1.5 Crore Term Insurance Plan

1.5 Crore Term Insurance Plan

 

Investing in your family’s future is a smart move and it is always better to go an extra mile rather than ending up in an uncomfortable & perplexed situation. 1.5 crore term insurance plan is a financial solution that lets you do so without any additional burden! Let’s understand how it works. 

1.5 Crore Term Insurance Plan

1.5 crore term insurance plan can be considered as the simplest form of insurance policy that allows an individual to stay financially protected. Since it is a pure life insurance product, you can get the large cover at reasonable premium rates, especially if you buy the plan early in life.

What Is 1.5 Crore Term Insurance Plan? 

Term plans are straightforward life insurance plans. Under this plan, the beneficiary receives a predetermined death benefit in case of the insured person’s demise during the policy period. As the policyholder, you have the control over the sum assured of the policy. So, if you were to opt for a term insurance plan with a cover amount of 1.5 crore, your loved ones would receive this sum in case of your untimely demise.

It is increasingly becoming a popular choice among policy buyers due to the growth in financial responsibilities and liabilities. Purchasing a term insurance plan for 1.5 crore ensures that the cover amount is sufficient to sustain your loved ones in your absence, many years from now.  

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Why Buy 1.5 Crore Term Insurance Plan?

Securing your family’s future is a crucial decision. As a policy buyer, you may find yourself struggling with the number of different options available to do so. If you are contemplating whether you should purchase 1.5 crore term insurance plan, we are here to help you out.

Here are some reasons you should consider the 1.5 cr term insurance to get long-term financial security:

Greater Coverage

1.5 crore term insurance allows you to establish a strong financial safety net around your loved ones. It means that they will be able to sustain their standard of lifestyle and accomplish their dreams, even during difficult times in life. 

Cost-Effective

Buying the 1.5 crore term insurance plan is one of the most cost-effective ways to secure your loved ones’ future since it allows you to pay nominal premium rates for a hefty cover. You can choose to stay covered under the policy for an extended period by paying minimal premiums. 

Additional Security 

In addition to the base cover of the 1.5 cr term insurance plan, you can choose to enhance your coverage with add-ons such as a critical illness benefit*, accidental death benefit*, waiver of premium benefit, etc.

Cost-Effective

Buying the 1.5 crore term insurance plan is one of the most cost-effective ways to secure your loved ones’ future since it allows you to pay nominal premium rates for a hefty cover. You can choose to stay covered under the policy for an extended period by paying minimal premiums. 

Additional Security 

In addition to the base cover of the 1.5 cr term insurance plan, you can choose to enhance your coverage with add-ons such as a critical illness benefit*, accidental death benefit*, waiver of premium benefit, etc. 


Security Against Loans & Liabilities 

In case of your untimely demise, your family can use the financial support from the 1.5 crore term insurance plan to pay off outstanding loans and liabilities. 

How Does Term Insurance 1.5 Crore Plan Work? 

A term insurance policy assures financial security to an individual’s family in the event of the insured's death within the policy's term. A 1.5 crore term insurance plan is a policy that provides to pay the nominee the sum assured of the stated amount in the event of the insured's death. This plan acts as a guardian for the policyholder's family, assisting them in meeting their financial needs and goals.

Let’s understand how it works:

  • A term insurance policy is a type of life insurance that offers coverage for a specific period of time, or 'term,' as the name implies.
  • If the policyholder dies while the term plan is still active, the beneficiary is entitled to a death benefit from the insurance company. If you buy a 1.5 cr term insurance plan, for example, the entire sum assured will be paid to the nominee according to the policy terms and conditions.
  • If you have a young family, a term plan may be the most cost-effective way to insure your family's future. Even if you choose one of the best term insurance plan for 1.5 crore, the premiums will not be a problem if the policy term is long.
  • Your premium is fixed and does not change during the course of your insurance policy. As long as you pay your payments on time, you are insured.
  • Having an 8-figure sum set aside for contingencies can put your mind at peace and cover significant expenditures. Hence, buying a 1.5 crore term insurance plan can prove to be a smart move in the long run. 

How To Determine the Right Coverage Amount? 

Determining the right coverage amount for your insurance policy is essentially calculating your life’s worth and it can be a morbid task. However, the primary goal of life insurance is to offer financial support to your family and dependents in the event of your death. Hence, it is important to answer this question to ensure that you choose the right cover amount.

If you are wondering whether 1.5 crore term insurance plan is for you, consider these questions taking an example:

What is your family’s income/expenses?

