Securing your family’s future is one of the key reasons individuals opt for term insurance. A 1 crore term insurance policy offers significant financial protection in the event of the policyholder's unfortunate demise. It ensures that dependents are not burdened with liabilities and can maintain financial stability. With the right strategy, it’s possible to obtain a 1 crore life cover at an affordable premium. In this article, we will discuss how you can access a term insurance policy of ₹1 crore at an affordable rate.
1. Buy Early in Life
The younger you are when purchasing a term policy, the lower your premium. Insurers consider younger policyholders to be lower risk. For instance, a 25-year-old non-smoker may get a 1 cr term insurance cover at a significantly lower premium than someone aged 40 with the same profile. Starting early not only help you secure lower premium but also gives you a longer policy term.
2. Choose the Right Policy Term and Premium Frequency
Opt for a policy term that matches your financial goals. Typically, this should last until your financial dependents become self-sufficient. Paying premiums annually often works out more cost-effective than monthly or quarterly payments. Some insurers also offer premium discounts for limited pay options where you pay for a shorter duration but remain covered for the full term.
3. Maintain a Healthy Lifestyle
Your health status has a significant impact on your term insurance premium. Individuals who do not smoke or drink and maintain a healthy Body Mass Index ( BMI) are considered low-risk. Providing accurate medical information and undergoing medical tests may also help insurers assess your risk profile clearly, which may result in a better premium rate.
4. Compare Across Insurers
Premiums for 1 crore term insurance policies vary across insurers. It’s important to compare policies not just on cost but also on features like claim settlement ratio, additional riders, claim process, and policy flexibility. Several online platforms allow easy comparison, helping you make an informed choice.
5. Select Online Term Plans
Online term plans are often more affordable than offline ones because they eliminate intermediary commissions and administrative overheads. These plans also come with the convenience of faster processing and transparent terms. If you're comfortable with a self-service purchase, this may help lower your premium substantially.
6. Choose Riders Wisely
Riders like critical illness, accidental death, or waiver of premium increases overall premium. While they offer added protection, assess whether they align with your needs. Avoid adding unnecessary riders that increase costs without relevant value.
Conclusion
Securing a 1 crore term insurance policy at an affordable premium is possible with early planning, a healthy lifestyle, and smart comparisons across insurers. Choosing a reliable insurer like Tata AIA can help you access flexible term plans that combine affordability with substantial coverage. Their transparent processes and digital convenience make policy selection simpler and more cost-effective. While affordability matters, evaluating claim settlement ratios and service quality is equally important. Term insurance plays a key role in long-term financial planning, and selecting the right cover ensures your loved ones are protected in your absence.
Disclaimer: The information provided above is for informational purposes only and is not intended as professional or legal advice. The Insurance Regulatory and Development Authority of India (IRDAI) is not responsible for any decisions made based on the information.
