You might have come across advertisements and emails and SMSes from Insurers as well as web aggregators urging you to buy a 1 Crore Term insurance plan at very low costs.  These 1 Crore term insurance plans can seem very appealing - after all, it just costs INR 400 per month for a huge 1 Crore life insurance policy cover! In fact, they’ll even do the math and tell you that it’s just about INR 16 per day. Cost of one Chai that is! Right?

However, before you jump the wagon and buy the 1 Crore term insurance plan just because it seems like a very good offer - wait. Hold on, take a step back, and really understand if you need Term Insurance. If yes, what is the total cover you should buy!

What is a 1 Crore Term Insurance? 

It is exactly what it says - a 1 Crore term insurance policy provides a cover of 1 Crore to your family in case of your death during the policy term. Plain and simple! 

If you are the only earning member of your family, and everyone else depends on your earnings for their expenses, you must buy a term insurance cover and safeguard your family’s financial future. In the absence of term insurance, your family may have to undergo a tough financial time in the event of your early death. They may also have to compromise on your dreams/goals - quality education of your children, own home, secure life after retirement, etc. 

Well-thought-out term insurance helps you secure a good life for your family even in your absence.  

Who should opt for term insurance? 

Anyone who has financial dependents should evaluate buying a term insurance plan. There could be a few exceptions to this. So, let’s run through a list of situations where one must seriously consider term insurance - 

• You have financial dependents, especially non-earning family members like retired parents or a wife and children, who rely on your income to meet their expenses in the short-term and long-term.
• You have the responsibility of a large loan, which could become a burden on your family in case of your death. 
• You have not saved enough wealth that will keep your family’s lifestyle intact in the long run
• Have major unfinished responsibilities or big dreams that your income will help achieve - like a foreign education or a destination wedding 

If you do not meet any of these conditions, you do not need to buy a term insurance plan. For example - if you have recently graduated from college and have begun working, you might come across insurers trying to convince you to buy a term insurance policy at a young age. However, since you don’t need term insurance to cover any of the needs listed above - you don’t have to buy it.

Is a 1 Crore Term Insurance Plan Suitable? 

Before you get swayed by this immense number, let us take a step back to understand what should be the ideal term insurance cover amount one should pick. Every family is unique, and everyone has their requirements. Instead of focusing on the overall cover amount of Rs 1 crore, it is essential that you first prioritize your family's needs and accordingly calculate a suitable cover. 

A cover amount should be decided based on the needs and requirements of your family and not based on a thumb rule like 1 Crore cover or a 20X your annual income. So, let us understand the process to find a term cover that fits your family’s financial needs.

How to choose a Cover? 

To ensure that your loved ones don't compromise on their lifestyle in your absence, you’ll have to buy the term plan with a cover amount that will be sufficient for them in the future. For this, you’ll have to take into account four aspects - 

1. Short-term expenses (monthly expenses, basic needs, etc.)
2. Long-term expenses (huge responsibilities like children’s education or wedding)
3. Money to settle loans/ liabilities (education loan, home loan, etc.)
4. Money that you already have (fixed deposits, savings, shares, etc multiplied by appropriate risk factors).

You can either do this calculation manually or use Beshak TruMatch - the first-ever term insurance recommendation engine. After you answer a series of basic questions, Beshak TruMatch will quickly churn all your inputs and recommend the cover amount that will be appropriate for your family. Not only this, but it will also suggest features you should pick, the ones you shouldn’t, and recommend top term insurance plans available in the market that fit your and your family’s needs perfectly! 

All this - in less than 5 minutes! 

Sounds too good to be true? Check it out yourself:  https://www.beshak.org/insurance/term-life-insurance/trumatch/

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