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Why you Should Consider Purchasing Term Insurance Plan With Higher Coverage?

With the booming rate of inflation, it has become imperative to create a financial backup for your loved ones. Ensuring proper financial security for your family becomes even more important if you are the single breadwinner of the family. Purchasing a term insurance policy is the best way to make sure that your family is financially protected in the long-term. Moreover, if you are the single earning member of the family and you have dependents to look after then consider purchasing a term insurance plan, which offers a higher coverage of Rs.1 crore or above.

Read further to know why you should consider purchasing a term insurance plan which offers higher coverage.

What is a 1 Crore Term Insurance Plan?

A term life insurance policy not only provides death coverage to the family of the insured but also ensures to take care of the financial liabilities of the family in the absence of the breadwinner of the family. The 1 crore term insurance plan is a pure protection plan which promises to pay the promised coverage amount to the nominee of the policy in case of unfortunate death of the insured person during the policy tenure. Higher coverage of 1 crore or more works as a financial safety net for the family and help them to fulfill their financial goals and meet the liabilities of the family.

The Thumb Rule!

Whether you buy a 1 crore term insurance plan or not, it is important to know that the coverage you choose for your term plan should be 10-15 times your annual income. As a comprehensive and simplest form of life insurance product, the term plans offer the advantage to purchase a higher coverage amount at a minimal premium rate. Thus, make sure that you follow this thumb rule while purchasing a term insurance plan and also consider the other significant factors like health conditions, age, dependents, annual income, etc. By considering all these factors equally and by comparing the quotes of the plan online you will be able to select the most remunerative plan as per your suitability and requirement.

Along with the benefit of providing life insurance coverage to the family of the insured, the term insurance plan also works as an income replacement for the family in the event of the death of the insured person. Moreover, if you choose a term plan with higher coverage of 1 crore or more, then it can work as an asset to take care of the future liabilities of the family-like financing your child’s higher education, repayment of home loan, payment of credit card bills, etc. in you absence.

Will Rs.1 Crore Term Insurance Policy Is Enough?

Selecting an appropriate policy needs a better understanding and a lot of planning of what the policy has to offer. A higher coverage like 1 crore term insurance plan provides you a vast scope to accomplish your financial objectives like taking care of a child's’ higher education, assurance against vulnerabilities, securing the retirement year of your spouse, etc. You must evaluate your financial requirements and opt for an appropriate policy, which fulfills those needs to the best. Also, make sure you consider the future aspects like loan repayment, inflation, paying credit card bills, etc. while zeroing in on an Rs.1 crore term insurance plan.           keep in mind that with the higher coverage term insurance plan, your family will be able to deal with all these aspects in case of an emergency. As the financial requirement of an individual differs from person to person make sure you consider these aspects before purchasing the right term insurance policy for your family.

The Win-Win Situation

In this day and age, almost all insurance provider offers term insurance policies which provide Rs.1 crore life insurance coverage or more. As a policy buyer, you can compare the quotes of these plans online check the reviews of the plan, and choose the plan that best suits your requirement. Moreover, also check the policy inclusion and exclusion so that you know what your policy offers and in what cases it can reject the claims.

The Bottom Line!

The insurance experts always advise purchasing the policy at a young age, as with the increase in policy tenure the premium of the policy also increases. Moreover, if you are the sole breadwinner of the family and have dependents then you should seriously consider investing in a 1 crore term insurance plan. Moreover, you can also make use of a term insurance premium calculator to calculate the accurate premium of the policy.

 

 

Written By: PolicyBazaar - Updated: 23 November 2020
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