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Written By

Fathima Tabasum

Reviewed By

Ashok Manwani

Term Insurance Plan for 1 Crore Online in India

Deciding to opt for a 1 crore term insurance plan is a crucial financial choice that necessitates thorough consideration. While it may be a prudent decision for some individuals, given the current lifestyle and inflation, it might not be adequate for others.

This article discusses how a 1 crore term insurance plan can fulfil the coverage needs of an average investor. It explores the key factors to consider when selecting such a policy, weighing its advantages against your financial goals and insurance requirements.

If you are considering securing your family’s future with a substantial term insurance plan, assess whether a 1 crore insurance policy suits you.

1 Crore Term Insurance Plan Overview

Here’s a table summarising the key aspects of a ₹1 Crore term insurance policy:

Feature	Description
Sum Assured	₹1 Crore
Purpose	Provides financial security to the family in case of the policyholder’s demise
Eligibility	Average annual of typically ₹7 lakhs or more per year.
Premium	Lower premiums due to the lower sum assured
Riders/Add-ons	Options like critical illness, accidental death, waiver of premium, etc.
Premium Payment Options	Monthly, quarterly, half-yearly, or annual
Tax Benefits	Premiums paid are eligible for tax deductions under Section 80C of the IT Act

What is a 1 Crore Term Insurance?

A 1 Crore Term Plan means that the policyholder's nominee will receive 1 crore Indian rupees if the policyholder passes away. This is one of the highest coverage options available.

While 1 crore might seem like a huge amount, it's important to understand the benefits and importance of such a life insurance plan. The payout can be utilized for various needs, such as settling debts, covering daily expenses, and funding children's education. Moreover, this plan offers additional benefits like critical illness cover, accidental death benefit, and waiver of premium, making it a comprehensive financial safety net for your loved ones.

Since it’s a term insurance plan, it provides only death benefit and no maturity value if the life assured survives the policy term. Let's explore why a 1 crore term life insurance plan is so popular among people who want to protect their families from financial uncertainty.

How Does 1 Crore Term Plan Work?

Term Insurance Plan is the essential component of any healthy financial portfolio. More than an investment option, it is a financial tool that secures your family's financial future and provides you with much-needed mental peace. A rightly planned substantial insurance cover ensures that financial obligations like children's schooling, marriage and liabilities like home loans are taken care of, and the family does not deal with economic turmoil amidst the grief that strikes with the loss of a family member. Let us have a look at how a 1 Crore Term plan would work:

Sum Assured

It provides a coverage of 1 Crore rupees to the beneficiary in case of the policyholder’s unfortunate demise during the policy term. 

Policy Term

The policy has a specified term chosen when buying the policy during active coverage. 

Premium Payments

The policyholder can choose the premium amount, frequency, and tenure according to their preferences.

Death Benefit

Since it’s a term plan, the death benefit is the sum assured i.e. 1 crores. This death benefit is paid to the beneficiary in case of the policyholder’s unfortunate demise during the policy term. 

Maturity Benefit

If the policyholder survives the policy term, there is no return unless you have a Term Plan with a Return of Premium option that returns all the premiums paid on the policy maturity. There is no additional savings component in any case.

Rider Benefits

You can add riders to your policy in addition to the base plan. These add-ons provide additional coverage for situations like critical illness rider, accidental death benefit rider, disability rider, waiver of premium rider, etc.

Illustration of 1 Crore Term Insurance

Let us take the Example of Mr Vikram.

Mr Vikram, a 35-year-old software engineer, is the sole breadwinner of a family of 4, including his wife and two kids, both kindergarteners. He has purchased insurance coverage of 1 Crore, with a term of 20 years, and his wife is the nominee for this policy.

Criteria	Details
Policy Term	20 years
Age of Insured	30 years
Sum Assured	₹1 crore
Premium Payment	Annual
Annual Premium	₹15,000 (approx.)
Maturity Benefit	NA (as it is a pure-term plan)

Understand the Scenarios of 1 Crore Term Insurance

Scenario 1

Scenario 2

Death During the Policy Term

If Vikram passes away during the 20-year term of the policy, his nominee will file a claim with the insurance company. After successfully processing the claim, Vikram’s nominee would receive the sum assured of ₹1 crore, which would help them cover living expenses, pay off debts, or invest for future needs.

