The painful demise of the earning member of a family imposes a financial impact on the family. The pain elevates when lifestyle expenses become challenging to manage. To prevent their loved ones, intelligent financial planners and investors have life insurance by their side.
 

Term life insurance in India is one of the most purchased policies in the country. Term life insurance covers the death of the policyholder and offers compensation to the family under the terms and conditions of the policy. One can take the term life insurance for the entire lifetime or a distinct period based on the desirables of the policy investor. Depending on the policyholder's capacity, the premium is paid either for a specific term or lifelong. 

What is a 10 Crore Term Insurance?

One-crore term insurance has been popular in India. However, 10 crore term insurance is eventually taking over popularity. This life insurance offers financial support to the nominee of the policyholder.

The benefit of a 10 crore life insurance policy is that you get a higher sum assured at affordable rates. The higher sum assured will help your loved ones fulfil their needs in your absence. It will also help your family pay off debts and take care of other expenses in your absence.

Advantages of 10 Crore Term Insurance

Here are the advantages of 10 crore term insurance:

• Death Benefits - In the case of the policyholder's demise, the nominee gets the assured sum mentioned under the policy terms and conditions. 

• Financial Security - A term life insurance provides security to your family. In the case of any unfortunate scenario like death, your family might undergo a financial crisis. With a life insurance policy by your side, you can provide financial security to your loved ones. 

• Tax* Benefits - The income tax* department offers you tax* exemption for the premiums you pay. Section 80C of the Income Tax* Act provides upto ₹1,50,000 deduction for life insurance premiums. 
  
  
  

How to Choose a 10 Crore Life Insurance Policy?

In recent times, almost every insurance company has offered a 10 crore life insurance policy. While planning to invest for a lifetime, you must ask the right questions. Making a choice based on the correct factors will make the most of your term insurance of 10 crores. Let us look at some factors you should consider while making a decision:

• Life objectives: The primary goal of purchasing a 10 crore  life insurance policy is to provide financial backing to your family in your absence. It helps your family maintain their lifestyle even when there is no source of immediate income. You must evaluate the cost of your family's lifestyle before purchasing a policy. 
  

• Age: Financial requirements change with age. Your needs at a tender age would be much different than that at an older age. As your age advances, your family grows, and so do your responsibilities. At a tender age, you can purchase a policy with lower premium rates owing to less risk of illness. 

• Existing liabilities: To decide which policy suffices your requirements, it is essential that list your liabilities. Based on your liabilities, you can quickly determine if a 10 crore life insurance policy would be sufficient for a better future. 

• Annual income: Your yearly income plays a crucial role in deciding if you should opt for a 10 crore life insurance. Your income should allow you to pay timely premiums without affecting your current lifestyle. 

• Estimated years of working: The life insurance policy coverage amount should easily correspond to a premium you can handle during your retirement years.
  
  
  

10 Crore Term Life Insurance Exclusions

Here are the 10 crore term life insurance exclusions:

• Death due to participation in a dangerous activity or suicide - Insurance companies can deny paying the lump sum in the case of death due to participation in hazardous activity or suicide. Destructive activities include sporting activities that might result in death.

• Death due to criminal activities - Death resulting from illegal activities or participation in criminal activities is a notable exclusion. The nominee, in such a case, would not be paid the assured sum. No add-ons can offer protection to the policyholder in case of involvement in criminal activities.

• Death under the influence of drugs or alcohol - Insurance companies mostly deny offering term life cover to drug abusers and habitual drinkers. If you face death under the influence of drug use or alcohol, the insurance company can refuse to pay your insurance claim per the rules and regulations. 

• Pre-existing medical conditions - While purchasing a life insurance policy, it is mandatory to mention all your existing medical conditions. If you fail to mention them, you might not receive coverage for the same. 
  
  
  

Conclusion

Taking into account the daily expenses and rising inflation, managing the finances is troublesome. This is why Tata AIA life insurance offers various policies to fulfil your financial goals. The ideal feature of these plans is the availability of multiple options such as one-time payouts, monthly income, etc.

L&C/Advt/2022/Jul/1651