Mumbai (Maharashtra) India, February 05: One of the easiest and most effective methods of ensuring that in case of an untimely death, your loved ones are taken care of is term insurance. Term insurance is a promise of financial stability regarding your family’s dreams and needs, even without you. But choosing the right sum assured is very important. A term insurance policy for ₹2 crore is a pretty handsome amount to many; however, would it be suitable for all? So, here’s a look into the people who would be ideal for such high-value cover.
What is Term Insurance?
Term insurance is a pure protection policy, meaning that it guarantees financial security to your loved ones in case something untoward happens. Unlike other life insurance policies, term insurance does not provide a maturity benefit. Instead, term insurance offers a large sum assured at a minimal premium, which provides maximum coverage for the investment.
This term insurance policy for ₹2 crore would be a good financial security cover. It may seem a lot to many, but the actual value of such a plan is in replacing lost income, paying off debts, and other future expenses. Let’s take a few specific examples where such a coverage amount is suitable.
High-Income Earners
If you are someone with a good income, well maybe a ₹2 crore term insurance plan is well rather a necessity, not a luxury. Your lifestyle and your desires are usually more or less synchronized with your income. From managing a high life to funding the international education of your children, your financial earnings play a really important role for them.
In these cases, untimely loss of income might break your family’s overall pattern of spending. A worthwhile term insurance policy will ensure that short-term monetary shocks will not mar your family’s long-term goals.
Major Monetary Liabilities-Individuals
Your loan and liabilities create a significant hole in your family’s pocket after your death. In case of loans you have acquired are high amounts, including home loans, business loans, or others which come with long liability terms, in such a situation, a term insurance policy like ₹2 crores will surely work as safety to pay such liabilities of theirs without hampering any other important financial needs.
With ₹1 crore taken home loan and spread over a term of 20 years, such a situation does not last at all in the absence of a primary earner. One liability can thus be covered under the term insurance so that family could stay without stress or pressure due to lack of money.
Business Owners/ Entrepreneurs
As a business owner, your responsibilities go beyond the family. An untimely death may impact not only the loved ones but also the business partners, employees, and other stakeholders. High-value term insurance ensures that all your business obligations are met in your absence.
In case you are encumbered with business loans, keyman insurance, or other financial liabilities, a ₹2 crore term insurance plan can settle your liabilities efficiently and restore stability to your business.
Parents’ Planning for Children
Everybody wants the best for his kids – a good education, a fantasy marriage, or financial independence. However, all of them demand hoards of monetary resources in many cases.
If your dream for your children includes sending them abroad to pursue further studies or ensuring they have a life that is comfortable enough for you, then a term insurance policy of ₹2 crore can be a very useful tool for you. Your dreams will remain as vivid and unaltered by circumstances.
For NRI and Other Expatriates
NRIs or people staying abroad usually have financial obligations, both in their native country and the place where they are living. This may be extended family, investments, or properties for which maintenance is needed back home.
A term insurance plan for ₹2 crore will pay needs from back across the borders to your family. Moreover, term insurance in India is much cheaper than other markets in the world, which makes it another reason for NRIs to opt for this product.
High Inflation-Adjusted Expenses
Gradually, inflation sucks away the money’s worth in the future. What seems justifiable today will soon prove inadequate tomorrow. A good term insurance scheme, such as an ₹2 crores cover plan, will address this issue and make sure your family will enjoy the funds and benefits even later in life.
For instance, if your expenses are ₹1 lakh today, they may be ₹2 lakhs in 15-20 years because of inflation. This means that ₹2 crore term insurance will allow your family to live without a financial burden for the rest of their lives.
Young Professionals with Long Careers Ahead
If you are an early young professional with high goals for your profession, then you should buy a term insurance plan. This kind of insurance offers a high coverage amount at minimal premiums, mainly when purchased as a young age.
As your income grows so do your responsibilities and financial goals. A ₹2 crore term insurance policy will ensure that the future of your family is taken care of, irrespective of how your financial situation may change.
Things to Consider Before Selecting a ₹2 Crore Term Insurance Plan
Though a ₹2 crore term insurance policy provides ample coverage, it is crucial to consider your individual needs and situation before finalizing the plan. Here are some things to consider:
• Income Replacement: Calculate how much your family would need to maintain their lifestyle and meet future expenses in your absence.
• Outstanding Liabilities: Include all your loans and debts to ensure they are covered.
• Future Goals: It should also cover long-term financial goals, like children’s education, marriage, or retirement planning for your spouse.
• Premium Affordability: The premium should be within your budget and not compromise on other financial priorities.
• Health and Lifestyle Factor: The age, health, and lifestyle have a bearing on your premium. Buy early and fix the low premium.
Benefits of ₹2 Crore Term Insurance Plan
• Complete financial protection: It gives full coverage for all probable future requirements.
• Low Premium: The highest sum assured available, with a cheap premium in comparison with all other insurance plans.
• Tax benefits: The amount of premium paid qualifies under Section 80C and the benefit under Section 10(10D) on death.
• Peace of Mind: No other facility will give peace of mind compared to knowing the future of your family is taken care of.
Conclusion
Though it cannot be afforded by all, term insurance cover of ₹2 crore will go a long way in helping those with hefty financial responsibilities, ambitions, or liabilities in planning their finances. It pays off as an important money planner for high-income earners, business owners, parents with good plans for children’s future, and those having huge liabilities.
It is only for you to evaluate your financial position and long-term needs that you will conclude if the term insurance of ₹2 crores will work out for you. After all, term insurance is more than numbers-it is securing a legacy of financial security and stability for those close to you. Only with a planned term insurance today will you have a worry-free tomorrow for your loved ones.