The monthly expenses for Pranav’s family are Rs 80,000, totaling Rs 9.6 lakh per year. It is generally suggested that coverage be provided at a rate of 10-15 times annual expenses. While this is entirely up to Pranav, a multiple of 15 is advised in his situation to factor in increasing education costs, inflation rate and his parents' healthcare costs. Based on predicted household expenses, his coverage would be Rs 1.4 crore at a multiple of 15 times. Hence, choosing one of the best term insurance plan for 1.5 crore makes the most sense for him financially.

What are the important life goals and events?

Pranav has two kids who are approaching crucial milestones in life including their higher education and marriage. He wants the best for his children and has already started a building a corpus of Rs. 30 lakhs over the next 20 years by investing in mutual funds.

What is your family’s income/expenses?

The monthly expenses for Pranav’s family are Rs 80,000, totaling Rs 9.6 lakh per year. It is generally suggested that coverage be provided at a rate of 10-15 times annual expenses. While this is entirely up to Pranav, a multiple of 15 is advised in his situation to factor in increasing education costs, inflation rate and his parents' healthcare costs. Based on predicted household expenses, his coverage would be Rs 1.4 crore at a multiple of 15 times. Hence, choosing one of the best term insurance plan for 1.5 crore makes the most sense for him financially.

What are the important life goals and events?

Pranav has two kids who are approaching crucial milestones in life including their higher education and marriage. He wants the best for his children and has already started a building a corpus of Rs. 30 lakhs over the next 20 years by investing in mutual funds.

Source:

* As per annual audited financials, FY 2019-20

These objectives would be jeopardized due to his premature death. As a result, it's a good idea to include this sum in Pranav’s term insurance requirements which makes the 1.5 crore term insurance plan a favorable choice.

What are your liabilities? 

If Pranav has an outstanding home loan or car loan, it can become a significant burden on his family if he suffers a premature death. Hence, taking this liability into account is a wise move when determining the suitable cover amount for his term plan.

What are your current assets?

The investments you've made throughout the years are on the opposite end of the liabilities. Your family will be able to access these investments after you pass away. Your provident fund, mutual funds, fixed deposits, and other such investments are some examples. If Pranav has made 30 lakh worth of these investments, he can deduct this amount from the coverage required to secure his family. 

What is your life stage at the time of purchase?

If Pranav is in his early thirties when he invests in the 1.5 cr term insurance plan, his financial planning would look different in terms of other investment priorities. This means that he can purchase the plan without affecting his overall financial standing much, since the premiums will be lower for him as opposed to if he bought the plan in his late 40s.

Ideally, your term insurance cover  shall be sufficient to satisfy all outstanding debts as well as provide a source of income for the covered person's family. Answering the above-mentioned questions will give you a clearer understanding of your future priorities and current situation to help plan for your family’s future effectively.

What is your life stage at the time of purchase?

If Pranav is in his early thirties when he invests in the 1.5 cr term insurance plan, his financial planning would look different in terms of other investment priorities. This means that he can purchase the plan without affecting his overall financial standing much, since the premiums will be lower for him as opposed to if he bought the plan in his late 40s.

Ideally, your term insurance cover  shall be sufficient to satisfy all outstanding debts as well as provide a source of income for the covered person's family. Answering the above-mentioned questions will give you a clearer understanding of your future priorities and current situation to help plan for your family’s future effectively. 

Benefits of 1.5 crore Term Insurance Plan 

Before you can invest your money in one of the best term insurance plan for 1.5 crore, there are some benefits you should know to make the most of the policy:

High Cover, Low Premium 

One of the most significant advantages of purchasing a 1.5 crore term insurance plan is that it will not add to your financial burdens, as one might assume. The premiums for term plans are quite low because they are the purest form of life insurance. Plus, you'll be able to focus on long-term savings and investments because of this.

Flexibility of Payment 

Certain insurance policies allow policyholders to choose the payout option for the death benefit. For example, based on your financial needs at the moment, you can choose between receiving a monthly income payment or receiving the entire death benefit in one single sum if you purchase 1.5 cr term insurance.

Customization Options 

Like any other insurance plan, you can attach riders to your 1.5 crore term insurance plan to boost the coverage. Riders such as accidental death benefit*, critical illness benefit*, maturity/survival benefit, and return of premium variant**( can be added to your term plan, allowing you to modify and adapt it to your preferences and needs.

Enables Efficient Financial Planning 

When compared to an older person with pre-existing ailments, premiums are lower at a young age. So, if you purchase one of the best term insurance plan for 1.5 crore at an early life stage, you can save your money in the long run.

