Term Insurance Plans
2 Crore Term Insurance Plan
The importance of financial planning and security for our loved ones cannot be overstated. The future is unpredictable and opting for a comprehensive cover like 2 crore term insurance can prove to be a smart move, a few years down the line. If you’re beginning to invest in your family’s financial stability and security, it might be time to start looking for the best best 2 crore term insurance plan. So, keep reading to know more!
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What Is A 2 Crore Term Insurance Plan?
A standard term insurance policy is a variation of life insurance designed to provide the nominee or beneficiary financial assistance (known as the death benefit) in case of the insured individual’s untimely demise. So, a term insurance plan for 2 crores serves the same purpose, but the only difference is that it offers a sum assured of Rs 2 crores, whereas other plans might come with a life cover of Rs 1 crores, 50 lakhs, and so on. However, the coverage amount is entirely based on your requirements and the type of term insurance plan you choose – it’s not set in stone.
Therefore, investing in a term insurance plan for 2 crores will ensure that your loved ones’ financial needs will be taken care of, even in your absence. Even better, the monthly premiums are quite economical, making the 2 crore life insurance policy a popular choice among policy buyers.
Why Buy 2 Crore Term Insurance Plan?
Now that we know the basics of a 2-crore term insurance plan, let’s look at some of its benefits:
Now that we know the basics of a 2-crore term insurance plan, let’s look at some of its benefits:
Affordable Premiums
While you may think that term insurance with a sum assured of Rs 2 crores will be unaffordable, it’s quite the opposite. Rather, the term life insurance plan is economical, as the monthly premium is typically around Rs 1,000 for the young and healthy. Plus, you can save a few extra bucks on the premium if you invest at an early age.
Acts As a Financial Cushion
If you’re the sole breadwinner of your family or you have financial dependents, a 2-crore term insurance plan will act as a financial cushion for your loved ones. The death benefit can be used for household expenses, education, loans, and liabilities, ensuring your family’s financial requirements are met even if you’re not around.
Wide Coverage
Even though a 2 crore life insurance policy might be sufficient, policyholders also have the option to opt for riders such as critical illness benefit*, accidental death benefit*, and waiver of premium. This option not only enhances your coverage but is also affordable.
More Savings & Investments
Since a term insurance plan for 2 crores is available at nominal premiums, you can increase your long-term savings and investments such as mutual funds, ULIPs, or retirement & pension plans so you can enjoy your golden years comfortably. However, to do so, it is best advisable to purchase a 2 crore life insurance policy as early as possible.
How Does 2 Crore Term Insurance Plan Work?
Although life insurance has gained traction in recent years, it has been around for decades. As discussed earlier, term plans are the purest form of life insurance, offering the nominee a death benefit in case of the policyholder’s death. But the added advantage is that the sum assured, or the death benefit can be used for your child’s education, marriage, or even to pay off loans.
However, it is essential to understand how a 2-crore term insurance plan works in detail, so let’s take a look:
- A term insurance policy is a life insurance plan that provides life coverage for a fixed/pre-determined duration or ‘term’ – hence the name.
- If the policyholder dies while the term plan is in force, the beneficiary will be eligible to receive a death benefit from the insurance provider. For instance, if you purchase a term insurance plan for 2 crores, the entire sum assured will be paid to the nominee as per the policy terms & conditions.
- To enjoy the benefits of the 2-year term plan, you will have to pay a fixed premium monthly, quarterly, half-yearly, or annually, depending on your preference. However, the premium amount for term insurance 2 crore is based on a few factors such as your age, gender, annual income, and smoking habits.
- While the premium amount stays the same during the policy period, your term insurance plan can lapse if you don’t pay the premium.
- However, if the insured individual survives the term plan, the policy will come to an end unless you opt for a survival or maturity benefit rider.
So, a term insurance plan for 2 crores is an ideal choice for anyone looking to secure their loved one’s future. Plus, it is an economical investment that won’t be a burden while also giving you much-needed peace of mind.
How To Choose the Right Coverage Sum?
A 2-crore term insurance plan is the go-to choice for many policy buyers as it acts as a safety net for their family’s future financial requirements. In addition, Rs 2 crores is a considerable substantial amount, and it can easily take care of several needs, including utilities, household expenses, and even home loans. However, it is still vital to know whether the 2 crore term insurance plan is a viable choice for you. So, let’s look at some factors you can consider:
1. Your Age
Since older people are more prone to illnesses and health conditions, the term insurance premium is comparatively higher, which is why it is best advisable to buy term insurance for 2 crores at a younger age. Plus, it will also ensure that your loved ones are financially secured for a longer period. But if you are buying a 2-crore term insurance plan during your 40s or 50s, choose policies offering add-on riders for enhanced coverage.
2. Annual Income
Your annual income plays a crucial role in determining the appropriate life cover amount. Since it impacts your general standard of lifestyle, financial planning and your premium paying capability, to an extent; taking a life cover that is suitable for your annual income is the smart thing to do. You can use the Max Life’s online insurance calculator to assess if 2 crore term insurance plan is for you.
3. Existing Loans & Liabilities
If you’re buying a 2 crore life insurance policy, it is important to factor in any existing liabilities that you may have. Be it an education loan, home loan, or car loan; it is essential to ensure that your term insurance plan will be sufficient to cover all such liabilities. Therefore, looking for the best term insurance plan for 2 crores is an excellent choice.
4. Financial Dependents
Whether you have parents, children, or a financially dependent spouse, it is vital to consider their financial needs and requirements before choosing a term insurance policy. However, a term insurance plan for 2 crores might be sufficient to ensure your family has a safety net to cover their financial obligations.