Outliving the Policy Term

If Vikram outlives the 20-year term of the policy, the term plan typically does not provide maturity benefits, meaning she would not receive a payout.

Disclaimer: The above illustration is a hypothetical example created for educational purposes only and does not represent a real-life scenario.

Is a 1 Crore Term Insurance Plan Enough for You?

Although a figure of 1 Crore seems significant, considering the financial requirements, it might only sometimes be adequate. Buying coverage 10-15 times your annual salary is often suggested. However, this might not always be sufficient given our upgraded lifestyles and ever-increasing inflation. To get a clearer picture of your specific needs, you can use a term insurance calculator to assess how much coverage you really require. This tool can help you calculate the ideal coverage based on your financial obligations and future needs.

Why You Shouldn’t Wait to Buy Term Insurance

Here’s a concise 4‑point breakdown of the video:

1. Lock in Low Premiums Early: Buying term life insurance in your 20s or early in your career secures much lower premium rates, which remain fixed over the policy term.

2. Guarantee Term Conversion Options: Many term policies offer conversion to permanent insurance later, providing flexibility as your financial needs evolve.

3. Fixed Coverage Meets Essential Needs: A term policy locks in coverage for 20–30 years, ensuring protection for dependents during critical income-earning years.

4. Buying Now Beats Waiting: Delaying can mean higher costs or health changes that increase premiums or disqualify you, so early purchase is a smart financial decision.

Benefits of 1 Crore Term Insurance Plan

A 1 Crore Term Insurance Plan provides significant financial protection for your family during your untimely demise. Here are some of the key benefits:

High Coverage at Affordable Premiums

A sum assured of 1 Crore offers substantial financial security to your family at a relatively low cost. Term plans are typically more affordable than other types of life insurance.

Financial Security for Family

Ensures that your family can maintain their standard of living and cover major expenses like mortgages, education, and daily living costs in your absence.

Tax Benefits

Premiums paid for the policy are eligible for tax deductions under Section 80C of the Income Tax Act. The death benefit received by the nominee is also tax-free under Section 10(10D).

Flexibility

Many insurers offer flexible premium payment options (annual, semi-annual, quarterly, or monthly) and policy terms. Some plans also allow you to increase coverage at major life stages (marriage, childbirth).

Riders and Add-ons

Optional riders, such as critical illness cover, accidental death benefit, and premium waiver, can enhance the coverage of your term insurance plan.

Peace of Mind

Knowing that your loved ones will be financially protected, even if you are not there to provide for them, provides peace of mind.

Simple and Transparent

Term insurance plans are straightforward, with clear terms and conditions, making them easy to understand and manage.

Loan Protection

The sum assured can be used to pay off outstanding loans, ensuring that your family is not burdened with debt in your absence.

Factors for Evaluating Required Sum Assured

A correct evaluation of the required sum assured involves many factors:

Family income
Expenses
Future goals
Inflation
Loans and liabilities
Regularly increasing financial requirements of your family.

A more accurate assessment can be done using the human life value calculator, which considers all the above factors.

Consider the scenarios below to understand if a 1 Crore term plan is enough.

Case Studies for Evaluation of Required Sum Assured

Scenario 1

Scenario 2

Aryan, a 26-year-old professional, had retired parents as dependents and an annual income of ₹10 lakhs. He planned to marry soon and buy a house afterwards. Foreseeing future responsibilities, he bought a 1 crore term plan with a tenure of 20 years as a financial cushion for his dependents.

At the age of 42, Aryan suffered a cardiac arrest. He had a dependent wife, two kids, an outstanding home loan of ₹40,00,000, and dependent parents. Considering these liabilities and future significant expenses like the kids’ higher education, the sum of ₹1 crore was insufficient. Aryan should have reevaluated his coverage once his responsibilities increased.

