Securing your family’s financial future is an act of love and responsibility. A term insurance policy with a substantial sum assured, like term insurance 7 crore, provides a safety net to protect your loved ones from financial hardships in your absence. It ensures their dreams, daily needs, and aspirations are cared for, offering stability and peace of mind during difficult times.
Why Choose a Term Insurance 7 Crore Plan?
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Before you decide on a term insurance 7 crore policy, let’s break down why you consider it for your family’s financial security.
1. Protect Your Family’s Lifestyle
No one wants to lose a loved one, and it is always emotionally painful, but it doesn’t have to lead to financial hardship. A term insurance plan with substantial coverage, such as 7 crores, provides a financial safety net that helps protect your family’s stability and preserve their standard of living during unforeseen circumstances.
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2. Cover Loan and Debt Obligations
If you have a home loan, car loan, or other personal liabilities, this policy will ensure that your family does not suffer the burden of the debts in your absence. The coverage can be used to clear all the loans, thus relieving them from financial burdens.
3. Shield Against Inflation
Inflation reduces the value of money over time, meaning its purchasing power decreases as time passes. Thus, a ?7 crore term insurance policy helps meet expenses in the future by providing adequate coverage. You can ensure your family is economically sound and can bear the cost of increasing expenses in the future.
4. High Coverage at Low Costs
The biggest advantage of a term insurance 7 crore plan is that it provides a large sum assured at a very low cost. Premiums are relatively low, so even middle-income families can afford significant financial security.
5. Tax Savings
With a term plan in place, you are eligible for tax benefits under Sections 80C and 80D of the Income Tax Act. The death benefit payout is typically tax-free under Section 10(10D), meaning your family will receive the maximum financial help.
Steps to Secure a Term Insurance 7 Crore Plan
If you’re considering a ?7 crore term insurance plan to safeguard your family’s financial future, here’s a step-by-step guide to help you make the right decisions:
1. Assess Your Insurance Needs
First, before approaching any financial adviser, carefully determine how much insurance you need for your family. Look at your current and projected monthly income and expenses. To be fully secured, you should go for coverage 10-15 times your annual income.
2. Research and Compare Policies
Not all ?7 crore term insurance plans are the same. It’s important to review each company and its policies to find the one that suits you best. Pay attention to:
- Pure Term Plans: Affordable insurance option providing pure coverage for a specific term with no maturity benefits.
- Plans with Return of Premium: Pays back the premium amount to the policyholder if he/she survives the term.
3. Use Online Tools for Premium Comparison
Term insurance premium calculators allow easy comparison of plans. You simply enter your age, income, and desired coverage amount to receive instant quotes.
4. Add Riders for Enhanced Coverage
Add riders to your policy to avail of extra benefits. Some of the 3 most common riders include:
- Accidental Death Rider: This rider offers an extra payout in case of accidental death.
- Critical Illness Rider: This rider provides financial support for critical illnesses like cancer or heart disease expenses.
- Waiver of Premium Rider: Waives premiums if the policyholder becomes critically ill or disabled.
Conclusion
A ?7 crore term insurance policy is a smart choice for anyone who wants to secure a strong financial foundation for their family. If you are looking to buy a ?7 crore term insurance policy, you should first calculate your insurance requirement to avoid underinsurance or overinsurance. Do proper research and compare several policies offered by different insurance companies, as not all ?7 crore term insurance plans are the same. Also, make effective use of online term insurance calculators and add riders for additional protection.