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₹10 Lakh Term Insurance

Term insurance plans offer crucial financial protection to beneficiaries at reasonable premiums, making them vital components of a comprehensive financial strategy.

  • 1,415 Views | Updated on: May 02, 2024

Having a term life insurance is the need of the hour. You cannot just let this slide but rather take genuine action towards securing your family’s future. A ₹10 lakh term insurance plan offers a list of benefits that ensures your family’s financial health in case you are not around anymore.

Key Takeaways

  • Opting for adequate coverage in term policies ensures that your family is safeguarded from the financial crisis during unexpected events.
  • A ₹10 lakh term insurance plan offers a huge payout to beneficiaries upon the policyholder’s demise.
  • It comes with affordable premiums, premium payment flexibility, customization options, and tax benefits.
  • Premium affordability and claim settlement ratio are critical factors to evaluate when selecting a ₹10 lakh term insurance plan.

In financial planning, some individuals overlook term plans due to the absence of additional maturity benefits. However, term policies offer essential life coverage at reasonable premiums, making them essential components of a well-rounded financial strategy. When selecting term policies, it is crucial to opt for sufficient coverage to safeguard loved ones from financial difficulties in case of unexpected events. You can also calculate your insurance premiums in minutes with term insurance premium calculator online.

What is ₹10 lakh Term Insurance?

A ₹10 lakh term insurance plan is a life insurance policy offering coverage in case of any unforeseen event affecting the policyholder. In the unfortunate case of the insured’s demise, the policy provides a ₹10 lakh payout to beneficiaries. This amount helps them maintain financial stability during challenging times. A term insurance plan for ₹10 lakhs prioritizes your family’s well-being, ensuring they are taken care of regardless of your circumstances.

Why Do You Need ₹10 lakh Term Insurance?

The need for a ₹10 lakh term insurance plan comes from the uncertainty of life. Keeping your family safe and financially stable can be challenging when you are not around. Therefore, buying a term plan is an excellent option to make sure that your family is living comfortably. When you buy this plan, you are providing a sum assured of ₹10 lakh to your family in case of your unfortunate demise. This amount can be used to pay off the debts, fulfill your child’s dream education, or simply sustain the daily expenses until they are in a condition to support themselves.

Benefits of ₹10 lakh Term Insurance

While buying a term insurance plan you must have a proper understanding of the benefits you are going to get from it. It will help you avail yourself of the maximum advantages and keep your family safe in a financial crisis. Let us understand what are the advantages of buying a ₹10 lakh term insurance plan:

Affordable Premiums

A ₹10 lakh term insurance plan typically offers affordable premiums, making it accessible for individuals seeking adequate coverage within a reasonable budget. A term insurance premium for ₹10 lakhs can look huge amount to be paid, but it is not, as the plan offers quarterly, half-yearly, and annually payable options. You can use a term insurance premium calculator to measure your premiums for better decision-making.

Premium Payment Flexibility

Being able to pay premiums as per your comfort is a big attraction of term plans. A ₹10 lakh term insurance plan often provides flexible premium payment options. It allows policyholders to choose between monthly, quarterly, semi-annual, or annual payments, depending on their convenience and financial situation.

Customize Plans with Additional Benefits to Meet Unique Requirements

A ₹10 lakh term insurance plan offers the flexibility to customize term insurance plans by adding riders or additional benefits such as critical illness cover, accidental death benefit, or waiver of premium. Tailoring the policy to meet unique requirements and providing comprehensive coverage makes an insurance plan more beneficial to the buyer.

Maximize Tax Benefits under the Income Tax Act

Under the Income Tax Act, premiums paid towards a term insurance plan are eligible for tax deductions under Section 80C up to a specified limit. Additionally, the death benefit received by the nominee is tax-free under Section 10(10D), helping policyholders maximize tax benefits while ensuring financial security.

Ensure the Financial Security of Your Family

The most significant benefit of a ₹10 lakh term insurance plan is the peace of mind it offers. By providing a substantial sum assured to your family in the case of your untimely demise, term plans ensure that your loved ones will be taken care of, even in your absence. This financial security ensures that your loved ones can maintain their standard of living, pay off debts, cover expenses, and achieve their long-term goals even in their absence.

How to Choose the Right ₹10 lakhs Term Insurance Plan?

