2 Crore Term Insurance

Table of Content

1. What is a 2 Crore Term Insurance Plan?

2. Why Buy a 2 Crore Term Insurance Plan?

3. How Does a 2 Crore Term Insurance Works?

4. What are the Benefits of a 2 crore Term Insurance Plan?

5. Key Features of 2 Crore Term Insurance Plan

6. How to Determine the Right Coverage Amount for the best term insurance plan for 2 Crore?

7. Calculator for 2 Crore Term Insurance

8. Why Is Sum Assured a Key Factor in Term Insurance?

9. Is ₹2 Crore Term Insurance the Right Choice for You?

10. Who Should Buy a 2 Crore Term Insurance Plan?

11. Factors to be Considered Before Buying Best Term Insurance Plan for 2 Crore

12. Best Term Insurance Plan for 2 Crore offered by HDFC Life

13. How to Choose the Best Term Insurance Plan for 2 crore?

14. When should I buy the best term insurance plan for 2 crore?

15. How to Buy 2 Crore Term Insurance Online?

16. FAQ’s on 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 crore 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 2 Crore Term Insurance Plan?

A ₹2 crore term insurance plan is a pure risk protection plan that offers your family a lump sum of ₹2 crore in case of your untimely demise. It offers a sum insured amount of 2 crores to the policyholder’s family in case of his unfortunate demise. In exchange for regular premiums, these plans are sturdy enough to settle debts, provide adequate coverage and replace regular income in the absence of the holder. 

However, it is important to note that the 2 crore term plan does not offer any maturity or survival benefits. If the policyholder survives the policy term, no payout is made unless the plan has a "return of premium" feature. The focus of a term plan is on risk coverage, not on savings or returns.

Let us now understand how the policy works with an example.

The policyholder pays a regular premium, monthly, quarterly, or annually, for a fixed duration (say, 30 years). In case of the policyholder’s death during this term, the insurer pays the sum assured (₹2 crore) to the nominee. If the policyholder survives the term, the policy simply ends with no payout.

To give you an idea of the premium cost:

A healthy 30-year-old non-smoker male can expect to pay approximately ₹1,888 per month for ₹2 crore coverage over a 30-year policy term2. The premium amount varies based on age, health, smoking habits, and the policy features chosen.

A term insurance of 2 crore plan is ideal for individuals with significant financial responsibilities, such as dependent family members, large home or education loans, business obligations, or long-term life goals like retirement planning and children's higher education. It ensures that your family’s financial future remains secure, even if life takes an unexpected turn.

Why Buy a 2 Crore Term Insurance Plan?

High cost of living and excessive healthcare expenses make a term plan for 2 crore a sensible choice for families with high lifestyle expenses. Your family gets a substantial cushion to maintain their current lifestyle without facing any financial crisis. Moreover, this type of plan helps family members to pay off any outstanding debt in case of the policyholder’s absence.  

Here are some specific reasons why buying a 2 crore term life insurance is a good idea:

1. Budget-friendly Premiums

Term insurance plans are known for offering high coverage amounts at surprisingly affordable rates. For instance, a 30-year-old non-smoker male can get a ₹2 crore term insurance policy for just ₹1500-1800⁷ per month.

This low cost makes it easier to secure your family’s financial future without straining your budget. The earlier you buy, the lower your premium will be, making it a smart and cost-effective choice in the long run.

2. Works as a Financial Safety Net

Everyone prefers to have peace of mind when it comes to the family’s security. A 2 crore term insurance works as a solid financial backup. Whether it is the payment of outstanding home, business or car loans or arranging children’s education, this could be a reliable solution.

3. Extensive Coverage

If you have significant responsibilities like a large home loan, plans to send your children abroad for higher education, or ageing parents who depend on you, ₹2 crore term life insurance coverage offers the financial depth to manage it all.

Compared to lower covers like ₹50 lakh or even ₹1 crore, this amount better accounts for inflation and rising costs over the next 20–30 years, ensuring your family isn’t left underinsured.

4. Boosts Savings & Investments

Choosing term insurance for complete risk coverage varies from person to person. Based on your salary structure, you can pay the premium in a lump sum or pay it for a shorter duration (monthly or quarterly). The invested amount will help in growing wealth in the long run. 

