In recent years, a larger number of Indians have been looking for low-cost ways of ensuring their family’s future. This is where term insurance comes. You may have seen ads of 1 crore term insurance at very low premiums. It’s a great offer, low cost, high life cover. However, it’s essential to know how these plans actually work and what they really provide.
What is Term Insurance?
It’s a life insurance that provides financial security to your family when something happens to your life during the policy term. In case the policyholder dies within this period, the nominee gets the entire sum assured. The affordability is what makes it so popular. It provides you with a huge life cover at a significantly reduced premium as compared to the other insurance plans.
Is ₹1 Crore Term Insurance Really Affordable?
The concept of 1 crore term insurance at a premium of only 500-1000 rupees a month is almost unbelievable. However, in most cases, it is possible. The reason is that term plans only offer life cover. They don’t offer savings or investment advantages like some traditional policies, that’s why premiums are low.
But the real price of a plan is based on many factors such as:
- Age: The younger you are, the better the premium.
- Health: If you’re healthy and don’t smoke, then the premiums are cheaper.
- Policy Term: Longer terms can be more expensive.
- Add-ons: Riders such as accidental death or critical illness increase the price.
However, while 1 crore term insurance is affordable to many, your premium depends on your profile.
What to Check Before Buying
Yes, it is nice to promise high coverage and low premiums. However, here is what you should be careful about to ensure that the plan is actually beneficial to you:
- Claim Settlement Ratio: Select a company whose record in settling claims is good.
- Hidden Charges or Exclusions: Always read the policy terms carefully.
- Riders: Do not add riders blindly, add only those you really need.
- Premium Payment Flexibility: See if the plan offers monthly, quarterly, or annual payment options.
Keep in mind that term insurance is not a universal product. What is good for your friend may not be good for you.
Is It Worth It?
Definitely, term insurance is a good option when you want to protect your family’s future within your budget. It provides relief that your family will not face any financial crisis when you’re not around.
Therefore, you should always compare various 1 crore term insurance plans, look at what is covered and how the claim process works before making a decision.
Conclusion
The concept of 1 crore term insurance at a low premium is not a myth. It is quite feasible and in many cases the most cost-effective way to safeguard your family. However, do not judge by the price. Consider your needs, the insurer’s reputation, and the policy terms.
It’s a world of uncertainties. But term insurance will provide something that’s most important, peace of mind and not at a huge cost.