Buy 2 Crore Term Insurance Plan Online in 2024

A term insurance plan is one of the most critical aspects of your financial planning. It ensures your family is financially secure even when you are not around. While many people opt for a standard Rs. 1 crore term plan, there are several reasons why you should upgrade to Rs. 2 crore coverage. Let's explore these in detail.

A term insurance plan is one of the most critical aspects of your financial planning. It ensures your family is financially secure even when you are not around. While many people opt for a standard Rs....
A term insurance plan is one of the most critical aspects of your...

Term Life Insurance that Welcomes Change

Life Cover Starting @ just ₹18/day*

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Choose India’s Only Personalised Term Plan

Modify coverage as per your life stages & commitments

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Hassle-Free Claim Settlement

99.38% Claim settlement ratio*

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Smart Income Tax Savings

Save up to ₹54,600* on your taxes

ARN: L0042 | *T&Cs Apply
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What Is Term Insurance?

A term insurance policy provides financial protection to your nominees in case of your untimely demise during the policy tenure. It offers high coverage at an economical price. Your beneficiaries receive the sum assured in a lump sum. They can use this corpus to cover household expenses, pay off existing debts, fund their goals, etc.

Term insurance infographic by Acko explaining pure protection, affordable premiums, set coverage duration, tax benefits, and death payout.

Term insurance infographic by Acko explaining pure protection, affordable premiums, set coverage duration, tax benefits, and death payout.

Understanding the Importance of Adequate Term Life Insurance Coverage

Having term life coverage that falls short means leaving your loved ones exposed to financial vulnerability when they need support the most. The purpose of a term plan is to ensure their security, and inadequate coverage defeats that very purpose. Let’s look at some of the key reasons why having enough coverage is crucial:

  • Replaces Lost Income: If you passed away, your income that supported your family would be lost. Term life insurance provides a lump sum death benefit that can help replace that lost income and maintain your family's standard of living.
  • Covers Living Expenses: The death benefit can cover ongoing living costs like mortgage/rent, utilities, groceries, education, etc. This ensures your family is not financially burdened.
  • Pays Off Debts: he lump sum can pay off debts you may leave behind, such as mortgages, car loans, credit cards, etc. This frees your family from having to take over debt payments.
  • Covers Final Expenses: Funeral costs are covered, so your family doesn't have to worry about affording them. These are expensive.
  • Provides Peace of Mind: Knowing your family is financially secure if you pass unexpectedly gives excellent comfort and removes concerns regarding money as an added burden during grieving.
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Why Choose Rs. 2 Crore Term Insurance?

Here are a few reasons why a term plan of Rs. 2 crore makes sense:
 

  • High Inflation: The cost of living in India is rising every year. Education, healthcare, home prices—everything is getting expensive. Hence, you need higher coverage to match inflation in the future. A Rs. 2 crore payout will hold more value over the next 2-3 decades than Rs. 1 crore.
  • Nuclear Families: Most people now live in nuclear families with limited external financial support. Hence, your term insurance must be sufficient to replace your income and help your family maintain their lifestyle. With Rs. 2 crore coverage, your spouse can earn an interest income of Rs. 12-15 lakh annually to fulfil household expenses.
  • Outstanding Loan: Nowadays, people take out different loans to buy homes, cars, durables, etc. If something unfortunate happens, your nominees must have funds to close those loans. A 2 crore term plan can quickly help close multiple big-ticket loans.
  • Child Goals: You may have started saving separately for your child's education, marriage, or other milestones. But what if you aren't there tomorrow to fund those dreams? The payout from your term insurance can be invested to create that required corpus for your kid's future. With rising inflation, even Rs. 1 crore may fall short of the 15-20 years requirements for all the crucial goals.
  • Lifestyle Protection: Your family's current lifestyle involves a decent amount of monthly expenditure. Should they compromise on it due to money problems in your absence? With a term plan of Rs. 2 crore, your spouse can withdraw 8-10%, i.e. Rs. 15-20 lakh annually, while maintaining the same standard of living.
     

₹2 Crore term insurance: Financial backup, low premiums, customizable policy, tax savings, and goal protection. Acko Insurance.

How is Premium for Rs. 2 Crore Term Insurance Calculated?

How much would it cost to get such high coverage? Well, term insurance offers affordable rates even for Rs. 2 crore, sum assured, thanks to your young age. The premium is calculated based on a few key parameters:

Age

The younger you are, the lower the premium will be, as the probability of health issues is less when people are young and fit. Hence, someone aged 30 would pay almost half compared to a 40-year-old for the same coverage.

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Gender

Statistically, women have higher life expectancy than men. So for the same age and sum assured, the term premium is lower for females.

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Health Profile

Your medical tests, family history, lifestyle habits, etc., give insights into future health risks—people with excellent health pay lower premiums than those with pre-existing conditions.

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Tenure

You can typically choose a policy tenure of 10 to 40 years. The longer the tenure, the lower the yearly premium outgo.

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Riders

Any additional riders, like critical illness benefits, accidental death benefits, etc., also increase your costs. But they offer extra coverage.

In addition to the above, location and insurer impact premiums slightly. Use online term plan calculators to estimate your yearly payment for the assured Rs. 2 crore sum.

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Things to Consider Before Buying Rs. 2 Crore Term Cover

While Rs. 2 crore term insurance makes complete sense considering rising inflation and nuclear families, here are some things to consider before purchasing such high coverage:

For people earning well and with sufficient disposable income, a Rs. 2 crore term plan premium should be fine with the pocket. However, paying the yearly premiums consistently may take much work for people with low salaries or many existing financial liabilities. Use a term calculator to see if you can afford the cost comfortably.

Your insurance amount should be aligned with your income, expenses and financial liabilities, i.e. human life value. Anything lower may not suffice for your family, but excessively high may mean overpaying for coverage you don't need. Do check your numbers.