Rohan, a 30-year-old professional, had retired parents dependent on him. He was married and owned a family house. At that time, his annual income was ₹15 lakhs. He decided to purchase a 25-year term plan worth 1 crore.

At the age of 40, Rohan passed away due to an accident. He had dependent parents and a 6-year-old daughter. However, his wife was earning, and he had no significant liabilities, like a home loan. His daughter’s education was one significant expense that needed to be taken care of. Rohan also had considerable savings since he was an active investor in different investment instruments. Given his fewer liabilities and more assets, a term plan of ₹1 crore might be sufficient.

Note: The one golden rule to having sufficient coverage is to “Review Your Term Insurance Every 5 Years” to cover all your increased liabilities and expenses. A periodic review of your term plan ensures it aligns with your evolving financial situation. Consider revisiting the policy if significant life changes occur, such as marriage, childbirth, or career advancements.

Why You Need a 1 Crore Term Insurance Plan?

A figure of 1 Crore might look extremely high, but for any average person who lives in a city, works in a private company and has school-going kids, the financial requirement at any stage would be this. A term plan is the most affordable way to financially secure a family for unforeseen circumstances when this income might stop due to the breadwinner's demise.

Here are the other benefits that a 1 Crore Insurance cover can provide you:

High Coverage at Affordable Premiums

Term Insurance plans are the cheapest and most affordable insurance types available. They are cost-effective because they provide only Death Benefits and have no savings component.

Takes Care of Liabilities and Debts

Having a Term Plan in your financial bucket means that in case of any unforeseen circumstance when you are no longer with your family, the Term Plan will help them repay all debts and liabilities. It ensures they do not have to deal with any debts you might leave behind. With a Term Plan, you can ensure a debt-free legacy for your family.

Enhanced Coverage

Compared to whole-life plans or other insurance plans with a savings component, term Plans provide much higher coverage for a given premium. You can also enhance that base coverage by adding riders who care for other specific situations. This ensures the dependent family is financially secure and can lead a normal life.

Who Should Buy a 1 Crore Term Insurance Plan?

While a Term Plan is the basic necessity for anyone to have in their investment bucket, a 1 Crore Term Plan specifically would be suitable for these categories of people:

Young Earners

Youngsters who have just started earning and are responsible for dependents should consider a 1 Crore term plan to provide a substantial financial cushion for their loved ones in the event of their demise.

Individuals with Dependent Parents

In cases where parents do not receive a pension and are dependent on their sole earning child, Term Plan should be purchased as it would save the parents from any financial turmoil in case of any unfortunate death of their earning child. The insurance cover would take care of their liabilities and regular expenses.

Married Couples

When you get married, there are increased responsibilities. Even when your spouse is earning, your expenses and liabilities are directly proportional to the sum of both incomes. In such a case, a term plan ensures that your spouse does not struggle with finances, even in your absence.

Young Parents

Young parents must buy a term plan of at least 1 crore to secure their child's future. This will ensure that your child's education and other needs do not go for a toss if you are not there with them.

Individuals with Home Loans

If you have taken a home loan and are paying off the EMIs, that loan can burden your family in case of your unfortunate demise. These days, in any city, a decent home costs at least 1 Crore. Hence, make sure to buy a Term Plan for 1 crore dedicated to safeguarding your home.

Small Business Owners

If you are into business, most of the expenses are on credit, and at any given time, you might find yourself under a certain debt. If it is a small business, 1 Crore Term Insurance plan might suffice to take care of these debts in case of your untimely demise and make sure that your family does not have to deal with this pressure of debts at a time when they are dealing with a personal loss.

Senior Investors

Senior people, especially those nearing retirement whose major life goals like house purchase and kids’ education are over, can look at buying a 1 Crore coverage. This will provide financial protection to their dependent spouse and others in case of their unfortunate demise and take care of any pending milestones like their children’s marriage. 

Individuals with Education Loans

If you have taken out an education loan, your family may face the challenge of repaying it if something happens to you unexpectedly. A term insurance policy of 1 crore can offer significant protection, assisting in settling the remaining education loan and easing your family's financial burden.