How Does a 2 Crore Term Insurance Works?

To understand how a ₹2 crore term plan can secure your family’s future, let’s look at Umesh’s story.

Umesh, a 30-year-old from Kolkata earning ₹1.2 lakh monthly, buys a ₹2 crore term insurance plan to protect his family’s financial future, covering his children’s education, home loan, and day-to-day needs.

He opts for a monthly premium of ₹1,200 till age 60 and includes a Critical Illness Rider, given his family’s medical history. He names his wife and children as nominees.

If something were to happen to Umesh, his family could receive the payout in one of three ways:

● Lump Sum + Monthly Income

● Increasing Monthly Income

● Split Lump Sum + Regular Income

Here’s how ₹2 crore could support Umesh’s family goals:

Tip: To estimate your ideal cover, multiply your annual income by 10–15 times and add future goals and loans.

You can explore affordable ₹2 crore term insurance plans with riders, return of premium, and 99.68% claim settlement^## at HDFC Life.

What are the Benefits of a 2 crore Term Insurance Plan?

Have you ever participated in water sports? If yes, then you must be aware that wearing a life jacket is mandatory. Even if you know how to swim, the professionals always recommend wearing a life jacket. Term insurance functions like a life jacket — even if you're financially secure today, it provides crucial support during unexpected situations.

The benefits include:

• Helps You Maintain Your Lifestyle and Fulfil Long-Term Goals

The best term insurance plan for 2 crore offers a significant safety net that ensures your family’s stability. So, the members can maintain their usual lifestyle and be independent enough to fulfil their long-term goals even when you are not there. 

• Tax Advantages Under the Income Tax Act

Under the Income Tax Act Section 80C1, a 2 crore term insurance premium is eligible for tax deductions. In addition, as per the regulations mentioned under Section 10D1, the payout amount that nominees receive is completely tax-free. This reduces the tax burden and increases the savings amount. 

• Financial Stability for Your Relatives

A 2 crore term insurance plan provides the dependents of the policyholders with financial stability, so they can fulfil long-term goals. For example, in the case of the unfortunate demise of a parent who is the sole earning member of the family, the children's education will be secured.  

Key Features of 2 Crore Term Insurance Plan

Irrespective of whether a family's earning stands at a high or mid level, if someone wants to protect their family with maximum cushion in a cost-effective manner, 2 cr life insurance is an ideal plan for them. 

• High Coverage at Affordable Premiums

Best term insurance plan in India with a sum assured of Rs. 2 crore provides extensive coverage at affordable premiums. This makes it a cost-effective way to ensure your family’s financial well-being without putting too much strain on your budget.

• Premium Payment Flexibility

You can choose a payment mode that aligns with your financial situation, whether it's monthly, quarterly, or annually. This premium payment flexibility makes it easier to manage your policy and ensures it remains active without burdening your finances.

• Customisation with Riders

Enhance your 2 crore term insurance plan with additional riders like critical illness, accidental death, or waiver of premium. These add-ons allow you to customise your policy according to your specific needs, providing an even more robust safety net for your family.

• Tax Advantages Under the Income Tax Act

The best term insurance plan for 2 crore offers attractive tax advantages under Sections 80C and 10(10D) of the Income Tax Act, helping you save more while ensuring comprehensive protection.

• Financial Stability for Your Relatives

In the event of your absence, a Rs. 2 crore insurance payout offers crucial financial stability for your family, covering daily expenses, debts, and long-term goals. Plus, with a strong claim settlement ratio, you can trust that your family will receive the benefits when they need them most.

• Claim Payout Flexibility

With a ₹2 crore term insurance plan, you can choose how your family receives the payout, as a lump sum, monthly income, or a combination of both. This ensures their financial needs are met in a structured and manageable way during emotionally challenging times. Trusted insurers like HDFC Life offer a claim settlement ratio of over 99.68%^##, ensuring peace of mind and timely support when it matters most.

How to Determine the Right Coverage Amount for the best term insurance plan for 2 Crore?

To determine the right coverage amount, you need to consider certain factors, such as:

• Assess Financial Dependents' Needs

First, you need to calculate the financial requirements of your dependents. For that, you can consider estimating your family’s daily expenses, current lifestyle, and any future financial goals such as marriage or educational expenses.

