5 Things to Know Before Buying a 1 Crore Term Insurance Plan In India

A 1 crore term insurance plan has become quite common among customers because it offers a good amount of coverage to their dependents. Death is inevitable, but since we buy a term plan for the future, buying a high coverage term plan can ensure that the future financial needs are met. 

Since the coverage amount is high, the premiums of a 1 crore term plan are also on the costlier side. We advise you to estimate your coverage thoroughly before buying a costly plan so that you can be adequately insured. If you plan to buy a 1 crore term plan, we have listed a few things that you should consider for bagging the best one for yourself. 

With these tried-and-tested hacks, you can easily find the best term insurance with 1 crore life coverage for yourself. 

5 Things to Know Before Buying a 1 Crore Term Insurance Plan

  1.  Calculate the Suitable Cover

People always tend to buy a life cover mindlessly rather than estimating the exact coverage amount they need. However, you must calculate the suitable cover for not being over insured or underinsured. 

To decide the right sum assured amount you need, you must estimate aspects such as:

  1. Financial responsibilities
  2. Family’s future financial requirements
  3. Household and basic lifestyle expenses
  4. Any outstanding liabilities and loans
  5. The cost of inflation

Adequate life cover is a key to caring for your family’s needs in your absence. Remember that cover may not depend on the policyholder’s current income source; it depends on the family’s future goals that you’ve decided for them. You can even use the PolicyX human life value calculator to calculate the adequate sum assured for yourself.

2.  Determine the Policy Tenure

Once you have an idea about your adequate cover, it is essential to understand what age you need it. Here, we’ve listed some life factors to help you determine the suitable policy tenure:

  • Based on your age

You can easily determine your plan tenure as per your current age and responsibilities. However, it would be best to opt for a term plan early in life because the premium will be cheaper, remain fixed, and get more extended protection that too with lower premiums. 

  •  Based on your Retirement

When you’re already holding a retirement plan, you can avail of a policy tenure until retirement. Typically, the retirement age is around 60-65 years for most people. It’ll give you peace of mind that your family gets protected during working years. However, if you don’t opt for a retirement plan, it would be best to take a term insurance cover for the maximum period.

  • Based on Financial Responsibilities

Everyone has different financial responsibilities at various stages of life. You can determine the suitable policy term based on your financial commitments and their due tenure.

For instance, Varun held a home loan for 30 years, so taking a life cover for at least 30 years would be best to protect the family from any financial burden.

3.  Select the Right Insurer

Finding the right insurer is as important as other factors. It is mandatory to check a few aspects of insurance providers to determine their credibility, such as solvency ratio, claim settlement ratio, customer reviews, and market reputation. 

  • Claim Settlement Ratio

Term Insurance claim settlement ratio is an important metric to determine the insurer’s credibility and reliability. It is the sum of the total number of claims settled from the total received in a financial year. However, a claim settlement ratio of 95% or above is considered good.

  • Solvency Ratio

A solvency ratio is another important metric used to check an insurer’s ability to fulfill long-term liabilities. To put it simply, it is a measurement of an insurer’s financial health. As per the IRDAI, a 1.5% or above solvency ratio is considered good.

  • Read Customer Reviews

It is also essential to research an insurer’s financial background and read customer reviews before making final decisions. However, reading reviews provides valuable insights into the policy’s quality and other policyholders’ experience.

  • Market reputation

Do your research to check insurers’ customer reputation. Look for company reviews or their market reputation from reputable sources such as the PolicyX website. Through the PolicyX website, you can check unbiased customer experience, the number of customer complaints and the grievance ratio.

4.  Choose your Add-ons Wisely

Term insurance is a pure protection plan that covers the untimely death of a policyholder. However, you can increase your base sum assured amount with optional in-built riders in exchange for extra premiums. Based on your rider, you can get additional protection against specific conditions. 

A few of them include critical illness rider, waiver of premium, accidental death & disability rider, terminal illness rider, income benefit rider, etc. It is essential to select the add-riders and get additional security. Further, these optional riders can be opted for at the purchase or renewal of the base policy.

5.  Find Suitable Premium Paying Term

Keeping individuals’ various financial responsibilities, instability and risk appetite in mind, insurers have developed different types of premium paying options that allow you to pay premiums in a manner best suited to your needs. 

The insurers offer policyholders different premium payment options such as, monthly, quarterly, half-yearly, or annually, or they can pay the entire premium once in a lump sum. However, the premium amount of your plan may also depend on the premium payout option you select.

How PolicyX Can Help You?

PolicyX is India’s well-known insurance aggregator. They’re known for providing expert guidance in selecting health and life insurance plans from top insurance companies in India. The insurance experts are always keen to solve customer queries around the clock. 

Since its establishment, PolicyX has been rewarded with several awards and accolades. It is the most trusted online portal for buying term insurance plans online. Their services, like term insurance products from verified brands, genuine advice, dedicated claims support & guidance, the same price as directly from brands and free look cancellation benefits, set them apart from their competitors.

Conclusion 

If you plan to buy a 1 Crore term insurance plan, check out the factors mentioned above before making a final decision. Determine your sum assured amount through the PolicyX human life value calculator instead of opting for any coverage amount. For further assistance, you can visit the PolicyX website and get personal guidance from experts. 

Leave a Comment