Why You Need to Buy a 2 Crore Term Insurance Plan?

While purchasing an insurance plan, most policyholders are struck with the question ‘What is the right term insurance coverage?’. If you, too, have been wondering about this, allow us to help you make the correct choice today. The sum assured chosen for your policy should be sufficient to manage most of your expenses along with inflation. One such popular choice is a INR 2 Crore term plan, which is more than enough for your loved ones. Keep reading to learn the benefits of a 2 Crore plan and factors that affect your premium quote.

Why Should You Opt for 2 Crore Term insurance?

Below mentioned are some key reasons as to why you must consider getting a policy with such a high sum assured amount:

1. Enables you to maintain the standard of living

We all aim to give our children the best life with access to every opportunity that we can imagine. However, does that change in case something happens to you? Your family must already have a specific standard of living, which may go for a toss in the event of lack of funds. In case of an unfortunate mishap, your family would have to give up their dreams and work towards accumulating enough corpus to achieve their life goals. Instead, you can get a term insurance policy with a sum assured of INR 2 Crore that shall secure all their needs for the future.

2. Offers extensive cover for loved ones

While buying a term insurance policy, some individuals might estimate all their financial requirements and others may pick a random sum they believe is enough. But is it really sufficient? A INR 2 Crore policy can easily pay off any pending debts and loans and secure other needs without any hitches. Thus, you can make the most of the term insurance benefits with such high coverage and provide your loved ones with an extensive cover.

3. Provides affordable premiums

When it comes to term insurance, the premiums are much more affordable as it is a pure risk cover. Similarly, if you compare the cost of buying a term plan having a cover of INR 2 Crore with other life plans, the latter shall be more expensive. Thus, you can reap the benefit of lower term insurance premiums for such high insurance coverage without it burning through your savings. 

4. Gives peace of mind

Having enough financial backup to care for your loved ones always offers a peace of mind like no other. As a parent and a spouse, you wouldn’t want to see your family struggling to make ends meet or sacrificing their dreams. Therefore, leaving a lump sum corpus of INR 2 Crore shall go a long way in assuring you.

Factors That Play a Role in Deciding Term Insurance Premium

• Age – The age of a policy applicant plays a crucial role and impacts the insurance premium as younger policyholders are less likely to suffer from any illnesses. The term insurance age limit is up to 65 years old but you should ideally purchase a term plan in your 20s.
• Medical history – To understand how much risk the insurer is taking up, the company shall ask for your family medical history and current health conditions. Having a history or any pre-existing ailments can lead to increased premium rates.
• Lifestyle habits – The habit of drinking alcohol or smoking can also lead to an increase in your insurance premium as they can cause health complications in the future. However, it is recommended to avoid hiding your lifestyle habits from your insurer.
• Gender – This is another aspect that affects your premium quote, where companies refer to statistical data to understand the mortality rate of both genders. The data claims that women tend to live longer than men, and thus, as a female policy applicant you may get a lower premium quote.