Financial security and planning are extremely important, especially when it comes to our family members. But if you don’t know where to start, it might be the right time to consider buying a 3 crore term insurance plan.
Read on to know more:
Broadly, a 3 crore term insurance is similar to all term insurance plans. A term insurance plan is specifically designed to provide financial support and protection to the policyholder’s family in case of his/her unfortunate death. So, a 3 crore term insurance plan offers a life coverage of 3 crores as a death benefit.
For example, if you buy 3 crore term insurance for your loved ones, the chosen beneficiary/nominee will receive a payout of Rs. 3 Crores in the unforeseen event of your demise. Therefore, by purchasing a 3 crore term plan, your family members will get a safety net for future financial hardships.
The primary reason to buy 3 crore term insurance is to provide financial security to our family but there are some other reasons also that should be taken into consideration. Let’s discuss in detail:
One of the important benefits of buying a 3 crore term insurance plan is high coverage at substantial premium rates. While most buyers think that the premium rate for 3 crore term insurance is quite expensive but that is not the case. Instead, you can avail of the benefits of a 3 crore term insurance plan at premiums as low as Rs. 1347 when you start at an early age.
In addition to the sum assured amount of Rs. 3 Crores, a 3 crore term insurance plan also offers some added coverage features such as add-on benefits. For example, the cover of the plan can be increased by opting for a terminal illness rider, waiver of premium rider, or accidental death benefit rider.
Buying the 3 crore term insurance plan will make sure that your loved one’s financial requirements are taken care of in your absence. Also, they can use the death payout to pay off debts, liabilities, loans or use the amount for other household expenses.
If you purchase a 3 crore term insurance plan, it will provide you long tenure coverage at low premiums rates. As a result, a family having enough financial protection from unfortunate events can now focus on methods to increase their savings and investments and invest their money in other financial instruments such as mutual funds, ULIPs, and Fixed Deposits.
The answer is quite simple, any individual who can afford the 3 crore term insurance plan should buy it. Below are some situations in which you can consider investing in the plan:
If you are healthy, active, young and at the early stage of your career, then it might be the right time to invest in a 3 crore term insurance plan. It is important because the premium rates for term insurance are lower for younger individuals, thus making it a cost-effective way. So, if you are in your 20s or 30s, you can think of buying term insurance of 3 Crore.
The 3 crore term insurance plan is mostly purchased by individuals of all age groups but the plan is suitable for those in the 25 years to 40 years’ age group.
Any individual who is the breadwinner of their family and has financial dependents can also consider purchasing a 3 crore term insurance plan. Term plans provide financial protection to your dear ones and make sure that their financial needs are met even in your absence.
Your yearly income should be between Rs. 30 lacs to 50 Lacs if you are considering a 3 crore term insurance plan
Individuals with existing debts, loans, liabilities should think about purchasing a 3 crore term insurance plan. This will help your family to live a financially stable and comfortable life.
In addition to offering wide-ranging financial cover, 3 crore term insurance is packed with several other benefits. So here are some of the important features of 3 crore term insurance plans:
When purchasing term insurance, one of the foremost things to worry about is the premium rate. However, the premium amount of 3 crore term insurance plans is quite inexpensive and it will not act as a burden on your wallet. Also, if you buy a policy at an early age, you can enjoy the low premiums and at the same time, can focus on other financial investments.
This term insurance plan comes with added benefits for riders. For example, you can choose riders such as accidental death cover, critical illness, waiver of premium, and disability rider. You can enhance your coverage by purchasing different riders.
You can easily purchase 3 crore term insurance plans through online modes.
Another notable advantage of buying the best term insurance plan for 3 crores is the tax exemption u/s 10(10D) of the ITA where the death benefit of a term plan (involving any earned bonuses) is exempted from taxes.
Though most insurers provide the death benefit of a term insurance plan in a lump sum payment, you have the option to choose other payout means. For example, you can select a lump sum + monthly income payout or monthly income payout.
There are a number of channels to search and purchase term insurance plans. The best 3 crore term insurance plan would involve at least some of the below features and benefits:
Option to enhance coverage without purchasing a new term plan
Default coverage for critical illnesses such as heart failure, cancer, etc.
Option to purchase the benefit amount as regular income after a claim
Option to offer an increasing regular income after the claim
Supplementary benefits for accidental death and disability
Apart from this, you can check out for claim settlement ratio (CSR) and financial ability of the insurer. A good CSR and strong solvency ratio would simply mean that your loved ones will have a hassle-free claim settlement experience.
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