If you are the family’s sole breadwinner, managing the family expenses can be challenging without a safety net. We often see such people facing burnout making two ends meet, but they also have a constant fear—a fear about the wellbeing of the family in case of their absence.
Such unnecessary worries can increase the mental pressure, thus keeping them from enjoying the precious moments with the family. If you have faced something similar, you need a safety net like no other. A 1 crore term insurance policy can be a safety net for you and your family. Read on to know the other top benefits of purchasing a 1 crore term insurance policy.
A Life Cover Worth 1 Crore – The Brilliant Feature of a 1 Crore Term Insurance Policy
A term insurance policy financially protects the family of a policyholder in times of need. But considering the inflation and high cost of day-to-day things, having any amount as a life cover is not enough. Experts suggest that a family requires at least one to two crore rupees to survive with these costs.
In such cases, a 1 crore term insurance policy can solve a family’s problems regarding insufficient funds. That is why several people prefer a term insurance policy with similarly high life cover.
The Top 6 Benefits of A 1 Crore Term Insurance Policy
The below-given benefits will help further understand the importance of purchasing a 1 crore term insurance policy.
Huge Corpus for Family
A policyholder can provide a considerable corpus through a 1 crore term insurance plan. This fund is then helpful to meet all the family’s expenses, including the costs of the children and elders in a household.
Cheap Premium Amount
As a term insurance plan does not have a return of premium policy, its premium amount is also too low. It helps contribute funds towards an essential risk plan more conveniently without burdens on the other basic expenses.
Higher Tax Savings
Due to term insurance being a life insurance policy, it also has the same tax savings. As the life cover is 1 crore, the premium amount will be slightly higher than regular term insurance plans but not as high as standard life insurance plans. So, a policyholder can claim a higher amount in their tax savings with Section 80C of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.
Securing The Future of Children
The high life cover also helps provide the children with the best possible future. So, they will not have to compromise on any of their future dreams regarding education or career.
Several Payout Options
The nominee also gets different payout options due to the high coverage amount. They can choose a one-time settlement, monthly payment, or even a combination of both.
Extra Riders and Covers
A policyholder can also add several riders and covers to their 1 crore term insurance plan. It makes the policy useful for several different purposes other than life cover.
You must now know the top benefits of a 1 crore term insurance policy apart from being a great safety net. If you wish to increase the yields of your term insurance policy, you must always strive to choose only the best life insurer. In India, there are more than 30 registered life insurance companies.