When is the right time to buy 1 Crore Term Insurance?

Pune, 10 December 2024: Now that 2024 is about to be over, the key question on everyone’s mind is when is the best time to get term insurance plans? It is quite a pertinent question. Many believe that the term insurance plan should be bought if you are above 35 years but one could get the best term insurance plan if they are in their 20s due to multiple factors working in their favour.

In other words, the sooner you start investing in the term plan, the cheaper it will be for you because the premium payout for the 1 crore term insurance will be less than what you would be paying in your 30s.

Lifestyle diseases become more prevalent as you age, which raises your premium. Moreover, over the years, the demand for term insurance plans has increased significantly if compared with other forms of term plans. It could be due to the fact that they are basic and easy to grasp, particularly among young people.

Varied options in sum assured have made it difficult to select the best plan and in such a scenario, a 1 crore term insurance policy is a sound investment that will offer a significant sum to your family in case of an untoward event to the policyholder.

In this article, we will talk about the requirement of term insurance with respect to different stages of one’s life.

Early 20s and unmarried: Since most people prefer to marry late in their lives, you could provide additional income to your existing family. This is the time when your expenses will be significantly lower and thus, will be the perfect time to start saving for your retirement. Term insurance is much more reasonable at this stage and can help you save money on taxes.

Mid/late 20s and married: This is an important period because you have just begun or will soon begin a new chapter in your life. For newlyweds, now is the time to invest in a 1 crore term insurance so that you may build a solid financial foundation for your family that will undoubtedly increase in the coming years.

Young Ones: At this period in your life, your responsibilities as a parent increase. Children’s schooling, extracurricular activities, other miscellaneous expenses, and medical expenses will be the focal point. This is when you have to consider protecting your family and guaranteeing their financial security after you are gone with the best term insurance plan. Your long-term debts should be covered, and with the added responsibility, you will need to secure yourself and your family with a higher protection term insurance plan of 1 crore term insurance plan.

Retirement Plans: Although it is not the best time to purchase term insurance, once your children are in college or seeking higher education, you should begin planning for your retirement years. This is when you should turn your emphasis and most likely settle on a few suitable pension plans that will cover you and the lifestyle you intend to live in retirement. It is also important to consider a premature demise and how your investments will maintain your family’s lifestyle when you are gone.

Factors to Consider When You Are Buying 1 Crore Term Insurance

When purchasing or considering a best term insurance plan, you must make several decisions as an individual:

Sum Assured/Life Coverage: This is the amount payable to your dependents in the event of your untimely death. Before selecting the best term insurance plan, make sure that your family gets an adequate sum. If the current term insurance is not providing enough coverage, consider other policies that match your needs. There are various term policies available online, and you should take advantage of this. Your objective as a policyholder is to ensure that your family has enough financial support to live a happy and healthy life even after you are gone.

Tenure of Your Insurance: When purchasing an insurance policy, check the tenure. Look for coverage that will protect you and your family till retirement. Although 60 is no longer a fixed retirement age, nor do your liabilities end there, use it as a baseline. Experts recommend that term plans cover you until the age of 65.

Who should buy a one-crore term plan?

Term insurance should be purchased at the beginning of your job when you are still young, healthy, and unburdened. Working professionals in their late twenties or early thirties (25-35 years old) can invest in a 1 crore term insurance plan to benefit from low premiums that remain fixed for the duration of the policy.

If you are the family’s primary breadwinner, you should consider buying the sum assured of at least 1 crore term insurance to make sure that your family is sufficiently secured in their absence. They should also consider whether a one crore term insurance policy is the best option according to your family’s needs or whether they require more coverage.

Individuals with home or student loans should plan to opt for a term insurance policy as a backup plan. In an unfortunate event, the insured amount can be utilized to repay an individual’s loans, freeing the family from debt.

What Should You Consider Before Narrowing Down a 1 Crore Term Plan?

⦁ Firstly, one needs to make sure that one is healthy enough to be eligible for the best term insurance plan for 1 crore. Some insurers may require you to meet certain health conditions in order to be eligible for coverage.

⦁ Second, premiums for several insurance plans should be compared before making a decision. Not all policies provide the same rate, therefore it is critical to compare and find the best deal.

⦁ Third, read the fine print before signing up. Make sure you also understand what is included in your policy and isn’t covered under the plan.

⦁ Finally, make sure you have a backup plan in place in case something happens that prevents you from paying your policy’s premiums. Have enough savings to cover the premiums for at least a few years.

By keeping these factors in mind, you may make an informed decision about your 1 crore term insurance coverage. It is recommended that you get a term plan as early in life as possible since this is the best time to do so while also guaranteeing that you receive the required life coverage. Term life insurance is also far less expensive early in life than later in life.