Thinking of purchasing a Rs 1 cr term insurance plan? Check the amount of premium you will pay

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When purchasing a term insurance policy, it is important to do your calculations in terms of the amount of coverage.

As the world grapples with new forms of health risks during the ongoing Covid-19 pandemic, purchasing a forward plan becomes essential. Term insurance is one of the easiest and most affordable ways to give your family a financial safety net. It works as an income replacement tool by paying the sum insured to your applicants in the event of premature death during the term of the policy. It is generally advisable to take out your first life insurance policy as soon as you start working to cover your dependents.

That said, it is important to note that term insurance is a purely vanilla life insurance product with no maturity benefits. It offers high insurance benefits by paying a very low premium. The premium is generally low if a person avails the term insurance policy at an early age.

However, the insurance premium increases for people who smoke or drink. When purchasing a term insurance policy, it is important to do your calculations in terms of the amount of coverage. When estimating your coverage amount, consider your income, financial goals, and inflation rate. It is generally advisable to go for a sum insured that is 10 to 20 times your current annual income. You should also think long and hard about the choice of mandate when purchasing a term plan. This is important because a short tenure would mean exposing your family to financial risk and a more than necessary tenure would mean paying an additional premium, according to BankBazaar.

When you are in the market to buy term insurance, compare the different product offerings of different insurance companies based on policy benefits, features, premium amount, and most importantly, claims settlement rate. of the insurer.

If you are planning to purchase basic term insurance coverage of Rs 1 crore, the table below provides a list of 19 term insurance policies and indicative annual IMEs for a term of 30 years. All premiums have been calculated for a single 30 year old male non-smoker non-smoker residing in Bangalore earning Rs 5 lakh per year.

Please note that the premium applicable to you may vary depending on your age, your income, your gender, the characteristics of your policy or any other condition defined by the insurer of your choice.

What does a term plan cost with an assured sum of Rs 1 crore?

Disclaimer: Data refers to Rs 1 crore term insurance coverage for 30 year old male employee, non-smoker (single) residing in Bangalore earning Rs 5 lakh per year, for a period of 30 years. The table is not exhaustive as it excludes companies for which data is not available on their website. Data as of October 12, 2021. * Companies have been listed on the basis of their death claims settlement ratios according to the IRDA FY2019-20 annual report in descending order. Data compiled by BankBazaar.com. ** According to the IRDA annual report

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