About 1 Crore Term Insurance
At present, it is not challenging to find people who are hustling every day to make their lives better. Working day and night is not the only way to make your life prosperous. You also need to take some steps to make your money work for you. If you want to secure the financial future of yourself and your loved ones, investing in a term insurance policy turns into a smart choice. Nevertheless, with the multitude of options present in the market, it can be demanding to determine which policy to choose. One of the selections is a 1 crore term insurance policy. It offers coverage of Rs. 1 crore. Are you thinking about whether investing in such a policy makes a sensible choice or not? Let’s dig deeper to find out.
What is Term Insurance?
Term insurance is a classification of life insurance policy that aims to render coverage for a fixed period which is recognized as the policy term. If the event of a policyholder’s ill-fated demise during the policy term, then the beneficiary is entitled to get the policy’s death benefit. And, it doesn’t include any payout or maturity benefit if the policyholder survives the policy term.
In India, one can easily find a broad range of dependable term insurance policies designed and delivered by an array of legitimate insurance providers. The popularity of this type of term insurance is unfathomable in India due to its affordability and considerable coverage amount. One can find these policies for differing policy terms and coverage amounts, permitting folks to choose a policy that is best suited for their financial goals.
But are you wondering why you need a Rs.1 crore term insurance plan? With a high sum insured of Rs. 1 crore, the policyholder’s family can sustain their financial freedom in the event of the policyholder’s ill-timed passing. This plan turns into a fruitful choice for individuals with dependents who depend on their income to fulfill their financial obligations. Learning that their family will not suffer from any financial trouble even when they are not present to look after them can provide peace of mind to policyholders.
Let’s talk about some benefits that will encourage you to invest in a 1 Crore Term Insurance policy.
Higher coverage amount
Contrary to regular term insurance policies, 1 Crore Term Insurance plans are devised to provide substantial coverage amounts, equipping the policyholder’s family with extensive financial protection in the event of their precocious death. With a sum assured of 1 crore, the policyholder’s beneficiaries will receive a significant payout. It can help them maintain their lifestyle, settle outstanding debts or liabilities, and satisfy other financial necessities.
Distinctive riders
One Crore Term Plans usually entail some supplementary benefits such as riders or add-ons, which can boost the overall coverage available with the policy. A policyholder can buy riders by paying an additional fee and make the insurance plan better than before.
Tax benefits
Another dominant benefit that comes with buying a 1 Crore Term Insurance plan is tax benefits eligible for both premium payments and claim payouts. Under Section 80C of the Income Tax Act, premium payments for 1 Crore Term Plans may be qualified for tax exclusions, up to a maximum amount of Rs. 1.5 lakh per year.
Moreover, under Section 10 (10D) of the Income Tax Act, the claim payout that beneficiaries receive in case of the policyholder’s ill-fated death is tax-free.
Bear in mind that only those who have chosen the Old Tax Regime are eligible to relish these benefits.
All-inclusive coverage
As you move ahead in your life and accomplish an array of milestones, such as marriage, having children, buying a vehicle, or taking out a home loan, insurance corporations provide you the option to amplify your life cover. You can reap the maximum advantage of the life-stage benefit available in the term plan by paying an extra premium. It will aid you modify your life cover to suit your altering state of affairs. This permits you to assure that your financial safety remains protected and that your insurance policy always aligns with your specific needs.
Eligibility criteria for 1 crore Term Insurance
Health conditions and medical history
When applying for the policy, the insurance company may make inquiries concerning your medical history and request that you undergo a medical screening to assess your well-being. If you are suffering from any pre-existing medical conditions, have a family history of certain health problems, or if you’re currently undertaking medical treatment, your eligibility for the policy could take a toll. This could cause an increase in the amount you are supposed to pay for premiums.
Smoking habits
If you smoke or use tobacco products, you may be requested to pay a higher premium due to amplified health risks.
Age limits
Typically, the minimum age for a policyholder or insured person is 18 years old. The maximum age limit can range from 65 to 80 years old; it is dependent on the insurance company and the insurance plan that you’ll choose.
Income
Most insurance providers demand the policyholder to sustain a stable stream of income to buy a 1 crore term insurance policy.