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₹1 crore term insurance is a life cover policy offering financial security to your family by paying ₹1 crore as a death benefit in case of your demise during the policy term. Premiums typically start from ₹500 to ₹1500 per month, depending on age, health, and coverage period.
Did you know that nearly 75% of Indian families lack adequate life insurance coverage? Without proper financial planning, your loved ones may struggle to manage daily expenses, loans, and future goals in your absence.
A ₹1 Crore Term Insurance Plan provides a high life cover at affordable premiums, ensuring financial stability for your family. It helps cover major expenses like home loans, children’s education, and daily costs, making it a smart choice for long-term security.
A ₹1 Crore term insurance plan is a type of life insurance policy that provides a death benefit of ₹1 Crore to the nominee(s) in case of the insured’s demise during the policy term. The best term plan for ₹1 Crore offers financial protection to the insured’s family or dependents by providing a substantial sum assured, which will help them sustain a comfortable living.
Life is full of uncertainties, and securing your family’s financial future should be a top priority. A term insurance plan with ₹1 Crore coverage can provide your loved ones financial stability in the face of unfortunate events. It is an essential tool for anyone who has dependents or financial obligations.
But why ₹1 Crore specifically? Here is why it makes sense to go for this amount of coverage:
A ₹1 crore term plan provides a safety net that covers major financial obligations such as:
For instance, a family with ₹50 lakh in home loans and ₹20 lakh in children’s education expenses can comfortably meet these needs with a ₹1 crore cover.
One of the biggest advantages of a ₹1 Crore term insurance plan is its affordability. Unlike other types of life insurance, term insurance offers a substantial amount of coverage at a relatively low cost. Especially if you are young and healthy, the premiums for such plans are surprisingly affordable. For example, for a young professional, the monthly premium for a ₹1 Crore cover can be as low as ₹500-700, depending on the insurer and the individual’s health conditions.
Inflation reduces the value of money over time, increasing the cost of living and future expenses. A ₹1 crore cover ensures that your family can meet their financial needs even as costs rise. For example, what seems like a sufficient amount today may fall short in the future, making a higher coverage critical for long-term security.
Life goals like buying a home, funding education, or ensuring a comfortable retirement often require large financial commitments. A ₹1 crore term insurance plan guarantees that these goals can still be achieved, even in your absence.
For example:
Enhancing your ₹1 crore term insurance with specialized riders can provide tailored protection for specific risks. Here’s how different riders can benefit you:
The real value of insurance isn’t just in the payout; it is the peace of mind you gain knowing your loved ones are financially protected. You can focus on achieving your life’s goals without worrying about what might happen if you are not around. A term insurance of ₹1 Crore gives you that assurance to live your life confidently.
A ₹1 Crore term life insurance policy offers a significant death benefit of ₹1 Crore to your family in the event of your untimely death during the policy term. This benefit is determined by factors such as your Human Life Value (HLV), which estimates your economic worth over a lifetime. The policy remains active for a specified term, and you pay a fixed premium throughout this period.
For example, if you purchase ₹1 Crore term insurance for a 20-year term, your family will receive ₹1 Crore within those 20 years of your absence. Term insurance premiums can be quite affordable, often starting as low as ₹500 to ₹1,000 per month, making it a cost-effective way to secure your family’s financial future.
One can easily calculate how much term insurance is enough for their family in the future by using a term insurance calculator. Basically, the term insurance cover required should be the present value of all future goals and expenses after subtracting the accumulated wealth and assets.
Let us look at this using an example.
If you’re 30 years old with an annual family expense of ₹4 lakhs, inflation at 8% per year means your family will need around ₹4.8 crores over the next 30 years to maintain their current lifestyle.
