Buy Best 1.5 Crore Term Insurance Plan

A 1.5 Crore term insurance plan will provide your family with financial security. However, selecting the best plan can be tricky, as it involves assessing various factors like the policy features, the affordability of the premium, and even the insurer's credibility. Read on to learn everything about 1.5 Crore term insurance, its key features, who should buy it, and more.

A 1.5 Crore term insurance plan will provide your family with financial security....

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1.5 Crore Term Insurance

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What is Auto Insurance

1.5 Crore Term Insurance
Is this a Good Fit for You
Key Features
Why Choose 1.5 Crore Term Life Insurance

Who Should Buy
How Does a 1.5 Crore Term Plan Work?
Factors to Consider
4 Benefits of 1.5 Crore Term Insurance
3 Common Riders to Consider
ACKO Life Flexi Term Plan
Conclusion
Frequently Asked Questions

What is 1.5 Crore Term Insurance?

1.5 crore term life insurance refers to a term insurance policy that offers a sum assured of ₹1.5 crore. It provides financial protection to your family in case of your untimely demise during the policy term. The amount your nominee receives will give them the required financial security during difficult times.

₹1.5 Crore Term Insurance Plan.webp

₹1.5 Crore Term Insurance Plan

1.5 Crore Term Insurance: Is this a Good Fit for You?

Income Bracket	₹20 Lakh - ₹50 Lakh annually
Family Status	Married with children
Financial Responsibilities	Home loan, children's education
Age Group	30 - 45 years
Dependents	Spouse, children, possibly ageing parents

NOTE: The ₹20 Lakh - ₹50 Lakh income bracket is a typical range where individuals might comfortably afford a ₹1.5 Crore term insurance policy. However, it's not just confined to this income group; potential qualifiers could come from different income brackets depending on their financial situations, goals, and other factors.

Key Features of 1.5 Crore Term Life Insurance

Term insurance is a kind of long-term investment that requires careful thought. It is simply because you're spending your hard-earned money; thus, entering it without knowing precisely what it offers isn't the right step forward. Let's look closely at some key features of term insurance to understand whether it works for your needs.

High Sum Assured

A ₹1.5 crore sum assured will give your family a huge financial cushion.

Affordable Premiums

The premiums of term plans, even those offering a sum insured of ₹1.5 crore, are relatively inexpensive compared to most other life insurance covers.

Flexibility while Choosing Policy Term

You can select any term, whether 10 years, 20 years, or 30 years.

Simple and Straightforward

Term insurance is less complex than other life insurance products. You pay regular premiums, and if something happens to you during the policy term, your beneficiaries receive the sum assured.

Tax Benefits

Premiums paid on term insurance policies are eligible for tax deductions under Section 80C of the Income Tax Act in India.

Why Choose 1.5 Crore Term Life Insurance?

Term insurance has experienced significant growth in India over recent years. It is driven by various reasons, including increased awareness, an evolving financial landscape, improved digital adoption, product innovations, and more. As more individuals recognise the importance of adequate life coverage, many opt for ₹1.5 crore term plan.

Let’s look at some primary reasons for choosing the best 1.5 crore term insurance plan:

Financial Security: No doubt, ₹1.5 crore term plan coverage is a substantial amount. Securing such a high sum ensures that your family can maintain their standard of living, manage debts, and cover future expenses in case of your unfortunate demise.
Inflation Protection: The higher sum assured helps counteract the effects of inflation, ensuring that financial protection remains substantial over the years.
Peace of Mind: Knowing that your family is financially secure if you are no longer there to provide for them brings immense peace of mind. It also gives you the courage to focus on your goals, which everyone has, without worrying too much about them.

Who Should Buy a 1.5 Crore Term Insurance Plan?

A 1.5 crore term insurance plan can provide the best possible financial security for various individuals and families. However, some of the individuals who can benefit the most include:

Entrepreneurs with Small Businesses: Many entrepreneurs want to ensure that their family and business are protected in case of any unfortunate event. Opting for a ₹1.5 crore term insurance plan is an ideal option to help achieve it.
Young Professionals: IT professionals, doctors, and engineers with good incomes, who are also planning for family or future financial commitments can consider this huge sum assured term plan option.
Parents of Young Children: Parents who aim to ensure their children's higher education and future expenses should consider this option.
Homeowners: People who take larger home loans must consider this option to ensure that their family can continue to clear the debt if they are not there.
High-Net-Worth Professionals: It is undoubtedly an ideal option for high-net-worth people who want to ensure their family's financial stability and lifestyle.

How Does a 1.5 Crore Term Plan Work?

Term insurance is the simplest form of life insurance. It is primarily intended to replace lost income in the event of the policyholder's death. Thus, it does not build cash value like permanent insurance. Cash value in life insurance is the money that builds up over time, which you can later borrow against or take out.

If you need to buy a term plan, this is how your desired ₹1.5 crore term plan will work:

It starts with choosing your desired sum assured, also known as coverage. In this case, it will be a sum assured of ₹1.5 crore. Meanwhile, you must choose your desired term (the duration you want to stay protected).
Once you purchase your term plan, you must pay your premiums regularly. When it says regularly, it could be monthly, quarterly, semi-annually, or yearly. These premium frequency options may vary according to the policy and insurers. Nevertheless, you’ll decide how to pay your premiums based on your financial situation.
Remember that your policy becomes active once the initial premium is paid and the documents are issued.
If you of your untimely death during the policy term, your beneficiaries can file a claim for the sum assured of ₹1.5 crore.

