Friday, 28 March 2025

Term Insurance: Your Smart Move Towards Financial Security

In today’s fast-paced world, financial stability and security are at the heart of a happy and stress-free life. While we work hard to build wealth, securing our loved ones’ future against uncertainties is always our priority, isn’t it?

What’s the first thought that we have when we think security? Life Insurance, right? And one of the most affordable yet comprehensive solution to safeguard our family’s financial future is buying a term plan.

Opting for a high-cover term insurance plan is the smart choice that we need to make!

Why do we need a High-Cover Term Insurance?

Term insurance is considered as the cornerstone of sound financial planning. It acts as a protective shield for your family, ensuring they remain financially stable even in your absence.

But why opt for a ₹2 crore plan specifically?

The no. 1 reason is rising costs and inflation

Changing consumer behaviours, upgraded lifestyles and inflation have eroded the value of money over time. What may seem like adequate coverage today may fall short of your family’s needs in the future. A ₹2 crore cover accounts for inflation and ensures your family has enough to maintain their lifestyle, fund education, and pay off debts or liabilities in your absence.

Secondly, it’s important for long-term planning

A high-cover term insurance plan is a key pillar in long-term financial planning, that helps you create a reliable safety net. It provides peace of mind knowing that your family’s future is secure, no matter what.

Adequate financial security based on Human Life Value (HLV)

Your income and financial contributions determine your family’s standard of living. Human Life Value (HLV) calculates the economic worth of an individual based on income, liabilities, and future financial goals. A ₹2 crore term plan ensures that your loved ones receive adequate financial support, replacing the income you would have provided over time.

Let’s understand the different types of term insurance

Before selecting a plan, it’s essential to understand the types of term insurance available:

Level Term Insurance
This is the most common type of term insurance. The sum assured remains constant throughout the policy term. For instance, in a ₹2 crore plan, your family will receive the full amount in case of your untimely demise during the policy tenure.
Decreasing Term Insurance
In this type, the sum assured decreases over the policy term. It is typically chosen to cover specific liabilities like loans or mortgages, where the outstanding amount reduces over time. While it may cost less than level term insurance, it may not provide comprehensive coverage for your family’s larger financial needs. For most individuals seeking long-term financial security for their families, level term insurance is usually the preferred choice.
Increasing Term Insurance
An Increasing Term Insurance Plan offers coverage that grows over time to keep up with inflation and rising financial needs. While the premiums may be slightly higher, this plan ensures your loved ones receive enhanced protection as expenses and liabilities increase. It’s a smart choice for those looking for long-term financial security.

Who needs a term insurance plan?

High coverage isn’t for everyone, but it’s ideal for certain groups of people based on their financial responsibilities and goals.

Working professionals with high-income responsibilities
If you are a high-earning professional, your family’s financial lifestyle likely depends heavily on your income. A ₹2 crore term insurance plan will surely ensure that there is no change in their lifestyle and their standard of living doesn’t take a hit in your absence.
Sole breadwinners
If you are the sole earner in your family, the financial burden on your shoulders is significant. A good term insurance plan can cover household expenses, children’s education, healthcare, and other essentials if you are no longer there to provide.
Young people can get higher coverage for less
One of the biggest advantages of buying term insurance early in life is the low premium. Younger individuals in their 20s or early 30s can lock in a ₹2 crore cover at a fraction of the cost compared to purchasing it later.
Business Insurance for business owners
Business insurance secures companies against financial risks. Keyman Insurance covers losses from a key employee’s death. Business Loan Protection clears outstanding debts. Partnership Insurance ensures seamless ownership transitions. Employer-Employee Insurance provides life cover with tax benefits. It safeguards business continuity and long-term stability.

What can a ₹2 crore term insurance plan do for you?

A high-cover term insurance plan isn’t just about protection; it’s also about planning for future uncertainties. Here’s why a ₹2 crore cover makes sense:

It acts as your financial safety net

The primary purpose of term insurance is to provide financial support to your family when you are not around. A ₹2 crore cover ensures there are enough funds to cover day-to-day expenses, address major life milestones and emergencies.

