2 Crore Term Insurance Plan

The importance of financial planning and security for our loved ones cannot be overstated. The future is unpredictable and opting for a comprehensive cover like 2 crore term insurance can prove to be a smart move, a few years down the line. If you’re beginning to invest in your family’s financial stability and security, it might be time to start looking for the best best 2 crore term insurance plan. So, keep reading to know more! ...Read More

Term Insurance and Investment Plans

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What Is A 2 Crore Term Insurance Plan?

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A standard term insurance policy is a variation of life insurance designed to provide the nominee or beneficiary financial assistance (known as the death benefit) in case of the insured individual’s untimely demise. So, a term insurance plan for 2 crores serves the same purpose, but the only difference is that it offers a sum assured of Rs 2 crores, whereas other plans might come with a life cover of Rs 1 crores, 50 lakhs, and so on. However, the coverage amount is entirely based on your requirements and the type of term insurance plan you choose – it’s not set in stone.

Therefore, investing in a term insurance plan for 2 crores will ensure that your loved ones’ financial needs will be taken care of, even in your absence. Even better, the monthly premiums are quite economical, making the 2 crore life insurance policy a popular choice among policy buyers.

Why Buy 2 Crore Term Insurance Plan?

Now that we know the basics of a 2-crore term insurance plan, let’s look at some of its benefits:

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Affordable Premiums

While you may think that term insurance with a sum assured of Rs 2 crores will be unaffordable, it’s quite the opposite. Rather, the term life insurance plan is economical, as the monthly premium is typically around Rs 1,000 for the young and healthy. Plus, you can save a few extra bucks on the premium if you invest at an early age.

Acts As a Financial Cushion

If you’re the sole breadwinner of your family or you have financial dependents, a 2-crore term insurance plan will act as a financial cushion for your loved ones. The death benefit can be used for household expenses, education, loans, and liabilities, ensuring your family’s financial requirements are met even if you’re not around.

Wide Coverage

Even though a 2 crore life insurance policy might be sufficient, policyholders also have the option to opt for riders such as critical illness benefit*, accidental death benefit*, and waiver of premium. This option not only enhances your coverage but is also affordable.

More Savings & Investments

Since a term insurance plan for 2 crores is available at nominal premiums, you can increase your long-term savings and investments such as mutual funds, ULIPs, or retirement & pension plans so you can enjoy your golden years comfortably. However, to do so, it is best advisable to purchase a 2 crore life insurance policy as early as possible.

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How Does 2 Crore Term Insurance Plan Work?

Although life insurance has gained traction in recent years, it has been around for decades. As discussed earlier, term plans are the purest form of life insurance, offering the nominee a death benefit in case of the policyholder’s death. But the added advantage is that the sum assured, or the death benefit can be used for your child’s education, marriage, or even to pay off loans.

However, it is essential to understand how a 2-crore term insurance plan works in detail, so let’s take a look:

  • A term insurance policy is a life insurance plan that provides life coverage for a fixed/pre-determined duration or ‘term’ – hence the name.
  • If the policyholder dies while the term plan is in force, the beneficiary will be eligible to receive a death benefit from the insurance provider. For instance, if you purchase a term insurance plan for 2 crores, the entire sum assured will be paid to the nominee as per the policy terms & conditions.
  • To enjoy the benefits of the 2-year term plan, you will have to pay a fixed premium monthly, quarterly, half-yearly, or annually, depending on your preference. However, the premium amount for term insurance 2 crore is based on a few factors such as your age, gender, annual income, and smoking habits.
  • While the premium amount stays the same during the policy period, your term insurance plan can lapse if you don’t pay the premium.
  • However, if the insured individual survives the term plan, the policy will come to an end unless you opt for a survival or maturity benefit rider.
So, a term insurance plan for 2 crores is an ideal choice for anyone looking to secure their loved one’s future. Plus, it is an economical investment that won’t be a burden while also giving you much-needed peace of mind.

How To Choose the Right Coverage Sum?

