Understand the benefits & features of Term Insurance. Also, is a 1 Cr Term Insurance sufficient?

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Term insurance are plans that one can invest in to protect their finances for the future. 1 cr term insurance is an interesting product from the insurance service provider that has a huge principal amount that your beneficiaries can obtain after your demise. 1 cr term insurance plans are curated in such a way that they can act as a hedge to protect you from inflation to a great extent. 1 cr term insurances also have a highly competitive premium rate. 1 cr term insurance is a plan purely based to protect you by providing you with a cover and has no investment portion to it. 

Is 1 cr term insurance sufficient for an average individual?

A 1 cr term insurance is a long-term plan with the minimum tenure being 5 years and maximum being 40 years, which allows you to get financial security for yourself as well as your family. You can help secure your family’s future needs with a 1 cr term insurance

An average individual in India needs to make wise investments while they are working in order to generate a corpus big enough to live the retirement life peacefully. One such way to do that is to invest in 1 cr term insurance, wherein you have to pay a fixed yearly premium over a certain number of years and then once that period ends you are not obligated to pay anything. Your beneficiaries and heirs will receive the funds after your unfortunate demise.

A 1 cr term insurance is enough for an average individual/breadwinner in India because if you are someone who is earning well enough, you can diversify your portfolio to have multiple streams of income. Apart from this, the premiums for a 1 cr term insurance policy are low and you don’t have to pay it for your lifetime. 1 cr is a decent size of corpus that is more than enough for most families in India. 

It also has several other benefits like an option to increase the coverage amount, have some benefits in case you meet an accident and it causes a disability, illness benefits, etc. 

You can choose this plan if you are willing to conduct a thorough observation of your day-to-day expenses as well as consider what your future expenses will be. Once you determine certain expenses and other surplus amounts to be kept as a safety net, you can determine how much of this 1 cr term insurance can be used by you and in what way. If you can determine this amount, you can easily calculate how you can use this term plan to your advantage. 

As an individual, you need to think about your retirement life while you are working and align your investment targets with your retirement goals in order to lead a happy retirement life. It is really necessary to get a 1 cr term insurance, as you can relax with the sum you get on maturity.