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₹1.5 Crore Term Insurance

A ₹1.5 Cr term insurance plan is designed to provide financial protection for your loved ones in the event of your unfortunate demise during the policy term.

  • 3,849 Views | Updated on: Apr 29, 2024

In an increasingly uncertain world, securing the financial future of our loved ones has become critical. Term insurance, one of the most popular life insurance products, provides a straightforward and cost-effective way to protect your family’s financial well-being in the case of your untimely demise.

Key Takeaways

  • ₹1.5 Cr term insurance plan provides substantial cover for your dependents in your absence.
  • Comprehensive coverage, affordability, and protection against liabilities are some of the key benefits of a term insurance plan.
  • It offers payment flexibility, customizable policy options, and enhanced coverage at affordable premiums.
  • ₹1.5 cr term insurance plan also offers tax benefits under Section 80C of the Income Tax Act of 1961.
  • It is suitable for high-income earners, parents planning for children’s education or marriage, and business owners or entrepreneurs.

Among the various term insurance plans available, the ₹1.5 crore term insurance plan stands out as a comprehensive solution to provide substantial cover for your dependents. Let us explore the benefits and considerations associated with ₹1.5 Cr term insurance and understand why it is an essential part of financial planning.

What is a ₹1.5 Cr Term Insurance Plan?

A ₹1.5 Cr term insurance plan is a life insurance policy that provides a death benefit of ₹1.5 crore to the nominee in the event of the policyholder’s demise during the policy term. It also offers financial security to the insured’s family, ensuring they receive a substantial sum to cover expenses and maintain their lifestyle in the absence of the primary breadwinner.

Why Do You Need ₹1.5 Cr Term Insurance?

If you are wondering why you need a ₹1.5 Cr term insurance, the answer is a long list of benefits it provides. It offers comprehensive financial protection for your loved ones in the form of a considerable coverage amount. This coverage can help your family meet various expenses like loans, children’s education, daily expenses, and maintaining their lifestyle in your absence, ensuring their financial stability.

Why Buy ₹1.5 Cr Term Insurance Plan?

Buying a ₹1.5 Cr term insurance plan is crucial to secure your family’s future against financial uncertainties. It offers a significant sum assured, which can provide ample financial support to your dependents in your absence. Here are some other reasons to buy a ₹1.5 Cr term insurance plan:

Comprehensive Coverage

₹1.5 Cr term insurance plan offers all-around coverage that will not only help your family overcome the financial challenges in your absence but also pave a path for a better future. You can rely on your term plan for taking care of your family.

Cost-effective

Although ₹1.5 Cr is a huge amount of money, the premium for ₹1.5 Cr term insurance plan is affordable and can be customized as per your needs. This allows you to plan your financial future effectively without too much strain on your budget.

Enhanced Security

Financial security is one of the most important reasons for opting to buy a ₹1.5 Cr term insurance plan. It keeps your family safe in adverse financial situations and helps them live life comfortably, even in your absence.

Security Against Loans and Liabilities

Having to pay off loans and other liabilities might drain your family’s savings, leaving them in a crunch for daily expenses. A ₹1.5 Cr term insurance plan offers a huge sum assured that can be used to pay off loans and help your family live respectfully.

How Does ₹1.5 Crore Term Insurance Plan Work?

In a ₹1.5 Cr term insurance plan, you pay a fixed amount (premium) at regular intervals, such as monthly, quarterly, or yearly, throughout the chosen policy term. In lieu of this, the plan offers coverage for the entire chosen policy term. If you survive the term, the policy matures, and no payout is made.

However, if you pass away during the policy term, your designated beneficiaries will receive a lump sum amount of the sum assured. The payout from the ₹1.5 Cr term insurance plan can significantly help your family financially during a difficult time.

You must carefully consider the policy term, sum assured (coverage amount), and premium amount before buying a term insurance plan. These factors will impact the affordability and suitability of the plan for you.

Benefits of ₹1.5 Crore Term Insurance Plans?

Apart from providing a huge coverage amount of ₹1.5 Crore, there are several benefits of this term insurance plan. It offers payment flexibility, affordable premiums, and the advantage of effective financial planning. Let us take a look at these benefits closely:

Enhanced Coverage at Affordable Premiums

The sum of ₹1.5 Crore may look huge, but with a term plan, it is divided into affordable premiums that make it easy to afford.

Payment Flexibility

What makes ₹1.5 Cr term insurance plan more affordable is its payment flexibility, which allows you to pay the premium amount monthly. It saves you from a one-time payment burden while offering protection for financial emergencies.

Customizable Policy Options

Many policyholders find it appealing to be able to customize a plan as their requirements change. With this ₹1.5 Cr term insurance plan where you can choose the term, payment option, and payment frequency for the plan.