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A 2-crore term insurance plan is the go-to choice for many policy buyers as it acts as a safety net for their family’s future financial requirements. In addition, Rs 2 crores is a considerable substantial amount, and it can easily take care of several needs, including utilities, household expenses, and even home loans. However, it is still vital to know whether the 2 crore term insurance plan is a viable choice for you. So, let’s look at some factors you can consider:

1. Your Age

Since older people are more prone to illnesses and health conditions, the term insurance premium is comparatively higher, which is why it is best advisable to buy term insurance for 2 crores at a younger age. Plus, it will also ensure that your loved ones are financially secured for a longer period. But if you are buying a 2-crore term insurance plan during your 40s or 50s, choose policies offering add-on riders for enhanced coverage.

2. Annual Income

Your annual income plays a crucial role in determining the appropriate life cover amount. Since it impacts your general standard of lifestyle, financial planning and your premium paying capability, to an extent; taking a life cover that is suitable for your annual income is the smart thing to do. You can use the Max Life’s online insurance calculator to assess if 2 crore term insurance plan is for you.

3. Existing Loans & Liabilities

If you’re buying a 2 crore life insurance policy, it is important to factor in any existing liabilities that you may have. Be it an education loan, home loan, or car loan; it is essential to ensure that your term insurance plan will be sufficient to cover all such liabilities. Therefore, looking for the best term insurance plan for 2 crores is an excellent choice.

4. Financial Dependents

Whether you have parents, children, or a financially dependent spouse, it is vital to consider their financial needs and requirements before choosing a term insurance policy. However, a term insurance plan for 2 crores might be sufficient to ensure your family has a safety net to cover their financial obligations.

Benefits Of Term Insurance Plan for 2 Crore

Since a 2 crore term insurance plan is no less than an investment, it is vital to weigh its features. So, here are some key features of the best term insurance plan for 2 crores:

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Easy On Your Pocket

One of the greatest benefits of opting for a 2 crore term insurance plan is that it won’t burn a hole through your pocket. Since term plans are the purest form of life insurance, the premiums are quite affordable. Plus, this gives you the added benefit of focusing on long-term savings and investments.

Tax Exemption#* 

According to Section 10(10D) of the IT Act, the sum assured, or death benefit of term insurance policies are completely exempt from taxes. So, whether you have a term insurance plan worth Rs 50 lakhs or 5 crores, the payout, plus any additional bonuses will be tax-free – which is an added benefit to consider when buying a 2 crore life insurance policy.

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

Easy Customization

Today, almost all insurance companies and providers offer add-on riders with term insurance 2 crore plans. You can opt for riders such as accidental death benefit*, maturity/survival benefit, and return of premium variant**, enabling you to customize and personalize the term plan according to your preferences and requirements.

Multiple Payout Options

Although insurance companies usually provide the payout for term insurance in lump sum, some insurers offer multiple payout options. For instance, you can either opt for a monthly income payout or receive the entire death benefit in lump sum, depending on your financial requirements at the time. However, you can even go for lump sum plus monthly income payout options for term insurance 2 crore policies.

Who Should opt for Term Insurance Cover for 2 Crore?

While there is no right or wrong answer as to who should buy a term insurance cover for 2 crores, here are some instances where you might want to consider investing in one:

  • If you’re in your late 20s or early 30s, it might be time to purchase a term insurance plan for 2 crores. The reason behind this is that term policy premiums are quite economical for individuals who are young and healthy. So, if you’ve just begun your career, buying a 2 crore term insurance plan is a great option.
  • Individuals who are the sole earning member of their family can should get a term insurance plan for 2 crores. Doing so is essential so that your loved ones have a financial cushion to fall back on in case of your untimely demise.
  • If your annual income is above Rs 5 lakhs, this term plan is ideal for you.
  • People who are the sole breadwinner of their families but also have financial dependents should can consider investing in term insurance plans for 2 crores.
Since term insurance plans are designed to provide financial backup, people with existing loans and liabilities should must evaluate purchasing a 2 crore term insurance plan. This will ensure that your family members have a safety net to fall back on and pay off any such liabilities in case of your untimely demise.

