Insurance is one of the best methods to ensure the financial safety of a family or dependant. There are other modes of investment that can be useful in such situations. But their drawback is the uncertainty of return of capital and the benefits being provided to the nominee. You can keep any individual as the nominee through insurance apart from legal heirs.
Usually, people often turn down the option to purchase insurance, stating the reason for high premiums. But a solution to that problem is term insurance. And if you think term insurance cannot provide higher returns, such as regular life insurance, you are mistaken. There exist term plans which can provide even 1 crore term insurance. Read more about these 1 cr term insurance plans in detail.
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Term Insurance
Term insurance is the most basic life insurance, with the least premium amount. These low premium rates mainly result from lower death benefits and a lack of maturity benefits. They don’t even have a return of invested capital clause in their policies. While regular life insurances can provide a return of capital, return on capital, and higher mortality benefit. But all these come along a heightened premium. The interest rates of a term plan with return of premium are also high.
The lesser benefits obtained at term maturity might strike as a negative point. But the high amount of death benefit from such a low premium is the major attraction in term insurance. There used to be a limitation on the death benefit also. But today, there are several plans which offer higher death benefits to the nominee. One can find plenty of 1 crore term insurance plans with all the benefits of term insurance with the extra high mortality benefit.
Top 6 Reasons to Buy A 1 Crore Term Insurance Plan
Even with so many benefits, only 3 out of 10 people in India have term insurance, according to a survey by the India Protection Quotient 2.0 by Max Life Insurance. The major reason for not having a term plan is not monetary restriction but less information on the benefits. To understand its importance, people must know the benefits of each type of term insurance plan.
There are several 1 cr term insurance plans which offer 1 crore mortality benefits to the nominee in case of the policyholder’s sad demise. But their premium rates are still lower than regular life insurance plans. Apart from these pros of the plan, which provide monetary profits, there are several other ways how 1 crore term insurance helps individuals. Below is a detailed explanation of why it is necessary to have 1 cr term insurance.
Heightened Financial Protection to Family
The greatest benefit of plans with higher mortality returns is that they are more than sufficient to meet the family expenses. And that too, over the long years to come. A policyholder can ensure a safe means of income that will last for several years and provides the family freedom from depending on other income sources. The category of people benefiting the most retired couples and people with elderly dependents. As these people cannot find employment due to age or health restrictions, the funds will help them have an income to meet day-to-day expenses.
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Bright Future to Children
Children also don’t have to compromise on their education due to the miserable loss of a parent. Such dilemma is often seen when the lost parent used to support the child’s education from their income. The children can use the death benefits to fund their further education. They can also use it for important life occasions like higher education, migration, business investments, marriage, building a home, or backup funds.
Medical Funds for Elderly Spouses or Parents
Another worry that people often have is for the elderly dependents in the family. Their daily expenses need caretaking. But this is when people usually need extra medical attention due to increasing age and unresponsiveness to medicines. The funds can be useful to meet expenses of common, costly things such as medicines, home care treatment, hospitalization, home nurses, extra medical appliances, regular consultation, and treatment of any fatal illnesses.
Paying Off Debts
Some people can have debts and plan to finish them off with the money earned from their job or income. But when something tragic happens to them, the debts are transferred to the legal heirs. And these burdens can cause several emotional and financial tension. With a 1 crore term insurance, the funds will be more than sufficient to pay off most debts.
Purchasing Assets
Several people also have the lifelong wish to build a house or purchase some assets for their family. For this also they depend on the income of the salaried member. In case something happens to them, the 1 cr term insurance funds are useful in purchasing the new assets.
Emergency Backup Fund
If the funds are not useful in any of these situations, they can be useful as a backup fund. Having a backup fund will always help protect the family against any other unexpected events.
Conclusion
These are the very few examples of how a 1 crore term insurance can help a family. As the financial requirements and dealings of money change from family to family, there are still other ways to use these insurance plans. If you fall under any of these mentioned or those unmentioned categories, you must purchase the plan today. By doing so, you can start investing in these plans the protects family economics much earlier. And it will, in turn, increase your returns. To find plans with such higher returns, you can always look up Max Life Insurance. They have some of the best term insurance plans with other enhanced covers and benefits to the policyholder. So please make use of such great plans from Max Life Insurance without any haste and start investing in them right away.