Why Do I Need Rs 2 Crore Term Insurance?

Traditional term insurance policies offer life coverage for a specific tenure. However, some variants today also provide coverage for the rest of your life. These plans offer your loved ones financial coverage when they need it most. The payout from term plans can help your family members pay off debts or fulfil their future dreams. Before you purchase a term plan, you must decide on the life coverage you want. Some people opt for Rs. 1.5 cr term insurance, while others may choose to get Rs. 2 cr term insurance. You should select the sum assured based on your Human Life Value (HLV), which refers to the present value of future income expenses, investments, and liabilities. Let’s better understand why you may need insurance coverage worth Rs. 2 crores.

What Is a Rs. 2 cr Term Insurance?

Individuals can choose to purchase a term plan that offers a sum assured of Rs 2 crore. These policies are called Rs 2 cr term insurance plans. In case something happens to you during the policy tenure, the insurance company will pay the amount of Rs. 2 crores to your beneficiary.

Why Buy a Rs. 2 cr Term Insurance Plan?

A Rs. 2 crore term policy offers your family members a financial safety net during difficult times. When selecting the amount, you should ensure that it is enough to replace your lost income at a later stage and help your family members pay off debts. You should calculate your HLV to better understand the sum assured required. Individuals who earn Rs. 10 lakhs per year and have outstanding debts of Rs. 50 lakhs can benefit the most from a Rs 2 cr term insurance policy.

How Does a Rs. 2 Crore Term Plan Work?

Rajiv, who is currently 28, is about to get married. He’s excited to start a family and buy his first house. He earns Rs. 80,000 per month or Rs. 9,60,000 per year. Since he knows he’ll have to opt for a home loan in the near future, he purchases a term policy with a sum assured of Rs. 2 crore and picks a 30-year tenure. At the age of 40, he has a fatal heart attack, leaving his wife to look after his young son by herself. The payout from the term insurance policy allows her to continue to pay the school fees and the loan instalments while she comes to terms with her new reality.

What Are the Benefits of a Rs. 2 cr Term Insurance Plan?

When you purchase a term insurance policy worth Rs. 2 crores, you benefit from:

• High coverage at affordable premiums
• Premium payment flexibility
• Customisation with riders
• Tax advantages under the Income Tax Act ^*
• Financial stability for your relatives

How to Choose the Right Rs. 2 cr Term Insurance Plan

When looking for a Rs. 2 crore term policy, you should consider the following crucial points:

• Premiums

  Term policies are popular since they provide high coverage at affordable rates. Always compare the premiums offered by various term insurance providers before selecting a plan.

• Claim Settlement Ratio

  The IRDAI regularly updates people about the claim settlement ratio of each insurance company. It lets you know how many claims the company settled of all requests received. The higher the ratio, the better.

• Riders

  Always check the riders that various insurance companies offer. You could boost your coverage and enhance your family’s financial future by selecting the riders that suit your needs.

Frequently Asked Questions

Q: What are the eligibility criteria to purchase a Rs. 2 crore term plan?

A: To purchase a term plan, you must have income proof and be between the ages of 18 and 65.

Q: What is the premium amount for a term plan offering coverage of Rs. 2 crore?

A: The premium amount for the term policy depends on your lifestyle, age, health, income range and more.

Q: What happens if I survive the policy tenure?

A: Term plans do not offer any maturity benefits. However, if you opted for a Return of Premium policy, you will get the premiums back on maturity.

How can I purchase a Rs. 2 crore term plan?

A: You can purchase a term policy worth Rs. 2 crores directly from our website.

Related Article

• Why Purchasing term insurance online is good idea?
• Factors to Consider While Choosing the Perfect Term Plan for Yourself
• What is Term Insurance? Definition & Meaning

ARN - ED/04/23/1529