Life insurance is a contract between an insurer and the insured person. It covers the risk of death or the risk of financial loss to the insured in case of death. A life insurance policy typically pays a benefit to the beneficiary of the policy when one or more events occur that may be considered "death" events. The life insurance company agrees to pay a certain amount of money in exchange for some type of consideration, such as a periodic payment or one lump-sum payment.
A 10 lakhs life insurance policy will cover you for an amount of 10 lakh rupees in case of death. The 10 lakhs life insurance cover is a good way to protect your family in case you die. It will give them a sense of security and peace of mind. Here we discuss the different types of life insurance plans for 10 lakhs, their features, and benefits and we also talk about the pros and cons of buying a life insurance policy for 10 lakhs coverage and provide information on how to choose an appropriate plan.
Reasons to Need a 10 Lakh Life Insurance Policy?
A 10 lakh life insurance policy is important because it helps in providing financial security to your family in case you die. It also provides relief from the financial burden that comes with paying off your debts and other expenses incurred post-death. People have different reasons to buy life insurance. However, certain ones make sense for most people. Let's take a look at some of the most common reasons why you need 10 lakh life insurance.
- Life Insurance Protects Your Family: If you have a family to take care of and your income is your only source of income, you will need to consider a life insurance policy.
- Life Insurance Helps Your Children: Life insurance is one of the most helpful ways for children who are coming into a new world. Without life insurance, it can be difficult for them to take care of their expenses such as future education.
- Life Insurance Helps for Medical Expenses: With a life insurance policy, they have the safety net they need. The first thing that comes to mind is that life insurance can help the person pay for medical costs.
- Life Insurance Helps for Debts: If you have taken a loan from the bank and want to repay it with interest. Life insurance can be used to pay off any outstanding debts.
Advantages of Buying 10 Lakh Term Life Insurance
The 10 Lakh policy is one of the most popular policies in India. It is a life insurance policy that offers a sum assured of 10 lakhs. This means that if the insured person dies, his or her family will receive 10 lakhs as compensation.
The 10 Lakh policy has many benefits to offer and it is worth buying for everyone who can afford it. It will provide financial security to your family and give them peace of mind knowing that they are taken care of if something happens to you. Below are the main advantages of buying 10 Lakh term life insurance
- Low Premiums: The most affordable product in life insurance is the term insurance product which comes at cheaper premiums when compared with other life insurance products.
- Death Benefit: Term life insurance products offer death benefits to the nominee of the policyholders in the event of the death of the policyholder due to any unforeseen circumstances. The death benefit paid to the family members of the deceased would not be more than the sum assured mentioned under the policy.
- Maturity Benefit: Life insurance products offer maturity benefits in which the policyholder would get a lump sum amount at the time of maturity of the term insurance policy.
- Attainable for Everyone: The premiums on term insurance plans are so affordable, a sum assured of Rs. 10 Lakh will be accessible for a much larger pool of people to protect their families against the uncertainties of life.
- Tax Benefits: Life insurance policies are also often tax-deductible which means that the premiums paid for it can be deducted from your taxable income on your tax return each year.
- Loan Availability: You can avail of a loan against the life insurance policy these days is the best option to meet all your emergency expenses. The process of availing loan from the life insurance policy is hassle-free when compared to other traditional loan types.
Disadvantages of 10 Lakh Term Life Insurance
- Lapsed policy means waste of premiums paid: Life insurance premiums are to be paid continuously every year/ month or as per the option chosen by the customer. If there is a break in between the payment of two installments the life insurance policy would lapse after 30 days from the payment due date.
- Expensive for certain people: The major disadvantage of a life insurance policy is the premium that has to be paid by the customers with certain conditions such as Old aged customers, adverse disease conditions, etc. For instance, old age people have to shell out more premiums when compared to younger people.
- No guarantee of wealth: The major disadvantage of the 10 lakh life insurance policy is that the policy would not guarantee the creation of wealth. When compared to traditional investments the wealth-building in life insurance policy comes with a limited guarantee.
Top 5 Best Life Insurance Plans with 10 Lakhs Cover
Life Insurance is one of the most important financial products that we purchase. It ensures that our loved ones are taken care of in case anything happens to us. Here is the list of the term life insurance plans for 10 lakhs cover and a table with all the information about these plans so that you can compare them easily.
Bajaj Allianz Smart Protect Goal Plan
Bajaj Allianz’s smart protect goal is an individual, life, non-linked, non-participating, single/limited/regular premium payment, savings (ROP), and pure risk term cover plan, providing protection and add-on covers.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maximum age at Maturity: 75 years with ROP, 85 years without ROP, 99 years whole life
- Sum Assured: Minimum 5 Lacs and Maximum as per Board approved guidelines.
- Life Cover: Self
- Premium Payment: Single payment, Regular payment, or Limited payment.
Max Life Smart Secure Plus Plan
Max Life Smart Secure Plus Plan is introduced to fulfill your financial security needs and provide support in case of any emergencies. Max Life Smart Secure plus Plan offers two death benefits. You also get inbuilt benefits such as cover for terminal illness, joint life cover; premium breaks, and additional payout on accidental death these will fulfill your needs.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maximum age at Maturity: 85 years
- Policy Term: 5 to 67 years
- Sum Assured: Minimum Rs. 50000/- and Maximum as per Board approved guidelines.
