Ensuring financial safety and securing their future is of utmost importance and proper financial planning plays a key role in ensuring that. Since the future is unpredictable, it is imperative to ensure the future we build for our family is secured even when we are not in it. In this regard, a comprehensive cover like a 2 crore term insurance place can prove useful. Such a comprehensive cover amount can help the beneficiaries of the policy to account for their financial liabilities and meet their outstanding obligations with ease and without straining their savings. Besides the substantial coverage amount, such a term plan comes with several features and benefits. In this article, let’s discuss some of the key features of a 2 crore term insurance plan and whether you should get it to secure your family’s financial future.
Features and Benefits of 2 crore term insurance Plan
These are some of the key features and benefits of the 2 crore term insurance plan –
Wide Coverage Amount
The two crore cover amount can prove to be an excellent financial cushion for one’s family, especially in the absence of the insured. The death benefit of the policy can enable the beneficiary to utilize the cover amount to meet their current financial liabilities such as loans, EMIs, and outstanding household expenses without dipping into their limited savings or withdrawing fixed deposit schemes. While the coverage amount is sufficient, the insured can add Rider benefit to cover for critical illness, avail of the accidental death benefit, or obtain a waiver on premiums. Such flexibility will help them to extend the scope of their coverage and help enhance cover benefits.
Affordable Premium Amount
Contrary to popular belief, the premium amount for a 2 crore term insurance plan is quite affordable. Typically, the premium for a plan is set keeping in mind the potential policy buyers’ financial standing and obligations to ensure they can actually pay the same on time. In addition, the flexibility to choose the premium payment frequency also helps make them affordable.
Typically, the 2 crore term insurance plan comes at affordable rates. This does not exhaust a large part of an individual’s savings, allowing them to part in a substantial amount in several investment options, such as mutual funds, ULIPs, pension plans, fixed deposit schemes, and retirement plans. However, it should be noted that the coverage amount of an insurance plan depends on one’s financial and protection requirements and the type of policy they prefer. An added advice for facilitating more savings is to get a term insurance or life insurance policy early in life, as younger individuals are more likely to get a 2 crore term insurance plan at a cheaper premium amount than older applicants.
How to Select the Right Coverage For Your Needs?
Whether it is a policy with a two crore coverage amount or with lucrative Rider options, one should pick it based on one’s needs and requirements. Typically, one should weigh these factors to find the right coverage fit for their needs –
Older individuals are deemed to be more prone to catch illnesses and develop health conditions, making them risky for insurers. To spread out the risk impact, the insurance company sets their premium at a higher amount. This is why experts recommend purchasing an insurance plan early in age to get high coverage at low premium amounts. Individuals can use the term insurance premium calculator to find out the premium they are likely to pay for a plan and streamline their insurance purchase as per it.
- Annual Income
Insurance companies weigh in on the insurance buyer’s annual income to decide their financial standing and determine whether they will be able to pay the insurance premium on time. Individuals can use the term insurance premium calculator online to determine the estimated premium for the policy and the coverage they are eligible for. This will help them to understand whether the premium would impact their income or strain their finances or not. Based on the outcome they can get insurance like the smart total elite protection plan and safeguard their financial interest.
- Current Liabilities
Before deciding whether an insurance cover is sufficient for one’s needs, it is recommended to account for the existing financial liabilities they have. They should weigh in all their loans, EMIs, and outstanding payments to decide whether the 2 crore term insurance cover will be suitable for their needs and help them or their family to cater to the liabilities in the future without any hiccup. Typically, a coverage like Rs. 2 crore should be sufficient to cover existing financial obligations and safeguard the future of loved ones.
Should You Get 2 Crore Term Insurance Policy?
The answer to who should get a 2 crore term insurance policy is subjective as it depends on several factors, including the insurance buyer’s needs, financial obligations, number of dependents, etc.
Regardless, here are a few scenarios where having a 2 crore term insurance would benefit some individuals more –
- Those in their late 20s or early 30s might find it ideal to purchase a 2 crore term insurance plan. Starting early would help them get the high cover amount at a much lower premium amount as young insurance buyers are deemed more healthy and less risky than older individuals.
- Those who are the only breadwinner of the family and have multiple dependents could benefit from the substantial coverage of Rs. 2 crores. The high coverage would ensure that all their family member’s financial needs and obligations are taken care of without pushing them to dip into their savings in the absence of the insured.
Term insurance policies are designed to offer insurance buyers the financial backup to safeguard their family’s future and to meet future obligations. In this regard, the extensive coverage proves useful for the policyholder and their beneficiary, making plans like 2 crore term insurance an ideal financial safety net. However, before getting such a policy it is important to understand one’s needs and whether the plan suits them or not.