Building a financial safety net for your family should be among your top priorities from an early age. This mindset will help you build a solid financial plan and inculcate the discipline to save money through different investment avenues. However, besides investments, building the financial future of your loved ones through insurance should also be a part of your financial strategy. In fact, having a term life insurance plan with substantial financial coverage can help you assure the financial safety of your family members, especially if you are the only source of income. Such a plan would act as a replacement for your income in case you succumb to an unfortunate situation covered by the policy. In fact, the higher the sum assured, the better equipped your family members will be to meet their current and future obligations and living expenses. For instance, a term insurance plan for 2 crores can help meet financial obligations but will also enable you to account for your family’s expenses and requirements even when you are no longer in the picture. The best term insurance plan for 2 crore is designed to help meet the dependents of the insured to meet their immediate as well as their long-term financial needs like paying for their child’s higher studies, repaying outstanding loans, and meeting daily living expenses. However, to make sure such a comprehensive cover can actually help you protect your family’s financial security it is important that you check the features and benefits of the policy and their limitations.
Features of a Two Crore Term Insurance Plan
The top features of the best term insurance plan for 2 crore coverage are as follows –
High cover amount
A substantial cover of 2 crores would help meet the financial obligations and unprecedented financial emergencies with ease. Your dependents can use the sum assured to not just meet the immediate financial obligations but also to recoup and account for expenses such as bills, loans, rent, daily living expenses, and future obligations towards a child’s higher education and marriage. The high cover will help them to account for their expenses without straining their budget or driving them to depend on others for assistance.
Rider benefits
Besides the basic coverage, individuals can increase its scope by adding rider benefits such as a premium waiver, accidental death cover, or critical illness plan. This will not only boost protection but also allow individuals to plan for their insurance needs more effectively. However, the extended coverage will also increase the premium cost of a two-crore term plan.
Affordable premium amount
Despite the high sum assured, term insurance with 2 crore does not come with an extremely high premium. Most insurers are mindful of consumer’s affordability hence they have kept the premium reasonable for insurance buyers seeking financial support to protect their family’s future. However, your insurance premium would depend on several factors and the perceived level of risk the insurance company associates with your profile. You can understand how the insurance premium would be impacted by different factors by using an online term life insurance premium calculator. The tool will help you understand whether the plan is suitable for your needs and suits your budget or not. This will help you make an informed decision.
What to Consider When Buying a Term Plan for 2 Crore?
Take these into consideration before taking a term plan insurance for 2 crores.
Income: Your income is a key point of consideration as it will decide your ability to pay for the insurance premium. Your goal should be to pick a policy with a premium that you can pay without straining your limited budget. A premium that is beyond your financial capacity would not only put a strain on you but also increase your chances of default. The inability to pay premiums on time would make you lose your policy cover, leaving you and your dependents financially vulnerable. Use an online term insurance calculator to understand your paying capacity and plan your insurance purchase accordingly.
Obligations: After you factor in your income, take into consideration your ongoing and upcoming obligations. Typically, bills, loans, EMIs, daily expenses, rent, etc. make up a large part of obligations. Additionally, expenses such as the cost of a child’s higher studies, mortgage, marriage, etc. come under upcoming obligations. When computing your obligations, consider all these expenses to gain a better idea of suitable coverage that can help take care of your family’s financial needs. A high crore of 2 crores should be enough to help your family meet their expenses. You can also increase the coverage by adding suitable rider benefits to the base cover. For instance, you may add an accidental death benefit, critical illness rider, or premium waiver to increase your coverage. However, adding riders will increase your premium amount. So make sure to add riders that are only essential for your needs.
Who Can Get a Term Insurance Plan for 2 Crores?
Any individual who is between the age of 18 and 65 can get a 2 crore term insurance plan. However, it is advisable to purchase a plan at an early age to avail of high coverage at a relatively lower premium amount. At an early age the burden of financial responsibility is also less, which can allow you to save more and mobilize a part of that savings to safeguard the financial future of your family.
In case you are the only earning family member, you can benefit from a high cover plan like 2 crore term insurance. The substantial sum assured will help your family members become financially independent and enable them to lead a self dependent lifestyle. This will offer you a peace of mind when it comes to the future of your loved ones.
All these key features and benefits make a term plan for 2 crores a suitable means to build financial contingency for loved ones. Based on your needs and requirements you can tweak the plan and safeguard the financial future of your family with ease.