Life can be unpredictable, but some things are within our control, like preparing for our family’s future. One of the most straightforward and most practical ways to do that is by getting term life insurance. It’s not just for those with big loans or complex finances; it’s for anyone who wants to make sure their loved ones are financially secure if something happens to them.
Why ₹1 Crore Is Considered a Good Starting Point?
A Life term insurance of 1 crore cover might sound large, but when you break it down, it could mean replacing 10–15 years of income, funding your child’s college fees, or keeping your family afloat if you’re not around. That’s why many insurers have started offering ₹1 crore term cover plans at fairly affordable prices, especially for people in their 20s or 30s. The earlier you start, the lower your premium tends to be.
Step 1: Think About What Your Family Will Need
Before choosing any term insurance policy, it’s essential to take stock of your financial responsibilities. How much do you currently spend each month? What loans or EMIs are you paying? How many years until your children become financially independent? Will your spouse need a steady income replacement?
Once you estimate how much your family would need in your absence, it becomes easier to decide whether ₹1 crore is the right amount or whether you need to go a little higher or lower.
Step 2: Match the Policy Term With Your Life Goals
It’s not just about how much cover you need, but also how long you’ll need it for. If you’re 30 and plan to retire by 60, a 30-year policy makes sense. If you’ve just taken a home loan with a 20-year repayment period, your term should at least match that timeline.
Most insurers allow terms ranging from 10 years to 40 years. Choose a term that gives you peace of mind through your most financially dependent years.
Step 3: Understand What Affects the Premium
Premiums depend on several things: your age, medical history, lifestyle habits, and the features you choose. A 30-year-old non-smoker in good health may get a life term insurance of ₹ 1 crore for under ₹800/month. But if you add riders or opt for a return of premium feature, the cost may go up.
Some plans also allow you to choose how you want the payout to happen, either as a lump sum, monthly income, or a mix of both. While this flexibility is helpful, it may also affect your premium slightly.
Step 4: Don’t Ignore Riders
Riders are add-ons that enhance your base policy. A few important ones include:
- Critical illness rider: Offers a lump sum if you’re diagnosed with a serious illness
- Accidental death benefit: Adds an extra payout if death is due to an accident
- Waiver of premium: Waives future premiums if you’re unable to work due to illness or disability
One of the better-known policies in the market includes a rider that refunds all base premiums if you stay invested for a certain number of years and choose to exit early. While this doesn’t apply to everyone, it can be appealing if you want some financial return even without a claim.
Step 5: Look for Flexible Payment Options
Most policies today give you the choice to pay premiums in different ways: monthly, annually, or even for a limited number of years. Some allow you to pay for 10–15 years while keeping the cover active for 30–40 years. If your income is irregular (like freelancing or self-employment), having this flexibility helps you better manage your finances.
Step 6: Check the Claim Settlement Track Record
It’s one thing to buy a term policy insurance; it’s another to be sure your family can claim it smoothly when needed. Always check the insurer’s claim settlement ratio, which tells you how many claims they’ve approved versus filed.
Some providers offer features like expedited payouts on diagnosis of terminal illness or claim support for families during tough times.
Step 7: Keep It Simple and Transparent
Avoid overcomplicating things with too many layers or investment-linked options. If you want pure protection, go for a simple term plan. A few newer plans are now entirely digital, from buying to claim tracking, which makes them easier to manage, especially for people living abroad or with busy schedules.
Also, check whether the insurer gives you the option to increase your cover in the future (for example, after marriage, birth of a child, or buying a house). These upgrade triggers are helpful if you’re purchasing a policy at a young age but expect your responsibilities to grow later.
Step 8: Use the Right Tools Before Buying
Don’t just buy a policy based on price. Use a term insurance premium calculator to compare options based on your age, cover amount, and features. These tools show you how changing the policy term, payout type, or adding riders affects the final premium.
This helps you tailor your plan to what your family would need.
Step 9: Review Your Policy Every Few Years
Your insurance needs will change. Maybe you’ve paid off your loan, had another child, or your spouse is now working. Review your policy every 3–5 years to see if it still fits your situation.
A good policy allows some level of adjustment, either by increasing coverage or exiting with your premiums returned, if you no longer need it.
Conclusion
A ₹1 crore term insurance plan is a strong foundation for anyone who wants to secure their family’s financial future. It’s not about spending more; it’s about making thoughtful choices around how long the cover should last, what features truly matter, and what premium fits comfortably into your lifestyle. Some insurance companies, such as Axis Max Life Insurance, today offer policies that go beyond just payouts. They offer features such as income replacement, health-linked protection, early exit options, and flexible payments. These small details, while subtle, can make a big difference when your family needs support the most.
So before you buy, take a little time to compare, calculate, and choose what works best not just for you, but for the people you’re protecting.
