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What is 1 Crore Term Insurance?

What is 1 Crore Term Insurance?

Term insurance is, essentially, a life insurance plan which is taken out for a specific period of time. The policyholder pays premiums as stipulated by the policy contract and upon the death of the policyholder, the beneficiaries of the plan will be paid the predetermined Sum Assured. Term insurance plans are thought to be the purest form of life insurance. Term insurance plans offer a high amount of coverage for extremely affordable premium rates.

What is 1 Crore Term Insurance Plan?

1 crore term insurance is a term insurance plan that provides a life cover worth Rs.1 crore.

Although traditional life insurance plans with Sums Assured of Rs. 1 crore may demand high premium rates, term insurance plans offer affordable rates. These plans are strictly regulated by the IRDAI (Insurance Regulatory and Development Authority of India). As per their directions, premiums for 1 crore life insurance plans have been considerably reduced and made affordable for the middle class.

A number of government as well as private insurers provide competitive premium rates for such plans.

1 crore life insurance plans are available online as well as offline.

Who should Opt for a 1 Crore Term Insurance Plan?

1 Crore term plan is best suited for you if your annual income averages about Rs 10 lakhs. This term plan will be an important investment for you, especially when you have dependent family members. Also, term plans like iSelect Smart360 Term Plan from Canara HSBC Oriental Bank of Commerce Life, allow you to increase the sum assured without buying a new term plan.

Example,

Raj is 30 years old and the sole earner for a family of four including his spouse and two children. His current annual income and expenses are as follows:

PARTICULAR EXPENSES AMOUNT
Annual Salary 10 Lakhs
Annual Household Expenses (kitchen, maintenance, utilities, children’s school fee) 5 Lakhs
Other Miscellaneous Expenses 1 Lakh
Saving to Retirement 1.2 lakhs
Home Loan 25 lakhs
Money required to cover regular expenses for the next 30 years (ret. age for Raj is 60) 50 lakh
Term Insurance Cover Needed 1 Crore

Rs 1 crore term insurance cover will help Raj’s family to look after their regular expenses, pay off the home loan balance and save for children’s future if Raj, unfortunately, dies before meeting these goals.

Why should you Opt for a 1 Crore Term Insurance Plan?

1. Inflation

Inflation in India rose from 5.54% in November straight to 7.35% in December. Although Rs. 1 crore might seem like a humongous amount now, after factoring in rising inflation, it will start to seem like a necessity.

2. Liabilities

While determining the sum assured for a term insurance plan, not only should one’s utility and household expenses be taken into account, but financial liabilities like loans and mortgages too. In the absence of the policyholder, the burden of paying off loans and mortgages falls on the shoulders of the rest of the family. Thus, to ensure timely repayment, a high sum assured can come in handy.

3. Extra Benefits

A sum assured of Rs. 1 crore can give policyholders access to extra perks and benefits that they might not be able to avail in a plan with a lower sum assured.

Features of 1 Crore Term Insurance Plan

The term plan has some defining features. These features of a 1 cr term plan are given below

1. Affordable

One of the major features that set term life insurance apart from other life insurance policies is its affordability. A term plan is the cheapest form of insurance you can buy. A term plan offers to cover your life for a specific period. A term plan is basic, with only the death benefit involved. There is no maturity benefit, which further makes it cheap.

2. Simple to Understand

A term plan is free from complexities that are involved such as making investment decisions or worrying about returns etc. It is very easy to buy and manage. All you have to do before buying a term plan is to assess your expenses and choose a sum assured accordingly. You can also make use of the calculators available online.

3. Flexible

Term plans such as iSelect Smart360 Term Plan offers you many flexibilities. Not all people who purchase life insurance have the same financial background and preferences. A term plan understands this and thus provides you with multiple options in which you can pay your premiums.

Different options offered by iSelect Smart360 Term Plan

  -  Regular Pay: Pay your premiums at specified regular intervals

  • Monthly
  • Quarterly
  • Yearly

  -  Limited Pay: Pay the premiums for a limited time and enjoy benefits till later

  -  Single Pay: Pay the whole premium at once in a lump sum

4. Option to Increase Coverage

Another feature of the 1 cr term plan is that allows you to increase your coverage amount within the same policy. This enables you to buy a term plan early in your life and take advantage of lower premiums.

