Term Insurance Plan for 1 Crore Online in India

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?

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

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

Policy Term

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

premium-payments

Premium Payments

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

death-benefit

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

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-benefit

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 rideraccidental 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

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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.
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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.

Is a 1 Crore Term Insurance Plan Enough for You?

Factors for Evaluating Required Sum Assured

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.

Read more

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:

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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.

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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

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).

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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).

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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.

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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.

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Simple and Transparent

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

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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.

Who Needs 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

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.

liabilities-and-debts

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

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

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.

individual-earning-child

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-couple

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

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.

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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

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 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

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

At Digit, we believe life insurance should do more than just protect you from the unexpected; it should also help you live a healthier and happier life. That's why we offer Wellness Benefits to support your overall well-being. These programs are designed to improve your physical, mental, and emotional health through various resources and activities.

 

With Digit Life Insurance, you gain exclusive access to wellness perks that make living well more achievable and affordable. These benefits are part of our life insurance plans and aim to enhance your holistic health and wellness. Some of these great benefits include -

doctor consultation

Unlimited 24×7 Teleconsultations with General Physicians

Get expert medical advice anytime, anywhere.

Mental Health Consultation & Services

Mental Health Consultation & Services

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

diagnostics

Diagnostic Tests & Health Check-Ups

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

Specialist Teleconsultations

Specialist Teleconsultations

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

Women's Health Care Programs

Women's Health Care Programs

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

Physiotherapy Sessions

Physiotherapy Sessions

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

Dental Consultation Offers

Dental Consultation Offers

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

Sexual Wellness

Sexual Wellness

Get flat 15% discount on Sexual Wellness Programs! 

Chronic Care Support Programs

Chronic Care Support Programs

Personalized assistance for long-term health conditions.

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:

sum-assured

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

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.

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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 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

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:

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Visit Digit Website/App

Visit the official Digit Life Insurance website or app and compare the types of life insurance policy options.

Enter Details

Fill in your personal information, share your lifestyle habits, date of birth, annual income, and mobile number.

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 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

Other Documents

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:

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Login Your Account

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?

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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

Read more..

Common Reasons for 1 Crore Term Insurance Plan Rejection

claim-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.

Read more

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.

FAQs about 1 Crore Term Insurance Plan

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

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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