For many, establishing a solid financial plan is a key life goal. An 8 crore term insurance policy provides comprehensive financial protection, from children’s education to paying off loans and securing the family’s financial future. The plan is affordable, making it accessible to people across various income levels. So, read on to learn the benefits of an 8 crore term plan, including its tax-saving advantages.

Why Do You Need an 8 Crore Term Insurance Policy?

Term insurance is a type of life insurance that provides financial protection to your family by offering a lump sum payout in case of your untimely demise during the policy term. It is an affordable and straightforward way to secure your loved one’s financial future.

Before understanding how to get an 8 crore term insurance policy, let’s discuss why it’s a good choice for your family’s financial security.

1. Financial Stability for Your Family

The sudden loss of a breadwinner, such as you, can leave your family financially vulnerable and struggling. Getting an 8 crore term insurance policy guarantees that your family will not have to worry about paying bills and will be able to maintain the same standard of living as before. 

2. Protection Against Loans and Debts

Most families have liabilities, such as home loans, car loans, or personal loans. If you have major liabilities, an 8 crore term insurance policy ensures that these debts do not fall on your family in case of your absence. 

3. Future-Proofing Against Inflation

Inflation increases, eroding the value of currency over time. With a sum of at least ₹8 crore, your family can handle increasing costs for education, medical expenses, and household needs in the future.

4. High Coverage at Affordable Premiums

The extensive coverage makes you assume that the premiums of such policies are expensive. However, term insurance plans are designed to provide robust financial coverage at affordable premiums. 

5. Tax Savings

Under Section 80C of the Income Tax Act, you can avail of tax benefits on premiums paid for an ₹8 crore term insurance policy. Furthermore, the amount your nominee receives (in case of an unfortunate event) is tax-free under section 10(10D) of the Income Tax Act.

How to Secure an 8 Crore Term Insurance Policy?

Getting an 8 crore term insurance policy for financial protection and tax savings is a straightforward process if you follow these steps:

1. Assess Your Insurance Needs: Start by calculating how much coverage you need. This depends on:

• Your Income: Generally, the sum assured should be 10-15 times your yearly salary.
• Existing Liabilities: Check that the policy caters to all your loans and the existing financial obligations.

2. Compare Insurers and Policies: Not all insurance providers offer the same benefits for an 8 crore term insurance plan. Here are some standard options:

• Pure-term plans are the most affordable option for securing large life coverage but do not provide a maturity financial payout.
• Term Plans with Return of Premium repay the premiums paid if you live beyond the policy period, though the premiums are higher than the term plans.

3. Check Premiums Online: Access the websites of different insurers and use the premium calculators to compare. It makes it easier to have the appropriate budget deal you require. 

4. Add Riders for Enhanced Protection: Make your 8 crore term insurance policy more robust by adding riders such as Accidental Death Benefit Rider, Critical Illness Rider and more. 

5. Check Claim Settlement Ratio: Research the insurer’s claim settlement ratio to gauge their reliability in honouring claims.

Conclusion

A term insurance plan of 8 crore shields your family from adverse economic consequences and gives you rewarding taxation breaks. However, when selecting a term insurance policy, evaluate your family’s financial requirements, including daily living expenses, future goals, and any outstanding liabilities, to determine the appropriate coverage amount. Utilise online tools to compare premiums from different insurers, ensuring you select a policy that offers the best value for the desired coverage. In addition, choose a policy term that aligns with your financial obligations and the time frame during which your dependents will require financial support.