How to Select Term Insurance Plan?

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There are many factors that come into play when choosing a term insurance plan. However, for most of us, the premium cost is the most important factor. But the premium is also determined based on several aspects, including age, riders, annual income, etcetera.

So, to help you select theone of the best best term insurance plan for 2 crores, below is a table comparing the premium costs for different age groups for base 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: 104N118V04). Let’s take a look:

The following figures are calculated according to: Gender (Male) + DOB + Non-Smoker + Annual Income (7-10 lakhs)


AgePremium for 2 crore Term Insurance Plan (Monthly)1 Premium for 2 crore Term Insurance + 1Critical Illness & Disability# (Monthly)Premium for 2 Crore Term Insurance + 1Return of Premium (Monthly)
20Rs. 1,098Rs. 1,268Rs. 2,173
30Rs. 1,792Rs. 2,037Rs 3,692
40Rs. 3,085Rs. 3,581Rs 5,685
50Rs. 6,714Rs. 7,461Rs 25,190
60Rs. 12,807N/ARs 34,431

1

Premiums exclude GST. CIDR rates mentioned in the table are for a sum insured of Rs. 5 lakhs (base cover unchanged) for the CIDR Platinum Plus Variant, valid up to the age of 60.

1Critical Illness & Disability Rider (Non Linked Non Participating Individual Pure Risk Premium Health Insurance Rider| UIN: 104B033V01)| Return Of Premium Variant (Max Life Smart Term Plan – UIN: 104N113V04)

2 Crore Term Insurance Plan | Max Life Insurance

Max Life’s 2 crore term insurance plan is designed to suit the financial needs and requirements of a diverse range of customers. The Max Life Smart Secure Plus Plan [A non-linked non-participating individual pure risk premium life insurance plan | UIN104N118V04] offers several base/built-in benefits such as two death benefit options with choice of premium payment – regular and limited pay. In addition, you can avail of the following features with Max Life’s 2 crore life insurance policy:

  • Terminal Illness Coverage
  • In-built feature offering up to 1 crore payout on diagnosis of critical illness.
  • 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.
  • Joint Life Cover*
  • Policyholders get the option of opting for add-on coverage for their spouse.
  • Top-Up Sum Assured*
  • The option to voluntarily top-up to 100% of the base sum assured coverage.
  • Premium Break
  • This feature provides policyholders the option to skip paying premiums while being covered – twice during the policy term.

The Smart Secure Plus Plan by Max Life Insurance is an excellent investment that can help attain financial security for you and your loved ones. So, even when you’re not around, you know that your family’s future is always in safe hands.

Online Insurance Plans of Max Life Insurance

  • Max Life Smart Secure Plus Plan

    Comprehensive death benefit for your family member(s) in case of your unfortunate demise during policy term

    Guaranteed maturity benefits/Income Benefit and accrued guaranteed additions to help meet your life goals

    Multiple variants - lumpsum; short term income, long term income, and whole life income with unique benefits

    Know more
  • Max Life Smart Term Plan

    Financial protection against critical illnesses, including heart attack, cancer, and kidney failure

    Flexibility to choose the most suitable premium payment options that fits your budget and income

    Life coverage along with return of premium option to get the premiums paid back as a survival benefit

    Know more
  • Max Life Online Savings Plan

    Comprehensive death benefit covering the policy tenure, along with saving money for various life goals

    Monthly income, accrued bonuses, and flexible fund options for the policyholders with no policy charges

    Flexibility to choose a policy term up to 85 years, premium payment term and payouts to fit your needs

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  • Max Life Cancer Insurance Plan

    A comprehensive Cancer Insurance Plan that provides a payout at all stages of Cancer

    Get 10% increase in original sum assured in case of no claims for the first 5 years

