According to a recent study, 95% of India’s population doesn’t have term insurance and 73% lack health coverage. These aren’t healthy statistics for the seventh-largest country in the world. Life isn’t always a palette of all things sweet. It can take a downturn at any given point. The Covid-19 pandemic was one of the best examples to reflect the uncertain trajectory of life.
It is necessary to understand the importance of a term insurance policy. Even if we don’t know what the future has in store for us, we must surely plan for it. Through this blog, we will help you understand why a 2 crore term insurance is possibly one of the best choices you can make to secure your future.
Knowing Term Insurance
Term insurance is a type of life insurance that provides coverage for a stipulated time period. If the policyholder passes away during this period, the insurance company pays the death benefit to the nominee. Unlike other types of life insurance, term insurance does not have an investment element, making it a simple and elementary option for many people.
Why Go for the High Ceiling?
Many of you might ask, why a 2 crore term insurance? It’s important to consider several factors while determining the appropriate coverage. Let us look at some of them:
- Income Replacement: Rising inflation and higher cost of living is a constant worry for many. The main purpose of term insurance is to replace the income of the policyholder who is no more. Here, a 2 crore term insurance ensures that even during times of financial stress, the lifestyle and basic needs remain intact.
- Outstanding Liabilities: A 2 crore term insurance policy can help cover debts, ensuring that your family does not feel the burden of repayments in your absence.
- Future Payments: With a 2 crore term insurance plan, you can ensure that your child receives the best education and has a memorable wedding, even in your absence. A robust term insurance policy acts as a financial safety net, providing a lump sum payout to your family in case of unforeseen circumstances. This ensures your child’s future is secure, allowing them to focus on their aspirations without worrying about financial burdens.
- Rising Healthcare Costs: The cost of healthcare in India is increasing, with an average medical inflation rate of around 10-12% per year. In case of a critical illness or medical emergency, a high-value term insurance policy can cover the costs, ensuring that your family’s financial stability is not compromised.
Considering the Economic Factor
The term insurance market offers a vast array of options, making it challenging for individuals to select the perfect policy. However, one clear advantage shines through: affordability.
Unlike other life insurance plans, term insurance focuses solely on providing comprehensive financial protection for your loved ones without the added cost of investment components. This means you can enjoy high coverage amounts without breaking the bank.
Always Choose the Right Policy
It is important to have the right term insurance policy so that your purpose of choosing it gets accomplished. One needs to consider the following factors.
- When considering a 2 crore term insurance, it is important to choose the best benefactor company with a strong financial background and a high claim settlement ratio.
- The claim settlement ratio represents the percentage of claims that an insurer settles out of the total claims received, with a high ratio signifying a reliable and trustworthy insurer.
Plan in Advance For the Future
If you are looking for one of the best term insurance policies, you can consider Tata AIA Life Insurance. Investing in reputable insurance companies can be a sensible decision.
Term insurance provides protection for your loved ones in case of your absence. It is an investment in their future, allowing them to maintain their lifestyle, pursue their dreams, and live comfortably despite life’s challenges.