If you have one child and a spouse to cover, you need around 10-15 times your annual income. If you have more children, the term coverage you need increases; it should be at least 15-20 times your annual income.

• Your Age

The coverage amount also depends on your age. When you are a younger individual, generally, you have fewer liabilities and need to pay a lower premium amount. It helps you to get higher coverage at a lower cost. As you age, your responsibilities increase, and you need a higher coverage amount to meet future expenses. Your premiums also increase due to higher health risks.

• Annual Income

Your current income and expected future income can help to determine your coverage amount. If you follow the thumb rule, your sum assured should be at least 10-15 times your annual income. For instance, if your salary is Rs. 5 lakh per annum, then the coverage should be between Rs. 50 lakh and Rs. Rs. 75 lakh.

• Adjust for Inflation

Inflation reduces your purchasing power over time. So, it is necessary to determine the coverage amount by including the inflation rate to get a realistic value. This ensures that your family members are able to pay for their expenses in your absence despite rising prices.

• Factor in Future Responsibilities 

Think beyond immediate needs and consider your long-term responsibilities. Will you be funding your child’s higher education or marriage? What about your spouse’s retirement or maintaining your family’s current lifestyle in your absence? 

If these goals are part of your life plan, opting for a higher sum assured like ₹2 crore makes more sense than settling for a lower cover. It ensures your family stays financially secure through all major milestones.

• Include a Buffer For Emergencies

Additionally, you should include a buffer for emergencies such as sudden medical emergencies,  sudden financial needs or any other additional costs. Thus, you can add another safety layer for your family in your absence.

• Consider Existing Investments and Assets

If you have any existing assets and investments, they can also fulfil the future needs of your family. So, you can subtract this value from the total coverage amount you need. You can consider your savings accounts, mutual funds, shares, etc., as your emergency fund.

• Ensure Premium Affordability

Though the calculation of the right coverage amount is essential, the premium amount should also be affordable. You can use our online premium calculator tool to get an estimated idea of coverage for different premium amounts. This will help you balance protection and affordability.

Calculator for 2 Crore Term Insurance

HDFC Life’s term insurance calculator is user-friendly and straightforward, allowing you to get a real-time premium quote within just a few clicks.

Here is how it works: 

1. Fill in personal details such as age, income, gender and lifestyle habits.

2. Specify the preferred coverage amount (2 crore in this context) along with the policy term.

3. Instantly receive a premium estimation of monthly, quarterly and yearly investments.

4. Add optional riders if required, such as a critical illness or premium waiver rider. 

Suppose you are a small business owner with liabilities to pay suppliers and retailers. And you are wondering how a 2 crore term insurance plan will provide peace of mind so you can fully focus on your business. 

Knowing how to calculate your premium will help you determine how much you need to invest monthly or annually to secure your family’s future. So, they do not have to worry about paying off business debts in your absence, and you can fully focus on growing your business. 

Is ₹2 Crore Term Insurance the Right Choice for You?

There is a saying by Warren Buffett, “Someone’s sitting in the shade today because someone planted a tree long ago”. This is the central idea behind getting a term insurance of 2 crore.

To understand whether a 2cr term insurance works for you or not, consider these:

• Coverage That Matches Your Needs

Usually, in India, to comfortably live in a metro city and have a comfortable life, ₹2 crore is enough. Still, it is wise to choose coverage that aligns with your personal needs. Based on the location, family size, regular expenses and plans, it can be said whether the sum insured of  ₹2 crore is enough or not. 

• Add-on Riders to Strengthen Your Protection

Incorporating add-ons to your 2 crore term plan enables you to strengthen your protection with another layer of security. Here are some popular riders that we offer: 

1. Terminal Illness Rider

This rider allows policyholders to receive an advanced payout in case they are diagnosed with a terminal illness. For people with a family history of terminal illnesses, this rider is a perfect choice. 

2. Income Benefit Rider

It protects the family if the regular family income stops because of the policyholder’s demise. The rider is beneficial for the sole breadwinners of the family. 

