We all have a list of financial goals that we plan to achieve over time. But the question that troubles most people is how do you plan to accomplish the same. It begins with getting the right financial security for your life, which you can acquire through a term plan. However, you need to evaluate your current financial situation and your goals to make an informed decision.
A term plan is an insurance policy that guarantees a sum assured to the beneficiaries in the case of your (policyholder’s) death during the policy term. Most people prefer buying term insurance because it offers financial stability and security to their loved ones. An adequate term insurance plan ensures that your family is financially protected and does not have to face a crisis in the event of your sudden demise.
With several insurance plans available in the market, a ₹1 crore term insurance plan is an affordable and convenient choice for most people. It is ideal to cover the financial needs of your loved ones and allows them to fulfill their needs even in your absence.
The Bajaj Allianz Smart Protect Goal Term Plan is the ₹1 crore life insurance plan available on Finserv MARKETS. The terms and features of this plan include:
You can avail a coverage of ₹1 crore and more depending on your financial needs.
The minimum sum assured is ₹50 lakh.
The premium amount can be calculated using the term insurance calculator. The tool considers your age, income, and lifestyle habits to determine the right coverage.
The minimum entry age is 18 years while the maximum is 65 years.
The maximum age at the time of policy maturity is 85 years old. However, in the case of the whole life option, the maximum age at the time of policy maturity is 99 years old.
You can enhance the scope of the policy with rider benefits such as critical illness cover, accidental death benefit, waiver of premium benefit, and more. But note that opting for rider benefits will add a nominal amount to the overall premium rate.
Let’s know more about the ₹1 crore term insurance plan.
Term insurance is an affordable life insurance product available in the financial markets today. Buying the policy at an early stage in life can help you secure even lower premiums comparatively. However, as you and your family grow, your financial needs grow with you. It, thus, becomes imperative to understand whether the ₹1 crore life insurance plan will suffice in the long run or not.
The ideal term insurance coverage depends on several factors. To understand how much coverage is enough to cover your family’s financial needs in your absence, note down the answer to these questions:
What is your current income?
What are your monthly expenses?
Do you have any financial liabilities (loans, credit card debt, etc.)?
What will be your future financial requirements (child’s education, wedding, etc.)?
Once you have the answer to these questions, you will be a step closer to finding the right term insurance coverage to protect your loved ones. Ideally, the term insurance coverage amount is determined through the following formula:
Term Insurance Coverage = [Family’s lifelong expenses + Future life goals expenses + Financial liabilities] - Savings
Considering the current inflation rates, it is essential to adequately secure the future of your loved ones. If you are the sole earner in your family, a ₹1 crore term plan is sufficient to cover their financial needs in your absence.
Choosing the right insurer can be overwhelming and confusing. What can you do to ensure that the ₹1 crore term plan you choose will provide extensive coverage without burning a hole in your pocket? You can start with comparing the features, benefits, and terms and conditions of different providers, but to make a well-informed choice, consider the following aspects as well:
Insurers usually have a premium calculator tool, i.e. term insurance calculator, which helps determine and compare the premium rates of different plans. You can use these results to compare ideal policy offerings from different insurers. Based on the results, you can then shortlist the insurer who fulfils all your requirements at an affordable premium cost.
Choosing an insurer becomes easier when the claim settlement ratio (CSR) is taken into consideration. It tells us the number of claims that the insurer settled in a given financial year from the total claims received. Generally, it is advisable to choose an insurer with a claim settlement ratio of more than 90%.
Insurers also offer extensive coverage on basic insurance plans to attract more customers. Before you pick a term insurance plan, know the different benefits it offers and then choose one that best suits your insurance needs.
Now that you have a fair idea of a ₹1 crore term insurance plan, take a look at the features of the Smart Protect Goal Term Plan that offers a life cover of up to ₹1 crore and is available on Finserv MARKETS.
Some of the key benefits of Smart Protect Goal Term Plan available on Finserv MARKETS are as follows:
If opted, your beneficiaries will receive an amount that is equal to the sum assured in the policy in case of your accidental death.
If opted, your beneficiaries will receive an amount equal to the sum assured amount under the policy in case of an unfortunate total permanent disability.
If opted, the chosen sum assured amount will be paid to you in case you are diagnosed with a critical illness covered under the plan. The percentage of the sum assured payable is 25% for minor critical illnesses and 100% for major critical illnesses.
With the waiver of premium add-on cover, in case you are diagnosed with a critical illness that is covered under the plan, the future premiums to be paid are waived off. Here, the critical illness also includes accidental total permanent disability.
If this option is selected, the premiums paid are returned in case you survive the policy term.
The ideal purpose of term insurance is to financially protect your family in your absence. For most people, a ₹1 crore term insurance plan is enough. However, it is best to evaluate your family’s financial needs and various other aspects before deciding on the term insurance coverage amount.
To gain more insight into life insurance and read about the benefits of term insurance, visit Finserv MARKETS.
Term insurance premium is dependent on several aspects, such as age, coverage of the policy, rider benefits included, your lifestyle habits, etc. You can use the term insurance calculator to determine policy cost. The tool factors in these aspects and provides an estimated policy cost for you to make an informed decision.
You can buy term insurance with us at Finserv MARKETS if you are 18 years and above. However, the maximum entry age for the policy is 65 years.
The benefits associated with buying term insurance are as follows:
Future financial protection to your family in your absence
It is the simplest form of life insurance product available in the market
It provides high cover at the lowest premium rates
You can enhance the scope of the policy with rider benefits
It offers attractive tax benefits
You can opt for the following rider benefits on your term insurance plan:
Critical illness cover
Accidental death cover
Waiver of premium cover
Return of premium cover
If you do not die during the policy term, your term insurance plan terminates. There are no maturity benefits provided upon termination of the term plan. However, if you have opted for the return of premium cover as a rider benefit, the insurer is liable to repay the premiums paid towards the term insurance plan upon your survival of the policy term.