Tax Benefits*# 

The sum assured, or death benefit, of term insurance policies is totally tax-free, according to Section 10(10D) of the IT Act. So, whether you have a term insurance policy worth Rs 50 lakhs or Rs 1.5 crores, the payout, as well as any additional incentives, would be tax-free. Moreover, you can claim tax deductions on the premiums paid towards the 1.5 cr term insurance.

#*Tax benefits are subject to changes in tax laws.

Who Should opt for Term Insurance Cover of 1.5 crore?

There is no one-for-all insurance policy or cover amount that suits everyone. Your financial profile is unique, and it is a personal financial decision whether you wish to get security with the best term insurance plan for 1.5 crore. However, following are some scenarios which make can help you identify whether it is for you:

  • If you have any dependent family members, it is prudent to purchase at least a 1.5 Crore term insurance policy, considering the inflation rates, rising education and healthcare costs. In order to determine the premium amount of the 1.5 crore term insurance plan, you can make use of the term insurance premium calculator.
  • Individuals who are the family's sole breadwinner should look for the best term insurance plan for 1.5 crore to ensure that their families are sufficiently insured in the event of their death.
  • These plans are best suited for individuals aged 25 to 35, as the policy term of 1.5 cr term insurance can be spread across several years of your life.
  • These plans are appropriate for those with an annual income above 5 lakhs.
  • Finding the best term insurance plan for 1.5 crore can also be a wise choice if you are the single breadwinner with several dependents.

  • If you have any dependent family members, it is prudent to purchase at least a 1.5 Crore term insurance policy, considering the inflation rates, rising education and healthcare costs. In order to determine the premium amount of the 1.5 crore term insurance plan, you can make use of the term insurance premium calculator.
  • Individuals who are the family's sole breadwinner should look for the best term insurance plan for 1.5 crore to ensure that their families are sufficiently insured in the event of their death.
  • These plans are best suited for individuals aged 25 to 35, as the policy term of 1.5 cr term insurance can be spread across several years of your life.
  • · These plans are appropriate for those with an annual income above 5 lakhs.
  • Finding the best term insurance plan for 1.5 crore can also be a wise choice if you are the single breadwinner with several dependents.
  • In case you have liabilities such as outstanding loan repayments at the time of purchasing the insurance policy, it is best to go with one that offers a larger cover amount, so your family does not have to suffer in case of your untimely demise. 

How To Select Relevant Term Insurance Plan? 

For most of us, the key consideration when buying an insurance policy is the premium amount. This amount is determined by a number of factors, including age, number of riders, annual income, and so on.

So, to assist you in choosing one of  the best term insurance plan for 1.5 crores, we've put together a table that compares premium expenses for various age groups for basic coverage and base coverage plus rider of Max Life Smart Secure Plus Plan [A non-linked non-participating individual pure risk premium life insurance plan | UIN: 104N118V02]. Let's have a look at some examples:

The following figures are calculated according to: Gender (Female) + DOB + Non-Smoker + Annual Income (5-7 lakhs) + Salaried Individual + Coverage upto 75 years of Age

*Premiums are exclusive of GST

Age

 

Premium for 1.5 Crore Term Insurance Plan (Monthly)

1Premium for 1.5 Crore Term Insurance + 1Critical Illness Disability Rider# (Monthly)

Premium for 1.5 Crore Term Insurance + 2Waiver of Future PremiumRider#(Monthly)

20

 

Rs. 886

Rs. 963

Rs. 909

30

 

Rs. 1,240

Rs. 1,365

Rs. 1,293

40

 

Rs. 2,100

Rs. 2,314

Rs. 2,251

50

Rs. 4,093

Rs. 4,411

Rs. 4,609

60

Rs. 8,079

N/A

Rs. 9,046

 1Premiums exclude GST. CIDR rates mentioned in the table are for a sum insured of Rs. 5 lakhs (base cover unchanged) for the CIDR Gold Variant, valid up to Base Term.

1Critical Illness & Disability Rider (Non Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN: 104B033V01)|

2Max Life Waiver of Premium Plus Rider (UIN: 104B029V04

Max Life 1.5 Crore Term Insurance Plan |Everything You Need To Know

Max Life Insurance offers flexible and innovative term plans such as the Max Life Smart Secure Plus Plan [A non-linked non-participating individual pure risk premium life insurance plan | UIN: 104N118V02] that allows policy buyers to get a coverage of 1.5 crore at nominal premium rates. This 1.5 crore term insurance plan includes numerous base/built-in features, such as two death benefit options and a regular or limited premium payment option. 

