It is vital to protect one’s financial future and build a robust financial foundation that can support the family’s well-being even in the absence of the breadwinner of the family. However, life is uncertain and often a basic financial plan falls short to account for unannounced situations. Individuals can easily overcome such challenges if they include a comprehensive policy like a two crore term insurance into their financial plan, Such extensive coverage will act as a financial safety net, especially in the untimely death of the insured, and continue to offer financial support to the policy beneficiary. Typically, the substantial coverage will enable the beneficiaries to account for immediate, ongoing, and future financial obligations with ease and without dipping into their savings. It will also help them to remain independent and allow them to bounce back as and when they are ready. However, it is always advised that individuals look more than just the financial coverage to ensure that they do not miss out on key features such as the extent of coverage and ease of claim process.
That said, let’s explore the main features of 2 crore term insurance and understand whether it would be a suitable plan to safeguard one’s financial future or not.
What Are The Key Features Of A Two Crore Term Insurance Plan?
These are some of the most important features and associated perks of a 2 crore term insurance policy –
Wide Insurance Coverage: A 2 crore term insurance plan has been designed to serve as a solid financial shield that helps protect the insured and their loved ones from the ill effects of financial burden during unwarranted situations. The insurance plan’s extensive death benefit will enable the policy beneficiaries to manage and pay off their existing loans, EMIs, and ongoing daily expenses, providing the family freedom from relying entirely on their personal savings and preventing them from withdrawing their fixed deposits. Individuals also have the leeway to add riders like critical illness cover, insurance premium waivers, and accidental death benefits, in their existing plan to enhance their financial protection.
Affordable Insurance Premium: Rupees two crore is a high coverage amount. However, this does not mean the policy’s premium will cost the individual a fortune. These insurance plans are designed to provide the insured with substantial coverage at affordable premiums, making the insurance plan bearable in their pocket. Individuals should consider this to be an investment where the money they invest is a manageable cost and in turn, they would get protection and substantial coverage. Then again, it is suggested to check one’s financial standing and pick a premium that meets their need for protection and coverage adequately. To further make an informed choice, individuals can use an online term insurance premium calculator to gain insight into one’s estimated coverage and suitable premium amount.
What Factors Should Be Considered to Avail of the Right Coverage?
In order to find the best-suited insurance coverage individuals should check the following factors and analyze their role. Subsequently, they should pick a plan that meets their need and helps take care of their financial security –
- Age: Notably, with an increase in one’s age the frequency of suffering from age-induced health-related issues also becomes higher. The increased age is seen as a risk factor by the insured. As a result, it affects the overall cost of purchasing a life insurance policy negatively. In other words, individuals who are older in age pay a higher premium to avail of comprehensive coverage than those who are younger. This is the primary reason why individuals are recommended to purchase insurance early in life to avail of higher coverage at significantly lower premiums. To further understand how age impacts one’s insurance premium, they can use an online term insurance premium calculator and check the impact under different situations.
- Annual Income: Insurance companies make it a point to check and analyze the intending insurance buyer’s income to assess and identify which insurance policy would suit their budget and help meet their protection requirements. Before they apply for an insurance policy, individuals can access an online term insurance calculator to understand the costs they will have to bear to avail a desired coverage, in this regard Rs. 2 crore, without straining their savings. The financial tool can help individuals understand their financial standing and affordability to pick a policy that caters to their insurance needs and their budget.
- Liabilities: Individuals can add their existing and future liabilities before picking a comprehensive insurance cover. However, the approach should always be to add existing financial loans, ongoing EMIs, and future obligations to help make a sound decision. A comprehensive financial plan enables individuals to account for their current and potential expenses for the future to build a financial safety net for their loved ones. However, it is suggested that individuals must account for all incomes and expenses to ensure effective financial planning to gain greater control over them.
Who Said Get A 2 Crore Term Insurance Policy?
Young individuals who are starting their careers and planning to safeguard the future of their family members from unforeseen circumstances can benefit significantly from the insurance plan. Typically, a cover of Rs. 2 crore would help the insured secure the financial future of their family members and allow them to meet their financial goals with ease even in the absence of the insured.
Those who are the sole earning member of their family can also benefit from this insurance coverage. It will allow the insured and their family members to account for their financial worries with more ease and keep up their current living standard even in the absence of the insured.
Individuals with large loans and obligations can pay off their debt burden with a high coverage amount and protect the family from shouldering the burden of the loan repayment. Such a high coverage is most useful in situations when the individuals have several independents.
Hence it can be said that a 2 crore term insurance plan helps buyers safeguard their financial future and gain more control over their financial future. Typically, such an insurance plan can help individuals build a safety net and enable them to plan their finances effectively.