Facilitates Effective Financial Planning

Last but not least, financial planning is what one intends to do while deciding to buy a term plan. With a ₹1.5 Cr term insurance plan, you can effectively manage your finances and save a huge amount for the future without draining too much of your income.

Tax Benefits

As per the Income Tax Act, 1961, you can get a tax deduction of up to ₹1.5 lakhs under Section 80C for the premiums you pay for your term insurance plan. This helps you save money and have the financial security of a term plan together.

How to Choose the Best Term Insurance Plan for ₹1.5 Crore?

To choose the best term plan for ₹1.5 Crore, you must be aware of factors that would affect your policy and related benefits. You must consider the following factors carefully before choosing a ₹1.5 Cr term insurance plan:

Premium Amount

The premium amount is the sum that you pay to your insurer for the chosen policy. You must always calculate the amount of premiums so that there is no confusion after buying the policy and you can easily pay the premium amount without fail.

Claim Settlement Ratio

CSR or Claim Settlement Ratio is the percentage of claims an insurance company settles compared to the total number of claims received in a specific period. You must look for a company with a higher CSR that indicates a higher chance of getting your claim settled by your insurer.

Add-ons Riders

Add-on riders are additional benefits that can be added to a plan as per buyers’ choice. Apart from your policy benefits, you can also select additional riders to enhance the effectiveness of your policy.

How to Determine the Right Coverage Amount of Term Insurance Plans?

Determining the right coverage amount for a term insurance plan involves several factors and considerations. You should start by calculating your current and future financial obligations. This includes outstanding debts like mortgages, loans, and credit card balances, as well as future expenses like children’s education, marriage, and any other major financial goals.

You should also consider your family’s day-to-day living expenses, including housing costs, utilities, groceries, transportation, healthcare, and other essential expenses. If you are the primary breadwinner in your family, consider how much income would be needed to replace your earnings to maintain your family’s standard of living. Your financial situation may change over time, so it is also important to review your coverage amount periodically to ensure it remains adequate.

Who Should Opt for ₹1.5 Crore Term Insurance Plans?

Opting for a ₹1.5 Cr term insurance plan is typically suitable for individuals with specific financial circumstances and responsibilities. Here are some scenarios where choosing a ₹1.5 Cr term insurance plan might be appropriate:

High-income Earners

Individuals with high incomes often have significant financial obligations, such as large mortgages, loans, and other debts. A ₹1.5 Cr term insurance plan can provide adequate coverage to ensure that these financial obligations are taken care of in the event of their death.

Children’s Education and Marriage

Parents who want to ensure that their children’s education and marriage expenses are covered even in their absence may opt for a higher coverage amount. A ₹1.5 Cr term insurance plan can provide the financial resources necessary to fund these future expenses.

Cost of Living in Urban Areas

Individuals living in urban areas often have higher living expenses due to factors such as housing costs, education expenses, and healthcare costs. A ₹1.5 Cr term insurance plan can help cover these higher expenses and provide financial security to your family.

Business Owners or Entrepreneurs

Business owners or entrepreneurs may have outstanding business loans or other financial obligations that need to be taken care of in their absence. A ₹1.5 Cr term insurance plan can provide the necessary funds to settle these obligations and ensure the continuity of the business.

Factors to Consider While Buying a ₹1.5 crore Term Insurance

A ₹1.5 Cr term insurance plan cover can be bought from any insurance company. You just have to follow a straightforward process with these steps:

Calculate Premiums

Use online premium calculators or contact insurance agents to get an estimate of the premiums for the desired coverage amount and policy term. Compare premium rates from various insurers to find a policy that suits your budget.

Disclose Medical Information

Be transparent about your medical history and lifestyle habits during the application process. Insurance companies may conduct medical underwriting, and providing accurate information is crucial to avoid claim rejections in the future.

Choose Additional Riders

Consider adding relevant riders or add-ons to enhance the coverage of your ₹1.5 Cr term insurance plan. Popular riders include critical illness coverage, accidental death benefits, waiver of premium, and disability coverage. Select riders that align with your specific needs.

Fill Out the Application Form

Fill out the application form with accurate information. Double-check all the details before submitting the form to ensure no errors.

Review Policy Terms And Conditions

Carefully review the policy terms and conditions, including the coverage details, premium payment schedule, exclusions, and claim settlement process. In case of any doubts, seek clarification from the insurance company.

How To Buy ₹1.5 Cr Term Insurance Plan Online and Offline?

