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₹10 Lakh Term Insurance is a life insurance policy that provides financial security to your family by offering a sum assured of ₹10 lakh in case of your untimely demise. With affordable premiums, ₹10 Lakh Term Insurance is a smart choice for individuals seeking cost-effective life coverage.
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.
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.
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:
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.
For Example:
For a 30-year-old non-smoker, the premium can be as low as ₹500 per month, ensuring a ₹10 lakh payout to their family in case of an unfortunate event.
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.
For Example:
If you prefer a one-time commitment, you can opt for a single-premium payment, or choose monthly payments for better cash flow management.
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.
For Example:
If a policyholder with a ₹10 Lakh Term Insurance plan opts for an Accidental Death Benefit Rider, their family may receive an additional ₹10 lakh in case of accidental demise.
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.
For Example:
If you pay ₹20,000 annually for your term plan, this amount can be deducted from your taxable income, helping you save up to ₹6,000 in taxes (assuming a 30% tax slab).
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.
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 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
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.
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:
Evaluate your financial obligations, including loans, household expenses, and future goals, to determine if ₹10 lakh coverage is sufficient.
Research different insurers, comparing premiums, claim settlement ratios, policy terms, and available riders. Use a term insurance calculator for accurate estimates.
Provide accurate personal details such as name, age, income, and lifestyle habits while filling out the insurer’s application form online or offline.
Some insurers require a medical check-up based on age and health status. Tests may include blood tests, ECG, and BMI evaluation.
Submit identity proof, income proof, and other required documents. Choose a premium payment mode—monthly, quarterly, or annually—and complete the payment.
The insurer verifies documents and medical reports before approving the policy, usually within 7–10 days. Review the policy document for accuracy.
Notify your family about the policy details and claim process. Store the document safely and keep a digital copy for easy access.
The entire process typically takes 10–15 days, depending on medical requirements and verification speed.
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.
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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
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
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.
4
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.
5
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.
6
It depends on your financial obligations. If you have minimal debts and a small family, ₹10 lakh may be enough. However, for higher expenses like loans, education, or long-term security, a higher sum assured may be better. Use a term insurance calculator to assess your ideal coverage.
7
Most insurers do not allow direct upgrades, but you can buy an additional policy for higher coverage. Some insurers offer options like increasing cover plans or policy conversion to whole life insurance. Check with your insurer for available options.
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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