    20% of Sum Insured - Waiver of premium, in early stage diagnosis

    Lumpsum payout - annual income for 5 years in major stage diagnosis

    Tax benefit under section 800, as per prevailing tax laws

    Know more
  • Max Life Smart Wealth Plan

    Comprehensive death benefit for your family member(s) in case of your unfortunate demise during policy term

    Guaranteed maturity benefits/Income Benefit and accrued guaranteed additions to help meet your life goals

    Multiple variants -lumpsum, short term income, long term. income, and whole life Income with unique benefits

    Know more
  • Long Term Income

    Guaranteed Income benefit for 25 or 30 years after the policy period ends, as per the sub variant selected

    Terminal benefit which equals total premiums paid, post completion of the payout period payable to nominee

    Two premium payment options - 6 and 10 years to be chosen as per suitability of the plan for your needs

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  • Term Plan with Return of Premium

    Option to receive the premiums paid back on successful survival of the insured till end of policy term

    Death benefits for your family members in case of any eventuality leading to the loss of your life

    Limited pay options to pay for term plans with return of premium - 5 Pay, 10 Pay, 12 Pay, 15 Pay, or 60 Pay

    Know more
  • Max Life Critical Illness and Disability Rider

    Additional protection against upto 64 critical illnesses depending on the rider variant you select

    Total and Permanent Disability Cover on the occurrence of disability arising from sickness or injury

    Wellness benefit to avail a discount on annualised renewal premiums as per healthy weeks you accumulate

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  • Max Life Waiver of Premium Plus Rider

    Waiver of all future premiums in case of the covered dismemberment so that you can live worry-free

    Future premiums waiver in case you suffer from critical illnesses as specified in the rider terms

    Continued benefits of the base policy to give you peace of mind about maintaining various life expenses

    Know more

Frequently Asked Questions

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The minimum entry age requirement for Max Life’s 2 crore term insurance plan is 18 years while the maximum entry age is 65 years.

The free-look period for the best term insurance plan for 2 crore is 1530 days, during which the policyholder can return the policy by stating the reasons. In addition, the policyholder is entitled to receive a refund for any premiums paid during the free-look period.

A policyholder who has opted for a maturity or survival benefit will get all or part of the premiums back at the end of the policy term. However, in other cases, the term insurance plan for 2 crores will be terminated.

While there is no right or wrong answer to this question, you should can consider purchasing the best term plan for 2 crore at a younger age. Doing this will ensure you get long-term coverage at affordable premiums.

When choosing the coverage amount for a 2 crore term insurance plan, you need to consider several factors such as age, gender, annual income, smoking habits, current expenses, loans, and liabilities, etcetera. You can also use the term plan calculator on the Max Life Insurance website as it will help you figure out the coverage sum better.

With Max Life’s 2 Crore term insurance, the riders you can choose include critical illness and disability rider# cerminal illness cover, disability rider, accident cover*, and waiver of premium rider#.

The minimum entry age for the 2 crore term insurance plan is 18 years.

You can use the term plan calculator available on our website to calculate the premium cost for the 2 crore term insurance policy. All you need to do is fill in basic details such as your name, age, gender, annual income, and smoking habits, and the calculator will give you the results within seconds.

Yes, you can buy the best best term insurance plan for 2 crore online through Max Life’s website. Once you’ve gone through the plan’s features, you can use the online term calculator to know the premium costs. If you’re satisfied with the premium rate and features, you can continue with the purchase.

The Premium Break option offered with Max Life’s 2 crore term insurance policy is a built-in feature that allows policyholders to skip paying premiums while continuing to enjoy the policy benefits. However, this option can only be claimed twice during the policy tenure.

As per section 10(10D) of the Income Tax Act, the payout of term insurance policies is completely tax-free, meaning you will receive the total coverage amount without any tax deductions if you buy a 2 crore life insurance policy.

ARN NO: PCP/2CRTI/250123

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

Other 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)# 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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Max Life Term Insurance Plan

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