With increasing life spans, people are keen on extending their existence to the maximum possible. However, they tend to lose focus on the uncertainties that surround us every day. Every one of us is susceptible to several unforeseen eventualities like accidents and illnesses, which is why it is necessary to have a cover in place that can help you support your family.
One-crore term insurance coverage is surely overkilling for most of the term insurance seekers. But what if you have a large family, or have plans to build a house in the future? What if one of your family members has dependents, such as an elderly parent who lives alone? There are many instances when a crore cover would be ideal for your requirements.
Before signing up for your term insurance plan, it is important to be well versed with the benefits associated with such policies. Hence, read on as we are going to tell you the top benefits of a 1 crore term insurance cover.
What is 1 Crore Term Insurance?
1 crore Term Life Insurance is a term plan that assures financial support in case of the death of the policyholder. An assured death benefit of Rs. 1 crore will be paid to the immediate family assigned by the policyholder. A high sum assured gives you coverage on your dependents so that if something were to happen to you, they would be provided with enough liquidity to cover funeral expenses and also take care of their needs.
Benefits of 1 Crore Term Plan
- Maintaining Living Standards
Your family must be able to live according to a set of standards that must specify what your children will seek in the form of education and how they will uphold the family’s reputation, such as with plans for attending Ivy League colleges or studying abroad for example. Not just this but it’s important that your parents feel free to have their interests and goals fulfilled through embarking on international cruises, taking trips to pursue potential business ventures, or volunteering at schools or community centres for instance.
But in case of death, your loved ones could potentially be left disappointed or even unable to pursue their own dreams as they have to accumulate wealth and make sure that they are secure to be able to go ahead with their plans. This can prove costly in more ways than one. First off, the inflation rate in India is constantly on the rise and you might find it difficult for your family to manage if you suddenly die unexpectedly. A 1 Crore Term insurance helps keep a steady income flowing into their pockets no matter what so the money isn’t lost because of unexpected circumstances.
- Multiple Payout Options
Your family can choose an option for a partial pay-out until they can get back on their feet. Afterwards, the rest of your policy can be converted into a lump sum of money which you can split between your loved ones. This kind of option is something that’s up to you and how much help you want to provide immediately while still allowing your family members to help out as well in the future.
- Additional Coverage for Family
Some term plans can be combined with an incorporated family policy. To include someone from your family as well, you may need to pay additional premiums – but this will come back in the form of a bigger insurance payout overall.
- Low Premium Rates
If one is young and entering into their early 20s or mid-30s, they can find premium rates affordable by buying online instead of with an agent in a traditional offline setting. Though this may cost higher than average, the venture can prove worthwhile if one considers all of the time saved by getting work done independently, in comparison to having to enrol previously.
- Additional Riders Availability
Riders are extras that can be added to a term plan of life insurance and they serve the purpose of enhancing your coverage. There are several rider benefits like critical illness, accidental death, permanent disability, and many such that you can choose to receive regular or lump-sum pay-outs. By contributing additional money to your life insurance policy, you can rest easy knowing that there’s some financial support in place for you in the event of an unfortunate situation.
- Debt Repayment
We all have emergencies that crop up every so often and although we try to be economical at times, these problems force us to take out loans which can eventually snowball into financial mismanagement. You’ll need a reliable policy to enable you to clear the debt. Insurance will help you do this by giving you some breathing space so you don’t have to make difficult decisions regarding your assets. The death benefit may then be used to clear the debt that is left over after the funeral arrangements have been made.
- Financial Peace of Mind
Getting a 1 crore term policy helps you get the peace of mind that your loved ones will be well taken care of if something were to happen to you. While the thought of what would happen to your family in case anything was to occur can be quite upsetting, you should know that if anything fatal happened, a 1 crore insurance policy would help maintain their lifestyle even if things were to take an unfortunate turn for the worse.
The Takeaway
Term insurance is a relatively inexpensive way to secure your family’s financial future in case something unexpected happens. When you factor in the number of people who would have benefitted from having term insurance and didn’t purchase it, it becomes very clear just how important this type of protection is.
