Getting adequate term insurance is among the wisest decisions you can make for your loved ones. A sufficiently large sum assured allows your family to meet financial goals, maintain a lifestyle and have complete peace of mind when you are not around. Here is a detailed look at why you should buy a term cover of â‚ą3 crores.
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A term insurance plan is a pure protection life plan that pays out the sum assured to your nominee in case of your unfortunate demise during the policy tenure. The sum assured paid to your nominees ensures your loved ones are not financially burdened in your absence. Premiums in term plans are very low—just a tiny fraction of the insurance cover.
The money can help your family maintain the same lifestyle and meet all financial goals without compromising after you are gone.
Let us understand this better with Raj’s example:
Raj, at the age of 35, was the sole earning member of a family of four with two school-going kids. He had taken out a home loan of â‚ą50 lakhs. Raj had also purchased â‚ą3 crore term insurance for 20 years to ensure his family stayed financially secure if anything happened to him.
Unfortunately, Raj met with a fatal accident at the age of 41. His term policy paid â‚ą3 crore claim amount to his nominee. This money helped:
âś” Clear the pending home loan immediately
âś” Created fixed deposits to earn monthly interest income
✔ Paid for children’s higher education and wedding
✔ Allowed Raj’s family to maintain the same lifestyle
So, ₹3 crore was an adequate corpus to enable the financial independence of Raj’s family after his sad demise at a young age.
Why â‚ą3 Crore is Ideal for a Middle-Class Professional - Reeta Sharma
Financial Cushion: Reeta, a 32-year-old professional’s ₹3 crore plan, helps ensure her family's lifestyle and essential needs are met in her absence.
Debt Protection: It clears existing debts, such as mortgages and personal loans, easing the family's financial burden.
Education & Future: The sum assures funds for children’s education and future milestones.
Why â‚ą3 Crore is Ideal for a High-Income Executive - Gokul Das
Lifestyle Maintenance: Gokul, a 42-year-old high-income executive ₹3 crore, ensures the family’s high standard of living is preserved.
Extensive Liabilities Coverage: It covers major liabilities, including large home loans and business investments.
Future Financial Goals: Supports long-term goals such as setting up trusts, charitable donations, and securing premium education.
Why â‚ą3 Crore Term Plan is Ideal for a Small Family (3-4 members) - Karna Desai
Adequate Coverage:
Karna’s ₹3 crore plan ensures his small family can maintain their lifestyle and meet essential needs.
Future Expenses:
It covers educational and future expenses, providing financial stability for his spouse and one child.
Emergency Funds:
The sum assured acts as a substantial emergency fund, covering unexpected costs and ensuring security.
Why â‚ą3 Crore Term Plan is Ideal for Large Family (5 or more members) - Rita Sharma
Comprehensive Coverage: Rita’s ₹3 crore plan provides extensive coverage to support her large family and ensure all dependents are cared for in her absence.
Educational Support: It covers the educational expenses for multiple children and supports their future needs.
Long-Term Security: This position ensures long-term financial security by handling household expenses and the large-scale needs of a big family.
A â‚ą3 Crore Term Coverage is well-suited to a large population. It strikes a balance that isn't excessively high or too low.
Purchasing term insurance comprises a few simple steps:
First, determine the sum assured you need based on income, expenses, loans, and your family’s financial goals. Then, riders can opt for enhanced protection.
Next, use the term plan premium calculator to determine the yearly costs payable. Then, compare quotes online from top insurers. You can use an online term insurance calculator to estimate premiums.
You may need to undergo prescribed medical tests to confirm your health status.
Pay renewal premiums on time for uninterrupted coverage. By doing so, your nominee will receive the total sum assured whenever a claim arises during the policy term.
Here are the benefits of purchasing term cover of â‚ą3 crores:
Follow this simple process to purchase a term insurance plan offering â‚ą3 crores coverage:
Check whether â‚ą3 crore is the appropriate sum based on your annual income, living expenses, outstanding liabilities, loans, children's academic/marriage costs, and your family's inflation-adjusted future goals.
For instance, if your current annual income is â‚ą30 lakhs, the ideal term cover is â‚ą3 crore to â‚ą5 crore under the human life value approach.
Next, use an online term plan premium calculator to compare quotes from leading insurance providers. You can get quotes based on age, sum assured, policy term, premium payment term, and smoker/non-smoker status.
Narrow down plans charging the most competitive premiums with maximum benefits.
Analyse important aspects like claim settlement record, policy term flexibility, service quality and speed, network hospital count, premium rates, etc., and shortlist the most suitable insurer. Check out ACKO’s unique term plan, ACKO Life Flexi Term Plan.
Complete the online application form by sharing basic personal, income, family, and health details. Before submitting the form, cross-check policy features.
Finish KYC verification by uploading proof of identity and address. Pay the first premium via net banking, cards, EMI, etc., to instantly activate the policy.
To continue your coverage, pay renewal premiums regularly before the due date. The premium term can be single or limited throughout the policy term.
Opting for a term plan with sufficient coverage of â‚ą3 crore ensures complete financial security for your dependents in case of your untimely demise. A high sum assured allows simultaneously fulfilling multiple big-ticket family goals while maintaining the current lifestyle. It can prove highly prudent for young parents, sole breadwinners, and working professionals with significant outstanding liabilities. Compare quotes using a term plan calculator before choosing a flexible term policy.
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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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