Life is full of uncertainties, and while we can’t predict the future, we can certainly prepare for it. A ₹1 crore term cover may sound like a lot, but it’s an essential safety net for your family’s financial future. In today’s world, where expenses are on the rise, having adequate coverage ensures that your loved ones are protected no matter what happens.
Let’s explain why a ₹1 crore cover might be the smartest financial decision you can make.
Why is ₹1 crore the Sweet Spot for Coverage?
As per a Forbes article, the average base pay for an Indian individual can be around 10 Lakhs per year. Since, by a general thumb rule, you should buy a term insurance of covers at least 10 to 20 times your current annual income. This means:
10,00,000 (10 Lakhs) x 10 = 1,00,00,000 (1 Crore)
This amount would provide the ideal coverage for your family in your absence and help them take care of their financial obligations like paying off remaining loans, child’s education, future inflation, and more. It’s not just about covering expenses—it’s about giving your family the financial freedom to live comfortably in your absence.
Fighting Inflation: Future-Proof Your Family’s Financial Needs
With inflation in India averaging around 5.49% in 2023, the cost of living will only go up. What seems like enough coverage today might not be enough a decade from now. A ₹1 crore term insurance policy gives you that much-needed buffer to ensure your family’s lifestyle isn’t compromised by inflation. After all, the price of everything—education, healthcare, and everyday expenses—keeps rising, and your insurance should keep up.
How Will a 1 Crore Cover Help in Real Life?
Here’s a scenario: imagine you have a home loan or a car loan, and you’re also saving for your children’s education. If something happens to you, how will these expenses be managed? According to a 2023 report, household debt in India reached 38% of GDP, and Medical emergencies can cost as much as ₹20 lakh to ₹50 lakh.
A term insurance benefit payout can help your family:
- Take care of monthly expenses
- Pay for the child’s education
- Deal with medical emergencies
- Pay off the remaining loans
- Overcome potential inflation
A ₹1 crore term insurance ensures these burdens don’t fall on your family’s shoulders.
Is 1 Crore Term Insurance Affordable? Absolutely!
Many people assume that such a large cover will come with sky-high premiums. But that’s not the case! A ₹1 crore plan is quite affordable, especially if you buy it at a younger age. For instance, a 30-year-old non-smoker can get a ₹1 crore term policy for as low as ₹1,000 per month or even lower, depending on the policy term. And the best part? You can easily compare term insurance plans on platforms like Policybazaar to find the perfect fit for your budget.
Making the Right Choice for Your Loved Ones
When choosing a term plan, you’re not just buying a policy—you’re committing to protect your family’s future. A ₹1 crore plan means your family won’t have to worry about debts, loans, or major expenses like healthcare and education if you’re not around. It’s a small price to pay for peace of mind.
A Plan That Fits Your Changing Life
Your financial needs change over time—whether it’s getting married, buying a home, or welcoming a child. A ₹1 crore term insurance plan offers flexibility to adapt to these life milestones. Many insurers offer policies that allow you to increase coverage at key stages of your life, ensuring your family is always well-protected, no matter how your responsibilities evolve.
Riders for Enhanced Coverage
A ₹1 crore term insurance can be customized with riders to provide enhanced protection. Riders like critical illness cover, accidental death benefits, or a waiver of premium in case of disability ensure that your family receives comprehensive financial security. Such add-ons ensure that your family has the financial backup they need in unexpected situations.
Tax Benefits: A Bonus for Your Financial Planning
In addition to providing robust coverage, a ₹1 crore term insurance plan also offers tax benefits under Section 80C of the Income Tax Act. While tax savings should not be the primary reason to buy insurance, it’s certainly a helpful advantage that adds to the overall value of your plan.
How to Buy a ₹1 crore Plan Hassle-Free?
How do I choose the right term insurance? Start by comparing different policies online on platforms like Policybazaar. These platforms offer easy-to-use tools that compare premiums, coverage, and additional benefits, making the process simple and transparent. Plus, with personalized advice and support, you can select a plan that perfectly suits your financial needs.
Final Thoughts: A ₹1 crore Term Plan is the Smart Move
Ultimately, a ₹1 crore term insurance plan is the foundation of a sound financial strategy. By providing substantial coverage at an affordable cost, your family can confidently navigate future uncertainties. Take a proactive step today by exploring your options on Policybazaar and choosing the coverage that guarantees your family’s financial freedom, even when you’re not around.