Choosing the right ₹10 lakh term insurance plan involves considering factors like your age, health status, financial goals, and budget. Start by assessing your coverage needs and comparing premiums, policy features, claim settlement ratio, and customer service reputation among different insurers. Here are two most important factors that you should consider before selecting a ₹10 lakh term insurance plan:

Premiums

Premiums for any insurance plan are the most important factors to be considered. Premium is the amount of Premium is the amount of money you pay periodically (monthly, quarterly, annually) to keep your insurance policy active. It is essentially the cost of the insurance coverage you are receiving. A ₹10 lakh term insurance plan has affordable premiums that fit in your budget and simultaneously cover the expenses when the claim is initiated. A term insurance premium calculator can be used

Claim Settlement Ratio

CSR or Claim Settlement Ratio is the percentage of claims approved and paid out by an insurance company in a given year compared to the total number of claims filed. As a policy buyer, you should always look for an insurance provider with higher CSR, so that if the situation arrives, your beneficiaries do not have to face any hassle while claiming the settlement for the policy.

Steps to Buy ₹10 lakh Term Insurance

Investing a significant sum like ₹10 lakh requires careful planning and consideration of several factors. Here is a breakdown of key aspects to contemplate before making your decision:

  • Research different insurance providers, and term insurance plans. Also compare coverage, premiums, features, and claim settlement ratio to choose a plan that suits you.
  • Assess your financial needs and obligations to determine the appropriate coverage amount.
  • Visit the insurance provider’s website or contact an insurance agent to obtain the application form for the chosen term insurance plan.
  • You may need to undergo a medical examination depending on your age, health condition, and the insurer’s policy.
  • Prepare and submit the required documents, such as identity proof, address proof, income proof, age proof, and any other documents along with the application form.
  • Pay the premium for the chosen term insurance plan. Premiums can typically be paid annually, semi-annually, quarterly, or monthly, depending on the insurer’s policy.
  • The insurance provider will review your application, medical reports (if applicable), and documents to assess the risk and determine your insurability.
  • Carefully review the policy document to ensure all details are accurate and match the terms agreed upon.
  • Receive the policy document either electronically or through physical mail. Store it in a safe place and inform your beneficiaries about the coverage and how to make a claim in the event of your demise.

Concluding Thoughts

While some may overlook term plans due to the absence of additional maturity benefits, they remain critical components of a comprehensive financial strategy, offering essential life coverage at reasonable premiums. Opting for a ₹10 lakh term insurance plan not only ensures financial stability for your loved ones in challenging times but also provides peace of mind, knowing they will be taken care of regardless of unforeseen circumstances.

By understanding the benefits and selecting the right plan based on factors like premiums and claim settlement ratio, you can secure a brighter future for your family.

FAQs on ₹10 lakh Term Insurance


1

Are there any exclusions or limitations I should be aware of with a ₹10 lakh term insurance policy?

Exclusions and limitations vary between insurers, so it is crucial to review policy details. Common exclusions may include suicide within the first year or death due to specific risky activities.



2

How does the premium for a ₹10 lakh term insurance policy compare across different insurers?

Premiums for a ₹10 lakh term insurance policy can differ based on factors like age, health, and insurer policies. Comparing quotes from multiple insurers can help find the most competitive rates.


3

What are the specific benefits of opting for a ₹10 lakh term insurance plan over lower coverage options?

Opting for a ₹10 lakh term insurance plan over lower coverage options provides greater financial security for your loved ones. With ₹10 lakh coverage, your family can better manage financial responsibilities like loans, education, and daily expenses. It ensures a more substantial safety net, offering peace of mind during unforeseen circumstances.



4

How does the term length of a ₹10 lakh term insurance policy impact the premium amount and overall cost?

The term length of a ₹10 lakh term insurance policy impacts the premium amount: a longer term usually means higher premiums. However, the overall cost depends on factors such as age, health, and lifestyle.



5

Does the ₹10 lakh term insurance policy offer any benefits or coverage for pre-existing medical conditions?

A ₹10 lakh term insurance policy does not typically offer coverage for pre-existing medical conditions. It’s crucial to disclose all health conditions accurately during the application process to ensure transparency.



6

Can I add or remove beneficiaries from my ₹10 lakh term insurance policy during the term, and what are the procedures for doing so?

Yes, you can add or remove beneficiaries from your ₹10 lakh term insurance policy during the term. To do so, contact your insurance provider, complete the necessary forms, and provide relevant documentation.




7

Does the ₹10 lakh term insurance policy provide any support or coverage for disabilities resulting from accidents or illnesses?

Depending on the policy, some ₹10 lakh term insurance plans may provide coverage for disabilities resulting from accidents or illnesses, offering financial support during challenging times. Review policy details for specific coverage.

- 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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