A 1 Crore life insurance policy provides ₹1 crore coverage to your family members in case of your unfortunate demise during the policy term. The coverage helps replace lost income, clear debts, and ensure financial independence. But how do you decide whether a 1 cr life plan suits your insurance needs and how much premium you need to pay? This is where a term insurance calculator comes into play to simplify your decision-making. Read on to learn all the key aspects of a 1 crore life insurance premium and get guidance on using an insurance calculator.
Benefits of 1 Crore Life Insurance
Here are the key advantages of availing 1 Crore life insurance:
Significant Coverage: A 1 crore life insurance policy provides significant coverage for your loved ones. Besides, the premiums are quite affordable if you invest early, like in your 20s or early 30s.
Helps Clear Debts: If you have debts, such as home loans, car loans, etc., your family will face hefty debts to pay in your absence. This is where a 1 Cr insurance plan proves valuable. The coverage provided can help your family clear outstanding debts.
Various Pay Options: You can pay the premium at your convenience. Prevalent options are described below:
- Single Payment: It avoids recurring payments, i.e. you would pay the whole premium upfront during the purchase.
- Limited Premium Payment: It involves paying the premium for a specific duration and getting the benefit throughout the policy term.
- Regular Premium Payment: This option is more reasonable because it is diversified across the entire policy tenure. You can pay the premium monthly, quarterly, half-annually or annually. You can use a term insurance calculator India to estimate the premium amount accurately.
Exceptional Transparency: You will obtain a clear understanding of how premiums are calculated. Nothing is hidden, so the entire process is transparent and reliable.
Things to Keep in Mind Before Buying a 1 Crore Life Insurance Policy
Here are some prominent aspects to remember before investing in a 1 Cr life insurance policy:
Know the Claim Settlement Ratio
You must always check the insurer’s claim settlement ratio. The ratio determines the number of successful claims the insurer accomplished during the financial year. A higher CSR indicates a higher credibility of the insurer.
Check the Solvency Ratio
The solvency ratio is the root cause behind your insurer’s inability to settle your claims. It depicts the insurer’s financial potential to pay the claims. So, always choose an insurer with a high solvency ratio to ensure your claim will be settled entirely and successfully.
Additional Protection
You must look for add-on rider options for additional financial protection for accidental death, critical illness, etc. Suppose you have a life insurance policy with a waiver of premium rider. If you meet with an accident that results in a permanent disability, making you unable to work and earn an income, this rider will activate. As a result, your future premium payments will be waived, allowing your policy to remain active without any financial burden on you.
Review Enhanced Features
Ensure your 1 Crore term insurance plan is customisable for your financial needs. Check the flexible features to conveniently pay premiums and raise coverage amount (as per your needs).
How to Use Life Insurance Premium Calculator
The life insurance calculator allows you, as a customer, to check the premiums suitable to your profile. It saves time and also promises accurate results. Here are the steps involved in using the insurance calculator:
- Firstly, you must enter your details like gender, age, etc.
- Specify important policy details like the sum assured, policy tenure, and a suitable premium pay option (either to pay it for a limited period or throughout the term).
- Entering all necessary details will let the calculator display an estimated figure of the premium amount.
Conclusion
Getting life insurance coverage as early as possible is advisable to benefit from lower premiums. Online life insurance premium calculators assist you in getting an accurate estimation of the premium amount, helping you make informed decisions. Evaluate your monthly expenditures and financial goals before proceeding with the policy purchase to avoid overcommitting or choosing inadequate coverage.
