A term insurance plan is the best way to protect the financial future of the family against any uncertainty. With the ongoing pandemic, more and more people are thinking about financial security.
For anyone who intends to buy a term insurance plan, it is important to choose the right sum assured. The sum assured is the amount that the insurance company will pay to the nominee when the policyholder passes away while the term plan is active.
Before you sign below the dotted lines, it is important to review your present and future financial position. With a plethora of term insurance plans available in the market, you can choose a 75 lakh term insurance plan that would best fit your requirements.
The table below shows the list of all the insurance companies in India, which offers 75 lakh life cover. To determine the term insurance premium various factors are taken into consideration such as gender, lifestyle, age and so forth.
|Insurer||Plan Name||Coverage Age||Claim Settled||Monthly Premium|
|Aditya Birla Capital||DigiShield Plan||60 years||97.5%||Rs 1065|
|LifeShield Plan||60 years||97.5%||Rs 1012|
|Aegon Life||iTerm||60 years||98.0%||Rs 853|
|Bajaj Allianz||Smart Protect Goal||60 years||98.0%||Rs 957|
|Bharti AXA||Premier Protect||60 years||97.3%||Rs 1044|
|Canara HSBC OBC||iSelect Star||60 years||98.1%||Rs 1079|
|Edelweiss Tokio Life||Zindagi+||60 years||95.8%||Rs 743|
|Exide Life||Elite Term Plan||60 years||98.2%||Rs 912|
|Smart Term Edge Comprehensive||59 years||98.2%||Rs 1372|
|HDFC Life||Click 2 Protect Life||60 years||99.1%||Rs 1274|
|ICICI Prudential||iProtect Smart||60 years||97.9%||Rs 1251|
|IndiaFirst||e-Term Plan||60 years||96.8%||Rs 901|
|Kotak Life||Kotak e-Term Plan||60 years||98.5%||Rs 1192|
|Max Life||Smart Secure Plus||60 years||99.2%||Rs 1204|
|PNB MetLife||Mera Term Plan Plus||60 years||98.2%||Rs 941|
|SBI Life||eshield||60 years||94.5%||Rs 1183|
|TATA AIA Life Insurance||Maha Raksha Supreme||60 years||99.1%||Rs 1219|
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
The above premiums have been calculated for a person who is 29 years of age, smokes regularly, is into a job and earn up to Rs 10 -15 lakh yearly.
To get the right insurance coverage, some terminologies need to be understood for better clarity as they would help in making an informed decision. A term insurance plan is generally purchased to assist the family in case of any adversity in case the breadwinner is no more. As a part of the policy, sum assured is crucial yet important.
In simple words, it determines the level of coverage of the term insurance policy. This implies that the sum assured is the pre-determined amount that is payable to the policyholder or nominee in case the insured is no more. The sum assured is decided while buying the term insurance plan. There are different plans available in the market wherein the amount can be increased or decreased over the policy term.
While choosing the sum assured, you need to take into account certain aspects such as the number of dependents, expenses of the family, present living style, inflation, etc. Remember, a low sum assured implies that the family is not sufficiently covered. However, this does not mean going over the board and choosing a sum assured that will become a burden at a later stage.
The golden rule for choosing the sum assured is no rocket science. The sum assured should be 10-15 times the present annual income of the policyholder. Besides, if you have any such debts or liabilities, take into account such expenses while opting for the sum assured in a term insurance plan. Choose a 75 lakh term insurance plan and have the peace of mind that the financial future of the family is protected.
We are living in times where the competition is tough. In this rat race competition, often we neglect health and wellness. Besides, in the times of COVID-19, people have become more anxious in regards to the job, financial standing and protection, rising medical expenses, and so forth.
Well, a term insurance policy is an easy way to build the safety net in terms of finances for the family. The need for a term plan is more stressed upon with the ongoing global crises. Choosing the 75 lakh term insurance plan means that you have adequate coverage; however, you can increase the amount as per the need. If you do not have an adequate sum assured in the term plan, then the whole idea is simply negated. Keep the following pointers in mind when choosing the sum assured while buying the term insurance plan:
Before, buying a term insurance plan, make sure that you understand that you are not just completing the financial protection checklist. Next, you will be paying the sum assured from your income, so it becomes important to assess the work life. Now, consider the years that you are expecting to work to earn a livelihood. This will help to determine the sum assured and adequate cover. For example, in case you are 30 years of age and retire somewhere around 55 years, then your future earning years will be 25. This will impact the selection of the insurance coverage and sum assured premium.
One of the key objectives of buying a term plan is to financially protect the family even when you are not around. Therefore, it becomes important to understand the lifestyle expenses of the family. Moreover, you will be paying the premium for the chosen life cover. So you should analyze the sum that would be required to pay and whether or not you can afford it or not regardless of whether you choose a 75 lakh term insurance or any other plan. Take note of the monthly, ongoing, recurring expenses that will give you a fair idea of the money that needs to be kept aside to ascertain the sum assured.
There are certain major life objectives such as higher education, marriage, etc. that would need financial assistance additionally. The choice of sum assured within the term plan needs to be done accordingly. There will be different landmarks for, which you should be prepared right from the time you are financially independent. All you need to do is calculate and then add the expected savings to meet the life objectives that might increase with each passing year.
To select the sum assured under the term plan, it is important to calculate the investments, liabilities and savings. The key reason behind buying the term plan is to protect the family in every possible manner so that they need compromise on the lifestyle or dreams. The assessment of the financial situation is important as you would not want the family to suffer in any manner.
Buy the term insurance plan online and you can also use the term insurance premium calculator that would determine not just the premium amount but the sum assured as well. This would enable better planning of funds. Neither last year was easy nor is this year; however, we are trying our best to cope up and manage. Family is important to each one of us and so is their protection. It is important to have a backup here in the form of sum assured within the term plan.
By now you would have understood the adequate sum assured concept. The sum assured is stressed upon as it lays the foundation of the financial protection in life. Buying a 75 lakh term insurance plan should be on the list of your financial portfolio, and this is why making a well-informed and wise decision is required. Apart from the sum assured, to make the final call you would also need to look at the claim settlement ration, solvency ratio, and much more. This means investing time and conducting thorough research is required.
Pick the term plan with sufficient sum assured and lead a life without any financial worry.