Best Term Insurance for High Coverage: Exploring 1 Crore Term Plan

Having adequate life insurance is crucial for securing your family's financial future. While several life insurance options are available, term insurance is one of the most popular and budget-friendly options, especially for individuals who are the primary earners in their household. A term insurance plan with high coverage, like 1 crore, can provide complete peace of mind. It ensures financial security for your loved ones in your absence. This article will explore everything you need to choose the best insurance policy.

What is Term Insurance and How Does it Work?

Term insurance provides life coverage for a specific duration or 'term'. It pays out the sum assured to your beneficiary in case of your demise during the policy term. But, if you survive the term, there is no maturity benefit as term plans are designed purely for protection and do not accumulate any cash value. With term insurance, you pay a fixed premium to the insurance company. And in return, get a large life cover. Term plans are one of the most affordable forms of life insurance, as their key objective is to replace your income for your dependents in case you are not around to provide for them. 

4 Key Benefits of 1 Crore Term Insurance

Opting for a ₹1 crore term plan comes with several advantages:

Financial Security for Family: The high sum assured acts as a financial safety net for your family, covering expenses, liabilities, healthcare, daily needs, and more.

Comprehensive Life Cover: You get extensive life coverage at budget-friendly premiums, making it invaluable for primary earners.

Multiple Payout Options: Your nominees can receive funds in instalments or lump sum payouts. This flexibility allows your loved ones to access the sum assured in a way that best suits their financial needs. 

Tax Benefits: Premiums paid are tax exempted under Section 80C. And death benefits are tax-free under Section 10(10D).

Eligibility Criteria for 1 Crore Term Insurance

When applying for a 1 crore insurance policy, you must meet certain eligibility norms regarding age, income, health status and lifestyle habits.

Age Limits: You can apply between 18 to 65 years. Cover generally lasts for 75-80 years.

Income Status: A steady income stream makes it easy to pay premiums consistently.

Medical History: Pre-existing illnesses may require additional evaluation before approving coverage.

Tobacco Usage: Smokers pay higher premiums compared to non-smokers.

How to Find the Best 1 Crore Term Insurance?

With many insurers offering 1 crore term insurance, pick the right one through careful analysis:

Compare Features: Check policy terms, premiums, inclusions, and exemptions across insurers.

Verify Claim Settlement Rate: Opt for insurers with higher claim settlement history.

Check Financial Strength: Go for companies with robust financials and stellar credit ratings.

Read Policy Documents: Thoroughly understand policy terms, renewals, and cancellations before purchasing.

Evaluate Add-ons: See if you need extra coverage via riders for accidents, disabilities, etc.

Claim Settlement Process of 1 Crore Term Insurance

In case of the policyholder's demise, beneficiaries can file for claims by:

Informing the Insurer: Inform the insurer about the death and initiate the claim process.

Submitting Documents: Provide death certificates, identity proofs, policy papers, etc.

Cooperating in Verification: Answer questions to assist in verification and investigation by the insurer.

Receiving Compensation: If the claim is valid, the assured sum will be paid to the beneficiaries.

Most insurers generally aim to settle claims within 1-2 months. The sooner you inform them, the faster settlements happen.

Conclusion

Buying term insurance when young and healthy often helps lock in lower premiums for longer durations. Getting 1 crore coverage at key life milestones like starting a family, buying property, taking loans, or becoming the primary earner ensures you're well-prepared for the future. Secure your family's future today with higher term insurance coverage. It is one of the best gifts you can give yourself and your loved ones.