How to shop for the best term insurance plan for Rs 1 crore?

Due to the rising inflation, expenses are on the rise, increasing the standard of living. If you are the sole earner in your family, then you must secure your family’s financial future for the uncertain times. Hence, it becomes critical to invest in a term insurance policy. Taking everything into consideration, one of the wisest decisions to make would be to buy term insurance that offers a life cover amount of Rs. 1 crore term insurance policy. Term insurance is one of the most reasonable types of life insurance policy.

Follow this guide to get the term insurance plan with a life cover amount of Rs. 1 crore.

Select the perfect plan:

Even if a term insurance plan for Rs. 1 crore would seem like the best fit policy for you, think twice. Compare plans of different insurance companies and see for yourself if your selected plan is offering you equal or better benefits than others. Note that even if the value remains the same, then all the insurers offer several benefits. Make sure to opt for the one with maximum benefits for you and your family.

Choose the correct insurer

Opting for an unrecognised insurance company that is willing to offer overly low premiums at significant coverage would seem suspicious. No one wants their family to run into trouble to file a claim with hassles and, in the end, find the claim rejected for some reason or clause. Hence, one must always opt for recognised insurers.

Here’s one way to look for the best and the right insurer for you:

Claim Settlement Ratio:

The Claim Settlement Ratio signifies the ability of the insurance company to settle the filed claims. Insurers with a decent claim settlement ratio mean that the insurance company is trustworthy. Insurers with high claim settlement ratios do not procrastinate or unnecessarily reject settling claims.

Solvency Ratio:

This is yet another crucial ratio to check while opting for an insurer.

Every insurer must be financially capable of recompensing and settling claims. A high solvency ratio would suggest that the insurance company is financially stable and can settle claims successfully.

Learn about what’s covered in your plan and what isn’t

Before you decide on purchasing the term insurance plan, make sure that you are aware of literally everything.

Here’s an example for you, your Rs. 1 crore term plan does not cover all the deaths. Accidental deaths after being intoxicated, natural disasters & deaths caused by river rafting, paragliding & suicides are not covered by a term insurance policy. Note that your family would not be qualified for receiving the death benefit in the above cases.

Select the appropriate riders

The term insurance policies share some benefits with life insurance policies.

Here’s an example, your term insurance policy of Rs. 1 crore can be the base policy, moreover, you can add riders and add-ons to get additional benefits. For these, you will have to pay a slightly higher premium.

The commonly known riders are:

Critical illness rider and disability rider. There is also something called a waiver of premium rider.

Think carefully about the suitable riders and get additional benefits at frugal prices.