Term Insurance Plan for 2 Crore Online in India
Deciding on a 2 crore term insurance plan is a significant financial decision that requires careful evaluation. While it can be a mindful choice for some, given today’s lifestyle and inflation, it might not suffice for others.
This article explores how a 2 crore term insurance plan can meet the coverage requirements of an average Indian investor. It delves into the critical aspects of choosing such a policy, considering its benefits against your financial goals and insurance needs.
If you are contemplating securing your family’s future with a sizable term insurance plan, understand if a 2 crore policy is right for you.
Table of Contents
2 Crore Term Insurance Plan Overview
Here’s a table summarising the key aspects of a ₹2 crore term insurance policy:
What is a 2 Crore Term Insurance?
A 2 Crore Term Insurance promises financial coverage of 2 crores to the policyholder’s beneficiary in the event of their death during the policy term. This life insurance plan offers substantial financial protection, ensuring your family’s financial needs are met even in your absence.
The payout can be used for various purposes, such as paying off debts, covering daily expenses, and funding children’s education. Additionally, many plans offer flexible terms and 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.
How Does a 2 Crore Term Insurance 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 the economic disruption caused by the loss of a family member. Here is how a 2 Crore term insurance plan works:
Meet Raman
Raman is 25-year-old healthy, non-smoking newlywed who values fitness, career growth & family.
Securing Future
He invests in a ₹2 crore term life insurance for 25 years to provide financial security for his wife
Death During the Policy Term
In the 15th year of the policy, Raman experienced an unfortunate death.
Death Benefit Payout
His wife received a ₹2 crore death benefit from the insurance company.
After the Claim
With this benefit, she can preserve her quality of life and meet her financial obligations.
Understanding the Mechanics of a ₹2 Crore Term Insurance Plan with an Illustration
Rohan, a 30-year-old professional, opts for a 2 crore term insurance plan with a policy term of 30 years. He chooses to pay an annual premium of ₹25,000 for the coverage. Based on his age, health status, and the policy term.
Scenarios Explaining 2 Crore Term Insurance
Unfortunate Death
Living past the insurance term
Is a 2 Crore Term Insurance Plan Enough for You?
Although a figure of 2 Crore seems huge, getting coverage 10-15 times your annual salary is often suggested. Given our upgraded lifestyles and ever-increasing inflation, coverage of 2 crore might not be sufficient for many people.
A correct evaluation of the required sum assured involves many factors, such as family income, expenses, future goals, inflation, loans, and liabilities. You must also factor in your family's regularly increasing financial requirements.
For a quick estimate, you can use Digit’s term life insurance premium calculator by entering your age and annual income to get an estimate. This will give you a more accurate idea of the potential coverage needed.
A general recommendation is to secure insurance that covers 15 times your yearly salary. For instance, if you earn Rs 30 Lakhs annually, you should aim for insurance coverage of Rs 4.5 Crores (15 times 30 Lakhs). If you anticipate needing this coverage over the next 25 years (until you are 60), it's important to account for inflation and rising living costs.
Considering all the above factors, a more accurate assessment can be done using the Human Life Value calculator.
Case 1: Rajveer Thought ₹2 Cr Was Enough, Until Life Changed
Case 1: Rajveer Thought ₹2 Cr Was Enough, Until Life Changed
Rajveer, a 26-year-old professional, had retired parents as dependents and an annual income of ₹15 lakhs. He planned to marry in another 2-3 years and buy a house afterwards. Foreseeing future responsibilities, he bought a 2 crore term plan with a tenure of 20 years as a financial cushion for his dependents.
Unfortunately, at the age of 42, Rajveer suffered a cardiac arrest. At that time, he had a dependent wife, two kids, an outstanding home loan of ₹80,00,000, and dependent parents. Considering these liabilities and future significant expenses like the kids’ higher education, the sum of ₹2 crore was insufficient. Rajveer should have reevaluated his coverage once his responsibilities increased.
Case 2: Sudheer Got It Right—Because He Planned, Reviewed, and Invested Smartly
Case 2: Sudheer Got It Right—Because He Planned, Reviewed, and Invested Smartly
Sudheer, a professional who is 30 years old, had parents who were retired and 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 20-year term plan worth 2 crores.
Unfortunately, at the age of 40, Sudheer passed away due to an accident. He had dependent parents and an 8-year-old son. However, his wife was earning, and he had no significant liabilities, like a home loan. His son’s education was one significant expense that needed to be taken care of.
Sudheer 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 ₹2 crore might be sufficient.
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Is a 2 Crore Term Insurance Plan Enough for You?

