A 1.75 crore term insurance plan offers substantial financial protection, ensuring your family’s stability in your absence. Designed to provide a high sum assured, such plans are ideal for individuals with significant financial obligations like loans, children’s education, or maintaining their family’s lifestyle. With affordable premiums and a wide range of customisation options, these plans are particularly attractive for Indian policyholders seeking extensive coverage. However, selecting the right policy requires careful evaluation of factors like premiums, riders, and affordability. This article will guide you through the key considerations and benefits of opting for a 1.75 crore term insurance plan
What is term insurance?
Term insurance is a straightforward and affordable life insurance plan designed to provide financial protection to your loved ones. In case of policyholder’s untimely demise during the policy term, your nominee receives a lump sum payout, helping them manage daily expenses, debts, or future goals like education or housing. It offers high coverage at low premiums, making it one of the most essential tools for securing your family’s financial future.
Key benefits of adding riders to 1.75 crore term insurance plan
Riders are add-ons that enhance the coverage of your 1.75 crore term insurance plan, offering protection against specific risks. Adding riders ensures comprehensive financial security for unforeseen events.
Popular riders to consider:
Critical illness rider: Provides a lump sum payout upon diagnosis of major illnesses, covering treatment costs.
Accidental death rider: Offers additional financial support if death occurs due to an accident.
Waiver of premium rider: Waives future premiums in case of permanent disability or critical illness.
Income benefit rider: Ensures a regular monthly income for your family along with the sum assured.
Disability income rider: Offers periodic payouts in case of a disability affecting earning capacity.
Why opt for a 1.75 crore term insurance plan?
Choosing a 1.75 crore term policy can be a smart financial decision, especially for those seeking comprehensive protection for their family’s future. With rising living costs, education expenses, and home loans, a sum assured of Rs. 1.75 crore ensures your family can maintain their lifestyle and goals, even in your absence. This coverage amount balances affordability with meaningful financial support, helping you secure your loved ones against life’s uncertainties. Moreover, term insurance plans often come with additional riders like critical illness or accidental death covers, enhancing your protection. A 1.75 crore term policy thus offers peace of mind, ensuring that your family’s dreams and financial obligations are well taken care of.
How does a term insurance plan of Rs. 1.75 crore work?
A 1.75 crore term policy functions straightforwardly: you pay regular premiums—monthly, quarterly, or annually—and in the unfortunate event of your demise during the policy term, your nominee receives Rs. 1.75 crore as a death benefit. This payout can be a crucial financial lifeline for your family, helping them manage expenses like home loans, children’s education, or daily living costs. The plan usually doesn’t have a maturity benefit if you survive the term, but it provides invaluable peace of mind knowing your loved ones are protected. Some insurers also offer optional riders (like critical illness or disability cover) that you can add to enhance your 1.75 crore term policy coverage.
Factors that affect the premium of a 1.75 crore term insurance plan
Premiums for high-coverage term insurance plans like a 1.75 crore policy vary based on several factors. Knowing these variables helps you estimate costs and make informed decisions.
Key factors influencing premiums:
- Age: Younger individuals enjoy lower premiums as they pose a lesser risk to insurers.
- Health and lifestyle: Smoking, medical history, or pre-existing conditions can lead to higher premiums.
- Policy term: Longer terms may reduce the annual premium but increase the cumulative cost.
- Coverage amount: Higher sums assured, like 1.75 crore, naturally result in slightly higher premiums.
- Gender: Women often pay lower premiums due to statistically longer life expectancies.
- Occupation: Jobs involving higher risks may lead to increased premiums.
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How much does Rs. 1.75 crore term insurance plan cost?
The cost of a 1.75 Crore Term Policy depends on several factors, including your age, health, lifestyle habits (like smoking), policy term, and chosen riders. For a healthy non-smoker in their 30s, premiums might start at around Rs. 700 to Rs. 1,200 per month, depending on the insurer and policy features. Factors like policy tenure and premium payment frequency (monthly, annual) also influence the cost. Adding riders for critical illness, accidental death, or waiver of premium can increase your premium but also enhance your protection. Comparing quotes from different insurers and using online calculators can help you find the most cost-effective 1.75 Crore Term Policy that fits your needs and budget.
How to choose the right term insurance coverage amount
Selecting an appropriate coverage amount is crucial to ensure your family’s financial security without overspending on premiums. A 1.75 crore life insurance plan should be chosen after evaluating your personal and financial circumstances.
Tips to determine the right coverage:
- Assess current liabilities: Include loans, mortgages, and other debts in your calculations.
- Consider future expenses: Factor in your family’s needs like children’s education, weddings, or retirement.
- Evaluate lifestyle requirements: Choose a sum assured that maintains your family’s lifestyle in your absence.
- Account for inflation: Ensure the amount covers rising costs over the years.
- Use income multiples: A good rule of thumb is to opt for coverage 10–15 times your annual income.
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What is the claim settlement process for Rs. 1.75 crore term plans?
Understanding the claim settlement process for a 1.75 crore term policy is essential for ensuring your loved ones can access financial support smoothly during challenging times. Here’s how it generally works:
Step 1: Notify the insurer – The nominee should inform the insurance company about the claim as soon as possible.
Step 2: Collect necessary documents – Death certificate, policy documents, ID proofs, and any medical records are usually required.
Step 3: Submit the claim form – Complete the claim form accurately and attach the required documents.
Step 4: Claim assessment by insurer – The insurer verifies the information, checks the validity, and may ask for additional details if needed.
Step 5: Decision and payout – If everything is in order, the insurer approves the claim and disburses the Rs. 1.75 crore to the nominee’s account.
This structured process ensures that a 1.75 crore term policy provides timely financial relief to your family during a difficult time.
What are the tax benefits of investing in a Rs. 1.75 crore term insurance plan?
Investing in a term insurance plan for Rs. 1.75 crore not only offers financial security but also attractive tax benefits. Here’s a snapshot:
Tax benefit |
Description |
Section 80C |
Premiums paid for the term insurance plan for Rs. 1.75 crore qualify for deductions up to Rs. 1.5 lakh per year. |
Section 10(10D) |
The death cover received by the nominee is completely tax-free, ensuring the full sum assured reaches your family. |
These tax advantages make a term insurance plan for Rs. 1.75 crore a smart and financially rewarding investment.
Affordability and payment options for a 1.75 crore term insurance plan
Despite the high coverage amount, a 1.75 crore term insurance plan can be affordable with the right choices. Flexible payment options further make it easier to manage premiums.
How to make your plan affordable:
- Start early: Buying the policy at a younger age locks in lower premium rates.
- Opt for annual premiums: Paying yearly premiums is generally cheaper than monthly or quarterly options.
- Use online platforms: Many insurers offer discounts for purchasing policies online.
- Choose group insurance: Employer-sponsored plans often provide discounted rates.
- Customise payment tenure: Select a payment tenure that aligns with your financial capacity.
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Conclusion
A 1.75 crore term insurance plan is an excellent way to ensure your family’s financial stability in your absence. By understanding factors influencing premiums, choosing suitable riders, and leveraging affordable payment options, you can make the most of this high-coverage policy. With careful planning, such a plan not only safeguards your family’s future but also offers peace of mind knowing they are protected.
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