• The premium depends on factors such as age, health, lifestyle, policy term and selected benefits.
• You can choose a policy term and premium payment option based on your financial responsibilities.
• Riders may provide additional protection against risks such as accidental death or total and permanent disability, where available.
• Rs. 2 crore may be suitable if you have substantial liabilities, dependants or long-term financial commitments.
• Your actual cover requirement should be based on income, expenses, liabilities, savings and future goals.

• From 1 April 2026, eligible life insurance premiums may qualify for a deduction of up to Rs. 1.5 lakh per financial year under Section 123 of the Income Tax Act 2025, if you have chosen the old tax regime and meet the applicable conditions.

  
  

Before buying, compare the premium, policy term, exclusions, riders and claim process to check whether the cover matches your financial needs.

A Rs. 2 crore term insurance plan is a type of life insurance policy that provides a death cover of Rs. 2 crore during the selected policy term. If the life assured dies during the policy term, the nominee receives the applicable death cover, subject to the policy terms and conditions.

The payout can help the nominee manage household expenses, outstanding loans, children's education and other financial commitments. Term insurance focuses on protection, so a standard term plan does not have an investment component.

The premium is not fixed for everyone. Age, health, lifestyle, policy term, sum assured and other underwriting factors can affect the premium.

The process generally works as follows:

1. Apply for the plan: Select Rs. 2 crore cover and the policy term that suits your needs.
2. Provide your details: Submit personal, financial, health and lifestyle information.
3. Complete medical checks: The insurer may ask for medical tests based on its underwriting requirements.
4. Pay the premium: Pay premiums according to the selected payment frequency and payment term.
5. Stay covered: The policy remains active as long as you meet the applicable premium and policy requirements.
6. Claim the death cover: If the life assured dies during the policy term, the nominee can file a claim with the insurer.
7. Policy expiry: If the life assured survives the policy term, the policy generally ends without a death payout unless the selected plan provides another benefit.

Flexible coverage, affordable premiums—find a life insurance plan that fits your needs. Get a quote today!

You may consider this level of cover for:

• Family financial protection: The death cover can help your dependants manage regular expenses.
• Affordable life cover: Term insurance can provide substantial cover at a comparatively affordable premium.
• Long-term financial goals: The payout can support goals such as children's education.
• Loan protection: The cover can help your family manage outstanding liabilities.
• Flexible protection: You can choose the policy term based on your financial responsibilities.

• Simple life cover: A standard term insurance plan focuses on protection rather than investment returns.

  
  

Tax treatment may also apply to eligible premiums and policy proceeds, subject to the applicable provisions and conditions.

Consider Rs. 2 crore if you have:

• Significant liabilities: A home loan, personal loan or other outstanding debt.
• Financial dependants: Family members who rely on your income.
• Future goals: Children's education, marriage or other major financial commitments.
• Regular household expenses: Costs that your family would continue to meet over several years.

• Long-term financial responsibilities: Commitments that may continue well into the future.

  
  

A small premium for a big safety net! Term Insurance ensures your family’s future is secure, no matter what. Get covered today - get quote!

• High life cover at affordable premiums: One of the biggest term insurance benefits is the ability to get a large life cover at a relatively low cost. A 2 crore term insurance plan offers substantial financial protection without straining your monthly budget, especially when bought at a younger age.
• Flexible premium payment options: This plan allows you to choose how and when you pay premiums—monthly, quarterly, yearly, or even through limited-pay options. Such flexibility is among the key benefits of term insurance, helping you align premiums with your income flow.
• Optional riders for enhanced protection: You can strengthen your cover by adding riders like critical illness, accidental death, or waiver of premium. These add-ons enhance overall protection and showcase the extended term insurance benefits beyond basic life cover.
• Tax benefits on premiums and death covers: Premiums paid for a 2 crore term insurance plan are eligible for deductions and death cover is generally tax-exempt under the Income Tax Act 2025, adding to the financial benefits of term insurance.
• Financial security for family and dependents: In the unfortunate event of the policyholder’s death, the payout helps dependents manage daily expenses, future goals, and liabilities. This reliable safety net is a core reason people value the benefits of term insurance.
• Flexible claim payout options for nominees: Nominees can choose lump-sum, monthly income, or a combination payout. This flexibility ensures funds are used wisely, reinforcing the long-term term insurance benefits for your family.

• Substantial coverage: A 2 crore term insurance plan provides a significant amount of coverage, ensuring that your family’s financial needs are met comprehensively.
• Low premiums: Term insurance plans offer high coverage at relatively low premiums, making them an affordable option for securing your family’s future.
• Death cover: In the unfortunate event of the policyholder’s demise, the beneficiaries receive a lump sum payout, ensuring financial stability during a difficult time.
• Flexibility: Policyholders can choose the policy term and premium payment frequency as per their convenience, offering flexibility in managing the insurance plan.
• Riders for enhanced protection: Many term insurance plans offer riders such as critical illness cover, accidental death cover, and waiver of premium, enhancing the policy’s coverage.
• Peace of mind: Knowing that your family’s financial future is secure brings peace of mind, allowing you to focus on other aspects of life without worry.
• Simplicity: Term insurance policies are straightforward, with no investment component, making them easy to understand and manage.