Is a 2 Crore Term Insurance Plan Enough for You?
Although a figure of 2 Crore seems huge, getting coverage 10-15 times your annual salary is often suggested. Given our upgraded lifestyles and ever-increasing inflation, coverage of 2 crore might not be sufficient for many people.
A correct evaluation of the required sum assured involves many factors, such as family income, expenses, future goals, inflation, loans, and liabilities. You must also factor in your family's regularly increasing financial requirements.
For a quick estimate, you can use Digit’s term life insurance premium calculator by entering your age and annual income to get an estimate. This will give you a more accurate idea of the potential coverage needed.
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Benefits of 2 Crore Term Insurance Plan
A 2 crore term insurance plan provides substantial financial coverage to the policyholder's beneficiaries during their untimely demise. Here are the benefits:
1. Financial Security for Family
Ensures your family's financial stability in your absence, covering daily expenses, debts, and future goals like education.
2. Affordable Premiums
Despite the high sum assured, premiums are relatively low, especially if purchased at a younger age, making it a cost-effective choice.
3. Tax Benefits
Premiums paid and payouts received are eligible for tax deductions under Section 80C and Section 10(10D) of the Income Tax Act, enhancing savings.
4. Supports Key Life Stages
Adequate coverage to support your family through key life stages, including children's education, marriage, and spouse's retirement.
5. Debt Repayment
In the event of untimely death, the sum assured can help in repaying outstanding debts, ensuring your family's financial independence.
6. Riders
Offers the flexibility to enhance coverage through riders for critical illness, accidental death, and disability at a nominal extra cost.
7. Peace of Mind
Provides peace of mind knowing your loved ones are financially protected against life's uncertainties, allowing you to live stress-free.
8. Flexibility in Payout Options
Allows nominees to choose how they receive the death benefit - lump sum, monthly income, or a combination, suiting their financial situation.
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
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
Chronic Care Support Programs
Personalized assistance for long-term health conditions.
Who Should Buy a 2 Crore Term Insurance?
Buying a term insurance plan is an important financial decision, and the timing of your purchase can have a significant impact on the cost of premiums and the benefits of the coverage. Here’s a breakdown of when to buy a term plan at different stages of life, and how the premium tends to vary with age:
Young Earners
Youngsters who have just started earning and are responsible for dependents should consider a 2 Crore term plan to provide a substantial financial cushion for their loved ones in the event of their demise.

People with Loan Liabilities
Individuals with substantial loans, such as home loans, can buy a 2 Crore term plan to cover these liabilities and prevent them from becoming a burden on surviving family members in case of the unfortunate demise of the borrower.

Small Business Owners and Entrepreneurs
Entrepreneurs and business owners work on credit most of the time. To cover the responsibility of some credit of an equivalent amount, they can safeguard their business and family with a 2 Crore term plan, ensuring business continuity and family well-being.

Senior Investors
Senior people, especially the ones nearing retirement whose major life goals like house purchase and kids’ education are over, can look at buying a coverage of 2 Crore. 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.

Those Looking for Supplementary Coverage
One might have a certain amount of cover from their employer or an already purchased term plan during their younger days. During periodic reassessment, they realised they needed a higher sum assured for sufficient coverage. In such a case, they can buy a 2 Crore term plan as an additional cover.

