Why Do I Need Rs 10 Crore Term Insurance?
Table of Content
Every sound financial plan includes at least one term policy. Term plans are pure life insurance products, offering high sum assured amounts at very low premiums. These policies do not provide additional maturity benefits or rewards. However, they provide your loved ones with financial stability at a distressing time. Let’s better understand the importance of a Rs. 10 cr term insurance plan and how it could help your family’s financial future.
What Is a Rs. 10 Crore Term Insurance?
A 10-crore term policy provides a payout of Rs. 10 crores to the beneficiary if anything happens to the policyholder during the policy tenure. Individuals may opt for a high sum assured to battle inflation and ensure their loved ones enjoy a secure financial future.
Why Buy Rs. 10 Crore Term Insurance?
When you get term insurance, you must select the correct sum assured amount. An unnecessarily high sum assured will lead to costly premiums and unnecessary strain on your finances. Most people recommend opting for a sum assured that is equal to your outstanding debts, future liabilities and at least ten times your current income. A Rs. 20 cr term insurance policy will help individuals who currently earn around Rs. 50 lakhs or more per year. The amount will help replace their lost income, pay off debts and safeguard their family’s financial future.
How Does a Rs. 10 Crore Term Plan Work?
Let’s look at how term policies work. Shraddha, a young woman in her early 30s, wants to purchase term insurance. She currently earns Rs. 50 lakhs per year. She is engaged and wants to have children soon. She also hopes to buy her own home to raise her kids. Considering she will likely take a home loan, she opts for a term plan worth Rs. 10 crores for 30 years. She gets married, welcomes two children and takes a loan worth Rs. 50 lakhs to buy their dream home. If anything happens to Shraddha during the policy tenure, her family receives a payout of Rs. 10 crores. The amount will help her husband pay off the outstanding home loan. He can use some of the funds to maintain their standard of living and put the rest away to fund their children’s higher education or help them start their own businesses.
What Are the Benefits of Rs. 10 Crore Term Insurance?
Purchasing a term policy worth Rs. 10 crores allows you to enjoy:
- High coverage at affordable premiums
- Premium payment flexibility
- Add-ons allow you to tailor plan to meet your specific requirements.
- Enjoy Tax benefits under Income Tax Act*
- Financially security your families future.
How to Choose the Right Rs. 10 cr Term Insurance Plan
To identify the ideal term plan for your needs, consider the following crucial details before buying a policy.
Term policies are popular since they provide high coverage at affordable rates. Always compare the premiums various term insurance providers offer to ensure you get the best deal.
Death Claim Settlement Ratio
The IRDAI regularly provides updates about the death claim settlement ratio of various insurance companies. The higher the death claim settlement ratio, the better.
Always check the add-ons that various insurance companies offer. You could boost your coverage and enhance your family’s financial future with the riders that meet your lifestyle needs.
Frequently Asked Questions
Q: What are the eligibility criteria to purchase a Rs. 10 crore term plan?
A: Insurance companies may have minimum income requirements for term plans that offer high life coverage. You should check each company's eligibility requirements for plans worth Rs. 10 crores.
Q: What is the premium amount for a term plan offering coverage of Rs. 10 crore?
A: Apart from the sum assured, the policy tenure, your lifestyle, age, health and income impact the premium. You can use an online premium calculator to understand the approximate premium amount.
Q: What happens if I survive the policy tenure?
A: Term plans do not provide any payouts on maturity. However, insurance companies today offer Return of Premium plan variants. If you select this, you receive a payout equal to your premiums paid on maturity.
Q: How can I purchase a Rs. 10 crore term plan?
A: Individuals who have calculated their human life value or HLV and require a term plan worth Rs. 10 crore can visit the HDFC Life website to get the required policy.
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ARN - ED/04/23/1620
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##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2021-22.
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
^ Available under Life & Life Plus plan options
*As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.