Complimentary Wellness Benefits for Digit Life Customers

With your Digit Life Insurance, you also get exclusive access to a wide range of wellness perks, making taking care of yourself easier and more affordable:

Unlimited 24×7 Teleconsultations with General Physicians

Get expert medical advice anytime, anywhere.

Mental Health Consultation & Services

Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!

Diagnostic Tests & Health Check-Ups

Stay ahead of health concerns with affordable screenings and lab tests.

Specialist Teleconsultations

Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!

Women's Health Care Programs

Pregnancy Care Programs, access to Mum Support Group, PCOS/PCOD Care Programs, Maternity Support and much more!

Physiotherapy Sessions

Stress and Pain relief covered with exclusive discounts on Physiotherapy consultation and session bookings.

Dental Consultation Offers

Avail unlimited, free dental consultations and exclusive discounts on dental treatments.

Sexual Wellness

Get flat 15% discount on Sexual Wellness Programs!

Chronic Care Support Programs

Personalized assistance for long-term health conditions.

99.53% Claim Settlement Ratio For Digit’s Life Insurance - FY'25

When life takes an unexpected turn, every second matters. With a 99.53% Claim Settlement Ratio (CSR), Digit Life Insurance stands as a pillar of trust and reliability. This isn’t just a statistic; it’s a promise to our policyholders.

Every claim tells a story. Whether it was a salaried parent overcoming loss, a child’s future hanging in the balance, or a spouse seeking stability, we acted fast to bring peace of mind to grieving families.

That’s why we are committed to settling genuine claims swiftly, transparently, and with compassion, ensuring that your loved ones receive the support they need when it matters most.

₹2.88 Billion Worth Claims Paid in FY'25

At Digit, we don’t just talk about protecting families; we actually do it. In the last financial year, we paid ₹2.88 billion to families who lost a loved one. That’s a big jump from ₹351.52 million a few years ago, showing how much we have grown and how seriously we take our promise.

Every payout represents a family supported, a future safeguarded, and a promise fulfilled. We make sure claims are settled quickly and clearly, with zero confusion, so families don’t have to worry during tough times.

15,000+ Claims Settled in FY'25

At Digit, numbers aren’t just metrics; they are milestones of real lives touched. We are proud to share that the number of families we have supported through life insurance has soared from just 600 to 15,596 – a 25x growth that reflects the deep trust people place in us. That means thousands more families received the support they needed during life’s toughest moments. It shows how more and more people are choosing Digit to stand by them in their most vulnerable moments.

Solvency Ratio for Digit's Life Insurance in FY'25 is 3.85

At Digit, being financially strong isn’t just a goal; it’s how we earn your trust. Our solvency ratio has grown from 2.07 to 3.85, which means we are more than ready to keep every promise we make.

This number shows we have more than enough funds to pay claims and support families, even in tough times. In fact, our ratio is nearly double the required limit, giving you extra peace of mind.

Because when you choose life insurance, you are not just buying protection; you are trusting us with your family’s future. And we take that seriously.

Disclaimer: This report offers an overview of Digit Life Insurance’s performance, highlighting the growth in premiums, solvency ratio, and claims settlement metrics (CSR, claims paid, and claims settled), based on the company’s FY’25 internal data. The information is intended for general awareness only and should not be considered financial advice. Past performance may not reflect future outcomes.

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How is Digit Life Transforming Insurance Through Tech Innovation?

At Digit Life, we think technology should be more than just innovate as it should make things easier, safer, and more relatable. That’s why our dedicated tech team is always working to minimize hassles, reduce uncertainty, and ensure everything runs smoothly. Our innovative tools:

Life User Declaration: Say goodbye to outdated methods! With our Life User Declaration video, our smart systems automatically verify your identity and ensure your declarations match your policy. This process is not only fast but also fully automated and secure, meeting all necessary regulations without any hassle.
Face Matching: Our advanced Face Matching technology checks your identity with great accuracy. We use sophisticated computer vision models to compare your KYC image with your profile photo, as well as your live video images. This thorough and automated system makes sure it’s really you every time!
Claim Document Classification: Our Claim Document Classification tool quickly sorts and understands the documents you send for your claim. Trained to handle various document types, this system instantly pulls out important information, helping us speed up the process of approving your claim. It’s all about getting your claims handled efficiently!

