One of the best gifts you can give your loved ones is the gift of financial protection. You provide them with the best of everything, but have you thought about what will happen to them if you suddenly die? With the stop of your income, how can they lead a comfortable life? To ensure they never face any hardships and always get to lead the life you envisioned for them, invest in a good life insurance policy, such as an INR 1 crore term insurance policy. This large cover will give them all the comfort and protection they need and make them financially secure after you are gone. Read on to know how to buy such a plan.
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Reasons to buy an INR 1 crore term insurance policy early on in life
You have to buy term insurance today or tomorrow. It is one of the biggest requirements of modern life. So, it becomes wise to make the purchase when you are younger, preferably in your 20s or early 30s. Here are some reasons why:
1. You are fit
You are young and fit in your 20s and early 30s. This allows you to get term insurance easily. You can get large covers, like an INR 2 crore term insurance policy, quite easily, without going through health screenings. You can instantly buy the plan online. As you age, many health problems begin to show up, and then it becomes difficult to get the coverage you want, so get it now and stay covered for a long time.
2. You have fewer responsibilities
As a youngster in your 20s or 30s, you may have fewer responsibilities. You may not be married yet, so you do not have a family to provide for. This gives you more financial freedom to invest in substantial coverage, such as an INR 1 crore term insurance policy. Opt for a limited premium payment term, so that you are done with the premiums before your large responsibilities begin. This would be a very wise thing to do.
Choosing the correct term plan
When choosing a large cover, such as an INR 1 crore term insurance policy, keep the following tips in mind:
1. Assess your needs
If you have decided to get large life insurance coverage, like an INR 1 crore term insurance policy, you need to assess your needs. Maybe you will need a different coverage amount, like an INR 2 crore term insurance policy. For this, check your loan liability, assess your future financial goals (such as buying a house for your family, etc), and also see what other types of insurance plans you already have in your portfolio. Also, explore the add-on covers and get the suitable ones to customise your coverage.
2. Make a budget
You need to be aware of your financial health before you get an INR 1 crore term insurance policy. You will have to pay the premiums on time, so they must be affordable to you. Choose a proper premium payment term that you can easily manage, as that will allow you to maintain a large coverage, such as an INR 1 or 2 crore term insurance policy easy to maintain.
3. Choose the payout option carefully
Term insurance has different forms of payout options. You need to select the payout carefully. After your death, your nominees can receive the INR 1 crore term insurance death benefit in one go, or over several instalments. Choose the correct option, based on the needs of your family. If you have young kids, opt for the staggered payout so that they have a regular source of income. If you want your term insurance proceeds to clear a large loan so that your parents do not get burdened by it after you are gone, opt for a lump sum payout.
4. Check the reliability of the insurer
An INR 1 crore term insurance policy is an investment, so you need to be careful about the insurer you get the plan from. Choose a trusted life insurance company that has a healthy claim settlement ratio. Also, ensure they have an easy claim process and a good customer support system. These factors will help your family to get the sum assured after your demise smoothly and easily.
The final word
Term insurance is one of the best forms of life insurance, as you get a large coverage, such as an INR 1 crore term insurance policy for a cheap price. This allows you to keep your family safe and also allows you to meet many of your financial goals. Keep all the points mentioned above in mind and choose a good coverage, like an INR 2 crore term insurance policy, if required.
