla Capital||DigiShield Plan||60 years||97.5%||Rs 2326|
|LifeShield Plan||60 years||97.5%||Rs 2531|
|Aegon Life||iTerm||60 years||98.0%||Rs 2009|
|Bajaj Allianz||Smart Protect Goal||60 years||98.0%||Rs 2364|
|Bharti AXA||Premier Protect||60 years||97.3%||Rs 2517|
|Canara HSBC OBC||iSelect Star||60 years||98.1%||Rs 2710|
|Edelweiss Tokio Life||Zindagi+||60 years||97.8%||Rs 2235|
|Exide Life||Elite Term Plan||60 years||98.1%||Rs 2122|
|HDFC Life||C2PL Life Protect||60 years||99.1%||Rs 2825|
|ICICI Prudential||iProtect Smart||60 years||97.8%||Rs 2058|
|IndiaFirst||e-Term Plan||60 years||96.7%||Rs 2506|
|Kotak Life||Kotak e-Term Plan||60 years||96.3%||Rs 2949|
|MAX Life||Smart Secure Plus||60 years||99.2%||Rs 2720|
|PNB MetLife||Mera Term Plan Plus||60 years||97.2%||Rs 2300|
|SBI Life||Shield||60 years||94.5%||Rs 3205|
|TATA AIA Life Insurance||Maha Raksha Supreme||60 years||99.1%||Rs 2959|
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
To begin with, the following are some of the key points that highlight the aspect of buying a term insurance plan in India:
One of the key aspects of buying a term plan is the amount of life cover the plan provides. This is important as it determines the level for, which the family is going to be secured. A term insurance policy remains a popular choice amongst the individual as it provides a high cover.
With a plethora of options available in the market, an individual can opt for a 2 crore term insurance plan.*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Confused? In determining the ideal level of coverage required for the family's financial requirement. Well, the popular rule of thumb simply states that the sum assured should be 10 times the present annual/yearly income.
Another important thing to do is to factor in the present financial, financial objectives and inflation. This means that you would calculate the ideal coverage level by simply multiplying the current yearly expenses with the years that are left until retirement combining with the present value of the life objectives, complete liabilities excluding the investments and savings made by an individual.
It is to be noted that the maximum coverage level that can be applicable will be on the premise of the present income. This means that the individual might not be permitted to buy the policy wherein the sum assured is more than 30 times the present yearly income in some cases.
It is highly recommended to compare various term insurance plans before making the final decision. A term plan should fulfil all the requirements, therefore it is important to factor in the features, benefits, claim settlement ratio, and so forth. Buying a term insurance plan online will help the individual to compare every bit of it and the premium amount will be low compared to buying offline.
An individual who is looking forward to buying a 2 crore term plan should understand that the premium is determined upon certain lifestyle habits such as smoking. On the other hand, the other important factor is gender wherein the term cover for a female is low by 10%.
In case the individual is a smoker, then the person would end up paying a 25% high premium when compared to someone who is a non-smoker. If an individual has smoke in the recent 12 months, then that person is classified as a smoker. Well, these are the basic factors that will help to determine the 2 crore term insurance premium. Once the premiums have been paid, questions will be asked around health such as the pre-existing health, health history of the family members, etc. On the premise of the answers, an additional sum or loading will be then added on a case-to-case basis.
Life is uncertain and in the times of COVID-19, it becomes even more important to protect the future of the family. Buy a 2 crore term insurance plan and be assured that the future of the family is protected even in case of any unfortunate event.
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