- Premium Payment Term: 5, 10, 12, 15, Single Pay, Regular Pay
- Premium Payment Mode: Yearly, Half-Yearly, Quarterly, Monthly
Tata AIA Sampoorna Raksha Supreme
Tata AIA Life Insurance Sampoorna Raksha Supreme Plan provides financial protection to your family and offers you the flexibility to choose the plan that suits your need.
Features & Eligibility:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maximum age at Maturity: 65 years to 100 years
- Sum Assured: Minimum Rs. 1 lac and Maximum as per Board approved guidelines.
- Premium Payment Term: Limited Pay, Single Pay, Regular Pay
- Premium Payment Mode: Yearly, Half-Yearly, Quarterly, Monthly. Single
ICICI Prudential iProtectSmart Plan
ICICI Prudential iProtectSmart plan gives protection for your family and provides critical illness cover and life covers for up to 99 years.
Features & Eligibility:
- Entry Age: Minimum 25 years to Maximum 65 years
- Maximum age at Maturity:70 years
- Policy Term: 40 years
- Sum Assured: Minimum Rs. 1 lac and Maximum as per Board approved guidelines.
- Premium Payment Term: Limited Pay, Single Pay, Regular Pay
- Premium Payment Mode: Yearly, Half-Yearly, Quarterly, Monthly. Single
Aditya Birla Sun Life Insurance DigiShield Plan
Aditya Birla Sun Life Insurance DigiShield Plan is a non-linked term insurance plan. This term life insurance plan has to be chosen as per the requirements of the customer with reasonable premiums. Provides 10 different Aditya Birla Sun Life Insurance Policy options as per your family's needs so they need not compromise on their lifestyle, even in your absence.
Features & Eligibility:
- Entry Age:
For Plan Option: 1, 2, 3, 6, 7, 8, 10: Minimum 18 years to Maximum 65 years
For Plan Option: 4, 5: Minimum 45 to Maximum 65 years
For Plan Option: 9: Minimum 18 to Maximum 50 years
- Maximum age at Maturity:
For Plan Option: 1, 2, 3, 6, 7, 8, 10: 85 years
For Plan Option: 4, 5: 100 years
For Plan Option: 9: 69 years
- Sum Assured:
For Plan Option: 1, 2, 3, 4, 5, 6, 7, 9, 10: Minimum – Rs. 30 Lakh and Maximum – No Limit
For Plan Option: 8: Minimum – Rs. 1 Lakh and Maximum – Rs. 20 lakh
- Premium Payment: Single payment, Regular payment, or Limited payment.
- Premium Mode: Annual, Semi-annual, Quarterly, Monthly
Premium Table of 10 Lakhs Term Life Insurance Plans
| Company |
Plan Name |
Total Payout |
Premium (Yearly) |
|
| Bajaj Allianz Life Insurance |
Bajaj Allianz Smart Protect Plan |
Rs. 10 Lacs |
4258/- |
Buy |
| Max Life Insurance |
Max Life Smart Secure Plus Plan |
Rs. 10 Lacs |
4348/- |
Buy |
| TATA AIA Life Insurance |
TATA AIA Sampoorna Raksha Supreme |
Rs. 10 Lacs |
4595/- |
Buy |
| ICICI Prudential Life Insurance |
ICICI Prudential iProtectSmart Plan |
Rs. 10 Lacs |
4458/- |
Buy |
| Aditya Birla Sun Life Insurance |
Aditya Birla Sun Digi Shield Plan |
Rs. 10 Lacs |
4658/- |
Buy |
*The above-mentioned values are for reference purposes only * Refer to our website for exact values.
How to Buy 10 Lakh Life Insurance Policy
You can buy a 10 lakh term life insurance policy by using the online portal in 4 simple steps and the premium can be paid online before the issuance of the policy. The below steps are to be followed for a term insurance policy cover for 10 lakhs.
Step 1: Go to the PolicyBachat website and click on the life insurance tab and then select the type of plan you want to buy.
Step 2: Next enter the below details clearly and correctly
- Gender of the applicant
- Tobacco consumption; Yes or No
- Annual income from the options given in the calculator
- Occupation type; Salaried or Self Employed
- Age of the applicant; to be entered as Date of Birth
- Name of the applicant and email id of the applicant.
Step 3: In this step, you can enter your requirements such as:-
- Sum assured required under the life insurance policy
- Tenure: maximum age the coverage is required
- Premium payment type: Regular or Lump sum or Limited pay
- Premium payment frequency: Monthly, Quarterly, Half-yearly, or Yearly
- Payout type: Lump sum or Income or Combination of both
- Add-ons such as Critical illness cover, Waiver of premium, and Accidental disability cover can be selected and the premium would change accordingly.
Step 4: The final step is where you need to make payment to the insurance company and it only takes a few minutes to finish this process. The premiums displayed may be changed subject to medical underwriting. Once the premium payment is made, the customer receives confirmation regarding the same and the next step would be the tele medicals or physical medical verification where the customer needs to undergo medical tests or declare health condition on the telephone to the insurance company before policy purchase.
Conclusion
The best 10 lakhs life insurance policy must be one that suits your needs and the needs of your family, but also one that does not put too much strain on your finances. Because of its affordability, accessibility, and large cover, an Rs 10 lakh life insurance plan is the best way to protect your family against unexpected events in the future.