What is 12 Crore Term Insurance?

Let us understand everything you need to know about a ₹12 Crore term insurance plan, including its benefits, why buy it, and how to buy it.

What are the Key Benefits of 12 Crore Term Insurance?

Here are some key benefits of opting for a term insurance plan with a high cover of ₹12 Crore:

• Affordable Premiums: Term insurance is one of the most affordable types of insurance compared to other life insurance plans.

• Customizable Riders: You can enhance your policy with riders such as critical illness cover, accidental death benefit, or waiver of premium for additional protection.

• Flexible Payout Options: Choose from lump-sum payouts, monthly income, or a combination to ensure the right financial support for your family.

• Tax Benefits: You can enjoy term insurance tax deductions under Section 80C for premiums paid and under Section 10(10D) for the death benefit.

• Peace of Mind: With a 12 term insurance in place, you can lead a financially stable life knowing that your family will be financially protected in your absence.

Why Choose 12 Crore Term Insurance?

Opting for a high coverage like ₹12 Crore ensures that your family’s financial needs are well-covered for the long term. Here are some reasons why you might consider this option:

• Pay off Remaining Loans: If you have significant financial obligations like home loans, business loans, or children's education, a higher sum assured can provide better financial protection.

• Financial Security: It offers peace of mind knowing that your family will have adequate resources for many years to come, even after you’re gone.

• Inflation Protection: With rising inflation, the value of money decreases. A higher cover amount ensures your family isn’t left struggling financially in the future.

Factors to Consider Before Buying a 12 Crore Term Insurance Policy

To ensure you select the right policy, keep the following factors in mind:

• Lower Premiums: You should always compare the available term insurance plans online to find the one that fits your budget.

• Policy Term: Choose a policy term that aligns with your financial obligations (for e.g., until your children are settled, or your loans are paid off).

• Inflation Consideration: You should opt for increasing cover options if possible, to keep up with inflation and growing financial needs.

• Claim Settlement Ratio: Always check the insurer’s term insurance claim settlement ratio to ensure a smooth claim process for your family.

• Solvency Ratio: You should always go with an insurer with a solvency ratio of more than 1.5 or 150%.

How to Buy 12 Crore Term Insurance Plans Online?

You can buy a 12 crore term insurance plans online in the following steps: 

Step 1: Visit the term insurance page of Policybazaar

Step 2: Fill in your name, age, gender, and contact information

Step 3: Select the right smoking habit, annual income, educational qualifications, and occupation type

Step 4: Choose the best 12 crore term insurance plans and proceed to pay

What Factors Affect your 12 Crore Term Insurance Premiums?

The premium you pay for your 12 Crore term insurance depends on several factors, such as:

• Age: The younger you are, the lower your premiums will be.

• Health Condition: A healthy lifestyle with no pre-existing illnesses ensures lower premiums.

• Policy Term: Longer policy terms may lead to higher premiums, but they ensure coverage for a longer duration.

• Sum Assured: The larger the sum assured will be, the more premium amount you will have to pay.

• Premium Pay Tenure: If you have opted for lower premium pay term like limited or single pay, the premium amount will be higher compared to the regular premium, but the overall premium you would have to pay would be lower.