It addresses loan payments and other liabilities

If you have outstanding loans like a home loan, car loan, or personal debt, a ₹2 crore cover can ensure your family isn’t burdened with repayments in your absence.

It helps boost savings

Term insurance frees up your savings for other investments and goals since you have a solid backup for life’s uncertainties.

How Much Does a ₹2 Crore Term Insurance Cost?

The beauty of term insurance lies in its affordability. Contrary to popular belief, high-cover plans like ₹2 crore aren’t really out of reach. It can start as low as ₹ 28 per day which is probably less than a cup of coffee or a burger!

What are the factors affecting premiums?

Age: The younger you are, the lower your premiums.
Health: A healthy lifestyle and medical history can reduce premiums.
Income: Your income determines the extent of coverage insurers are willing to offer.
Policy Term: A longer policy term may slightly increase premiums but ensures extended coverage.
Gender: Women often pay lower premiums due to higher life expectancy and lower health risks.
Habits: Smoking, chewing tobacco, and other high-risk behaviors increase premiums.

For a young, healthy individual, a term plan could cost as less as ₹28 per day!

How to choose the best ₹2 crore term insurance plan?

With so many options available, selecting the right plan can be overwhelming. Here’s how you can make an informed decision:

Compare premiums and benefits
Use online tools to compare premiums and features across insurers. Look for plans that offer maximum benefits at a competitive price. You can also check the Reliance Nippon Life Super Suraksha Elite plan to ensure your family’s well-being without taxing your budgets.
Check claim settlement ratio
The claim settlement ratio reflects an insurer’s reliability in honouring claims. A higher ratio indicates a better track record.
Review policy terms
Understand the inclusions, exclusions, and conditions of the policy. For instance, check if the plan offers additional riders like critical illness / disability cover or accidental death benefits.
Insurer reputation
Choose an insurer with a strong reputation for customer service and financial stability.
Look for special discounts
Many insurers now offer exclusive discounts to salaried individuals, recognizing their stable income and consistent financial behaviour. If you are a salaried professional, make sure to check for these discounts while comparing plans to save even more on your premiums.

Is there any specific term insurance for women?

While term insurance for women functions similarly to traditional term plans, some insurers offer policies tailored to women’s unique needs. These may include lower premiums due to higher life expectancy*, as well as additional benefits like coverage for critical illnesses more common among women, pregnancy-related complications, and financial security for their children's education or care.

Secure your family’s future with the right term plan

A term insurance plan isn’t just a policy; it’s a promise to protect your family’s future. In an era of rising expenses and unpredictable uncertainties, this high-coverage plan ensures your loved ones can continue to thrive, even in your absence.

With affordable premiums, exclusive discounts for salaried professionals, and a range of additional benefits, there’s no better time to invest in a term plan tailored to your needs. Beyond being a safety net, it’s a way to create a legacy of care and security for those who matter most.

Your family’s future is priceless. The best time to plan for tomorrow is today. Know more about RNL Super Suraksha Elite today. Click here to know more -https://onlinesales.reliancenipponlife.com/SuperSurakshaElite

FAQs

Q1. Is ₹2 crore coverage enough?
It depends on your financial responsibilities, lifestyle, and future goals. Calculate your coverage needs using online calculators or by consulting an advisor.

Q2. Can NRIs buy a ₹2 crore term insurance plan?
Yes, there are several term insurance plans for NRIs; however, they are subject to specific terms and conditions.

Q3. Are premiums tax-deductible?
Yes, premiums paid for term insurance qualify for deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakhs annually.*

Q4. Can I increase coverage later?
Yes. Policies allow you to increase coverage at key life milestones, like marriage or the birth of a child.

Disclaimer: http://bit.ly/2GZeRHI

Visit Us: https://www.reliancenipponlife.com/

*Tax benefits may be available as per prevailing tax laws and are subject to changes based on amendments from time to time, consulting a tax expert is advisable.

Mktg/RNLIC/blog_smart move TA/V1/Feb25