VMPL
New Delhi [India], May 21: Living expenses are continuously rising. Considering this, regular savings cannot be enough to fulfil every need. That’s where a long-term backup like term insurance comes into the picture. If you’ve been wondering what is term life insurance, it’s pretty straightforward. It’s a life insurance plan that offers a fixed payout to your family if you pass away during the policy period. No savings component, just pure protection.
Among the different options available today, 1 crore term insurance has emerged as one of the most chosen sum assured amounts, especially for those who want a balance between affordability and good coverage. But what if you could do more with it?
Understanding How 1 Crore Term Insurance Works
The structure of a term plan is simple. You select a sum assured, say Rs1 crore, and pay a premium regularly (monthly, quarterly, or annually). If you pass away during the policy tenure, your nominee receives the entire amount. This money can then be used to handle household expenses, repay loans, fund your children’s studies, or just help your family stay financially stable.
A good practice is to buy the policy as early as possible. Starting young locks in a lower premium, and the same cover becomes more expensive as you age or if you develop medical conditions.
Ways to Get More Out of Your Term Insurance in 2025
If you’re buying a policy now or already have one in place, there are a few ways to make sure you’re using your Rs1 crore cover to its full potential. This is where going beyond the basic death benefit matters.
1. Choose Add-On Riders That Match Your Risks
One of the biggest advantages of term insurance today is flexibility. You can add riders to your base policy to handle specific events. For instance, a critical illness rider provides a payout if you’re diagnosed with a life-threatening illness like cancer or heart disease. Similarly, an accidental death rider increases the payout if death occurs due to an accident. These add-ons offer important buffers without drastically raising the premium.
Premium insurance providers like Axis Max Life Insurance offer plans that bundle these riders smartly, allowing you to tailor protection as your life changes.
2. Use a Return of Premium Variant, If It Fits Your Profile
Some people hesitate to buy term insurance because it offers “no return” if the policyholder survives the term. That’s where Return of Premium (ROP) plans come in. These plans return all the premiums you’ve paid if you outlive the policy duration. Though the premium is higher, it works well for those who prefer having something in hand at the end.
3. Consider Payout Options Carefully
You’re not just choosing coverage. You’re also deciding how your family will receive the money. A lump sum can be overwhelming if your nominee isn’t financially savvy. Instead, you can choose staggered or monthly payouts. This ensures steady support without the risk of mishandling large funds.
4. Account for Inflation Early On
The Rs1 crore you choose today won’t hold the same value 20 years from now. So, if your plan allows it, look for step-up cover options where your sum assured increases over time. Even if the premium is slightly higher, it helps your cover stay relevant in real terms.
How to Apply the “Beyond Basics” Approach in 2025
Buying a plan shouldn’t just be a checkbox activity. You’re essentially setting up a legacy, one that should be robust, flexible, and future-ready.
Here’s how you can think smart:
-If your employer offers group life cover, don’t assume it’s enough. Supplement it with your own plan, especially if you switch jobs or move to freelancing.
-If you’re the financially savvy one in the family, pick payout options that reduce the burden on your spouse or parents. A monthly staggered income might help more than a lump sum.
-Use your CIBIL score and health reports to get the best premium quotes. Insurers often offer lower rates to applicants with no pre-existing conditions and good lifestyle habits.
Choosing the Right Insurance Provider Matters
While the product features are largely standard across providers, certain factors can help you shortlist the right insurer:
-Claim Settlement Ratio (CSR): This tells you how many claims were paid versus filed. The higher the CSR is, the more reliable a company is.
-Solvency Ratio: Indicates the financial health of the insurer and its ability to pay claims. A ratio above 150% is a good benchmark.
-Rider Availability: Look at what add-ons are offered and whether they align with your health, lifestyle, and family history.
-Premium Flexibility: Some plans allow limited pay options, like paying for 10 years but being covered for 40. This gives flexibility depending on your income stage.
A quick look at a trusted provider like Axis Max Life Insurance shows a CSR of 99.65% (FY23-24) and several customisation options through riders, payout formats, and premium break features. Without naming the brand excessively, it’s these underlying benefits that indicate strong service and thoughtful product design.
Conclusion
At the core, what is term life insurance meant to do? It gives your family breathing room. Not just emotionally, but financially. That’s what makes the difference when a term plan is done right. With a Rs1 crore term insurance plan, you’re putting serious support in place.
Just remember that the payout only matters if the plan is designed thoughtfully. Pick the right riders, set a realistic policy term, and ensure your family knows how the payout will work. That’s how you move beyond the basics and truly get the value you’re paying for.
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