In a world marked by uncertainty, where financial security remains a primary concern, term insurance proves to be a formidable shield against life's unpredictable twists.

This coverage provides a safety net for your loved ones and offers peace of mind in the face of unforeseen challenges. A 10 Crore term insurance, further, offers substantial coverage for your dependents.

Let's check out the nuances of this policy and explore how it stands as a robust foundation for safeguarding your family's financial future.

A 10 Crore term insurance provides a sum assured of 10 crores to the beneficiary in case of unfortunate demise of the policyholder during the policy term. Thus, 10 Crore here refers to the sum assured amount.

This insurance offers significant financial protection to the insured's beneficiaries, ensuring a sizeable payout to help cover expenses and maintain their financial well-being. Term insurance is the most basic and cost-effective way to secure a high coverage amount; hence, it doesn't provide any maturity value.

Anyone in the financial space will always emphasise the importance of a term plan for a healthy financial portfolio. However, the amount of sum assured required depends on individual needs.

Here is how a 10-crore term plan works:

• Sum Assured:  A 10 crore term insurance policy provides a sum assured, i.e., a coverage of 10 crore rupees.
• Policy Term: The policy has a specified term, chosen when buying the policy, during which the coverage is active.
• Premium Payments: Policyholders pay regular premiums, as per their chosen payment frequency, to keep the policy in force. Term insurance is generally cheaper than other life insurance types since it provides only life coverage. Thus, we can buy a pure term insurance with a high coverage amount at a lesser premium than other types of life insurance.
• Death Benefit: In case of the policyholder's unfortunate demise during the policy term, the beneficiaries receive the entire sum assured that is 10 crores, as a death benefit.
• No Maturity Benefit: If the policyholder survives the policy term, there is no maturity benefit since this is a term plan.
• Financial Coverage: Being a high coverage term plan, it serves as a well-built financial safety net, ensuring significant support for the family's financial needs in case of the insured's death.

Illustration:

Let's take an example to see the working of the 10 Crore term plan.

Aditi, a young professional in her mid-30s, earns 80 lakhs annually. She is recently married and plans to have kids in a few years. However, before that, she is looking to buy a house and her dream car.

Considering the forthcoming expenses, she decided to go for a 10-crore term plan for 30 years. Considering their liabilities and lifestyle expenses, this plan would provide sufficient coverage to her family.

In the unfortunate case of Aditi's demise during the policy tenure, her beneficiaries will receive 10 crores as the death benefit, which is sufficient to pay off her loans like home and car and provide for her children's education and other expenses.

In a happy case where she survives the policy term, no maturity benefit is paid.

While a figure of 10 crore might look extremely high and overwhelming, the reality is that in today's time, high salaries and extravagant lifestyle has become quite common. And inflation only increases.

To have a sufficient coverage that protects your dependents in an unfortunate case, a 10 Crore term insurance is the perfect solution.

Here are other major benefits that a 10-crore term insurance can provide:

• High Coverage at Affordable Premium: A 10 Crore term insurance policy provides a considerably high coverage amount at a relatively lower premium as compared to the traditional plans with a savings component.
• Peace of Mind with Financial Security: A high coverage ensures complete financial security for the insured's family in case of their untimely death during the policy term. It takes care of debts and liabilities so that the family doesn't have to deal with this financial crisis after losing a loved one.
• Tax Benefits: Premium paid towards the term insurance and the death benefit received is eligible for tax benefits under Section 80C and 10(10D) of the Income Tax Act as per the prevailing income tax laws.

If you are clear about the coverage amount, you've done a major part of the decision-making while buying term insurance. The other factors that you need to consider while choosing the right 10-crore term plan are:

• Compare the Premium Rates: Compare the premium rates for 10 crore coverage across different insurers.
• Check for Inclusions and Exclusions: One of the most critical factors to check while buying an insurance plan is its inclusions and exclusions. Be aware of all these conditions so that you don't end up being surprised during the claim settlement process.   
• Check the Claim Settlement Ratio of the Insurance Provider: The claim settlement ratio indicates the percentage of claims settled against the total number of claims filed. The higher the claim, the more credible the company is. In simple terms, it indicates how easily and quickly your beneficiaries would receive the claim in case of your unfortunate demise, thus making this one of the most crucial factors to consider. 
• Check for Flexibility: Check for flexibility in your policy in multiple ways, like premium payment, rider additions, etc. Some insurers also provide the option of conversion, wherein you can convert your term plan to an endowment plan in the last few years of the policy, thus building a maturity benefit. Check for all the options that maximise your returns as per your requirements.

A 10-crore term insurance plan can easily be called a robust financial safeguard, offering considerable coverage for your loved ones in times of need.  As you plan to buy this term insurance, knowing completely about it and the factors to consider can help you make an informed decision.  Ensure that your chosen plan aligns with your personal financial goals and circumstances.