When it comes to securing the financial future of ourselves and our loved ones, investing in a term insurance policy is a crucial step. However, with the plethora of options available in the market, it can be overwhelming to decide which policy to opt for. One such option is a 1 crore term insurance policy, which offers coverage of ₹1 crore. But is investing in such a policy worth it? Let's find out.
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Term insurance is the basic kind of life insurance that provides coverage for a specified time, also known as the policy term. For example, if the policyholder dies during this period, the death benefit gets paid out to the benefited nominees. However, there is no maturity benefit or payout in case the policyholder survives the term.
Term insurance is preferred because it is more affordable and offers the highest potential coverage in India. It provides flexibility to identify the duration of the policy and coverage amount that will suit an individual's financial goals.
A ₹1 crore term insurance policy is a pure life policy that provides ₹1 crore of sum assured to the designated beneficiaries upon the policyholder's death during the policy term. It is a non-investment insurance product, providing financial protection without any maturity benefits. This policy best suits those looking for high coverage at low premiums.
Key features are:
The policy owner pays periodic premiums to keep the policy active.
The coverage is for a definite period, e.g., 10, 20, 40 years, or until a certain age.
The sum assured is paid to the beneficiaries/ nominees as a lump sum or in structured payouts.
Optional benefits such as critical illness coverage, accidental death benefits, disability income benefits, etc., enhance protection.
Using a premium calculator can provide a pretty fair idea of the best rates available based on the applicant’s age, health, and coverage preferences.
A ₹1 crore term insurance policy is best for individuals at various stages of life and income levels:
Being in your 20s or 30s, purchasing term insurance at this stage can make a huge difference in premium payments. As younger people are healthier, insurers charge less premium, making it an affordable investment for long-term financial stability.
For those who are married, especially with children, a ₹1 crore term insurance policy ensures that your spouse and kids are financially protected in your absence. The payout can cover household expenses, school fees, and other essential financial needs.
If you have borrowed large amounts, like a home loan or business loan, this insurance covers your dependents from struggling to pay debts in the event of an untimely death. It saves them from financial crises or having to sell assets to settle outstanding obligations.
Business owners and entrepreneurs who have borrowed money or have financial obligations should opt for a ₹1 crore term plan to secure their business and family. The claim can be utilised to pay off business debts or give money to sustain the business.
If you are about to retire, having a term insurance plan guarantees your family's financial security even in your absence. It can be used as a financial backup for your spouse so that they live a life as it was and without worries.
Life is unpredictable, but with the right planning, you can prepare for the unexpected.
A term insurance plan of ₹1 crore sum assured provides extensive coverage, enabling your family to maintain their lifestyle and fulfil financial liabilities even in your absence. Such coverage is vital for those with dependents who significantly rely upon their income for support. Whether it's a 1 crore ACKO term plan or a similar offering from other insurers, this assurance for your loved ones certainly gives you peace of mind.
Choosing a ₹1 crore term insurance policy has many benefits, such as:
A ₹1 crore term insurance policy ensures that your loved ones maintain their standard of living in your absence. It provides a financial cushion that covers essential expenses such as daily living costs, children’s education, and future aspirations, ensuring that your family remains financially independent even in difficult times.
Compared to other term insurance policies, term plans provide extensive coverage at affordable premiums. For a healthy and young person, a ₹1 crore term plan can be very cost-effective and, hence, an inexpensive means of ensuring financial security for your loved ones.
If you have pending loans, such as home loans, car loans, or personal loans, a term insurance policy guarantees that your family is not left with repayment burdens. The amount assured under a ₹1 crore term insurance policy can settle these financial obligations, easing the burden on your loved ones.
A ₹1 crore term insurance policy has great tax advantages under the Income Tax Act. The premiums paid towards the policy are eligible for deductions under Section 80C, and the payout to the beneficiaries is exempt from tax under Section 10(10D), making it a tax-saving money management tool.
