A 1 crore term insurance plan provides a high level of life insurance cover, offering financial protection of ₹1 crore to your family in case of your untimely death during the policy term. In today’s world, where living costs and responsibilities are rising, a ₹1 crore cover helps ensure that your loved ones can maintain their standard of living and meet long-term financial needs even if the unexpected happens.
Here’s how several popular term plans compare in terms of claim settlement ratio and approximate annual premium:
Company | Policy Name | Claim Settlement Ratio | Sum Assured | Approx. Annual Premium | Coverage Up To |
SBI Life Insurance | eShield (Basic Plan) | 89% | ₹1 Crore | ₹6,400 | — |
AEGON Life Insurance | iTerm (Basic Plan) | 89.8% | ₹1 Crore | ₹8,892 | Up to 70 years |
Reliance Life Insurance | Online Term (Basic Plan) | 83.8% | ₹1 Crore | ₹7,950 | — |
HDFC Life | Click 2 Protect Plus | 90.5% | ₹1 Crore | ₹11,145 | Up to 70 years |
PNB MetLife | MetLife Mera Term Plan | 92.9% | ₹1 Crore | ₹9,011 | — |
Bajaj Allianz Life | iSecure (Basic Plan) | 91.9% | ₹1 Crore | ₹14,513 | — |
Max Life | Online Term Plan | 95.5% | ₹1 Crore | ₹9,046 | Up to 70 years |
ICICI Prudential | iCare II Term Insurance | 93.8% | ₹1 Crore | ₹18,293 | Up to 70 years |
LIC | e-Term Plan | 98% | ₹1 Crore | ₹14,600 | — |
Note: Premiums are approximate and may vary based on age, health, gender, smoking status, and policy term.
High Financial Protection
With a sum assured of ₹1 crore, your family gets a significant amount to support expenses such as daily living costs, children’s education, home loans, and other financial commitments in your absence.
Affordable Premiums
Multiple insurance providers offer ₹1 crore term plans, and with recent competitive pricing and regulations, premiums have become more affordable for customers.
Peace of Mind
A high sum assured helps protect your family from financial instability and gives you peace of mind, knowing they have a financial safety net.
Here are some key factors to consider when selecting a 1 crore term plan:
1. Premium Rates
Check the premium amounts charged by different insurers and choose one that fits your budget. You can use online premium calculators to compare and estimate costs.
2. Claim Settlement Ratio
A higher claim settlement ratio indicates a better chance that claims are paid smoothly. Ideally, look for insurers with a ratio above 90%.
3. Policy Add-Ons
Many term plans allow additional riders (like accidental death benefit or critical illness cover) that enhance protection. Choose riders based on your needs.
The main purpose of a term insurance plan is to financially protect your family. To determine the right coverage amount:
Add up your annual household expenses (food, utilities, bills, etc.).
Factor in children’s education costs and future goals.
Include liabilities such as loans or debts.
Consider inflation to estimate future costs.
For example, if monthly expenses are ₹20,000, annual expenses become ₹2,40,000. Over 20 years with an assumed inflation rate, total required protection can be calculated.
Role of Your Income in Term Insurance
Insurance companies often use your annual income to assess how much protection you need:
| Age Group | Suggested Coverage |
| 18 – 30 | 25× annual income |
| 31 – 40 | 20× annual income |
| 41 – 50 | 15× annual income |
| 51 – 55 | 10× annual income |
| 56+ | 5× annual income |
Example: A 31-year-old earning ₹5,00,000 per year could qualify for ₹5,00,000 × 20 = ₹1 crore cover.
This term plan offers a death benefit of Rs. 1 crore to your loved ones in case of your unfortunate death. You essentially create a financial cushion of Rs 1 crore for your family which they can use for their long-term goals, short-term expenses, and to pay off any debts - without compromising on their lifestyle - in your absence.
However, if you survive the policy term, you won't receive any maturity benefit.
1 Crore Term Insurance – Example
Rahul is a 37-year-old married individual with one child. Both his spouse and child are financially dependent on his income. He currently has a personal loan of ₹40 lakhs and also plans to fund his child’s higher education at a reputed university, which is expected to cost approximately ₹40–50 lakhs.
To ensure that his family’s financial future remains secure in his absence, Rahul decides to purchase a ₹1 crore term insurance plan. This coverage amount is chosen to safeguard his family against outstanding loan liabilities and to support his child’s educational aspirations. He nominates his spouse as the beneficiary under the policy to ensure that the claim amount is directly payable to her in case of an unfortunate event.
If Rahul dies during the policy term, his spouse will receive a death benefit of Rs 1 crore which she can use for daily expenses, repaying his personal loan, and her child’s education costs.
If he survives the policy term, he will not be eligible to receive anything.
A specially designed online tool known as a term insurance calculator helps you estimate the annual premium payable for your policy. These calculators are easily accessible on insurance companies’ websites and are simple to use. By entering basic details, you can determine the appropriate sum assured required to financially protect your family.
The term insurance calculator enables you to calculate the exact premium amount based on factors such as age, coverage amount, policy tenure, and other relevant details. Since multiple insurers offer different plans, the calculator also allows you to compare various policies and select the one that best suits your needs.
Using a term insurance calculator saves time and eliminates the need for manual calculations. It serves as a quick and efficient way to evaluate available options, helping you choose a cost-effective plan without confusion.
Whenever you plan to purchase or review your term insurance coverage, make sure to use a term insurance calculator to make an informed and confident decision.
| Aegon Term Life Insurance | Aviva Term Insurance | Bajaj Allianz Term Insurance |
| Bharti AXA Term Insurance | Aditya Birla Sun Life Term Insurance | Exide Life Term Insurance |
| HDFC Term Life Insurance | ICICI Prudential Term Life Insurance | IDBI Federal Term Insurance |
| Max Term Life Insurance | PNB MetLife Term Insurance | Reliance Nippon Term Life Insurance |
| SBI Term Insurance |
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