How to Choose the Right Term Plan?

Choosing the proper term insurance plan involves assessing your needs, understanding the features and options available, and comparing policies to find the best fit. Here are the steps to help you choose the correct term plan:

Decide a Sum Assured that is Sufficient for you

We all have our long-term goals, lifestyle requirements and other financial needs. While deciding on coverage, ensure all your financial requirements are met. Additionally, it is enough to take care of all your liabilities and other expenses in case of your untimely demise.

Compare the Premium Rates

Choose a plan that has the most competitive premium rates. Make sure to compare the plans and choose the one that best meets your requirements at the most affordable rates.

Check for the Exclusions and Inclusions

Another critical point to check in an insurance plan is the inclusions and exclusions. Check this list thoroughly so that when there is a need, you do not get surprised that your insurance provider does not cover the specific condition.

Check for the Benefits and Riders that the Policy is Offering

Check the plan entirely for all the benefits that it provides. Riders are an essential component because they increase the total coverage of your plan and cover specific conditions like critical illness, accidental death, and terminal illness.

Check your plan for all the rider options it provides, and pick the one most suited to your needs.

Check the Claim Settlement Ratio of the Insurance Provider

Claim Settlement Ratio reflects a company's credibility, and it indicates how quickly your dependents would receive the death benefit in case of your unfortunate demise. The higher the ratio, the more credible your insurer is.

Hence, you must check the claim settlement ratio of the insurance provider before opting for a term insurance plan from them.

Things to Consider When Choosing a 1 Crore Term Insurance Plan

Policy Term

Choose a policy term that covers your working years or until your primary financial responsibilities are over.

Premium Payment Term

Decide on a premium payment term that aligns with your financial planning (regular, limited, single pay).

Claim Settlement Ratio

Check the insurer's claim settlement ratio to ensure a reliable and prompt claim settlement process.

Inflation

Consider the impact of inflation on the coverage amount. You might need a higher sum assured to match future financial needs.

Health and Lifestyle

Be transparent about your health and lifestyle during application to avoid claim rejections later.

Comparing Plans

Compare different plans from various insurers based on premiums, coverage, add-ons, and customer reviews.

Eligibility Criteria for a 1 Crore Term Insurance

The exact eligibility criteria may vary slightly between different insurance providers. The following table provides a general overview.

Criteria	Eligibility
Age	Typically, between 18 and 65 years
Income	Minimum income requirements may vary but typically higher for larger coverage amounts
Health	Insurers may require medical tests to assess health risks before issuing a policy. Your medical history can influence term insurance premiums and the maximum sum assured.
Occupation	Professionals, salaried individuals, self-employed persons, and housewives. Certain high-risk occupations may be restricted.
Citizenship	Indian citizen

How to Buy Term Insurance Policy Online?

The five easy steps to buy term life insurance plans are as follows:

Visit Digit Website/App

Visit the official Digit Life Insurance website or app and compare the types of life insurance policy options and fill in your personal information.

Coverage & Payment

Now it’s time to choose your ideal coverage, premium payment methods, and any additional benefits you want!

Payment & KYC

Complete your payment, and then finish the KYC process and fill in your nominee details.

Access Documents

Congratulations! Your policy documents will be sent to your email and WhatsApp. You can also access it 24/7 on the Digit App.

Documents Required to Buy a 1 Crore Term Insurance Plan

To purchase a term insurance plan, applicants are required to submit the documents listed below:

Identity & Address Proof

Income Proof

Age Proof

Medical

How to Download Term Insurance Policy Document With Digit App?

Need a copy of your term insurance policy document? You can download it easily through the Digit App by following these simple steps:

Visit the Digit website or app and click on ‘Login’ at the top-right corner. Enter your registered mobile number and verify with OTP.

Visit ‘Active Policies’

Once logged in, navigate to the Active/My Policies section. Here, you can check the policy number, end date & start date.

Download the Policy

Done! You can save, share, print or email the policy for future reference anytime, anywhere.