Most insurance companies have optional riders to personalise your ₹1 cr policy according to your requirements. Some of the common riders include:
Among the most compelling reasons to invest in a ₹1 crore term insurance policy is how it protects the financial future of your loved ones from the pitfalls of inflation. Money loses purchasing power with time as costs associated with the primary necessities like health care, education, and sustenance go up. A large amount that appears substantial right now may become less significant over a period of 15–20 years.
The sooner you invest in a term plan, the lower the premiums will be. Let’s look at the advantages of early purchase of term insurance:
A 25-year-old will pay much less than a 40-year-old for the same protection.
Younger people are healthier, and hence, it becomes easier to get coverage.
Feel reassured knowing that your family is well-protected financially.
Save taxes on premiums under Section 80C of the Income Tax Act.
Perfect time as the premium amount is minimal and coverage is long-term.
Even cheaper and covers your increasing family financially.
Premiums increase, but coverage for dependents remains a must.
Higher premiums, but essential if financial obligations continue.
A ₹1 crore term insurance plan is a high-value life insurance plan designed to provide financial protection to your family. It guarantees your family a hefty payout of ₹1 crore in the event of your untimely demise during the policy duration. This policy payout can serve as a financial buffer to pay for living expenses, settle existing loans, and keep up with their lifestyle.
If you are Wondering How a ₹1 Crore Term Insurance Plan Works, Here’s an Example:
Let's consider Rohan, a 30-year-old IT professional. He purchases a ₹1 crore term insurance policy for a 30-year term. His yearly premium is around ₹12,000, which is affordable and secures his family's future.
How does it benefit his family?
By investing a small amount each month, Rohan secures his family's welfare even when he is no longer there to provide for them, thereby making term insurance a sound financial move.
While a 1 crore term insurance policy provides several benefits, it also has its drawbacks. Here are a few examples.
A 1 crore term insurance policy only provides a payout of up to Rs. 1 crore in case of the policyholder's untimely demise. While this amount may seem substantial, it may not cover your family's financial needs.
Unlike other insurance policies, a term insurance policy does not provide maturity benefits. This means that if the policyholder survives the policy term, they do not receive any payout.
While the absence of an investment component helps keep premiums affordable, it can also be considered a drawback as the policyholder does not receive any returns on the premiums paid.
While thinking of a 1 Crore Term Insurance plan, the first thing you would like to know is the eligibility criteria. The determining factors are age, health, income, and habits that affect your eligibility to the policy and also the premium rates.
The minimum age for the 1 crore term insurance policy is usually 18. The upper limit ranges between 65 and 80 years from various insurer firms. Therefore, the age limits of the customers determine the premium amount of the 1 crore term insurance, as individuals with advanced ages may attract more premiums.
The insurance provider will obtain this through a medical exam and a health history. Pre-existing conditions such as heart disease, diabetes, or cancer may make you ineligible or charge you more for your policy. Smokers and family health risks may attract higher premiums.
Most insurance providers require the policyholder to have a steady source of income to be eligible for a 1 crore term insurance policy. The insurer assesses your income to ensure you can comfortably afford the premiums. Your income should match a 1 crore term insurance premium rate for easy eligibility.
Smokers may have to pay extra due to health hazards associated with smoking. If you are a smoker, your 1 Crore Term Insurance can be increased accordingly. Use the 1 Cr Term Insurance Premium Calculator to estimate the premium amount according to your habit.