Those Looking for Future Financial Planning
Those who envision a financially secure future for their loved ones should opt for a 2 Crore term plan. One might have calculated that their kids would require a certain sum for their higher education. They can buy a 2 Crore plan covering their kids’ education if other liabilities are covered already.
Eligibility Criteria for 2 Crore Term Insurance
The exact eligibility criteria may vary slightly between different insurance providers. The following table provides a general overview.
Documents Required for 2 Crore Term Insurance Plan
To purchase a 2 Crore term insurance plan, applicants are required to submit the documents listed below:
Identity Proof
Age Proof
Address Proof
Income Proof
Photographs
Medical Reports
How to Choose the Right Life Coverage for Yourself?

How to Choose the Right Life Coverage for Yourself?
Choosing the right life coverage is essential for securing your financial future and providing peace of mind for you and your loved ones. What is that exact figure that you should choose to have a sufficient life coverage?
Let's find the answers:
Assess Your Life Goals
Understanding your life goals is the first step in choosing the right life coverage. Whether it's providing for your family, covering your children's education, or leaving a legacy, your goals will be the primary factor in deciding the type and amount of coverage you need.
Consider Your Financial Liabilities
Take into account your financial obligations, such as mortgages, loans, and any debts. The life coverage that you decide should be sufficient to cover these liabilities, ensuring your family doesn't inherit your financial burdens if anything happen to you.
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Factors to Consider Before Buying a 2 Crore Term Insurance Plan
Factors to Consider Before Buying a 2 Crore Term Insurance Plan
When considering a 2 crore term insurance plan, evaluating several factors is essential to ensure it meets your needs and provides adequate coverage for your family. Here are some key points to consider:
Financial Assessment
The most crucial factor is determining your coverage correctly. Evaluate your personal requirements, the current liabilities, future expenses, and the required amount for safeguarding your family. Assess if your chosen term plan aligns with your financial goals.
Claim Settlement Ratio
The primary function of insurance is to provide financial support to the dependents in case of unfortunate demise of the life assured. Thus, claim settlement is highly important.
A claim settlement ratio reflects the percentage of claims settled by an insurer in a particular year. Thus, a higher claim settlement ratio means a higher likelihood of your claim being settled by the insurer.
Premium Affordability
Check if the premium fits your budget. You can research across different insurers for the same. Accordingly, decide on regular pay, single pay, or the various kinds of payment frequencies like annual, biannual, quarterly, or monthly.
Term Duration
Choose a policy term that aligns with your financial responsibilities. If you take this plan to cover some loan, you can choose a term equal to the loan duration. Similarly, if it's for coverage during your early earning years, you can choose a shorter term because you'll need to reevaluate it once your responsibilities go up.
Rider Options
Consider additional riders such as critical illness coverage, accidental death benefits, and waiver of premium in case of disability. These can enhance your coverage and provide extra protection tailored to your needs.
Policy Exclusions
Familiarize yourself with all policy exclusions so that it doesn't come as a surprise when the need arises. Being aware of the exclusions where your policy will not pay out ensures realistic expectations and informed decision-making.
Inflation
Consider the inflation factor when determining the coverage amount. What seems adequate today might not be sufficient due to rising costs.
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99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25

99.53% Claim Settlement Ratio For Digit’s Life Insurance in 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

₹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

15,000+ Claims Settled in FY'25
Solvency Ratio for Digit's Life Insurance in FY'25 is 3.85

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.
Common Reasons for 2 Crore Term Insurance Plan Rejection

