What is ₹ 20 lakh Term Insurance?

Life is unpredictable. We never know what lurks around the next corner. A devastating accident or terminal illness could permanently separate you from your loved ones. A term policy helps you look after your loved ones even when you’re no longer around. The plan provides financial stability when they need it most. Let’s understand when you should purchase a Rs. 20 lakh term insurance policy.

What Is a Rs. 20 Lakh Term Insurance?

A Rs. 20 lakh term policy provides life coverage of Rs. 20 lakhs for the policyholder for a limited time. The beneficiary receives the sum assured payout of Rs. 20 lakhs if anything happens to the policyholder during the plan tenure. The payout should enable your loved ones to pay off debts and maintain their standard of living.

Why Buy Rs. 20 Lakhs Term Insurance?

Selecting the ideal life coverage can seem like a daunting task. None of us knows how much we need tomorrow, but we can use a few calculations to get within the ballpark. People can consider their Human Life Value or HLV, which is the present value of future income expenses, investments and liabilities. Generally, people opt for a life coverage worth ten times their current annual salary. A Rs. 20 lakh plan will be adequate for individuals earning Rs. 2 lakhs per year, or roughly Rs. 16,500 monthly. Additionally, the amount should help your loved ones pay off debts and battle inflation.

How Does a Rs. 20 Lakh Term Plan Work?

Richa purchased a term policy offering a sum assured of Rs. 1 crore for a period of 35 years at the age of 28. After a few years, she got married and had a child. Her financial liabilities increased, and she started to worry that the sum assured would not be enough to safeguard her child’s higher education. At 40, she purchased a plan worth Rs. 20 lakhs for 15 years. At 45, she met with a fatal accident. Her husband received the payout of Rs. 1 crore from her original plan. It helped him replace her lost income and maintain their standard of living. He also received an additional sum of Rs. 20 lakhs from the second policy. He put this money away safely and eventually used it to send their son abroad for his post-graduation.

What Are the Benefits of Rs. 20 Lakhs Term Insurance?

When you purchase a term insurance policy worth Rs. 20 lakhs, you benefit from:

• Affordable premiums
• Premium payment flexibility
• Enhance your plans by choosing the add-ons that best suit your requirements.
• Get tax benefits under the Income Tax Act^*
• Secure your financial future of your loved ones

How to Choose Rs. 20 Lakhs Term Insurance Plan

When looking for a Rs. 20 lakh 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

  Every life insurance company must inform policyholders of their claim settlement ratio. It lets you know how many claims the company settled of all requests received. The higher the ratio, the better.

• Add-ons

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

Frequently Asked Questions

Q: What are the eligibility criteria to purchase a Rs. 20 lakh term plan?

A: To purchase a term plan, you must be between 18 and 65 and be able to show income proof.

Q: What is the premium amount for a term plan offering coverage of Rs. 20 lakhs?

A: Your premium depends on your age, lifestyle, health, income, and policy tenure.

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.

Q: How can I purchase a Rs. 20 lakh term plan?

A: You can purchase a Saral Jeevan Bima policy worth Rs. 20 lakhs directly from our website.

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ARN -ED/04/23/1622