How much premium you will have to pay for a Rs 1-cr term insurance plan?

The popularity of insurance has increased more now than ever, especially due to the pandemic, which people believe has exposed our vulnerabilities. Therefore to cope up with the situation, experts say getting insured with an adequate amount is one of the most important financial steps one should take, be it health insurance or life insurance.

Hence, while opting for a life insurance policy, make sure you have opted for an adequate cover. However, experts say, the adequate amount differs from person to person. For instance, depending on your financial commitments, income, dependents, the amount is decided. The rule with life insurance is to have a life cover worth at least 10 times one’s current annual income. Having said that, one can always go for higher coverage depending on their actual requirements.

The premiums of any life insurance policy increase as one grows older. Therefore, experts suggest starting a life policy as early as possible. Next, while opting for a life insurance plan, there are multiple options that one can choose from. For instance, one can choose between a term insurance plan, an endowment plan, unit-linked insurance plan (ULIP), child plan, whole life policy, retirement plan, etc. based on one’s requirements.

After finalizing your type of insurance, you need to compare the options for the best offers. Having said that, experts suggest going for the plan with the cheapest premium might not be the right option always. A policyholder needs to factor in critical things such as the insurer’s claim settlement ratio, necessary add-ons etc. Other benefits of a life insurance policy are that the premiums qualify for tax deduction benefit under Section 80C of the Income Tax Act of up to Rs 1.5 lakh in a year.

For those looking for a term insurance plan – here is a term insurance premium table;

Basic term insurance cover for a 30-year-old, salaried, non-smoker male (unmarried), residing in Delhi, earning Rs 7 lakhs annually, for a 30-year term. Data as of 10 Dec 2021. Co’s are listed on the basis of descending claim settlement ratio, i.e. highest at top and lowest at the bottom. Note that the actual premium amount of an individual could vary depending on his/her age, gender, type of policy, income, chosen sum assured add-ons, etc.