3. Critical Illness Benefit

In case a policyholder gets diagnosed with a critical illness, such as heart disease or cancer, they can ask for a lump sum payout. They can use the amount for treatment purposes. 

4. Waiver of Premium

Even if you are unable to pay the premium, owning this rider will ensure that the coverage does not stop. This kind of scenario can occur due to accidental disability or ongoing illness.

NOTE: Rider can be availed with base product on payment of additional premium

• Fixed Premiums for the Entire Policy Duration

When you are getting a term plan from HDFC Life, you have the option to lock in the premium amount throughout the entire policy duration. For example, if you start your policy at the age of 25 with a premium amount of ₹1000, the amount will remain the same.

Who Should Buy a 2 Crore Term Insurance Plan?

A ₹2 crore term insurance plan is ideal for individuals who have significant financial responsibilities, future life goals, or dependents relying on their income. If you fall into any of the following categories, this cover can provide peace of mind and long-term protection for your family.

A well-chosen term insurance plan like ₹2 crore not only offers financial security but also helps you plan confidently for your family's future.

Explore ₹2 crore term plans from HDFC Life with flexible payouts, riders, and return of premium options.

Factors to be Considered Before Buying Best Term Insurance Plan for 2 Crore

Most policy buyers find it a Herculean task when it comes to choosing a relevant policy. However, since the 2 crore sum amount seems like it can help to align properly with the inflation rate, while choosing it, policyholders do not struggle that much.

Here is a checklist that you can follow at the time of purchase: 

1. Check Coverage Amount

• Estimate the monthly expenses of the dependents and multiply them by 150. This 150 represents the inflation factor of the future. 

• Include all the future liabilities, such as home loans, personal loans, and credit card bills.  

• Subtract the liquid assets such as FDs, mutual funds, stocks and so on.

• Take the potential future expenses into consideration.

• Add the retirement corpus too. 

2. Policy Tenure

Once you have finalised the coverage amount, it is time for you to choose the term period. If you are choosing to invest at an early age, it is always recommended to opt for a longer tenure. 

However, if you are starting your term plan in your 40s, it is wiser to choose a shorter tenure. This is because the premium will be higher. 

3. Premium Affordability

The premium affordability depends on your current income, expenses and savings discipline. If you are a disciplined saver, affording a premium of say, ₹1,000 is not a big deal. 

4. Claim Settlement Ratio

In 2025, the individual claim settlement ratio of HDFC Life is at 99.68%##. This is an indication that there is trustworthiness between the company and its customers.

5. Riders

Choose riders that you think are suitable for your condition. For example, if you are the sole breadwinner of the family, choosing the income benefit rider will be beneficial. 

6. Purchase Requirements

Arrange all the necessary documents, such as:

• Personal ID, 

• Address proof

• PAN card

• Income proof

• Medical reports 

• Passport-size photographs

7. Policy Exclusions

Under such conditions, if a policyholder dies, it will be considered a policy exclusion: 

• A preexisting health condition that was not disclosed before. 

• Participation in adventurous activities.

• Death due to pregnancy if it was not disclosed earlier.

• Excessive consumption of alcohol or drugs.

• Suicide within the first year

8. Claims Process

There are two ways to make a claim, online and offline.

• Online Claim Process:

1. Verify the term insurance 2 crore information 

2. Submit the necessary documents such as identification proof, medical certificates, 

3. Provide nominee details 

• Offline Claim Process:

1. Download & fill up claim form

2. Collect necessary documents

3. Submit the form and documents. 

9. Flexibility for Upgrading or Modifying the Plan

HDFC Life 2 crore term insurance offers flexibility so that the policyholders can upgrade or modify their cover in specific life stages, such as:

• Salary hikes

• Marriage

• Childbirth 

 10. Confirm Tax Benefits

Understanding the tax benefits is also a significant factor: 

• Under Section 80C of the Income Tax Act 19611, the coverage cost of a term insurance for a financial year is eligible for tax deduction.

• As per Section 10D1, the payout amount received by the nominee after the policyholder’s death is completely tax-exempt. 

Best Term Insurance Plan for 2 Crore offered by HDFC Life

These are the best term insurance plans offered by HDFC Life for 2 Crore in India 2025:

How to Choose the Best Term Insurance Plan for 2 crore?

