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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.
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.
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.
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.
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.
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:
₹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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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:
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.
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-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.
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.
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:
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.
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.
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 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.
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:
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.
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.
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 with accurate information. Double-check all the details before submitting the form to ensure no errors.
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.
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
For Offline
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:
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.
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You can easily purchase a ₹1.5 Cr term insurance plan online by visiting the insurer’s website and following the application process.
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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.
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The eligibility criteria for buying a ₹1.5 Cr term insurance plan typically include factors such as age, income, health condition, and lifestyle habits.
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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.
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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.
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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.
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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.
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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.
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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