Selecting the Right Sum Assured Option
Among the key factors that help you select the best term insurance plan to secure your family’s future is selecting the right sum assured. This section provides you with the right sum assured options, thus help you make an informed decision in a jiffy. Select one of the options provided below to know more about the sum assured amounts:
Term Insurance
₹ 50 Lakhs
Starting from ₹ 15 / day*
Term Insurance
₹ 75 Lakhs
Starting from ₹ 22 / day*
Term Insurance
₹ 1 Crore
Starting from ₹ 23 / day*
Term Insurance
₹ 1.5 Crore
Starting from ₹ 35 / day*
Term Insurance
₹ 2 Crore
Starting from ₹ 36 / day*
Term Insurance
₹ 5 Crore
Starting from ₹ 86 / day*
Benefits Of Term Insurance Plan for 2 Crore
Since a 2 crore term insurance plan is no less than an investment, it is vital to weigh its features. So, here are some key features of the best term insurance plan for 2 crores:
Easy On Your Pocket
One of the greatest benefits of opting for a 2 crore term insurance plan is that it won’t burn a hole through your pocket. Since term plans are the purest form of life insurance, the premiums are quite affordable. Plus, this gives you the added benefit of focusing on long-term savings and investments.
Tax Exemption#*
According to Section 10(10D) of the IT Act, the sum assured, or death benefit of term insurance policies are completely exempt from taxes. So, whether you have a term insurance plan worth Rs 50 lakhs or 5 crores, the payout, plus any additional bonuses will be tax-free – which is an added benefit to consider when buying a 2 crore life insurance policy.
#*Tax benefits are subject to changes in tax laws.
Easy Customization
Today, almost all insurance companies and providers offer add-on riders with term insurance 2 crore plans. You can opt for riders such as accidental death benefit*, maturity/survival benefit, and return of premium variant**, enabling you to customize and personalize the term plan according to your preferences and requirements.
Multiple Payout Options
Although insurance companies usually provide the payout for term insurance in lump sum, some insurers offer multiple payout options. For instance, you can either opt for a monthly income payout or receive the entire death benefit in lump sum, depending on your financial requirements at the time. However, you can even go for lump sum plus monthly income payout options for term insurance 2 crore policies.
Who Should opt for Term Insurance Cover for 2 Crore?
While there is no right or wrong answer as to who should buy a term insurance cover for 2 crores, here are some instances where you might want to consider investing in one:
- If you’re in your late 20s or early 30s, it might be time to purchase a term insurance plan for 2 crores. The reason behind this is that term policy premiums are quite economical for individuals who are young and healthy. So, if you’ve just begun your career, buying a 2 crore term insurance plan is a great option.
- Individuals who are the sole earning member of their family can should get a term insurance plan for 2 crores. Doing so is essential so that your loved ones have a financial cushion to fall back on in case of your untimely demise.
- If your annual income is above Rs 5 lakhs, this term plan is ideal for you.
- People who are the sole breadwinner of their families but also have financial dependents should can consider investing in term insurance plans for 2 crores.
- Since term insurance plans are designed to provide financial backup, people with existing loans and liabilities should must evaluate purchasing a 2 crore term insurance plan. This will ensure that your family members have a safety net to fall back on and pay off any such liabilities in case of your untimely demise.
How to Select Term Insurance Plan?
There are many factors that come into play when choosing a term insurance plan. However, the annual premium cost is often the key factor, especially when one is considering a high sum assured of Rs. 2 crore or more. The premium payable for a term insurance plan typically depends on multiple factors including age, riders opted, annual income, the term plan chosen etc.
If you are planning to purchase a term insurance plan for 2 crores, you can consider opting for the Max Life Smart Total Elite Protection Term Plan (UIN: 104N125V02, A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan).
This term insurance plan is especially designed for individuals opting for a high sum assured of 2 crore or higher and is customisable to the financial needs and requirements of a diverse range of customers. The Max Life Smart Total Elite Protection Term Plan [A non-linked non-participating individual pure risk premium life insurance plan | UIN104N125V02] or Max Life STEP Term Plan offers several built-in benefits such as auto cover continuance, insta-payment on claim intimation, special exit value, and early exit value. Below are some of the key benefits that you can avail by purchasing this 2 crore life insurance policy from Max Life Insurance:
Cover Continuance Benefit
This feature also sometimes referred to as the ‘Pay Later’ benefit provides policyholders the option to defer premium payments for 12 months while continuing to receive all the benefits of the Max Life STEP Term Plan. This benefit, subject to key terms and conditions, can be availed multiple times during the policy term after completion of 3 policy years.
Special Exit Value
This in-built feature with no additional premium payable provides existing policyholders the option to surrender their policy and receive the premiums paid plus underwriting extra premiums plus loadings for modal premiums (if applicable). This option can be availed for a specified period of time during the policy term (Terms and Conditions applicable).
Insta-Payment on Claim Intimation
This allows the nominee of the policy to receive an immediate payout of Rs. 2 lakh within 1 working day on submission of claim registration. Submission of proof of death along with other mandatory documentation is essential for availing this benefit.
Terminal Illness Coverage
In-built feature offering up to 1 crore payout on diagnosis of any of terminal illnesses as specified by the plan.The list of benefits mentioned above is just for illustration and one should go through the prospectus and other documentation of the Smart Total Elite Protection Term Plan by Max Life Insurance for details of these and other benefits as well as the applicable terms and conditions. This will help you get a better understanding of why Max Life STEP Plan is an ideal 2 crore term plan option so that your family’s financial future is always in secure, even if you are no longer there to support them.