Apart from daily expenses, consider these financial commitments:
| Your Age |
30 years |
| Retirement Age |
60 years |
| Current Family’s Expenses (per year) |
₹4 lakhs |
| Family’s Expenses for the Next 30 Years |
₹4.8 Crores |
| Home Loan |
₹55 lakhs |
| Child Future Education |
₹20 lakhs |
| Retirement Fund |
₹80 lakhs |
| Total Expenses |
₹6.35 Crores ₹80 lakhs) |
| Personal Savings+ Mutual funds |
₹20 lakhs |
| Required Life Insurance Cover |
₹6.35 Crores – ₹20 lakhs = ₹6.15 Crores |
In this example, it is clear that though ₹1 Crore seems sufficient, it depends on factors like your expenses, inflation rate, loan obligations, existing investments, and more. You should therefore check all these factors and determine your specific requirement before buying a ₹1 Crore plan.
You should consider the best term plan for ₹1 Crore for several reasons. Let us take a closer look at a few of these:
Buying a ₹1 Crore term insurance plan at a young age means lower premiums and higher coverage. For example, a 30-year-old non-smoker can get this plan for just ₹500 per month. But if you buy it later, the cost goes up. Starting early helps you save on premiums while securing strong financial protection.
A ₹1 Crore insurance plan can provide financial security to your family in your absence. This amount can cover a variety of financial responsibilities, including housing loans, children’s education, or even supporting day-to-day expenses. For instance, if your family has a home loan of ₹50 lakhs and additional liabilities of ₹20 lakhs, the ₹1 Crore sum assured will ensure they are not burdened with debt while managing living expenses and future goals.
When you purchase a ₹1 Crore term plan, you obtain long-lasting protection for a low price. As a result, you may plan your savings and investments more effectively for wealth generation and place your money in appropriate financial instruments.
You can enhance the basic one crore term insurance with various riders to increase the scope of coverage. Riders like critical illness coverage, accidental death benefits, or premium waiver in case of disability can provide additional security. For instance, opting for a critical illness rider may cover up to ₹25-30 lakhs for major health conditions like cancer or heart disease, offering a comprehensive safety net.
With a term insurance policy, you can save on taxes under Section 80C of the Income Tax Act, 1961, by claiming deductions of up to ₹1,50,000 annually on premiums paid. Ensure the premium is less than 10% of the sum assured to qualify.
Additionally, under Section 10(10D), the death benefits received by beneficiaries are fully tax-exempt, with no limit on the claim amount.
There is no set process for acquiring a term insurance plan with a ₹1 Crore cover. However, if you belong to one of the following categories, you may want to give it some thought:
For a single parent with two children, ₹1 crore can cover child care, education costs, and basic living expenses, ensuring the children are financially secure.
If you are the only person responsible for your family’s financial well-being, you should consider a ₹1 Crore term plan to ensure your dependents are adequately protected in your absence. For instance, if a sole breadwinner earns ₹1,00,000 per month, this coverage can help replace their income, ensuring the family can maintain their standard of living and cover expenses like education and housing.
If you are a young parent with dependent children, opting for this coverage to secure their children’s future financial needs of education and living expenses is a wise decision. For example, the average cost of higher education in India can exceed ₹15 lakhs, so a ₹1 Crore policy ensures a child’s education is funded even in the absence of parents.
Couples starting their journey together can protect each other financially with a ₹1 Crore term plan, providing financial stability and security in case of unforeseen events. This ensures that, in the absence of one partner, the survivor would not be burdened by financial stress while adjusting to married life.
A term plan of ₹1 Crore can be a smart financial investment if you have significant financial liabilities to cater to. If you have home loans or other debts, your family can use a ₹1 Crore term plan to cover those liabilities. For instance, if someone has a home loan of ₹50 lakhs, the coverage can assist the family in managing ongoing costs and living expenses.
If you have education loans or plan to take on such loans, you can safeguard your family from the burden of repayment by opting for adequate term insurance coverage. With average education loans ranging from ₹5 to ₹10 lakhs, a ₹1 Crore policy can significantly ease this financial strain on surviving family members.
As a business owner, you can secure your business and provide financial protection to your family by opting for a ₹1 Crore term plan. This will ensure business continuity and family financial security in your absence.