How to Calculate 1 Crore Term Insurance Premium?

To calculate the premium for a ₹1 crore term insurance plan, you need to consider several factors such as the policyholder’s age, health, lifestyle, occupation, and the policy term. Additionally, you might want to explore extra coverage options like critical illness riders or accidental death benefits.

Let’s assume a 1 crore term insurance plan details for Rohit as an example:

Age: 30 years
Health Status: Non-smoker
Policy Term: 20 years
Sum Assured: 1 Crore
Riders: No additional riders

Common Reasons for 1 Crore Term Insurance Plan Rejection

Certain factors might lead to rejection when applying for a 1 Crore term insurance plan. Knowing these can help you prepare and address any issues before applying:

Suicide: Most insurance policies include a suicide clause, stating that if the policyholder commits suicide within the first one or two years, the claim won’t be paid. If the insurer suspects the application is an attempt to exploit this, they might reject it.
Participation in Hazardous Activities: If you participate in high-risk activities like skydiving, scuba diving, or motor racing, insurers may either reject your application or charge you higher premiums due to the increased risk.
Self-Inflicted Injuries: Policies often exclude coverage for death due to self-inflicted injuries. If there's evidence that the applicant has a history of self-harm or attempted suicide, the insurer may deny coverage.

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Tax Benefits for 1 Crore Term Insurance Policies

If you have a term insurance policy worth 1 Crore in India, you can get several tax benefits under the Income Tax Act 1961. Here's a simple breakdown of the main benefits:

Section 80C: Premium Payments

Under Section 80C you can claim a tax deduction for your term insurance policy premium, up to 1.5 lakh INR annually. This deduction is available to individuals and Hindu Undivided Families (HUFs).

Who Can Qualify?

If your policy was issued on or after April 1, 2012, your premium should not be more than 10% of the sum assured. The premium should not exceed 20% of the sum assured for policies issued before that date.

Section 10(10D): Maturity Benefits

Under Section 10(10D), the money you receive from your term insurance policy, including the death benefit, is completely tax-free.

Conditions: For policies issued on or after April 1, 2012, the premium must not exceed 10% of the sum assured. The premium must not exceed 20% of the sum assured for older policies.

TDS: If your policy doesn’t meet these conditions, a 5% tax will be deducted at the source if the payout exceeds 1 lakh INR in a financial year.

Section 80D: Health Riders

Under Section 80D if your term insurance policy includes extra health-related coverage like critical illness or accidental death, you can claim an additional tax deduction for the premium paid for these riders.

How Much Can You Deduct?

If you are under 60, you can claim up to 25,000 INR. If you are a senior citizen, you can claim up to 50,000 INR. This deduction is separate from the 1.5 lakh INR limit under Section 80C.

1. Record-Breaking Days

Talk about a busy day! We issued over 1.7 lakh policies on September 28, 2024. Our systems were operational even at late hours, issuing over 1,100 policies at 1:08 AM on December 7, 2024.

2. Our Growing Family

The average age for people joining the Digit Life insurance family in FY24-25 was 34 years old, a slight nudge up from 33 years previously.

3. Premium Extremes

Talk about range! We saw an annual premium as high as ₹35 lakh for our Digit Icon product, while we also issued policies for as little as ₹143 for a 2-year Digit Life Group Micro Term Insurance

4. More Women Protected

We saw a 1.2% increase in female lives covered this FY, with women now making up 49.89% of our total covered lives, up from 48.77% last year

5. Flexible Premiums

We've got options! Some folks opted for monthly premiums as low as ₹50 per month, while others chose the monthly premium category for a policy with an annual premium of ₹2.3 lakh (roughly ₹19,000/month).

A 1 crore term insurance plan is a crucial financial safety net. It provides a substantial lump sum to your dependents in case of your untimely demise. This coverage helps safeguard their financial future, covering expenses like education, home loans, and living costs. While it's essential, remember to choose a plan that aligns with your needs and budget, considering factors like age, dependents, and financial goals.

FAQs about 1 Crore Term Insurance Plan

All

Eligibility

Purchase

Premium

Benefits

What will be my premium for a 1 crore term insurance plan?

