Planning to buy Rs 1 cr term insurance plan? Check how much premium you will pay

Term insurance is one of the simplest and affordable ways to provide your family with a financial safety net.

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

As the world grapples with new forms of health risks during the ongoing Covid-19 pandemic, buying a term plan becomes essential. Term insurance is one of the simplest and affordable ways to provide your family with a financial safety net. It works as an income replacement tool by paying the assured sum to your nominees in case of your untimely demise during the policy’s term. It is generally advised to buy your first life insurance plan as soon as you start working to cover your dependents.

Having said that, it is important to note that term insurance is a pure vanilla life insurance product with no maturity benefits. It provides high insurance cover benefits by paying a very small premium. The premium is usually low if a person avails of the term insurance policy at an early age.

However, the insurance premium increases for people who smoke or drink. When buying a term insurance policy, it is important to do your maths in terms of the coverage amount. While estimating your coverage amount, do factor in your income, financial goals and inflation rate. It is generally advised to go for a sum assured that is 10-20 times of your current annual income. You should also give a good amount of thought in selecting the tenure while purchasing a term plan. This is important as a short tenure would mean exposing your family to financial risks and a tenure more than required would mean paying an extra premium, according to BankBazaar.

When you are in the market to buy term insurance, do compare various product offerings by different insurance companies based on policy benefits, features, premium amount and most importantly, the insurer’s claim settlement ratio.

If you are planning to take a basic term insurance cover of Rs 1 crore, the table below provides a list of 19 term insurance policies and the indicative annual EMIs for 30-year term. All the premiums have been calculated for a 30-year-old salaried unmarried non-smoker male residing in Bangalore earning Rs 5 lakh annually.

Do note, the premium applicable to you could vary depending upon your age, income, gender, policy features, or any other terms and conditions laid out by your chosen insurer.

What Does a Term Plan with a Sum Assured of Rs 1 Crore Cost?

Disclaimer: Data pertains to term insurance cover of Rs 1 crore for a 30-year-old, salaried, non-smoker male (unmarried), residing in Bangalore, earning Rs 5 lakh annually, for a 30-year term. The table is not exhaustive as it excludes companies for which data is not available on their website. Data as on Oct 12, 2021. *The companies have been listed on the basis of their death claim settlement ratios as per IRDA Annual Report FY2019-20 in descending order. Data compiled by BankBazaar.com. **As per IRDA annual report

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