Insurance policies play a very vital role to secure yours and your family’s future. It is necessary to have your life insured with a correct insurance plan.
What is term insurance?
Term insurance is a type of an insurance plan which provides coverage only for a certain term. It has fixed payment rates. Death benefit is given in unfortunate demise of the insured in the specified period.
What is 1 crore life cover?
Witnessing the market scenario, some companies have started to offer term policy with a coverage as high as Rs. 1 crore. This is popularly known as Rs. 1 crore life cover policy. For a 10-year policy of a 30-year old man, the average premiums of this may range between Rs. 7,100 and Rs. 21,000. The premiums are higher for higher maturity periods. The premiums of these policies are designed to suit a common man’s salary.
Why was it introduced?
This concept has been introduced seeing the rise in people’s cost and standard of living. More and more people are getting higher education and have increased income. They now spend more to get all the luxuries. With higher standard of living, the cost of living increases. This has made insurance companies to introduce life insurance policies that have higher coverage.
When is the right time to opt for this policy?
You should opt for this policy at a younger age as your family will have to sustain many years with the loss of income, in case of an unfortunate demise. The average age could be between 30 years and 35 years. Starting very early is also not advisable as you should have enough income to pay the premiums along with bearing your expenses. Companies generally demand a minimum annual income of Rs. 4.5 lakhs. But experts advise to go for this, if your annual income is around Rs. 10 lakhs.
How to select the right policy?
Select the right policy that aligns with your needs. Fix your term depending on your age. Go for online insurance plan as it is much cheaper than a policy bought through an agent. Check whether your Rs. 1 crore policy is renewable or not. If yes, then what is the period given. If you are a non-smoker, then you may also take benefit from the non-smoker discount that some companies offer in their policies.
Pay deliberate attention to the benefits, inclusions, exclusions and premium rate associated with the policy. Do not forget to check on the riders provided under the policy and the claim settlement ration of various insurers. Accordingly, choose the best suited policy for yourself.
Due to the wide coverage amount, the Rs. 1 crore life cover proves to be highly beneficial. You need not have a huge bank balance to avail of this policy. Simply be smart enough to choose it at the right age and from the right insurance company.
To know about Term Plans.