One crore term insurance is a huge amount for the sum assured. If you are confused about how much amount will be enough for term insurance, use term insurance calculator that considers the following factors:
The first step is to consider your current age and income level to assess your financial obligations and future earning potential.
Defining the purpose of the insurance, whether it is to replace lost income, cover debts, provide for dependents, or leave a legacy.
Evaluate the financial needs of your dependents, including their living expenses, education costs, and any outstanding debts.
Always consider existing financial liabilities such as loans, mortgages, and other debts that would need to be covered in your absence.
Consider inflation to ensure that the coverage amount maintains its value over time and can sufficiently meet future expenses.
Align the coverage amount with your long-term financial goals, such as retirement savings or funding children’s education.
Seek guidance from a financial advisor or expert who can provide personalized recommendations based on your circumstances and goals.
Buying a term insurance plan with higher coverage offers a long list of benefits. You must be aware of these benefits to enjoy its full potential. Let us take a quick look at the one crore term insurance benefits:
While the premium for higher coverage may be slightly more, it often provides better value for money in terms of coverage per rupee spent, especially when considering the potential financial impact on your family’s future.
Many policies offer fixed premiums throughout the policy term, which means you won’t have to worry about increased costs even if your health deteriorates or as you age.
Higher coverage ensures your loved ones are adequately protected against various financial uncertainties, including outstanding debts, future expenses, and providing for their lifestyle.
With higher coverage, insurers often offer additional riders such as critical illness, accidental death, or waiver of premium, providing more comprehensive protection tailored to your specific needs, albeit at an additional cost.
Your need for a ₹1 Crore term insurance plan depends on your life stage and financial responsibilities. Here’s how it can benefit individuals at different phases of life:
Term insurance plans typically offer a range of sum-assured options, which can vary depending on the insurer and the specific plan. Common sum assured options for term insurance plans may include:
With a fixed sum assured, you receive a predetermined amount of coverage that remains constant throughout the policy term.
The sum assured gradually increases over time if you opt for this option, either at a fixed rate or linked to inflation, to account for rising financial needs and expenses.
When you opt for decreasing sum assured, you can cover specific liabilities like loans or mortgages, where the sum assured decreases over time in line with the reduced outstanding balance of the loan.
Some plans offer a level sum assured where, if the policyholder survives the policy term, the premiums paid are returned, providing a form of savings along with protection.
Certain insurers allow policyholders to choose a sum assured based on their individual financial needs and obligations, providing flexibility to tailor the coverage amount accordingly.
You can make an informed decision and select a ₹1 Crore term plan by considering the following factors:
The Claim Settlement Ratio (CSR) indicates the percentage of claims settled by an insurance company against the total number of claims received. It is a vital metric to consider when buying term insurance. Opt for an insurer with a high CSR, ensuring a smooth settlement process for your nominee in case of an unfortunate event.
The solvency ratio is a measure of an insurance company’s ability to meet its debt obligations. It is the ratio of an insurer’s available capital to its liabilities. A higher solvency ratio indicates a healthier financial position. Always choose an insurance provider with a solvency ratio significantly above the regulatory requirements.
Many term insurance plans offer additional critical illness benefits, which cover life-threatening diseases like cancer, heart attack, etc. Evaluate the critical illness benefits offered by different insurers to ensure comprehensive coverage.
Premium amounts can vary significantly among insurers. While seeking affordable premiums is reasonable, ensure that the coverage provided justifies the premium paid. Compare the types of premiums in term insurance from various insurance companies and choose one that offers the best value for your money.
Understanding the limitations and exclusions of your ₹1 crore term insurance is essential to ensure that there are no gaps in your expectations and the actual coverage. Here are key exclusions typically found in term insurance policies:
Add-on riders provide additional coverage and customization options. Some of the common riders such as accidental waiver of premium, and income benefits can be useful for policyholders. Choose riders that align with your specific needs to enhance the overall coverage of your policy.
The policy tenure or the term of the insurance is an essential consideration. It should cover your financial obligations and ensure your dependents’ financial security adequately. Choose a tenure that covers your working years and your dependents until they are financially independent.
