2 Crore Term Insurance Plan

They say money can't buy happiness. Try telling that to a seven year old who had to drop out of school because she lost her father. The father could have been the family’s sole breadwinner. Or try telling that to an old mother who just lost her only son. What if she’s on the verge of selling her home to start making a living? Money can’t buy happiness, but it does provide security in uncertain times.

Premature demise is like a pause button that has both emotional and financial impact on families, especially if the breadwinner suffers this fate. This often causes a financial crisis if there were no financial provisions made for the entire family.

While we toil day in and day out to earn a living and make our families comfortable in the present, we often fail to plan effectively for their future, especially if life has other plans in store. A term insurance plan is one such instrument with which one can secure their family’s finances in case of such life-altering events.

Term plans are called “pure risk” life insurance plans. They insure the risk of premature demise and provide much-needed financial assistance to the bereaved family. This alone should make term plans an indispensable part of your financial portfolio.

What is a good term insurance plan?

  • ● When investing in a term insurance plan, you need to ensure that the coverage is optimal.
  • ● An adequate sum assured ensures that your family receives a corpus sufficient for their needs.
  • ● A good term insurance plan is one that caters to the unique needs of a family and does not healivy alter their standard of living.

For instance, a basic thumb rule is that it should be 10 to 12 times your annual income. So, if one earns Rs. 20 lakhs a year, a minimum of Rs.2 crore term plan is suitable. This takes into account the present standard of living, inflation, and some other factors.

Benefits of optimal coverage

Obtaining a high-value term insurance plan, such as a Rs. 2 crore term insurance policy, is beneficial because of the following reasons:

  • ● A high-value sum assured provides the required corpus to your family so that they can maintain their lifestyle even after a life-altering event.
  • ● Your family can fulfill specific goals such as buying a home, a car, or a child’s higher education without hiccups.
  • ● The sum assured counters inflation and its associated expenses without difficulty.

Even more so, the decision to invest in high-value term insurance offers the peace of mind that comes with knowing that your family would be taken care of in your absence.

How much does a Rs. 2 crore sum assured cost?

The premium for a Rs.2 crore term insurance plan is calculated based on several factors. Apart from the term period, the premium is calculated based on your

  • ● age
  • ● medical history
  • ● occupation
  • ● sex
  • ● lifestyle habits, i.e., smoking and alcohol consumption
  • ● height and weight
  • ● history of hereditary diseases
  • ● Policy term
  • ● Premium paying term and frequency

All these factors are assessed together and then the premium for the term insurance policy is calculated. We recommend consulting a trained and trusted financial advisor to determine the exact premium amount for the policy. Of course, there are online calculators that help you assess the premium for a high-value term insurance policy, such as a Rs. 2 crore term insurance plan. Future Generali India Life Insurance offers online term insurance calculators to help you determine the coverage, premium payment term and the premium amount within a minute.

Premium for a Rs.2 crore term insurance plan

Let us take an example here. The Future Generali Flexi Online Term Plan is a comprehensive term insurance policy that allows you to opt for a coverage of Rs. 2 crores. Here is an illustration of the cost of Rs. 2 crore coverage under the different variants of the plan. We have assumed the following details:

  • ● Age of the insured - 35 years
  • ● Gender - Male
  • ● Smoking habit - Non-smoker
  • ● Term of the policy - 40 years
  • ● Premium payment term - 40 years
  • ● Premium payment frequency - Annual

Plan variant

Benefit payable

Annual premium
(inclusive of GST)

Basic life cover

Rs. 2 crores paid on death

Rs.24,549

Fixed income protection

A fixed monthly income of Rs. 83,000 paid
after death till the insured would
have attained 60 years of age or for 10 years,
whichever is later.

Rs.12,841

Increasing income protection

A fixed monthly income of Rs. 125,000
paid after death till the insured
would have attained 60 years of age
or for 10 years, whichever is later.
This income would increase every year by 10%.

Rs.43,200

Basic Life Cover
+
Fixed Income Protection

A lump sum benefit of Rs. 2 crores
paid on death. Thereafter, a fixed monthly
income of Rs. 30,000 paid till the insured
would have attained 60 years of age
or for 10 years, whichever is later.

Rs.30,456

Basic Life Cover

+

Increasing Income Protection

A lump sum benefit of Rs. 2 crores paid
on death. Thereafter, a fixed monthly income
of Rs. 30,000 would be paid till the
insured would have attained 60 years
of age or for 10 years,
whichever is later. This income would
increase every year by 10%.

Rs.34.488

A Rs. 2 crore term plan is not expensive if you consider the security it offers: You can secure your family’s future adequately without burning a hole in your pocket. Find a comprehensive plan like Future Generali Flexi Online Term Plan and secure your family’s happiness. For more details, you can visit Future Generali India Life Insurance and explore the options available.

References:
  • 1.https://www.financialexpress.com/money/insurance/how-much-does-a-rs-2-crore-term-insurance-policy-cost/2210395/
  • 2.https://life.futuregenerali.in/

ARN No.: ADVT/Comp/2021-22/December/367