Some benefits of this policy that make it one of the best term insurance policies for 1.5 crore are:

  • Built-In Terminal Illness Cover- In-built feature offering up to 1 crore payout on diagnosis of Terminalillness. 
  • Joint Life Cover* – Policyholders get the option of opting for add-on coverage for their spouse. 
  • Premium Break## – This feature provides policyholders the option to skip paying premiums while being covered – twice during the policy term. 
  • Special Exit Value – Another in-built feature with surrender offering whereby the policyholder has the option to receive all premiums paid back at one specified point during the policy term. 
  • Top-Up Sum Assured* – The option to voluntarily top-up to 100% of the base sum assured coverage. 

  • Built-In Terminal Illness Cover- In-built feature offering up to 1 crore payout on diagnosis of Terminalillness. 
  • Joint Life Cover* – Policyholders get the option of opting for add-on coverage for their spouse. 
  • Premium Break## – This feature provides policyholders the option to skip paying premiums while being covered – twice during the policy term. 
  • Special Exit Value – Another in-built feature with surrender offering whereby the policyholder has the option to receive all premiums paid back at one specified point during the policy term. 
  • Top-Up Sum Assured* – The option to voluntarily top-up to 100% of the base sum assured coverage. 

The Smart Secure Plus Plan by Max Life Insurance aims at making the policyholder’s and their family’s lives easier by providing adequate financial security. So, even when you're not present, you can rest assured that your family's future is in good hands.

Check out the different Online Insurance Plans from Max Life!

Check out the different Online Insurance Plans from Max Life!

Frequently Asked Questions

✅  What Are the Eligibility Criteria for Buying 1.5 crore term insurance plan?

Like most term insurance policies, you can purchase 1.5 cr term insurance if you are 18 years old. The maximum age limit on the policy is 65 years.

✅  What is the premium for 1.5 crore term insurance?

The premium rate for 1.5 crore term insurance plan is determined by a number of personal characteristics, including age at the time of purchase, health status, smoking habits, gender, income range, and so on.

✅  How to calculate Term Plan Premium?

By entering basic information about yourself, such as your age, income range, and smoking habits, you may estimate the premium rates for your 1.5 cr term insurance using the term plan calculator on our website.

✅  How To Buy 1.5 Crore Term Insurance Plan Online? 

Once you understand how the insurance works, you can use the term plan calculator on the Max Life Insurance website to get an estimate of the premiums and complete the purchase by supplying the required information.

✅ What Is the Minimum Age for Term Insurance Plan?

You can purchase the 1.5 crore term insurance plan if you are 18 years of age.

✅  What Is Benefits of Buying Term Insurance at Early Age?

The main advantage of purchasing 1.5 cr term insurance when you're young is that you can receive life insurance at significantly lower prices. Aside from that, having life insurance allows you to organize your finances in terms of other assets and savings.

✅  What Are the Benefits of Buying ₹1.5 Crore Term Insurance in India?

One of the advantages of buying 1.5 crore term insurance in India is that you obtain a large life insurance policy at a low premium rate. This means that your loved ones can be financially self-sufficient even in bad times, and that key life goals like a child's higher education will not be jeopardized.

✅  What Rider Benefits Are Available on My ₹1.5 Crore Term Insurance? 

You can add critical illness and disability rider, accident cover*, waiver of premium plus rider# to your 1.5 crore term insurance plan with Max Life Insurance. 

✅  What Happens If You Don’t Die During the Policy Term?

If you have opted to get the premiums back at the end of the policy period, you get a maturity benefit in case of survival.

Disclaimers:

1)*On payment of additional premium

2)** On payment of additional premium. Upon policyholder’s selection of Return of Premium variant, this product shall be a Non-Linked & Non participating Individual Life Insurance Saving Plan

3)#Applicable riders available on the payment of Additional Premium are Max life Critical Illness & Disability Rider | Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN 104b033V01 and Max Life Waiver of Premium Plus Rider| A Non-Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN 104B029V03

4)##Available at an additional premium for policies with Policy Term greater than 30 years & premium payment term greater than 21 years. Option to skip paying premium for 12 months, 2 premium breaks will be available during the Premium Payment Terms separated by interval of at least 10 years

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Riders are add-on benefits that are optional with a life insurance product. This helps you customize the plan basis your personal needs. Few critical and powerful riders that you must definitely consider during the purchase journey is Comprehensive Accident Benefit, Waiver of premium and Critical Illness. This article helps you understand the meaning and benefits of different types of riders so that you buy the best term insurance plan customizable for yourself.

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Term life insurance is the simplest form of life insurance, that offer a lump sum payment as Death Benefit and can be availed for a fixed term. Whole life insurance offers both, a death benefit as well as savings benefits. Both these plans have distinct features and benefits and one should choose the plan that best suits your requirements. This article helps you understand the proposition each plan offers and helps you take a right decision for yourself.

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