As you age, you will get more responsibilities, such as marriage, childbirth, etc. All these are milestones you want to achieve and thus you may require more coverage.

With a term plan, you can increase your sum assured as and when you reach these milestones.

5. Addon Covers or Riders

1 cr term insurance policy gives you a set of riders to choose from, to add to your policy Riders are additional benefits that can enhance the scope of your existing policy.

These cover the aspects that your basic policy does not. A rider will provide you with additional coverage.

Types of riders are:

a) Accidental death benefit

b) Accidental Total and permanent disability rider

c) Critical Illness rider

d) Child support benefit

How to Choose the Best 1 Crore Term Plan for Yourself?

Term plans of any sum assured are not a one-size-fits-all affair. There are certain things that need to be taken into consideration keeping your financial situation and family in mind.

1. Your premium paying capacity is the primary deciding factor here. You can use online premium calculators and list down premium rates and compare 1 crore life insurance policies.

2. Carefully take note of the additional benefits. Different insurers offer different riders and benefits like flexible premium payment and death payout modes for 1 crore term insurance policies. Policyholders should opt for benefits which secure your family well and take care of your future.

3. The claim settlement ratio of your insurer plays an important role in the selection of a 1 crore term plan. This ratio basically tells you the number of policies which have been settled i.e. death benefit has been paid to the beneficiaries. It is best to select an insurer with a claim settlement ratio higher than 90%.

Why Should you Buy 1 Crore Term Insurance from Canara HSBC Oriental Bank of Commerce Life Insurance?

Canara HSBC Oriental Bank of Commerce Life Insurance has a spectacular term plan, iSelect Smart360 Term Plan. It is one of the best term insurance plans for 1 crore that offers you all-around protection. Here are some reasons that you should purchase 1 crore term insurance.

1. Financial Protection

A term plan helps you to financially protect your family members if you are not present with them. If due to any unfortunate event, you lose your life, then your family will be taken aback financially. If you purchase a 1 cr term plan, then your family will receive 1 cr when you die. This will ensure that they don’t live by making major compromises to their daily life.

2. High Coverage at Affordable Premiums

1 cr term plan is a high coverage amount. It is enough for your family to carry on with their lives. Also, a term plan allows you to get high coverage at an affordable price. It is the cheapest among all the other variants of life insurance.

A term plan iSelect Smart360 Term Plan from Canara HSBC Oriental Bank of Commerce Life insurance of Rs 1 cr for 30-year-old will cost you only 690 Rs.

3. Helps Pay for Liabilities

In your life, you are likely to take up loans from banks or other institutions to build your home, business, etc. These loans are spread over a timeline.

But what if you die in between the term? Money received from 1 crore term insurance can be used to pay off all your loans and debts.

4. Variety of Riders

The best term insurance plan for 1 crore including the iSelect Smart360 Term Plan, offers you many riders to enhance your contingency cover. iSelect Smart360 Term Plan also has the terminal illness benefit included as default cover. That is, if you die or get diagnosed with a terminal illness such as cancer, heart disease, etc, you will be provided sum-assured immediately

5. Tax Benefits

1 Cr term insurance plan iSelect Smart360 Term Plan provides you with tax benefits as well. You can avail of tax deductions of up to Rs 1.5 lakh on the premium you have paid in the financial year under section 80C.

Also, the death benefit is exempt from tax as well.

Buy iSelect Smart360 Term Plan

1 crore term plan can help bring peace of mind to policyholders by thoroughly financially securing their family. A sound term insurance plan replete with a high sum assured at nominal rates as well as multiple benefits is Canara HSBC Oriental Bank of Commerce’s iSelect Smart360 Term Plan. Canara HSBC Oriental Bank of Commerce’s new iSelect Smart360 Term Plan is a comprehensive plan that offers benefits like the option of increasing the sum assured over the course of the policy term on certain special occasions like weddings, childbirth, and purchase of a house. The benefit payout can be opted as a lump sum, monthly income, or even lump sum + monthly income. It comes with 4 rider options which include Accidental Death Benefit, Accidental Total & Permanent Disability (Premium Protection), Accidental Total & Permanent Disability (Premium Protection Plus), and Child Support Benefit.

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