When looking for the best term insurance plan in India with a Rs. 2 crore cover, 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. For example there are different types of term insurance and one such type is the term insurance with return of premium availed with the TROP rider.

• Age

  Age is the key factor that decides how affordable your premium will be. Investing in a term plan early in life will considerably reduce the premium as you are less likely to fall ill and your life expectancy is higher. If you plan to buy a term insurance plan later in life it will be costlier.

• Financial Dependent

  Your life stage and the number of financial dependents are the yardsticks for choosing the right policy. If you are the sole earning member, then your family may depend on you for an extended period to fulfil their requirements.

When should I buy the best term insurance plan for 2 crore?

Are you someone who thinks you need to wait until you are 40 to get term insurance? Then, it is a myth. 

The best time to buy a term plan is early, during your 20s or early 30s, since if you get one at this age, the premiums will be lower. Furthermore, you will get the following benefits: 

• Locked-in Costs: Even though your health condition keeps changing, the premium remains the same. 

• Higher Eligibility: Since the chances of medical issues are lower, getting approval for a higher sum insured amount is possible. 

• Early Saving Habit Formation: It promotes a healthy saving habit for the long run. 

Here’s a quick guide to understand when it’s ideal to opt for a ₹2 crore plan:

How to Buy 2 Crore Term Insurance Online?

Purchasing a 2 crore life insurance policy with HDFC Life is super easy. Our user-friendly interface of the website makes the buying journey quick, fast and completely transparent. Follow these steps: 

Step 1: Visit the 2 crore term insurance page on HDFC Life

Step 2: Click on “GET A FREE QUOTE”

Step 3: Fill in your details such as full name, date of birth, gender, tobacco consumption, mobile number and email ID

Step 4: Click on ‘Calculate Premium’ and check the premium amount you need to pay for a 2 crore term plan

Step 5:  Select riders or add-ons such as income benefits on accidental disabilities, premium waiver, critical illnesses and accidental death and check the final price

Step 6: Fill in the necessary details, upload the required documents and proceed to the payment portal 

Step 7: As soon as the payment is complete, you will receive an email with your policy documents. 

The whole buying process is seamless, and the encrypted payment portal ensures that your bank account details will be safe. There are no additional charges, so you do not have to worry about anything.

When you are investing in a 2 crore term insurance plan, besides protecting yourself, you are making your family independent. So, even in your absence, they will be able to maintain their lifestyle without being overburdened with debts and other financial crises. 

With HDFC Life’s term plan, you can have peace of mind knowing that you have protected your family with a powerful shield that is sturdy and sustainable.  

FAQ’s on 2 Crore Term Insurance

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

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?

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?

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.

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

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

Q. What is the minimum salary for 2 crore term insurance?

Those earning approximately 10-15 lakhs per annum can think about opting for a 2 crore term insurance. However, you must also check your insurance provider's term insurance eligibility criteria. It is important that the sum assured aligns with your human life value (HLV) and financial profile.

Q: Is 2 crore term insurance worth it?

Yes. A term insurance of Rs. 2 crore is worth it if you want to provide sufficient financial security to your family when you are not there. To find the correct sum assured amount, you have to consider your current monthly expenses, future goals, debts and liabilities, etc. 

Q: How to Calculate Term Insurance Premium?

The term insurance premium calculation depends on factors such as the insured sum amount, total plan tenure, lifestyle habits of the policyholder (smoking or drinking) and family medical history. You can try using a premium calculator available on the HDFC Life website to get the accurate premium amount.

Q: What Factors Impact 2 Crore Term Insurance Premiums?

Factors such as the age of the policyholder, choices of add-on riders, family medical history, and lifestyle habits impact the 2 crore term insurance premiums. For example, if a policyholder starts to invest in a term insurance plan in his 20s, the premium will be lower.

Q: Will the Payouts for the Term Insurance Plan for 2 Crore be Taxed?

No, according to Section 10(10D) of the Income Tax Act 19611, the payout on death of the 2 crore term insurance plan is tax-free. However, it is crucial to keep in mind that the annual premium payable amount should not exceed 10% of the sum insured amount throughout the policy term.

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