Common Reasons for 2 Crore Term Insurance Plan Rejection
Certain factors can lead to rejection when applying for a 2 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.
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Tax Benefits for 2 Crore Term Insurance Policies
Section 80C: Premium Payments
Section 80C: Premium Payments
You can claim a tax deduction on the premium paid for your term insurance policy under Section 80C, up to ₹1.5 lakh annually. This benefit applies to individuals and Hindu Undivided Families (HUFs)
Eligibility Criteria:
- Policies issued on or after April 1, 2012: Premium should not exceed 10% of the sum assured.
- Policies issued before April 1, 2012: Premium should not exceed 20% of the sum assured.
Section 80D: Health Riders
Section 80D: Health Riders
Under Section 80D if your term insurance policy includes extra health insurance-related coverage like critical illness or accidental death, you can claim an additional tax deduction for the premium paid for these riders:
Deduction Limits:
- Individuals under 60 years: Up to ₹25,000 per year.
- Senior citizens (60+ years): Up to ₹50,000 per year.
- Note: This deduction is separate from the ₹1.5 lakh limit under Section 80C.
Section 10(10D): Maturity Benefits
Section 10(10D): Maturity Benefits
Under Section 10(10D), all payouts from a term insurance policy—including death benefits—are entirely tax-free
Conditions for Tax-Free Benefits:
- Policies issued on or after April 1, 2012: Premium must not exceed 10% of the sum assured.
- Policies issued before April 1, 2012: Premium must not exceed 20% of the sum assured.
- Tax Deducted at Source (TDS): If your policy doesn’t meet the above conditions, a 5% TDS will be applied if the payout exceeds ₹1 lakh in a financial year.
A ₹2 crore term insurance plan provides substantial financial security at affordable premiums. In case of the policyholder’s death, the payout can help cover major expenses such as loans, education costs, and family living expenses.
However, this policy does not offer maturity benefits if the insured outlives the term. Despite this, the high coverage and tax advantages make it an excellent choice for individuals with significant financial responsibilities.
Key Consideration:
When selecting the coverage amount, factor in inflation, long-term financial commitments, and future family needs to ensure adequate protection.
Digit Life Insurance in the Spotlight
What’s Not Covered?
FAQs about 2 Crore Term Insurance
How much does a 2 crore term insurance cost?
How often do I need to pay premiums for my 2 crore term insurance policy?
What is the minimum salary for 2 crore term insurance?
What is the best age to buy a 2 crore term plan?
What is the eligibility to buy a 2 crore term insurance?
How can I buy 2 crore term insurance plans?
Is there a free-look period with the term insurance plan for 2 crore?
Which riders are available with 2 crore term insurance?
What is the minimum entry age for 2 crore life insurance policy?
Can I buy the best term insurance plan for 2 crore online?
Is the 2 crore term insurance plan tax-free?
Is a medical checkup necessary to buy 2 crore term insurance?
Is 2 crores the right coverage amount for your term plan?
How does a 2 crore term insurance plan's coverage differ from a 1 crore plan?
How does inflation protection work within a 2 crore term insurance plan?
Inflation protection in a 2 crore term insurance plan ensures coverage increases over time to keep pace with inflation. This feature is typically offered as an add-on rider, where the sum assured increases by a fixed percentage each year.
For example, if you opt for a 5% annual increase, the coverage amount will grow from 2 crores to 2.1 crores in the first year, and so on. This helps maintain the purchasing power of the death benefit.
What is the impact of occupation type on the premium and coverage for a 2 crore term insurance plan?
How does a 2 crore term insurance plan handle pre-existing diseases and medical conditions during underwriting?
What factors influence the premium for a 2 crore term insurance plan beyond age, gender, and smoking habits?
How do different payment modes impact the overall cost of a 2 crore term insurance plan?
How can I increase the sum assured in a 2 crore term insurance plan without undergoing a medical examination?
What documents are required for a smooth claim process in a 2 crore term insurance plan?
How does a nominee claim the death benefit in a 2 crore term insurance plan?
How does a 2 crore term insurance plan handle accidental death and disability benefits?
What are the advantages and disadvantages of opting for a 2 crore coverage?
Opting for a 2 crore coverage in a term insurance plan has several advantages, including substantial financial security for your family, the ability to cover significant debts and support for long-term financial goals.
However, higher coverage also means higher premiums, which may strain your budget. Qualifying for such coverage may require a thorough medical examination and detailed financial assessment.
What are the considerations for individuals with high-risk occupations when choosing a 2 crore term insurance plan?
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