ACKO's Life Flexi Term Plan delivers a modern, flexible, and customer-centric solution for long-term financial protection. It provides a unique level of policy flexibility unmatched by most traditional insurers. In addition, the convenience of managing the entire policy lifecycle digitally adds to its appeal, particularly for individuals who prioritise ease of use and adaptability.
| Parameter | ACKO Life Flexi Term Plan | Traditional Plans |
| Claim Settlement Ratio | 99.38% | Varies from 98-99% |
| Policy Adjustments | Instant changes via app ⏱️ | Depends on the medium ( offline and online ) |
| Increasing Cover Option | Yes. No restrictions* | Restricted to life big events such as marriage, welcoming a child, etc. |
| Cost Savings | Up to 40% savings* | Costs grow over time 📉 |
| Future Premium Hikes | Age-wise premiums remain the same 🚫💸 | Age-wise Inflation adjusted premium |
| Customisability | Flexible coverage/term | Rigid, limited options 🧱 |
| Riders | Offers valuable riders to enhance protection | Riders may be provided depending on the plans |
| Length of Claim Form | Easy, digital, and short | Moderately long/Very long/Not available online |
| Option to Exit the Plan | Yes* | Approx. 80% of insurers provide |
| Digital Experience | Fully online, app-based 📱 | Often requires offline processes, paperwork, or branch visits |
| End-to-end Digital Support | Yes | Depends on the insurer |
| Home Pickup of Claims | Yes, the ACKO team will personally collect the documents | Roughly 20% of insurers provide |
| Free Will Creation | Yes | No, Generally does not offer integrated will creation services |
A 1 Crore Term Insurance plan can be an ideal choice for individuals looking to provide financial security and protection to their loved ones in case of an unexpected event. Here are things to consider before buying a ₹1 Crore term insurance plan.
When choosing the right ₹1 Crore Term Insurance plan, it's important to understand your specific insurance needs to ensure that you are adequately covered. Here are some factors to consider:
When you're comparing different insurance plans, it's important to remember that the amount you'll pay in premiums can differ. This is based on several factors like your age, health, and habits. You might come across insurance providers that offer lower premiums, but they could have less coverage or some sneaky extra fees in the fine print. So, it's crucial to take your time and read through the policy documents carefully.
The claim settlement ratio is a measure that tells you what percentage of claims the insurer has settled out of the total number of claims received in a year. This gives you a sense of how well the insurer handles claim settlements and the probability of your claim being resolved in the event of an unexpected circumstance. You can also check the insurer's reputation by reading reviews and ratings online, customer feedback, and the insurer's financial stability.
Before choosing a policy, read the terms and conditions carefully and understand the coverage inclusions & exclusions, benefits, and limitations. Some common terms and conditions that you should know are the policy term and premium payment frequency, grace period in case of premium payment defaults, policy cancellation or surrender policy, and the claim settlement process. Some insurers may offer additional benefits such as loyalty bonuses, accidental death benefits, and terminal illness coverage.
Selecting a new term insurance plan can be confusing, with numerous plans to choose from. Here are some essential things to look at before making a new purchase:
Consider your lifestyle, monthly expenses, existing loans, and long-term financial goals. A ₹1 crore cover is ideal for individuals earning ₹10-50 lakh annually to ensure financial security for dependents.
The policy must ideally extend up to retirement age or when dependents are self-sufficient. For individuals in their 20s or 30s, a 30-40-year term offers long-term protection.
Compare different plans online and acquire the best deal. Choose a policy that provides the highest coverage at the lowest premium.
Add valuable riders based on your needs. Explore ACKO Life Critical Illness Benefit Rider, ACKO Life Accidental Death Benefit Rider, and ACKO Life Accidental Total Permanent Disability Benefit Rider.
Although ₹1 crore is the popular choice, you may require higher coverage depending on:
If you have a high income and expenses, a higher coverage amount provides sufficient financial security.
If you have several loans, choosing a higher sum ensures your family is not left with repayments.
If you intend to finance your children's higher education, marriage, or any other big xpenses, a larger coverage amount is recommended.
Over the years, money loses its value due to inflation, thus choosing a higher sum assured guarantees long-term economic support for your loved ones.
Aside from ₹1 crore, term insurance policies have flexible coverage levels such as:
Appropriate for people with moderate financial obligations.
Suitable for individuals with higher earnings and more financial obligations.
