Key features and benefits of 1-crore term insurance plan
A term insurance plan for 1 crore is a simple and affordable way to secure your loved ones’ future. Whether you're a salaried professional, business owner, or a young parent planning long-term, a 1 crore sum assured gives your family a financial cushion to handle life’s uncertainties—without compromising their lifestyle.
Let’s break down why so many people in India prefer a 1 crore term insurance policy and what makes it such a powerful protection tool.
Get high life cover at affordable premiums:
The biggest advantage of a 1 crore term insurance plan is that it offers substantial coverage at a very low premium. For example, a 30-year-old non-smoker can get Rs. 1 crore cover for as little as Rs. 450 per month, depending on the insurer and plan you choose.
Ensure financial security for your family:
This cover amount ensures your family’s needs—like monthly expenses, EMIs, and future goals (like education or marriage)—are all taken care of even in your absence. A 1 crore sum assured can help maintain their lifestyle without financial stress.
Flexible payout options to match your family’s needs:
You can choose how your family receives the claim amount—lump sum, monthly income, or a mix of both. This ensures their financial management remains stress-free.
Long policy tenure for lifelong peace of mind:
Most insurers offer coverage up to 65–85 years of age, which means your family stays protected for decades. Start early, and you can lock in low premiums for the entire term.
Critical illness and disability cover add-on available:
You can enhance your base plan with riders like critical illness, accidental death, and disability cover. These riders provide an added layer of financial protection in case of health emergencies.
What are the limitations of 1 crore term insurance plan?
Following are the limitations of 1 crore term insurance plan:
- No cash value: Unlike whole life insurance, a 1 crore term insurance policy does not accumulate cash value. This means policyholders cannot borrow against the policy or use it as an investment vehicle.
- Coverage expiry: The policy provides coverage only for a specific term. If the policyholder outlives the term, the 1 crore term insurance coverage ends, and no benefits are paid out.
- Higher premiums with age: Premiums for 1 crore term insurance policies increase with age. Older individuals may find the cost of premiums prohibitively expensive, especially if they seek coverage later in life.
- Medical examination requirement: Many insurers require a medical examination for high-value policies like 1 crore term insurance, which can be a hurdle for individuals with pre-existing health conditions.
- Limited renewal options: Renewing a 1 crore term insurance policy at the end of the term can be costly and may come with stricter terms, reducing flexibility for the policyholder.
What is the eligibility criteria to get a 1-crore term insurance plan?
You need to mee the following eligibility criteria to get 1 crore term insurance:
- Age range: Most insurers offer 1 crore term insurance to individuals aged 18 to 65 years. Younger applicants generally benefit from lower premiums.
- Health status: Applicants typically need to undergo a medical examination. Good health is crucial for approval and favourable premium rates. Pre-existing conditions might lead to higher premiums or denial.
- Income proof: Demonstrating sufficient and stable income is necessary to justify the high coverage amount of 1 crore term insurance. Insurers assess the applicant's financial capacity to pay premiums.
- Occupation: The nature of the applicant’s job can impact eligibility. High-risk occupations may attract higher premiums or face coverage limitations.
- Lifestyle factors: Non-smokers and individuals with healthy lifestyles are more likely to receive favourable terms for 1 crore term insurance, while risky behaviours like smoking can increase premiums or affect eligibility
Who should buy a 1-crore term insurance plan?
Anyone who has financial dependents or liabilities should consider purchasing a 1 crore term insurance plan.
- Breadwinners:
Individuals who are the primary earners in their family.
- Parents:
Those with dependent children whose future financial needs must be secured.
- Homeowners:
Individuals with mortgages or loans that need to be paid off in case of untimely demise.
- Sole providers:
People who financially support aging parents or other dependents.
- Individuals with significant liabilities:
Those with substantial debts or financial obligations that need to be covered.
Things to consider when choosing a term insurance plan for 1 crore
When selecting a a 1 crore term insurance plan, it is essential to consider several factors:
- Premium affordability: Ensure that the premium fits your budget without straining your finances.
