Each of us wants to keep our loved ones emotionally and financially safe. But, what will happen in your absence? Then choosing the INR 2 Crore term insurance plan can be a smart move a few years later.
It may be time to begin looking for the best 2 crore term insurance plan if you are starting to invest in the stability and security of your family's finances. To know more, let us read about it!
What is 2 Crore Term Insurance?
Like any other standard term insurance plan, the 2 crore insurance plan serves a similar purpose: providing the beneficiary financial assistance in case of the policyholder's untimely demise. But, the main difference is the sum assured here will be 2 crores, unlike 1 crore, 50 lakhs, etc.
A good term insurance policy protects the insured's life while providing financial stability to the family. So, if the insured dies unexpectedly during the policy's term, the family is financially protected. And, with the cost of living rising by the day, it is critical to consider an INR 2 Crore term plan to plan for your family's long-term financial stability.
What are the Benefits of Term Insurance?
Term insurance is essential for everyone and cannot be overlooked in today's world. Our primary aim is financial stability and family happiness, and term insurance helps us achieve both. Now that you understand its significance in life, here are some of India's other advantages of term insurance plans.
- Long-Term Coverage: Term insurance covers the insured for the rest of their life.
- Multiple Premium Payment Modes: Premium payment options for term life insurance include regular, single, and limited pay.
- Critical Illness Cover: Term insurance protects against critical illnesses. A term life insurance policy pays out a lump sum if the insured is diagnosed with a severe disease for the first time.
- Tax Benefits: You are entitled to a tax deduction for term plan premiums up to INR 1.5 lakh under Section 80C of the Income Tax Act (ITA), 1961. Furthermore, if you are in the 30% tax band, the term plan might help you save up to INR 46,800. Your beneficiary's death benefits are tax-free under Section 10(10D) of the Income Tax Act.
- Add-on Riders: You can enhance your essential term insurance coverage benefits by choosing optional add-on riders by paying a certain premium. Some familiar add-on riders include accidental disability riders, accidental death benefits, waiver of premium, etc.
How Does 2 Crore Term Insurance Plan Work?
Term plans are the purest form of life insurance plan. But, it is crucial to understand how does 2 crore term plan works. So, let us have a look:
- A term insurance online is a type of life insurance policy that offers coverage for a certain period of time.
- Depending on your selection, you must pay a fixed premium monthly, quarterly, half-yearly, or annually to enjoy the advantages of the 2-year term plan. On the other hand, the premium amount for 2 crore term insurance is determined by several traits, including your age, gender, yearly income, and smoking habits.
- While the premium amount remains constant during the policy duration, your term insurance policy may expire if you fail to pay the payment.
- If the insured person outlives the term plan, the policy will expire unless you add a survival or maturity benefit rider.
So, it is ideal to have the best term insurance plan to secure the future of the loved ones, as it is an economic investment that will ensure peace of mind.
How to Select the Right Coverage Sum?
Many policy purchasers prefer a 2 crore term insurance plan since it serves as a safety net for their family's future financial needs. But, how do you select the right coverage sum? Take a look at the factors that you need to consider.
- Age: Since older individuals are more susceptible to sicknesses and health concerns, term insurance premiums are higher, so it is recommended to purchase term insurance for 2 crores at a younger age.
- Your Annual Income: Your yearly income is critical in establishing the proper life insurance amount. Since it affects your overall way of living, financial planning, and capacity to pay premiums, getting a life insurance policy appropriate for your annual income is prudent.
- Financial Dependents: Examine your parents, children's, or dependant spouse's financial expectations and requirements before acquiring a term insurance policy. But, having a 2 crore term insurance plan may be sufficient to guarantee your family has a safety net to meet their financial obligations.
- Existing Liabilities: When purchasing a 2 crore life insurance policy, it is critical to consider any existing liabilities. Whether it is an education loan, house, or vehicle loan, verifying that your term insurance plan will cover all such liabilities is critical. As a result, buying the best 2 crore term insurance plan is a wise decision.
Term Insurance Plan Buying Process
A term insurance online policy can be purchased on the insurance company's official website and "RenewBuy.com." Below mentioned are both the buying process of term insurance plans:
Buy from the official website of the insurance company
- Visit the insurance company’s official website and click on the “Term Insurance” tab.
- Select the desired plan.
- Fill in all the required information such as name, mobile number, annual income, occupation, etc.
- Click on the “Buy Now” button.
- Make payment.
- The insurance company will send the policy documents to your email address.
Question: - Can I buy two different term insurance policies?
Answer: - Yes, you can buy two different term insurance plans as there is no limit to buying term life insurance.
Question: - What are the eligibility criteria to buy a 2 crore term insurance plan?
Answer: - Your 2 crore term insurance plan has a minimum entrance age of 18 and a maximum entry age of 65.
Question: - What happens if I die young under a 2 crore-term insurance plan?
Answer: - After the insurance term, a policyholder who has chosen a maturity or survivor benefit will get all or a portion of their premiums returned. In other circumstances, the term insurance plan for 2 crores would be cancelled.
Question: - What is the best age to buy a term insurance plan?
Answer: - While there is no correct or incorrect age, you should consider acquiring the best 2 crore term plan at a younger age. It will guarantee that you get long-term coverage at an affordable price.
Question: - Are there any riders available under the 2 crore term plan?
Answer: - Riders with 2 Crore term insurance include critical sickness and disability rider, accident cover, waiver of premium rider etc.