The premium for 1 crore term insurance depends on factors like age, health condition, gender, lifestyle habits, smoking habits etc. It also differs across insurance providers.

Should I buy a 1 crore term insurance plan or an endowment plan?

Endowment plans provide the sum assured as a maturity benefit if the policyholder outlives the policy term. On the other hand, term plans provide high coverage for a considerably low premium. Hence, your choice should entirely depend on your need.

What is the minimum income requirement to purchase term insurance of ₹1 crore?

The minimum income requirement to purchase a ₹1 crore term insurance plan varies among insurance companies. Generally, individuals earning around ₹5 lakhs or more annually are eligible. It is advisable to check with your preferred insurance provider for specific details.

What are the eligibility criteria for buying the best term insurance plan for ₹1 crore?

To purchase a ₹1 crore term insurance plan in India, individuals must be between 18 and 65 years old. The insurance company may verify your residency status and income before issuing the policy.

When should I buy the best term insurance plan for 1 crore?

It is advisable to buy insurance as early as possible. Purchasing a plan in your early 20s or 30s can contribute to more excellent financial stability later in life.

How do I buy a 1 crore term insurance plan online?

To buy a 1 crore term insurance plan online, visit the insurer's website, compare different plans, and choose one that fits your needs. Fill out the application form with accurate details, undergo the necessary medical tests, and submit the required documents. Pay the premium online to complete the purchase.

What is the minimum age to purchase a 1 crore term insurance plan?

The minimum age to purchase a term insurance plan is 18 years.

What are the riders benefits available on a 1 crore term insurance plan?

Riders on a ₹1 crore term insurance plan offer additional benefits. Common riders include Critical Illness, which provides a lump sum for specified illnesses; Accidental Death Benefit, which adds a payout if death is accidental; and Waiver of Premium, which waives future premiums if the policyholder becomes disabled.

What happens to a 1 crore term plan on maturity?

At maturity, a term life insurance plan typically expires without any payout if the insured is still alive, as it only provides coverage during the policy term. Unlike whole life policies, term plans do not have a maturity benefit, and there is generally no cash value or return.

How does the critical illness rider impact the overall premium and claim settlement process for a 1 crore term insurance plan?

Adding a critical illness rider to a ₹1 crore term insurance plan typically increases the overall premium due to the added coverage. If diagnosed with a covered illness, this rider provides a lump sum, enhancing financial security. This rider ensures additional support beyond the base sum assured during claim settlement.

What are the specific tax implications of a 1 crore term insurance plan?

Under the new tax regime, premiums paid for a ₹1 crore term insurance plan are eligible for tax deductions under Section 80C, up to ₹1.5 lakh. The death benefit is tax-free under Section 10(10D).

How do insurers assess the risk profile for individuals seeking a 1 crore term insurance plan?

Insurers evaluate risk for a ₹1 crore term insurance plan based on age, health status, lifestyle, and occupation. High-risk factors, such as pre-existing conditions or hazardous jobs, can increase the premium.

How does the Human Life Value (HLV) concept influence the decision to opt for a 1 crore term insurance plan?

HLV helps determine the appropriate cover amount by assessing an individual's future earning potential and financial responsibilities. For a ₹1 crore term plan, consider factors like income, liabilities, and dependents' needs to ensure adequate coverage.

What are the key factors when comparing different 1 crore term insurance plans?

When comparing 1 crore term insurance plans, consider the premium amount and payment frequency. Evaluate the coverage terms, including any riders or additional benefits. Check the insurer's claim settlement ratio and financial stability. Assess the policy's renewal terms and any exclusions or limitations. Finally, review the policy's flexibility and customer service.

Should I buy health insurance or term insurance?

Both. You should have both health insurance and term insurance for comprehensive financial protection. Term insurance protects your family after you, while health insurance protects you and your family while you're alive.

However, if your goal is to protect your family’s financial future in case something happens to you, then term insurance is essential. And if your concern is managing medical expenses during your lifetime, such as hospital bills, surgeries, or treatments, then health insurance is what you need.