- Claim settlement ratio: Opt for an insurer with a high claim settlement ratio to ensure smooth and hassle-free claims processing for your beneficiaries.
- Policy term: Choose a policy term that aligns with your financial goals and obligations, considering factors like children's education, retirement, etc.
- Riders and add-ons: Evaluate additional benefits such as critical illness riders or accidental death cover riders to enhance your coverage as per your needs.
- Company reputation: Research the insurer's reputation, customer service, and financial stability to ensure reliability and trustworthiness.
By considering these factors, you can make an informed decision and choose a term insurance plan that provides comprehensive coverage and meets your specific requirements.
What is an ideal sum assured amount for term insurance?
The ideal sum assured amount for term insurance varies from individual to individual and depends on factors such as income, lifestyle, liabilities, and financial goals. However, a sum assured of Rs. 1 crore is generally considered adequate for providing comprehensive financial protection to your family.
What are the sum assured options for term insurance plans?
Term insurance plans typically offer flexible sum assured options to cater to varying needs and preferences. While the coverage amount can vary depending on the insurer, policyholders usually have the freedom to choose a sum assured ranging from lakhs to crores. Some common sum assured options include 25 lakhs term insurance, 50 lakhs term insurance, 1 crore term insurance, 2 crores term insurance, and even higher amounts. Policyholders can select a sum assured based on factors such as their income, lifestyle, financial responsibilities, and long-term goals. It's essential to carefully assess your financial needs and choose a sum assured that provides adequate coverage to safeguard your family's financial future.
For affordable life insurance or term plans, you can visit the Bajaj Finance Insurance Mall. Here you will find life cover and term plans offered by leading insurers and suitable for every individual needs. Buying these plans are also very simple.
What are the riders available with 1 crore term insurance?
Riders help you customise your plan to cover more than just life cover. Here's a quick look at common riders you can choose with your 1 crore term insurance:
Rider names
|
Benefit
|
Accidental death cover
|
Extra payout if death occurs due to an accident
|
Critical illness rider
|
Lump sum payout on diagnosis of major illnesses like cancer, heart disease
|
Waiver of premium rider
|
Future premiums waived if you're permanently disabled or critically ill
|
Income benefit rider
|
Monthly income provided to the family after death for a fixed period
|
Accidental disability rider
|
Compensation in case of partial or total disability from an accident
|
Choose riders based on your health profile and family needs.
What are the documents required to apply for 1 crore term insurance?
Getting started with a 1 crore term plan is super easy today—most insurers offer quick online issuance. Here’s what you’ll need:
Proof of identity (Aadhaar card, PAN card, passport, or voter ID)
Proof of age (birth certificate, PAN card, school certificate)
Address proof (utility bill, Aadhaar card, passport)
Income proof (latest ITR, salary slips, Form 16, or bank statements)
Medical reports (if requested based on age or health disclosures)
Photograph and signature (for official records)
Keep these ready to speed up your application process.
Want to protect your loved ones with confidence? Explore top-rated term insurance plans with 1 crore sum assured and get quotes tailored to your needs now!
What is the claim process for 1-crore term insurance?
Following is the way to file claim process for 1 crore term insurance plan:
- Notify the insurer: The first step in claiming 1 crore term insurance is to notify the insurance company about the policyholder’s death as soon as possible. This can typically be done online, via phone, or through an agent.
- Submit claim form: Fill out the claim form provided by the insurer. This form collects essential details about the policyholder and the claimant.
- Provide documentation: Submit necessary documents, including the death certificate, policy document, identity proof of the claimant, and any additional documents requested by the insurer. Medical records and hospital reports may also be required if the death was due to illness.
- Verification process: The insurer will review the submitted documents and may conduct an investigation to verify the claim. This step ensures the claim’s legitimacy and compliance with policy terms.
- Claim settlement: Upon successful verification, the insurer processes the claim and disburses the 1 crore term insurance benefit to the beneficiaries. The timeline for settlement can vary but usually takes a few weeks to a few months.
