Best Term Insurance Plan with 1 Crore Coverage:
About Term Insurance
Life insurance is contract between the Life insurance Company and the customer where by the life insurance company agrees to settle the claim in case of death of the policyholder or maturity of the policy in return for a considerable amount paid by the customer known as premium. Compare life insurance products from different life insurance companies on our portal and select the best life insurance plan as per your requirements. Life insurance premium can be paid periodically or at one time depending on the financial capacity of the insured customer.
Since life insurance policies are long term policies it is of utmost importance to select the right life insurance product and the right life insurance company. There are more than 25 life insurance companies operating in India out of which Life Insurance Corporation (LIC) of India is the oldest and government owned life insurance Company in India. Life insurance contracts are made by mutual understanding between the life insurance company and the customer. Life insurance in the beginning was meant to be only Savings and Investment products, but with the advent of private life insurance companies in Indian market after the Nationalization a new product known as Term life insurance has been introduced in the market which has become quite popular within a few years of its launch.
Life insurance consists of different types of policies such as Term insurance, Endowment Insurance, Annuity or Retirement Plans, Child Plans, Return of premium plans etc. Each of these plans has one thing in common: Life coverage against death which is the soul of the policy. All the life insurance policies include coverage for life and a certain percentage of the overall premium paid goes to secure your life against uncertain events while the rest of the premium goes into investment. Pure term insurance policies are those which do not have any investment option and these plans purely cover the life of the insured against specific perils. Term insurance covers the death of the policyholder during the policy period and provides claim as a form of financial assistance to the family of the deceased. The term insurance can also be claimed at the time of maturity by the policyholder and the maturity amount with any accrued bonus would be paid to the policyholder. Term life insurance is the best life insurance policies available in India. The term life insurance policies cover the death of the policyholder due to any unforeseen circumstances and provide compensation to the family of the deceased as per the coverage available in the policy terms and conditions. The term insurance policy can be taken for a particular period of time or for the entire life depending on the requirement of the customer. The premium can be paid lifelong or for a particular period of time in the term insurance policies depending on the premium paying capacity of the customer.
About 1 Crore term life insurance
Term life insurance as discussed above is a contract between the insurance company and the customer in which the insurance Company agrees to pay the claim in the event of death of the policyholder or maturity of the policy in return for a considerable amount to be paid by the policyholder at certain intervals of time. Once the claim is paid the life insurance contract would be terminated and the policy would cease to exist. The policyholder if alive can purchase a new term life insurance policy.
The major thing to be discussed in the term life insurance policy is the coverage available under the policy. Term life insurance policy provides coverage to the policyholder in the form of sum assured which means the amount mentioned in the policy terms and conditions would definitely be paid to the nominee of the policyholder, in the event of death of policyholder or to the policyholder at the time of maturity of the policy. The sum assured can be decided by the applicant or with mutual understanding between the applicant and the insurance company.
The sum assured in the life insurance policy is decided based on many factors such as age, annual income, health conditions and many other factors. The sum assured in the life insurance policy depends on the annual income of the applicant. The sum assured can be selected up to 12 times the annual income of the applicant. Higher the annual income higher sum assured can be selected by the applicant. There are many instances where the customers search for 1Crore sum assured from the insurance companies. The reason for this is that people feel that 1Crore sum assured in the life insurance policy would be the minimum requirement to meet all future obligations.
1Crore term life insurance can be purchased online from by selecting the best insurance company from the list of insurance companies available on the portal. The sum assured would be automatically calculated based on the annual income and other factors of the applicant. If the customer doesn’t meet the eligibility requirements and wants to have 1 Crore sum assured in his/her life insurance policy, then the same has to be justified by the applicant to the insurance company. The underwriters of the insurance company would decide on the merits of the case in awarding 1 crore sum assured to the customer even though he/she doesn’t meet the criteria. 1 Crore term life insurance is the sum assured under the life insurance policy or the coverage under the life insurance policy available to the policyholder during the policy period. The coverage under the term life insurance policy would be paid to the policy holder in the event of maturity of the policy or to the nominee in the event of death of the policyholder due to any unforeseen circumstances. There are certain exclusions in the term life insurance policy under which the claim would not be paid to the nominee of the policyholder.
Factors influencing 1 Crore Term insurance premium
Life insurance premium can be calculated using the life insurance premium calculator as describe above, but do you know the factors that influence the life insurance premium? The factors influencing the life insurance premium are:-
a) Entry Age of the applicant
Life insurance premium primarily depends on the age of the prospect. The last birthday of the prospect is taken into consideration while calculating the life insurance premium. It is important to note that the premium changes with each passing year as the risk of mortality increases. It is well known that the mortality rate is higher in the elders when compared to the youngsters; this is due to the older people contracting diseases and heavily prone to illness. The resistance power among the old people is less compared to the young people.
