Life is unpredictable, but it may be planned in the area of finances of your family. It is then that term insurance would be a good option that would ensure people feel confident and relaxed. Assuming that you would want to ensure that your family is financially stable in case anything were to happen to you or you wish your family to inherit some money to support them, taking a 2 crore term insurance policy would be your smartest move.
What is Term insurance?
We shall first look at the basics. It is a form of term insurance that gives financial protection, but the period during which you are under such protection is fixed, say 10, 20, 30 or 40 years. The nominee gets the sum assured in case of an inauspicious event as long as the policyholder is involved in a policy duration.
The cost is the primary aspect behind the term insurance popularity in India. In cases of an emergency, your loved ones will be taken care of financially and you will be paying a small amount monthly.
What is the sense of a 2 Crore Term Insurance?
So now, let us discuss numbers. In case you are keeping a term insurance cover to the tune of ₹2 crore, your family members will receive ₹2 crore in case you die prematurely during the insurance cover term. Does it sound like a lot? That is the point, however.
Now here is the reason this is a viable amount:
- Increased Living Costs: The need to have 50 lakhs or 1 crore of savings may not hold because villages will not be prosperous in another 1520 years since living costs and inflation keeps growing and increasing annually.
- Education/ Goals: A decent college degree or foreign education would set you back lakhs, or even crores. And with a 2 crores pay out, you can make sure that your children are keeping up with the dreams.
- Home loans and liabilities: EMI is the way of life of many Indian families. You can afford a 2 crore term insurance cover that will settle debts with even some extra finances left to enable your family to live comfortably with it.
- Lifestyle Continuity: In case of your eventuality, the policy makes sure the standard of living of your family does not interfere.
It is Simple, Clear and Powerful
Term insurance can be well understood as compared to other complicated insurance policies. It does not have investment or maturity value: it is just protection. It is just that with a higher cover, you will be paying a premium on it. And when you choose a bigger amount such as 2 crore, you do not simply purchase a policy, but you can provide your family with a good financial protection.
The silver lining is that the cost of 2 crore term insurance is cheaper than what people believe. And even your premiums at a relatively young age, under good health, can make you surprised. You can add additional riders such as critical illness cover or accidental death benefits to your policy at relatively little additional cost and thus give extra protection.
Conclusion
Today, nobody has difficulties with securing their loved ones in the modern world. With term insurance, that procedure is simplified. Wanting to offer more security to the family, a 2 crore policy term insurance is the way out, as now your family will be secured, both financially and emotionally, despite you will not be able to stay with them.
On the one hand, you plan your own life when you love somebody a lot and on the other hand, you plan the life when things are not so good and that is why you plan the unexpected. and it is not only clever planning, it is planning that is absolutely necessary.