Many term insurance plans now offer enhanced and flexible features, such as increasing the coverage for significant life events like marriage or childbirth. Choose a plan that allows you to adjust your coverage as your life stage changes.
A simplified and hassle-free claims process is essential during challenging times. Choose an insurance provider with a straightforward and efficient claims process. Online claim intimation and minimal documentation can make the process less stressful for your nominee.
By considering various factors, you can select the best term insurance plan for ₹1 Crore that meets your financial needs.
Utilize online premium calculators or consult with insurance agents to calculate the ₹1 Crore term insurance premium amount based on factors like age, health status, and policy duration for your ₹1 Crore term insurance.
Look for term insurance plans offering additional benefits such as critical illness coverage, accidental death benefit, or waiver of premium, enhancing the overall protection offered by the plan.
By following certain steps, you can easily purchase the ₹1 Crore term insurance, ensuring the financial security of your loved ones:
If you had purchased a policy without the necessary calculations, your family might have faced financial troubles in the future. Hence, do not use an arbitrary number like ₹1 Crore for your term insurance. Carefully consider the financial requirements in the future and come up with an amount.
1
Premium amounts for a ₹1 Crore term insurance can vary based on factors like age, health, lifestyle, and coverage duration, typically ranging from a few thousand to several tens of thousands annually.
2
The income required for a ₹1 Crore term policy depends on factors like age, lifestyle, financial responsibilities, and existing savings. Typically, it is recommended to have an income that can comfortably afford the premium payments without strain on your finances.
3
Inflation reduces the value of money over time, making ₹1 crore less effective in meeting future expenses. For example, if inflation is 6% per year, the value of ₹1 crore today will be roughly equal to ₹50 lakh in 12 years, meaning your family might need more coverage to maintain their lifestyle.
4
₹1 crore can be sufficient for a middle-class family if it covers current liabilities, future goals like children’s education, and daily expenses. For example, if your family’s annual expenses are ₹6 lakh, this coverage may last around 15 years, but inflation could reduce its value over time. To determine the right coverage, calculate your family’s financial needs by considering debts, future goals, daily expenses, and the impact of inflation. You can use our Term Insurance Calculator to easily estimate the coverage you need to secure your family’s future.
5
For a healthy 30-year-old non-smoker, ₹1 crore term insurance typically costs around ₹1,200–₹1500 per month, including taxes. However, the premium may vary based on factors like health, lifestyle, and the policy terms chosen.
6
As per India’s term insurance eligibility criteria, individuals between 18 and 65 can purchase a ₹1 Crore term policy. Insurers may conduct additional verifications before issuing the policy that verifies their age and health status to qualify for ₹1 Crore term insurance. It includes checking the applicant’s residency status and ensuring they have a stable income source to support premium payments. Furthermore, factors like health conditions, lifestyle habits (such as smoking), and occupation may also influence eligibility.
7
The best age to buy a ₹1 Crore term policy is typically in your early 30s when premiums are relatively lower and you have dependents to protect financially.
8
A ₹1 Crore term insurance plan is more suitable for pure protection needs, offering a higher coverage amount compared to an endowment plan, which combines insurance with savings. In India, the term insurance age limit is between 18-65 years.
9
The premium calculation for ₹1 Crore term insurance plan involves factors like age, health, lifestyle, coverage duration, and sum assured. Insurers provide online calculators, or agents can assist in determining the premium amount.
10
You can buy a ₹1 Crore term policy online by visiting the websites of insurance companies offering such plans, filling out the necessary details, and completing the application process.
11
Benefits of a ₹1 Crore term insurance in India include financial security for your family in case of your untimely demise, tax benefits on premiums paid under Section 80C, and customizable coverage options.
12
Rider benefits such as accidental death benefit, critical illness rider, waiver of premium rider, and income benefit rider are available on many ₹1 Crore term plans, offering additional protection at an extra cost.
13
The best ₹1 Crore term policy varies depending on individual needs, preferences, and budget. It is advisable to compare features, benefits, and premiums offered by different insurers before making a decision.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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