See if you or your spouse already have life insurance, such as group term plans from employers or traditional endowment policies. The sum assured also counts while calculating total coverage, so consider discontinuing old plans and consolidating them into one high-term policy.

Everything has a price; the higher the coverage, the higher the premium. However, due to their low-risk appetite, not everyone may be comfortable paying high premiums, even for Rs. 2 crore cover. So, take a call based on your need and willingness to pay for risk coverage vs. self-managing future uncertainties.

Evaluating the Affordability and Cost-Effectiveness of a Rs. 2 Crore Term Insurance Plan

Evaluating Affordability

  • Check your current income, expenses, and savings to see if the premium fits within your budget. Term plan premiums are generally between Rs. 7,000 and Rs. 30,000 per crore of coverage per year, depending on age.
  • Can you allocate 1-5% of your annual income towards the premium without straining other expenses? This makes it affordable.
  • Some term plans have premium modes other than annual. Check if half-yearly, quarterly or monthly premiums suit your cash flows better.
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Evaluating Cost Effectiveness

  • Compare premium rates and policy benefits offered by different insurers for the same coverage amount. This helps gauge the Rs. 2 crore plan's value for money.
  • Online insurance portals allow this comparison across insurers and help identify the most cost-effective option. 
  • Evaluate the claim settlement ratio of insurers when checking cost-effectiveness. Higher is better.
  • Look for the most considerable sum assured offered for the same premium. It enhances coverage cost-effectiveness.
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Common Concerns and Misconceptions About Term Insurance Plans

Despite their significant benefits, term insurance plans are often surrounded by various concerns and misconceptions that can deter potential policyholders from making informed decisions.

Many people believe that term insurance is costly, a significant misconception. In reality, term insurance is one of the most affordable forms of life insurance available. 

Some individuals assume they do not need term insurance because they are in good health. This is a risky assumption, as life is unpredictable and unforeseen circumstances can arise at any time. Term insurance acts as a safety net, ensuring your loved ones are financially protected regardless of your current health status. 

Many people avoid purchasing term insurance due to the perception that it is complicated. However, term insurance is straightforward compared to other insurance products. Its simplicity makes it easy to understand and manage.

Another common misconception is that only the primary earner in the family needs term insurance. However, it is equally essential for non-earning members, such as stay-at-home parents, to have coverage as it would be costly to replace if they were no longer around. 

Some people believe that term insurance is only beneficial for younger individuals. While younger policyholders can secure lower premiums, term insurance can be valuable at any age. Older individuals, particularly those with dependents or outstanding debts, can benefit from the financial protection term insurance offers. 

While savings and investments are crucial for financial security, they may not be immediately accessible or sufficient to cover your family's needs. Term insurance provides a lump sum payout that can help replace lost income and pay off debts without depleting savings or investments.

Highlighting the Flexibility and Customisation Options Offered by Term Insurance Providers

Term life insurance is known for offering flexibility and customisation options in several ways:

tenure

Term length

Policies can typically be purchased for terms ranging from 1 year to 30 years. This allows buyers to match the length of coverage to their specific needs, such as covering a mortgage or providing income for children until they become adults.

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Coverage amount

Buyers can usually select the death benefit, allowing them to purchase the protection they need. Coverage can often be increased or decreased as needs change.
 

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Conversion options

Many term policies allow policyholders to convert to permanent life insurance within a specific timeframe without proving insurability again through a medical exam. 
 

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Renewability

Term life policies may be renewable at the end of each term. This allows continued coverage as needed, though premiums increase over time.
 

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Premium modes

Premiums can often be paid monthly, quarterly, semi-annually, or annually, allowing buyers to match payments to their budget.
 

How is ACKO Life Flexi Term Plan Beneficial?

The ACKO Life Flexi Term Plan is currently one of the most affordable and feature-rich term insurance plans. 

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Customisable tenure

You can choose a policy tenure between 5 and 40 years, depending on your needs. Longer tenures have lower yearly premiums.
 

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Choice of payout

You can receive payouts in a lump sum, monthly income, or a combination. This flexibility allows you to utilise funds better.
 

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Comprehensive online process

Save costs through an end-to-end paperless purchase journey with no agent commissions involved.

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Instant approval in minutes

Instead of waiting weeks, get your large Rs. 2 crore coverage instantly approved through ACKO's real-time underwriting algorithm.
 

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Conclusion

Term insurance is the most affordable life insurance, covering risk at minimal costs. You can ensure complete financial protection for your family's future by choosing an adequate coverage amount. Considering rising inflation and higher nuclear family expenses, Rs. 2 crore is ideal for most earning members.

Frequently asked questions

A 2 crore term insurance policy can be highly beneficial, particularly for individuals with significant financial responsibilities. The worthiness of such a policy depends on factors like your income, liabilities, dependents, and lifestyle. 

The ideal amount for term insurance varies based on individual circumstances, but a common rule of thumb is to opt for coverage at 10 to 15 times one's annual income. 

As per the IRDAI, you have the option to decrease the premium amount or sum assured of your life plan after 3 years instead of the previous restriction of 5 years.

Yes, it is perfectly acceptable to have multiple-term insurance policies.

The ideal term length for a term insurance policy depends on your financial goals and responsibilities. Generally, the policy term should cover the period until your significant financial obligations, such as a mortgage or your children's education, are fulfilled. 

As per the IRDAI, you can purchase an Accidental Death Benefit Rider with coverage up to three times (3x) the base sum assured of your life insurance policy.

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Written by Neviya Laishram

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Reviewed by Vaibhav Kumar Kaushik Author info Icon

A professional Life Insurance writer, editor, and copywriter with a background in magazines, healthcare, education, and insurance.