How to choose the best 1 Crore Term Insurance Plan? 

Life insurance used to be considered a luxury in the past, but today, it has become a necessity. Everyone needs a life cover, and young people do so even more. If you are a young person looking for a suitable life insurance plan, you may consider getting term insurance. Term insurance works well for the young as it is affordable and offers a high coverage amount. If you want a life cover of INR 1 crore, you can get it with term insurance. But how to choose the perfect plan with the perfect coverage amount? Read the article below to get the answer.

Understand the various types of Term Insurance Plans available in India:

Term insurance is the simplest and cheapest type of life insurance plan, providing high life insurance coverage at the least cost. In this plan, if the life insured dies within the policy tenure, then the entire coverage amount, i.e. the sum assured, is paid to the nominee. Thus, term insurance plans are pure protection plans. However, there are 4 types of Term Insurance Plans which you need to be aware of before choosing the best one for yourself.

1. Level term plan wherein the cover remains constant throughout the entire policy tenure.
2. Increasing and decreasing term plans wherein the cover keeps increasing or decreasing during the entire policy tenure, as the case may be
3. Term plan with Return of Premium option wherein the premiums are paid back to the policyholder if the life insured survives the entire policy tenure.

Once you understand the basic types, choosing the plan best suits your needs will be easier.

Tips to choose the best INR 1 crore term insurance plan

Take a look at the handy tips listed below on how to choose the best INR 1 crore term insurance plan:

• Assess your needs:
  First and foremost, you need to do a thorough analysis of your needs. For this, you have to see how much money you need to cover the financial requirements of all your family members. You will need a large coverage amount if you have several dependents like your partner, children, parents and siblings. If you have a smaller number of dependents but you have an unpaid loan, your coverage will have to be high. If you have young kids who wish to study abroad, you will need an INR 1 crore term cover. So, run a detailed analysis and see how much you need to leave for your family so that they can meet all their economic goals even if you die prematurely.
• Make a budget:
  It is understandable for the family head to want to protect his loved ones in the best way possible. For this, you may choose the highest possible term insurance coverage. While that is a noble thing to do, you cannot ignore your financial capacities. Choose a policy that has an affordable premium. If the premium gets too high, you will struggle to pay it, and a few missed premium payments can even lead to the term plan being terminated. So, be wise and practical when you choose the best term plan. Stay in your budget and get a suitable policy.
• Compare:
  Next, you need to compare the available options. There are several INR 1 crore term insurance plans available in India, but every single one of them may not suit you. This is why it is important to run a comparison and check which is the most suitable option for you. Thankfully, there are many reliable online platforms where you can compare the term insurance plans quickly and free of charge. Use this handy, too and find the best plan at the best rate. Compare the features of the plans and their costs, and then choose the ideal policy.
• Check the riders:
  Riders are add-on covers that help you to make your INR 1 crore term plan more flexible. You need to add some riders such as the critical illness rider and the waiver of premium rider to your term plan. Choose the riders that are of best use to you, as every rider you add pushes up the cost of the policy. Do not buy the riders you won’t need as that won’t work out for you.
• Check the reputation of the insurer:
  Last but not least, check the reputation of the insurance provider from which you are buying the term plan. Look at their claim settlement ratio, customer service, and industry reputation. You need to associate with a good insurer who will not only assist you when needed but also smoothly pay the claim to your family after your demise. Unless this happens, the term insurance coverage will be ineffective.

Keep these useful tips in mind, and you will be able to find your ideal coverage with minimal hiccups and hassles.

To wrap it up

As you can clearly see from the points mentioned above, choosing the right coverage amount is very important. However, choosing a plan from a good insurance provider who will support your family at a difficult time is equally important. Keep the tips mentioned above in mind, do your research and find the best policy at the best price. Be honest when applying for the plan, and remember to pay the premium on time to have active coverage. This will help you in several ways, such as providing the all-important term insurance tax benefit, and will also help your family if something unexpected were to happen to you. Look at the different options available and then choose according to your requirements!