Choosing a high-value term insurance cover is a smart move for long-term financial protection. Families face rising living costs, education expenses, and ongoing liabilities. Many people now look for higher coverage amounts to give structured support to their dependents. A common question arises: "Which ₹10 crore term insurance plan fits me best?"
Understanding Term Insurance Basics
Term insurance provides life cover for a specific policy period. If the Life Assured dies during this term, the nominee gets the death benefit. This money can help with household expenses, outstanding loans, and long-term needs.
This type of life insurance usually does not offer maturity benefits. Insurers can provide high coverage amounts, like ₹10 crore, at competitive premiums because of this structure.
Key Factors for Selecting a ₹10 Crore Term Plan
Picking a high-value cover requires careful evaluation of your financial health and future obligations. Focus on these three critical areas.
1. Coverage Amount
The right coverage amount depends on income replacement needs and existing liabilities.
- Income Consideration: People with higher annual incomes often need more coverage to support household requirements.
- Liability Coverage: Include outstanding loans, such as housing or business debts, when deciding on coverage.
If you have significant financial commitments, tailor the coverage to your personal needs.
2. Policy Tenure
Choosing the correct policy duration is as important as the sum assured. The tenure should cover your working years until retirement or until major responsibilities end.
- Retirement Age: If you plan to retire at 60, ensure your policy lasts at least until then.
- Dependents: With young children, you might need coverage until they become financially independent, possibly 20-25 years from now.
3. Optional Riders
Riders are add-ons that expand your base policy's scope. They cost extra but offer support during living crises, not just after death.
- Critical Illness Rider: Pays a lump sum upon diagnosis of specified medical conditions.
- Accidental Death Benefit Rider: Provides an additional payout if death results from an accident.
- Waiver of Premium Rider: Waives future premiums in case of permanent disability.
When reviewing a Bajaj Life Insurance term plan or others, check rider availability and costs to strengthen your financial safety net.
Common Mistakes to Avoid
Even with good intentions, errors can happen when buying high-value insurance. Watch out for these pitfalls.
- Not Assessing Financial Needs Properly: Picking a round figure like ₹10 crore without considering actual needs, inflation, loans, or lifestyle costs can lead to underinsurance or overinsurance.
- Ignoring Policy Terms and Conditions: Always read the fine print. Note exclusions and the claim settlement process to prevent surprises later.
- Hiding Medical History: Be transparent about pre-existing conditions. Non-disclosure is a top reason for claim rejection.
Conclusion
Still wondering which ₹10 crore term insurance policy fits you? Bajaj Life Insurance offers plans with defined policy terms to provide life cover. This step is crucial for planning your family's future. It acts as a financial guardian, supporting loved ones in pursuing dreams like college education or a comfortable retirement while offering protection.
Take time to assess your current lifestyle, future liabilities, and dependents' needs. Consult a financial advisor if necessary to calculate suitable coverage and tenure. The goal is peace of mind. By choosing the right plan today, you help ensure your family's financial stability tomorrow.
Note to readers: This article is part of Mint's paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.