Your income, liabilities, savings and dependants should ultimately determine the appropriate cover.

Important points to keep in mind:

• Compare premiums: Compare plans with similar cover, policy terms and benefits.
• Check the insurer: Review the insurer's financial position, service record and claim process.
• Choose the right policy term: The term should cover your key earning years and major financial responsibilities.
• Review available riders: Choose riders only when they address a genuine protection need.
• Check the sum assured: Confirm that Rs. 2 crore is sufficient for your liabilities and future goals.
• Review premium payment options: Choose a payment structure that fits your regular cash flow.
• Read the policy terms: Check exclusions, claim conditions, grace periods and revival provisions.

• Consider financial strength: Review the insurer's disclosed solvency ratio and other relevant financial information.

  
  

There is no single claim settlement ratio or solvency ratio that guarantees a claim. Consider these figures alongside the policy terms and other insurer information.

Compare term plans, premiums and coverage in one place. Get a quote now!

Timing is everything when it comes to buying a 2 crore term insurance policy. The earlier you purchase it in life—ideally in your 20s or early 30s—the more affordable your premium will be. Younger individuals are considered lower risk by insurers, which results in better coverage options, longer policy terms, and lower premiums. Buying early also ensures financial protection for a longer period, giving your family peace of mind. It’s a smart decision that grows with your responsibilities, making it cost-effective and future-ready.

Actual premiums vary by insurer and applicant. Check the applicable insurer quote before purchasing.

Here are the key points to consider:

• Assess your coverage needs: Consider your income, regular expenses, outstanding loans, savings, financial dependants and future goals. The cover should be sufficient to support your family and meet major financial commitments.
• Compare premiums: Compare premiums from different insurers for similar coverage and policy terms. Choose a premium that fits comfortably within your budget throughout the payment period.
• Choose the right policy term: Select a term that covers your key earning years and major financial responsibilities. A longer term may be useful when you have dependants or long-term liabilities.
• Check the claim settlement ratio: Review the insurer's claim settlement ratio and compare its performance across multiple years. However, do not use this figure alone; also consider the policy's coverage, exclusions and claim process. 
• Consider relevant riders: Riders such as critical illness, accidental death cover and waiver of premium can provide additional protection. Choose only the riders that match your specific financial and protection needs. 
• Review the insurer's reputation: Look at the insurer's financial strength, claim servicing record, customer support and policy terms. A good reputation should be assessed alongside the plan's features and not based on a single metric.

• Consider your financial dependants: Think about who relies on your income, including your spouse, children or other family members. A Rs. 2 crore cover should be assessed against their current expenses, future needs and the financial support they may require.

  
  

Look for a plan that provides adequate cover, an affordable premium, a suitable policy term and features that match your family's financial needs.

The sum assured determines the level of financial protection available under your term insurance plan. A suitable amount can help your family manage regular expenses, liabilities and long-term financial commitments.

Choosing a low cover can leave a financial gap, while unnecessarily high cover can increase the premium. Your sum assured should therefore reflect your family's actual financial needs.

Tips to decide the right coverage amount

• Consider your annual income.
• Add existing loans and other liabilities.
• Estimate future goals such as children's education.
• Include your family's regular living expenses.
• Account for inflation during the policy term.
• Consider your spouse's income and other financial resources.
• Include existing life insurance cover and employer-provided cover.
• Review your Human Life Value, where appropriate.

The aim is to choose a cover that can reasonably support your family's financial needs rather than relying on a fixed income multiple alone.

• Dependent family members and living expenses: Consider how many people depend on your income, such as your spouse, children or elderly parents. Add up their regular living costs, education expenses, healthcare needs and other financial commitments to estimate how much support they may need.
• Financial liabilities: Include outstanding home loans, personal loans, education loans and other debts when deciding your cover. The sum assured should be sufficient to help your family manage these liabilities without placing additional financial pressure on them.
• Annual income and retirement: Annual income can provide a starting point when estimating your required life cover. A commonly used guideline is 10 to 20 times annual income, but your actual requirement should also account for your retirement plans, dependants, liabilities and future financial goals. 
• Human Life Value (HLV): Human Life Value helps estimate the financial value of your future income and the support your dependants may require. It considers factors such as income, expenses, liabilities and future financial needs. If your HLV calculation is close to Rs. 2 crore, this cover may be worth considering. 

• Inflation: Consider how rising costs could affect your family's future expenses. A fixed Rs. 2 crore payout may have lower purchasing power several years from now, so factor inflation into your coverage assessment, particularly if you are choosing a long policy term. 

  
  

The right sum assured is therefore different for every individual. Review your income, dependants, liabilities, existing insurance and future goals before deciding whether Rs. 2 crore provides adequate financial protection.

