Every working individual aims for a secure future for the golden years of their life. While you are alive, you might take all the right steps to ensure the financial well-being of your family. But have you imagined your family would look like in your absence? Although you have your financial planning in place, it is imperative to own term insurance for the safety of your loved ones.
Since there are multiple options available in the market, you might get confused while selecting a term insurance policy for your loved ones. Ideally, you can either select between regular term plan or a 1-crore term insurance policy. While a regular term plan has its benefits, it is recommended to purchase a one crore term insurance policy. A 1-crore term insurance policy provides your beneficiaries with a guaranteed death benefit of Rs. one crore to your nominees.
Before you buy a 1-crore term insurance policy for your loved ones, let’s take a look at these top five reasons for why you need it:
- Covers your family for a lifetime
A one crore term insurance policy not only mitigates risks but also offers a death benefit. When you buy a one-crore term plan, you can cover your spouse and children against contingencies. Moreover, you can include additional family members by paying a little extra than usual. Under a one-crore term insurance policy, you can avail riders like a waiver of premium, a disability rider, an accident death rider, etc. to enhance the base term policy.
- Provides monthly payouts
A one-crore term policy works on the similar idea of a regular term plan. Your family can decide whether they want to receive a lump-sum amount or a monthly payout. If they choose monthly payouts, they can fulfil routine expense as well as any additional household cost. Monthly payout acts as a substitute for income when you aren’t around to financially provide for your family.
- Allows you to live a stress-free life
Being a life insurance product, one-crore term insurance provides uninterrupted financial support to your family in your absence. With term insurance, you can ensure you don’t pass on your financial burden to your family. If you have any past debts, your family can clear it off with the help of the death benefit paid to them. That way, you can live a stress-free life without worrying about the financial security of your family.
- Offers coverage at a nominal rate
According to the new rules of the Insurance Regulatory and Development Authority (IRDA), term insurance policies have set low charges. When you purchase a 1-crore term insurance policy, you can receive a high coverage at a nominal rate. However, this doesn’t apply in the case of smokers. A smoker might pay twice than a non-smoking individual to avail the term insurance benefits.
Given below are the two ways to ensure your premium is low:
- Purchase a plan at a younger age since you aren’t prone to severe diseases.
- Buy a term insurance policy online since the premium is relatively cheaper than an offline term plan.
- Adds additional value to your money
Being a prudent investment, a one crore term insurance policy adds more value to your money. It not only offers a death benefit but also provides riders to enhance the base term policy. Many insurance companies offer multiple riders like critical illness cover, physical disability, and so on.
To sum up, death is an inevitable aspect of your life. A loss in every family can disrupt the financial as well as the emotional well-being. However, the good news is that you can control the financial loss by purchasing a one-crore term insurance policy. It is a strategic financial investment, which can support your family in the long run.