Purchasing a term insurance plan online or offline can be done through a simple process, either online or offline. Here’s how you can do it:

For Online

  • Research and Choose a Reputable Insurer: Research various insurance providers to find the best plan for your needs. Look at factors like premium, claim settlement ratio, etc.
  • Visit the Insurer’s Website: Visit the official website of your chosen insurance company.
  • Choose the Term Insurance Plan: Look for term insurance plans and select the one that suits your needs. Ensure that the coverage is at least ₹1.5 crore.
  • Calculate Premium: Most insurance websites have a premium calculator. Use this to calculate the premium for the desired coverage.
  • Fill in Personal Details: Fill out your details like name, age, gender, contact information, etc required by insurer.
  • Medical Check-up (if required): Some insurers may require a medical check-up. Schedule this if necessary.
  • Choose Riders (if required): Select any additional riders you may need, like critical illness cover, accidental death cover, etc.
  • Read the Policy Documents Carefully: Make sure to read all the policy documents carefully to understand the terms and conditions.
  • Policy Payment And Issuance: You can pay the premium online using your preferred mode of payment, such as debit card, credit card, net banking, or UPI. After the payment is processed, the policy will be issued and sent to your email.

For Offline

  • For offline policy selection, you have to visit the nearest branch office of the insurance company.
  • Your next step is to discuss your insurance needs with the agent or representative of the insurance company.
  • After selecting the insurance plan, fill in the application form with accurate details. Ensure that you mention the required coverage of ₹1.5 crore.
  • Your insurer can ask for a medical check-up if necessary. The agent will guide you through the process.
  • You can also add extra features if you want. You have to discuss it with the agent if you need any additional riders and choose them accordingly.
  • Before signing, make sure to read all the policy documents carefully to understand the terms and conditions.
  • Pay the premium through cash, cheque, demand draft, or any other acceptable payment method. After the payment is processed, the policy will be issued.

Key Documents Required

While filling out the application you might required to submit it to the insurer. Here is a list of documents you might need:

  • Proof of Age: Any official document that serves as proof of your age, like a birth certificate, PAN card, or Aadhar card.
  • Address Proof: Any official document that serves as proof of your address, like an Aadhar card, passport, or utility bill.
  • Identity Proof: Any government-issued ID, like a PAN card, Aadhar card, or passport.
  • Passport-sized Photographs: Typically, you may need a few passport-sized photographs.
  • Income Proof: Documents to establish your income, like salary slips, ITR, etc.

Conclusion

A ₹1.5 Cr term insurance plan is an excellent policy for safeguarding your family’s financial future in case of an unfortunate event. It provides comprehensive protection at an affordable cost and offers flexibility in terms of customization. However, assessing your family’s financial requirements is crucial, as choosing a reputable insurer and being honest during the underwriting process to ensure a seamless claims settlement.

Take your time to research, compare policies, and choose wisely to ensure comprehensive protection for your loved ones.

FAQs on ₹1.5 Crore Term Insurance Plan


1

How to purchase ₹1.5 Crore term insurance plan online?

You can easily purchase a ₹1.5 Cr term insurance plan online by visiting the insurer’s website and following the application process.



2

What are the advantages of opting for a ₹1.5 Crore term insurance in India?

Opting for a ₹1.5 Cr term insurance plan in India provides extensive financial protection to your loved ones in the event of your untimely demise, ensuring their financial security and stability.


3

What are the eligibility criteria for buying ₹1.5 Crore term insurance plan?

The eligibility criteria for buying a ₹1.5 Cr term insurance plan typically include factors such as age, income, health condition, and lifestyle habits.



4

Are there any additional rider benefits available with a ₹1.5 Crore Term Insurance Plan?

Yes, there are additional rider benefits available with a ₹1.5 Cr term insurance plan, such as critical illness cover, accidental death benefit, and waiver of premium rider, offering enhanced protection.



5

What is the premium amount for a ₹1.5 Cr term insurance plan?

The premium amount for a ₹1.5 Cr term insurance plan varies based on factors like age, health, and the insurance provider. Generally, for a healthy individual in their 30s, it can range from ₹15,000 to ₹25,000 annually, but it’s advisable to get a personalized quote from insurance providers for an accurate estimate.



6

What happens if I survive the term of ₹1.5 Cr term Insurance policy tenure?

If you survive the tenure insurance ₹1.5 Cr term insurance policy, you may not receive any maturity benefits as term insurance is primarily designed to provide financial protection to your beneficiaries in case of your demise.



7

Can I customize my ₹1.5 Crore term insurance plan based on my needs?

Yes, you can customize your ₹1.5 Cr term insurance plan based on your needs. Most insurers offer flexibility to add riders like critical illness cover, accidental death benefit, and more, tailoring the plan to your specific requirements, and ensuring comprehensive coverage.



7

What is the ideal amount for term insurance?

The ideal amount for term insurance depends on various factors, such as your income, financial liabilities, future expenses, and the number of dependents you have. It’s advisable to assess your financial situation and consult with a financial advisor to determine the appropriate coverage amount.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

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.

Amit Raje
Reviewed By :
Prasad Pimple

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

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