Term Insurance Plan for 10 Crore Online in India

The 10 Crore Term Insurance Plan is designed to offer substantial financial security to your family in case of an unforeseen event. With a high coverage amount, this term insurance plan ensures that your loved ones are protected from financial burdens, enabling them to maintain their lifestyle and meet future financial goals. 

This plan is particularly beneficial for individuals with significant financial responsibilities, such as business owners or high-income earners, as it provides peace of mind and a robust safety net.

To calculate the premium for a ₹10 crore term insurance plan, you need to consider several factors such as the policyholder’s age, health, lifestyle, occupation, and the policy term. Using a term insurance calculator can help you estimate the premium more accurately. Additionally, you might want to explore extra coverage options like critical illness riders or accidental death benefits.

Let’s assume a one crore term insurance plan details for Ravi as an example:

• Age: 30 years
• Lifestyle Indicator: Non-smoker
• Policy Term: 20 years
• Sum Assured: 10 Crore
• Riders: No additional riders

Insurers calculate the base rate based on age, health status, and sum assured. In Ravi’s case, let's assume that the base rate is ₹1.5 per thousand of the sum assured. Here is how the premium is calculated:

Base Premium = (Sum Assured / 1,000) × Base Rate

Base Premium = (10,00,00,000/1,000) × 1.5 = ₹1,50,000 per year

Ravi’s base premium comes out to be ₹1,50,000 per year. This amount reflects his age and healthy lifestyle, providing comprehensive coverage for his substantial sum assured.

While Ravi has opted not to include additional riders in his policy now, he knows he can always revisit his options. Riders such as those with Critical Illness or Accidental Death Benefits could be considered if his needs change or if he wishes to enhance his policy's coverage further.

Certain factors can lead to rejection when applying for a 10 crore term insurance plan. Understanding these reasons can help applicants better prepare and address potential issues beforehand.

Suicide: Most insurance policies have a suicide clause, typically stating that if the insured commits suicide within a specified period (usually one or two years) from the policy start date, the claim will not be honoured. Also, If the insurance company suspects the application is an attempt to benefit from such circumstances, they may reject the policy.

Participation in Hazardous Activities: Individuals engaging in hazardous activities like skydiving, scuba diving, motor racing, and other high-risk sports are considered high-risk. Insurers may reject applications or charge higher premiums to cover the increased risk of death.

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.

Criminal Activities: Death resulting from criminal activities, such as involvement in illegal activities, participation in violent acts, or membership in criminal organisations, is usually excluded from coverage. Insurers may reject applicants with a criminal record to mitigate risk.

Substance Abuse: Substance abuse, like abuse of alcohol, drugs, or other substances, significantly increases health risks and the likelihood of premature death. Insurers may reject applications from individuals with a history of substance abuse.

Pre-existing Medical Conditions: Applicants with severe or multiple pre-existing medical conditions like chronic diseases like diabetes, heart disease, cancer, etc, are considered high-risk. Insurers may reject their applications or offer coverage with exclusions and higher premiums.

War and Terrorism: If an applicant is in a high-risk profession or region prone to acts of war or terrorist activities, the insurer may deny coverage to avoid potential large-scale claims.

Non-Commercial Aviation: The risk of aviation accidents is substantial. Insurers may refuse to accept applications or increase premiums for individuals involved in aviation activities outside commercial airline travel, including pilots, crew members, or frequent flyers in non-commercial aircraft.

Section 80C: Premium Payments

• Deduction Limit: Under Section 80C, the premium paid for a term insurance policy is eligible for a tax deduction, subject to a maximum limit of 1.5 lakh INR per financial year.
• Eligibility: To qualify, the premium must not exceed 10% of the sum assured if the policy is issued on or after April 1, 2012. The premium should not exceed 20% of the sum assured for policies issued before this date.
• Applicability: This deduction is applicable to individuals and Hindu Undivided Families (HUFs).

Section 10(10D): Maturity Benefits

• Tax Exemption: Any sum received under a term insurance policy, including the death benefit, is fully exempt from tax under Section 10(10D).
• Conditions: This exemption is applicable only if the premium paid does not exceed 10% of the sum assured for policies issued on or after April 1, 2012. The premium should not exceed 20% of the sum assured for policies issued before this date.
• TDS: If the policy does not meet the criteria mentioned above, a 5% tax deduction at source (TDS) will be applicable on the payout if it exceeds 1 lakh INR in a financial year.

Section 80D: Health Riders

• Deduction for Health Riders: If the term insurance policy includes health insurance related riders such as critical illness or accidental death benefit riders, the premium paid towards these riders is eligible for a tax deduction under Section 80D.
• Deduction Limit: The deduction limit under Section 80D is up to 25,000 INR for individuals under 60 and 50,000 INR for senior citizens. This limit is in addition to the limit under Section 80C.