Higher Age = Higher premium
Life insurance premium increases with increase in age of the prospect due to the high mortality ratio which can be observed to increase as the age increases. The life insurance calculator takes the mortality ratio into consideration while calculating the life insurance premium. Higher the mortality ratio, higher would be the premium charged by the insurance company. Hence, it is advisable to take life insurance policy at a very young age to reduce the premium at old age as the life insurance premium calculator throws high premium at old age.
Since, the coverage required is 1Crore the age of the applicant plays an important role in deciding the premium to be paid. Higher the age the applicant, higher would be the premium to be paid by the applicant.
Gender determines the life insurance premium to be paid by the customer. It can be noted that the premium for Women would be considerably lower than that of Men. This is due to the fact that women are more likely to live on an average 5 years more than men which means that the mortality ratio for the same period would be less in women. This results in the fewer life insurance premiums to be paid by the women when compared to men. If we calculate the premium of men and women with all the other factors remaining constant, the premium of women would be at least 10-15% less than that of men’s.
But it is important to note that most of the deaths occur in women at the time of pregnancy and the insurance companies would not be willing to insure a carrying woman. Due to the complication arising out at the time of delivery or during pregnancy, there are high chances that the mortality ratio can increase in women. With the advent of technology the number of deaths during pregnancy has been reduced drastically, but the insurance companies are still sceptical when it comes to insuring a pregnant woman.
c) Health History
Health history of the prospect also plays an important role in deciding the premium to be charged by the insurance company. Life insurance calculator takes into account of the health history of the prospect and decides on the acceptance of the proposal. Every insurance proposal requires the health history of the prospect to be taken into consideration before deciding on the acceptance of the proposal. Life insurance underwriting process involves getting adequate information from prospect regarding the health history such as pre existing diseases, if the prospect has undergone any treatments or operations, any hereditary diseases etc.
All these factors are considered by the underwriting team of the life insurance company before deciding the life insurance premium. The life insurance premium calculator displays the premium if there are no pre existing conditions or adverse health history. All the other cases with adverse health history and pre existing conditions will be examined by the underwriter team to decide on the acceptance of the proposal.
Obesity and underweight are the two factors which affect the life insurance premium to be paid by the customer. Being obese can lead to a number of health problems such as Heart attack, diabetes, High BP etc which increase the mortality ratio. Underweight can also lead to contracting many diseases such as Malnutrition, Anaemia and vitamin deficiency disease etc.
The premium in the life insurance calculator increases if your life style is risky i.e. smoking, drinking or consuming tobacco. The life insurance premium calculator is designed to increase the premium or refer your proposal to underwriter in case you have smoking or drinking habits which are considered as risky elements in the life insurance underwriting process. The chance of death happening is high in case of people smoking or drinking or consuming alcohol, this increases the mortality ratio where people have these habits.
Consuming tobacco and drinking liquor can cause various diseases such as Cancer, Heart attack, Diabetes etc which increases the chance of death in the prospect. Hence the life insurance premiums for these categories are on the higher side when compared to people without these habits. In general insurance companies accept proposals from people who are occasional drinkers and smokers and the proposal is verified by the underwriters before accepting the risk.
e) Hobbies / Occupation
The occupation of the prospect also decides the life insurance premium to be paid. For the purpose of insurance some occupations such as Persons working in Chemical, Fire Crackers, Army and police etc. services are classified as Hazardous and pose a high level of risk for the insurance companies in terms of death claims. These occupations have higher mortality rate and thereby higher life insurance premium.
Life insurance proposals of people engaged in these occupancies would be referred to underwriters and the final decision would be taken by the underwriter after taking all the risk factors into consideration. The risk involved in a desk job is less than that of a marketing job and the premium is calculated according to the occupation of the prospect.
Hobbies such as Scuba diving, Paragliding also attract special attention of the underwriters as there is high mortality ratio in people having these hobbies. The life insurance premium calculator determines the premium of the prospect after considering the hobbies and occupation of the prospect.
f) Type of Policy
Most importantly, the major factor which determines your life insurance premium using the life insurance premium calculator is the type of life insurance policy opted by you. There are many types of life insurance policies such as Term insurance, Endowment insurance, Annuity insurance, Money back insurance etc. All these types of life insurance policies have different premiums but all of them cover the life of the insured.
Also there are many insurance companies in the market offering life insurance policies which have different premiums. The premium of the company depends on the service levels also; better the service, higher the premium. It is advisable to opt for the life insurance company which provides better service and extensive coverage at the most affordable premiums.
g) Family Health History
Lastly but most importantly the family history of the applicant would also be considered before deciding the life insurance premium using the life insurance premium calculator. There are many diseases which would be passed to their offspring and are called as hereditary diseases. Some of the common hereditary diseases include Sickle cell disease, Haemophilia, Huntington’s disease etc. which can be passed from the parents to their children.
Underwriters consider these hereditary diseases at the time of deciding the life insurance premium to be paid by the applicant. There are cases where the underwriters have declined the proposals having hereditary diseases. So, the hereditary disease also plays an important role in deciding the life insurance premium using the life insurance premium calculator.