Here are the main factors that can affect what you pay:

• Age: Premiums are generally lower when you buy term insurance at a younger age because the insurer assesses the risk over the policy term.
• Health and medical history: Your current health and disclosed medical history can affect the premium. Certain health conditions may result in a higher premium after underwriting.
• Lifestyle: Smoking, alcohol consumption and participation in certain high-risk activities can affect how the insurer assesses your risk and prices the policy.
• Policy term: The length of the policy affects the premium because the insurer provides life cover for a longer period.
• Sum assured: A Rs. 2 crore cover generally costs more than a policy with a lower sum assured because the insurer takes on a higher financial risk.
• Occupation: Your occupation and working conditions may be considered if they involve higher risks. The insurer may assess these details while underwriting your application.
• Riders: Adding optional riders, such as critical illness or accidental death cover, can increase the overall premium because they provide additional protection.
• Premium payment option: The premium can also vary depending on the payment structure and frequency selected. The available options depend on the policy terms.

These elements are assessed together, so there is no single premium applicable to every person seeking Rs. 2 crore term insurance. Your final premium will depend on the insurer's underwriting assessment and the policy options you select.

Two important factors are:

• Policy tenure: A longer policy term can affect the premium because the cover continues for a longer period.

• Sum assured: A higher sum assured generally results in a higher premium because it increases the insurer's potential claim liability.

  
  

Age, health, lifestyle, occupation, premium payment term and selected riders can also affect the final premium.

Step 1: Assess your coverage needs

Review your income, expenses, loans, savings and future financial goals. This helps you check whether Rs. 2 crore is appropriate.

Step 2: Compare plans and insurers

Compare suitable plans based on premium, policy term, features, exclusions and insurer information.

Step 3: Choose policy term and premium payment option

Select a policy term that covers your key financial responsibilities. Choose a payment structure that you can maintain comfortably.

Step 4: Add suitable riders

Consider riders such as critical illness or accidental death cover if they match your protection needs and are available with the plan.

Step 5: Complete application and medical checks

Provide accurate personal, financial, health and lifestyle information. Complete medical tests if the insurer requires them.

How insurers determine your premium:

The insurer may consider:

• Age and gender
• Medical history and current health
• Sum assured
• Policy duration
• Premium payment term and frequency
• Smoking and tobacco use
• Occupation and lifestyle

• Selected riders

  
  

Once you have identified the cover you need, you can compare suitable plans and get a quote.

Claim procedure overview:

• Notify the insurer about the life assured's death.
• Complete and submit the claim form.
• Provide the required policy and identity documents.
• Submit the death certificate and other documents requested by the insurer.
• Complete any additional verification required.

• The insurer reviews and processes the claim according to the policy terms.

  
  

The actual claim decision and settlement depend on the insurer and the applicable policy conditions.

Tax benefits depend on the applicable tax regime, policy and tax year. The Rs. 2 crore cover itself does not determine whether you receive a tax benefit.

From 1 April 2026, eligible life insurance premiums can qualify for a deduction of up to Rs. 1.5 lakh per financial year under Section 123 of the Income Tax Act, 2025, subject to the applicable conditions and the aggregate deduction limit. This provision replaces the earlier Section 80C framework and applies under the old tax regime. 

For eligible life insurance proceeds, Section 11 read with Schedule II of the Income Tax Act, 2025 replaces the earlier Section 10(10D framework from 1 April 2026. The exemption is subject to the applicable conditions under the law.

Tax laws are subject to change. BFL does not provide Tax/Investment advisory services. Please consult your advisors.

Common options include:

• Accidental Death Cover: May provide an additional benefit if death occurs due to an accident, subject to the rider terms.
• Critical Illness Rider: May provide a benefit if you are diagnosed with a covered critical illness.
• Waiver of Premium Rider: May waive future premiums after a covered event, subject to the rider conditions.

• Accidental Total Permanent Disability Rider: May provide a benefit if an accident results in a qualifying total and permanent disability.

  
  

IRDAI's Master Circular on Life Insurance Products recognises riders as part of life insurance product structures, with benefits governed by the applicable rider and policy terms.

Choose only the riders that match your actual protection requirements.

A Rs. 2 crore term insurance plan generally covers death due to accidents, just like death from natural causes. However, disability may not be covered under the basic term plan. You may need to add an accidental total permanent disability rider for financial protection if an accident leaves you permanently disabled. The exact coverage, exclusions and rider benefits vary by policy. So, check the policy terms and consider suitable riders based on your financial needs.

A Rs. 2 crore term insurance plan can provide substantial financial protection for your family at a relatively affordable premium. It can help your dependants manage household expenses, outstanding liabilities and long-term financial goals if you die during the policy term.

Before buying, assess your income, liabilities, dependants, savings and future goals to check whether Rs. 2 crore is the right amount for you. Compare suitable plans, understand the policy terms and choose only the riders you need.