Being a life insurance policyholder comes with the responsibility to ensure that the policy doesn’t lapse; if it does, you might lose coverage. The best way to avoid this is to make timely premium payments. In simple terms, protecting your loved ones demands discipline, commitment, and regular attention to your policy details.

Factors to Consider Before Buying 1.5 Crore Term Insurance Online

Choosing the right term insurance policy is crucial for securing your family’s financial future. Here’s a detailed look at the key factors to consider before purchasing a ₹1.5 crore Term life Insurance policy:

Premium Affordability

Before committing to a ₹1.5 crore term insurance premium, evaluate your financial situation to ensure you can comfortably manage the premiums throughout the policy term.

Current Financial Situation: Review your income, expenses, and other liabilities to determine how much you can pay without overstretching it.
Long-term Affordability: Consider how your financial position will change in the future, such as increased salary or changes in expenses.
Coverage Premium: The more the coverage, the higher the premium. Thus, the long-term viability of premium payments has to be ascertained.

Policy Term

The policy term should align with your long-term financial goals and life stage.

Career and Retirement Plans: Consider coverage until retirement or when financial liabilities are reduced. For instance, if you are going to retire after 60 years and you have liabilities up to that period, then the ideal term for such a policy would be up to 60 years.
Dependents' Needs: The age of dependents: How much will they require in the future? All these questions are relevant. A longer-period policy means extended financial coverage.
Flexibility and Renewability: Most term policies can be extended or renewed. Ensure you get an option to adjust your policy term to meet your ever-changing needs.

Coverage Needs

Find out if term insurance for 1.5 crore will be enough to meet the financial needs and obligations left behind for your family.

Income Replacement: The sum assured should suffice to replace the loss of your income. Calculate what amount of money your family would need so that their lifestyle in your absence could be maintained alongside the daily expenses and long-term goals.
Outstanding Liabilities: The coverage amount should include the outstanding debts, such as a home loan, car loan, or personal loan. This will ensure that the liabilities are paid back.
Inflation and Future Costs: Inflation is real; thus, the coverage amount should be considerable enough to remain effective in the future.

Health Conditions

Your health status is a major factor in deciding your premiums. It directly impacts how you will be charged and whether you are eligible for your desired policy.

Pre-Existing Conditions: Authentically disclose all your pre-existing health problems. Non-disclosure can result in rejected claims or higher insurance premiums.
Medical Underwriting: Depending on the insurer, you may need to undergo a medical underwriting, which checks your medical history during the application process. Be prepared for even your medical history to be analysed.

Reputation of the Insurer

Select an insurer with a high claim settlement ratio. It is a sign that the insurer is working well on settling claims.

Research and Reviews: Research the ratings, customer reviews, and reputation in the insurer's market. A higher claim settlement ratio usually indicates a more reliable insurer.
Customer Service: Evaluate how good the company is when providing customer service.
Financial Strength: Opt for an insurer with strong financial stability and a proven track record.

4 Benefits of 1.5 Crore Term Insurance

Buying insurance has several benefits, particularly a high sum assured, like a ₹1.5 crore term plan that provides extensive financial protection for your family.

Low Cost

Premiums are highly affordable compared to other types of insurance.

Customisable

Many term insurance policies offer the option to add riders or customise coverage based on personal needs.

Financial Planning

Helps in effective long-term financial planning and ensures family stability.

Tax Savings

Premiums are eligible for tax deductions; this gives an added benefit of saving money.

3 Common Riders to Consider: Term Insurance

Regarding customisable, term insurance providers offer a variety of riders to their policyholders. Some of the most opted riders include:

Critical Illness Rider

Provides coverage for specified critical illnesses.

Accidental Death Benefit Rider

Adds an extra sum assured in case of death due to an accident.

Waiver of Premium Rider

Waives future premiums in case of disability or serious illness.

Explore A Unique Option from ACKO: ACKO Life Flexi Term Plan

ACKO Life Flexi Term Plan delivers a modern, flexible, and customer-centric solution for long-term financial protection. As the name suggests, it provides an unmatched level of policy flexibility. The convenience of managing the entire policy lifecycle digitally adds to its appeal, particularly for individuals who prioritise ease of use and adaptability.

Feature	ACKO Flexi Term Life Insurance Plan	Traditional Market Offerings

Future Premium Hikes	No premium hike for increased coverage.	Higher premiums for future coverage increases.
Long-Term Cost Savings	Can save up to 40% on premiums over time, assuming historical price trends continue.	Premium increases over time lead to higher overall costs.
Customisable Coverage and Policy Duration	Coverage and Policy Duration can be adjusted easily to match life changes (marriage, children, etc.).	Limited flexibility to change coverage or policy term—often requires purchasing a new policy.
Digital Experience	Fully digital, with seamless online adjustments for personal details, Sum Assured, riders, etc.	Adjustments often require offline processes, paperwork, or branch visits.
Policy Adjustments	Modifications like adding riders, updating nominees, and changing payout modes can be done via the ACKO app.	Adjustments are typically more time-consuming and less convenient.
Free Will Creation	Includes a feature to create a will, which helps to outline asset distribution clearly.	Generally, do not offer integrated will creation services, requiring separate arrangements for estate planning.
Riders	Offers valuable riders to enhance protection	Riders may be provided depending on the plans.

Conclusion

Selecting the right ₹1.5 crore term insurance online involves a comprehensive evaluation of your financial situation, coverage needs, health status, and the insurer’s reputation. When buying a plan, ensure that you review all policy terms, compare different options, and consult with a financial advisor if needed to make an informed decision.

Frequently asked questions

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.