Suitable for high-net-worth individuals and entrepreneurs seeking extensive coverage.
The specific claim settlement process may vary between insurance companies, but typically, the process involves the following steps.
The first step in the claim settlement process is to inform the insurance company of the policyholder's death. The insurer will register the claim and assign a claim number to the case.
The claimant or beneficiary must submit the documents and proofs, such as the death certificate, original policy document, and identity proof, to the insurer to start the further processes.
After the claim is submitted, the insurer will carefully review the documents and may investigate the details surrounding the policyholder's death. This is done to ensure that the claim is valid and to verify the information provided by the claimant.
The insurer will verify the authenticity of the claim and the information provided by the claimant/beneficiary.
Based on the investigation and verification outcome, the insurer will decide whether the claim is eligible for compensation. If approved, the claim amount will be released to the nominee or beneficiary. If the claim is denied, the insurer will provide a reason for the rejection.
The duration of the claim settlement process may vary, but most insurers aim to settle within a reasonable period, ranging from a few weeks to months.
Rajesh, a 45-year-old working professional, decided to opt for a 1 crore term plan to secure his family's future. The plan ensured that in the event of his untimely demise, his family would receive a lump sum of Rs. 1 crore.
Rajesh found a term plan that suited his needs and budget. He opted for a plan that would cover him until the age of 65, ensuring that his family would be taken care of even after his retirement.
Sadly, Rajesh passed away suddenly due to a heart attack. His family was devastated, but they could find solace in the fact that Rajesh had taken steps to secure their financial future. The 1 crore term plan provided his family with the necessary financial support to cover their expenses, pay off debts, and maintain their standard of living.
The lump sum payment from the term plan helped Rajesh's wife, Meera, take care of their two children, Arjun and Aarohi, and his aging parents. She could pay off their outstanding loans, continue their children's education, and ensure that her parents-in-law had access to proper healthcare.
In the end, Rajesh's decision to buy a 1 crore term plan proved to be a lifesaver for his family. It helped them cope with the financial burden of his sudden demise and ensured they could continue living a comfortable life.
The ACKO Life Flexi Term Plan offers unmatched flexibility, making it the best term insurance plan. With features tailored to your evolving financial needs, this plan ensures comprehensive life cover for your loved ones.
Flexibility that Adapts to Your Needs: Use the term insurance calculator to determine the ideal coverage for milestones like home loans, children’s education, or financial independence of dependents.
Hassle-Free Claim Settlement: Trust ACKO's smooth process, backed by a 99.38% claim settlement ratio.
Smart Tax Savings: Save up to ₹54,600 with tax benefits, making protection both effective and economical.
Buying life cover online is a key component in protecting your family's financial stability, especially the best term insurance plan for 1 crore. Term insurance plans offer high coverage at an affordable price, but it's important to select the best one for your needs and your budget.
A ₹1 crore term plan calculator is an easy-to-use online calculator that assists you in calculating the premium cost you will have to pay for your desired sum assured amount. By filling in key inputs, such as age, gender, desired sum assured, policy term, smoking habit, etc., you can estimate premiums and compare various plans to select the most appropriate one based on your budget and objectives.
It is easy and hassle-free to use a term insurance calculator. Here's what you have to do:
This enables you to compare various insurance policies hassle-free.
Enables you to discover the affordable plan with the most desirable benefits.
This lets you modify policy terms, payment options, and riders according to your requirements.
Offers a transparent break-up of premium prices.
Facilitates you in analysing your budget and selecting the appropriate coverage amount.
One of the main reasons 1 crore term insurance is a popular option for coverage is that, in addition to your family's future fundamental needs, it can cover various unanticipated risks and circumstances. One crore term plan guarantees that, even after accounting for inflation, your family won't have to touch their other investments and savings in the event of unforeseen circumstances.
Here are the answers to the given questions regarding the one crore term insurance.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet and is subject to changes.
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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