Skip Navigation
0 of 0 Displaying
 |   Displaying

No Results

    1Cr Term Insurance Plan | PNB Metlife

    Why 1 Cr Term Plan is Important for Family?

    Last Updated On 12-09-2022

    A term plan is a type of life insurance plan that provides insurance coverage against death and other eventualities to the loved ones of the buyer/ policyholder of the term plan. The insurance coverage is in the form of a monetary pay-out called a death benefit or sum assured. The death benefit received is given in exchange for periodic premium payments throughout the term plan to the policyholder's family on their demise.

    The benefit amount is many more times than the premiums paid. It aims to provide financial support to the family members left behind so that they can continue to lead their lives without any stress of money. Usually, you can choose the death benefit amount per your needs, budget, and other preferences.

    However, many financial experts recommend that a term plan with a sum assured of at least ₹1 crore is sufficient to sustain your family’s needs. Read on to know more about a 1 cr term plan for a family and its benefits.

    Get a Callback

    OTP sent successfully

    Thank you for getting in touch with us. We will contact you shortly.

     
     
     

    What is a 1 Cr Term Plan?

    A 1 cr term plan, or term policy, is a term insurance plan that offers a sum assured/ death benefit of ₹1 crore. The nominees (chosen family members) of the policyholder receive the 1 crore benefit amount on their unforeseen death.

    They can use the death benefit to continue to lead their lives and not take any emotional or monetary stress. Financial experts and insurers often recommend taking a term policy with a minimum sum assured of at least 1 crore, if not more, because the said figure has multiple benefits.

    What are the Benefits of a One Crore Term Plan?

    Here is the list of benefits of a 1 crore term plan:

    • Inflation-adjusted sum assured

      One of the best benefits of a one-crore term policy is that the amount of ₹1 crore can beat the effects of inflation. Inflation is the continuous rise in the prices of goods, services, and other commodities.

      The inflation rate keeps changing for different sectors, but the average rate ranges between 6%-8%. So, your current income will not be enough to sustain your loved ones ten to twenty years down the line. But a term plan with a one-crore pay-out will be much more than what you pay for it.

    • Affordable premiums for term plan

      Term plans are already one of the most affordable insurance products available. Add a term policy of ₹1 crore and see the premiums go lower. Moreover, if you buy the term plan when you are young, the premium rates are even more inexpensive.

      One of the biggest reasons investors prefer term plans is because of the high sum assured paid in exchange for cheap premium rates. That way, you and your cherished ones can get the security they require without breaking the bank.

    • Financial support for both the income-earner and homemaker spouse

      Term plans are not only for the sole or co-income earners of a family to buy. You can even get them on behalf of the homemaker spouse. While income earners bring the bread to the table, homemakers ensure the table and everything behind the scenes run smoothly.

      Nowadays, the financial cost of traditional home services like childcare, cooking, cleaning, and other home duties is high – things the homemaker does for free. But in their absence, you might need a term plan to hire help for their responsibilities.

    • Payment of pending loans or debt through a term plan

      With a term plan of ₹1 crore, you can repay any pending loans or debts on time. Instead of relying on your savings and investments, you can use the sum assured received to pay your instalments from time to time.

      You won’t have to compromise on your dreams and give up purchases like a vehicle or desired home or crucial experiences like higher education or marriage. You might think that a group term life insurance plan will be enough to repay your debts, but the sum assured in such insurance plans is always minimal.

    • Additional rider protection under the term plan

      With a term policy of 1 crore, riders can be added for added protection. The riders can protect your cherished ones against financial liabilities from life-altering and threatening eventualities like accidents, physical injuries/ disabilities caused by an accident, critical ailments, terminal diseases, job loss, and the like. The protection is in the form of an extra benefit amount given over and above the base 1 crore sum assured under the term plan.

    • International validity of the 1 cr term plan

      The best part is that a 1 cr term plan can be valid even outside the geographical limits of India, provided the validity is clearly mentioned in the terms and conditions of the term policy document. So, even if your family gets left behind by your unforeseen demise in a foreign country, rest assured they will receive the death benefit promised under the term plan.

    Tax Benefits under the Term Policy

    You get several tax benefits with a term plan under these provisions of the Income Tax Act, 1961.

    • Under section 80C, you can claim back a percentage of the premiums paid by you towards a term policy as tax returns. In a year, you can claim up to ₹1.5 lakh.
    • Under section 10 (10D), the death benefit amount your family will receive will be exempt from tax deductions.
    • Under section 80D, you can claim an additional deduction of up to ₹25000 for the premiums paid towards term plans with an added critical illness cover.

    To Conclude

    A 1 crore term policy is crucial to keep your family secure in the aftermath of your permanent absence. Your loved ones can continue to achieve their goals like getting married, finishing their education, travelling the world, and remaining prepared for any emergency. Financial security is one of the most meaningful gestures of love and care, so why wait to give your cherished ones the gift of financial protection? To know more about ulip plan, retirement planlong term savings and more visit PNB MetLife website.

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

    AD-F/2022-23/203

    RELATED PRODUCTS

    FAMILY PROTECTION

    An accident is an unpredictable event and can happen even to careful drivers. While you may like to stay safe all the time, it is also best to be p...

    FAMILY PROTECTION

    Term Insurance Riders are add-on to a term insurance policy that can be drawn on, if and when a certain event or instance is triggered. They allow ...

    7 Reason To Buy Term Insurance | PNB Metlife

    FAMILY PROTECTION

    7 reasons to buy term insurance before you turn 30

    Term insurance provides life cover for a fixed duration and offers financial aid to your spouse, parents, and children in case of an unforeseen eve...

    All about Risk in ULIP | PNB MetLife

    FAMILY PROTECTION

    As the name suggests, term insurance is a protection plan for a specified term for your family and loved ones. This life insurance plan is a necess...

    Family Protection Plan | PNB MetLife

    FAMILY PROTECTION

    The modern women are not merely confined to the four walls of their houses. They have been matching their male counterparts in every profession, be...

    Want to know more about how you can protect your family?

    See all our articles

    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

    Site best viewed in following browsers
    Chrome 70+ , IE 11+, Firefox 76+, Safari 11+

    Get a Callback Get a Callback

    Ask khUshi

    Hi! I’m khUshi. How can I help you?