Several people often disregard term insurance because of their lack of return on premium and low death benefits. You might also think so and prefer buying a regular life insurance policy to get extra maturity and death benefits. But what if there was a way to combine the high death returns of life insurance with the lower premium investment of term insurance? Well, there is a way to do so. It is by investing in the best term insurance plan for 1 crore mortality benefits. Read more about the 1 crore term plan, features, and tips for purchasing the best one.
Features Of the Best Term Insurance Plan For 1 Crore
As of FY 2017-18, more than 33 crore life insurance was active. So a rough interpretation should indicate that more than 90 crores of the population don’t have a life insurance policy. The most common reason everyone gives for not having life insurance is lack of funds. That is why term insurance plays an important role in enriching people’s lives through limited investment. The investment required in term insurance is much less. Sometimes in nationalized term plans, the premiums can be lower than even a couple of thousand Indian rupees annually.
With several insurance companies introducing and marketing new term plans, their features also increased. One such great feature among them is the 1 crore term plan. Apart from the high mortality benefits, the main attraction for this plan is the help that such a huge amount can provide to a family or dependent. Other great features which the best term insurance plan for 1 crore can provide are:
- Assured returns on claims within policy terms
- Extra covers
- Rider benefits
- Tax savings
- Multiple nomination facility
- Easy renewal and revival
5 Tips to Find the Perfect 1 Crore Term Plan
Make Compromises with A Higher Premium
Due to the higher premium, people often let go of these 1 crore plans. The main reason for reluctance is the no moneyback policy in term plans. And they think, why waste money on a plan which might or might not be useful. But considering the high tax savings of up to INR 1,50,000 per annum, these extra premium rates won’t be much burdensome. Also, a closer look at regular life insurance plans will show that the term plan has a lower premium for plans with a similar death benefit.
Compare All 1 Crore Term Plans
The best method to ensure that the selected 1 crore term insurance is the best is to compare it with all the available 1 crore plans in the market. Usually, all major insurers will only have one pre-designed 1 crore plan. So it will make the task of comparison easier. The comparison should mainly be based on premium, payment frequency, death benefit amount, critical illness covers, rider covers, and term duration.
Prefer Long Duration Plans
Long term insurance will always have more benefits than any other similar insurance with relatively short terms. This is due to the high total premium amount the insurers get from the life insured. Long duration plan will also increase the tax savings over the years that the policy remains active.
Mitigate Claim Rejection Risks of Such A Huge Amount
Another method to ensure selecting the best term insurance plan for 1 crore is to mitigate all the risks in the selected plan. Mostly these risks refer to the claim rejection due to various problems. A policyholder can make their plan perfect by avoiding these risk elements. Some common factors of claim rejection are false personal details, unclaimable situations, involvement in illegal activities, and void insurance accounts. The policyholder must mitigate these common problems to avoid rejecting such an expensive insurance policy.
Consider Reviews from Existing Customers
Reviewing existing customers is one of the best methods to select the best term insurance plan for 1 crore. This is because most selection methods refer to what the plan offers before the purchase. And no one describes what the policyholders face after purchasing the 1 crore term plan. By taking their reviews, a potential buyer can receive first-hand experience reviews. They get to know the customer support, ease of payments, policy management, claim procedures, the chances of claim approval, and the common mistakes made by policyholders.
Conclusion These tips will come in handy while purchasing the best term insurance plan for 1 crore. A 1 crore term plan will ensure the family or dependent won’t have to rely on any other source for income. And it will provide emotional support to the family by having funds in such hard times.