In the fast-paced digital age of today, online purchase of life insurance has also become an easy affair. With a few clicks, you can get a good-sized cover such as a ₹1 crore term insurance policy sitting at home. But while online shopping is easy, choosing the right product is far more than simply selecting the lowest premium. A ₹1 crore term insurance is a long-term investment and helps take care of your family’s financial security in the event of your untimely death.
Before you tie up that expensive cover, here’s what you need to look at carefully. This step-by-step guide deconstructs all that Indian consumers should know before they purchase a term plan for 1 crore online.
Understand Your Real Coverage Needs
The ₹1 crore price sticker rings well, but is it sufficient for your requirements? One general guideline is that your cover should be 10–15 times your yearly income. But there’s more. Consider:
- Outstanding dues (home loan, personal loans, etc.)
- Kids’ future education expenses
- Daily living expenses of the family for the next 15–20 years
- Medical emergencies and inflation
A ₹1 crore term insurance policy would be suitable for a young working person drawing a salary of ₹8–10 lakh per annum with future obligations. But for a person with a higher salary or higher liabilities, this could be inadequate.
Look into Research Insurer’s Claim Settlement Ratio
One of the key markers of an insurer’s credibility is its Claim Settlement Ratio, which IRDAI releases every year. A high CSR (over 95%) indicates that the company has a good history of paying claims. When it is a matter of life cover, your loved ones should never have to fight for what is theirs.
Aside from CSR, also look at:
- Average time taken to settle claims
- The number of claims repudiated or rejected
- Customer service quality for claim support
Compare Premiums—but Smartly
Don’t take the lowest premium blindly. Smaller premiums could have concealed compromises such as fewer riders, more stringent medical tests, or lower adjustability. Instead:
- Make use of online comparison websites to research several insurers
- Assess the premium-to-benefit ratio throughout the policy duration
- Opt for policies with level premiums throughout the tenure
Also, check whether the premium varies depending on payment frequency, there are some insurers who give a discount on annual payments.
Verify the Policy Tenure Choices
For a term insurance plan of ₹1 crore, the policy duration choice is extremely important. If you are in your early 30s, go for coverage up to at least 65–70 years to protect through your most economically sensitive years. Don’t select very short terms just to reduce premiums.
Certain insurers provide up to the age of 99 (whole life term) plans. Although it seems enticing, they are more expensive. Assess if such extended coverage meets your objectives or if a normal-term policy will do.
Find Riders That Provide Real Value
Riders are add-ons you can add to your term plan with a marginal premium addition. For a ₹1 crore policy, consider riders like:
- Accidental Death Benefit: Adds an extra payout if death is caused due to an accident.
- Critical Illness Cover: Pays a lump sum if you’re diagnosed with listed critical conditions like cancer or heart attack.
- Waiver of Premium: Future premiums are waived if the policyholder becomes permanently disabled or critically ill.
- Income Benefit Rider: Ensures monthly income for the family apart from the lump sum.
Choose only those riders that align with your risk profile and family needs, don’t over-insure without purpose.
Assess Medical Requirements and Disclosure Norms
While buying term insurance online, insurers may request medical tests based on your age, sum assured, and disclosed medical history. For a ₹1 crore cover, expect a mandatory medical examination.
Never conceal or misrepresent health status, habits such as smoking, or prior illnesses. Complete disclosure prevents your claim from being denied on grounds of non-disclosure. Also:
- Keep copies of all medical test results
- Complete proposal forms yourself; do not rely on third-party entries
Honesty at this point directly affects the success of the claim.
Review the Payout Options
Term plans provided only a lump sum death benefit in the past. However, today:
- Lump sum only
- Monthly income for a term of years
- Combination of both
A ₹1 crore term policy where ₹50 lakh is paid in advance and ₹50,000 each month for 100 months can be suitable for those needing a steady income. Know which option best matches your dependents’ lifestyle and financial sophistication.
Assess the Insurer’s Digital Experience
When purchasing a term insurance plan online, an easy and secure digital experience counts. Ensure:
- User-friendly websites or apps
- Transparent pricing and policy documents
- Clear instructions for medical check-ups
- Easy access to support
Also, look up feedback regarding online claim settlement, grievance settlement, and payment of premiums online. The post-purchase experience is as important as the buying experience.
Know Exclusions and Waiting Periods
The majority of policies exclude:
- Suicidal death within the first year
- Death due to taking part in dangerous activities (if not disclosed)
- Deaths arising from pre-existing diseases (if not disclosed)
Certain covers, such as critical illness cover, can come with waiting periods (e.g., 90 days after the beginning of policy). Always check fine print policy exclusions and waiting times to prevent surprises.
Account for Inflation and Lifestyle Changes
What is an enormous amount right now might not be as valuable 20–30 years from now. Healthcare charges, education costs, and the cost of living inflate constantly. A ₹1 crore policy could be short in the future.
Most insurers provide increasing term insurance plans, where the sum assured increases annually by a fixed rate (e.g., 5–10%), the perfect antidote to inflation. Or, you can increase your cover during milestone life events such as marriage or the birth of a child in some plans.
Final Thoughts: Is a ₹1 Crore Term Plan Right for You?
A term plan of ₹1 crore is a very useful financial instrument, particularly for India’s expanding middle class as well as youth professionals. It provides assurance that your loved ones are safe in the future. But that peace is only assured if you make a well-informed choice, not an impulsive one.
Take time to compare, consider, and inquire. Consult a licensed advisor if necessary. Term insurance is not a product, it’s a commitment to your family’s financial freedom. Make the right choice, as one decision can determine their future security.
