Imagine you are organizing an extended family trip. You inspect the car tyres, refill the fuel tank, and gather snacks for everyone. Why do you do that? It is because you love your family and want them to be safe, no matter what happens on the road.
Life is also a long journey metaphorically. All of us are putting in a lot of effort to give our family a comfortable life and a good house, as well as a future full of hope. However, suppose we are not alive the next day. Then how will they manage to pay for the house rent, school fees, or the daily grocery bills?
This is why someone needs to buy a 1.5 crore term insurance plan. It is a very straightforward agreement between you and an insurance company. You pay them a small sum of money every month or year. In return, if you die unexpectedly, they will give ₹1.5 Crore to your family. Such a huge amount serves as financial protection, thereby maintaining the dignity and peace of your loved ones.
Right now, the major question on your mind is probably, “How much will it cost me each month?” Let’s explain the expense most simply.
How Much Will It Really Cost You Every Month?
People usually assume that a large sum of cover like ₹1.5 Crore must be very expensive. But that is just a misconception. Term insurance is the cheapest form of life insurance because it only covers death risk and does not include any investment component.
The premium or monthly charge varies greatly with your age, health, and lifestyle choices. Here’s what you’d typically pay monthly for a non-smoking, perfectly healthy person in India:
- Twenties: For example, say you are 25 years old and considering this plan. Being young and healthy, insurers would classify you as a low-risk individual. Your monthly charge can, in fact, be only ₹800 to ₹1,100, which is even less than what one pizza delivery might cost!
- Thirties: When you are 35 or so, there is a good chance that you have a spouse and children. This is a little extra risk for the insurer. By then, a plan would cost you approximately ₹1,200 to ₹1,600 per month.
- Forties: Suppose it is 45 years, and you are planning on getting this coverage. Possibly, your children are older by now, and you have a house loan. The monthly fee could be around ₹2,000 to ₹2,800.
Clearly, the key to saving money is quite straightforward: Buy the policy at an early stage. It’s simple: the younger you are, the less you pay. What’s even better? Once your monthly premium is fixed, it remains unchanged throughout the duration of your policy.
Advantages of Online Calculators
There is no need to take a wild guess at your premium or make a trip to the insurance office to learn the total amount you’d be paying. With the help of an online tool, getting a price quote is just a few simple clicks away in the comfort of your home.
A term insurance premium calculator is a no-cost, straightforward digital assistant that one can find on almost every insurer’s website. You may think of it like a weighing scale. You place your parameters on one side, and it unveils the exact cost or premium on the other.
The process of using this tool requires no more than two minutes of your time. Here’s what happens:
- You input your basic details such as your age, gender, income, etc.
- You indicate whether you are a smoker or a tobacco chewer.
- You specify that you want to get cover for ₹1.5 Crore.
- You hit ‘Calculate,’ and the tool displays the exact monthly and annual prices of various companies.
Besides helping you to compare different plans, it enables you to alter the policy years and locate a price that is very convenient for your monthly family budget.
Which Factors Affect the Price of Your Plan?
After deciding to use the tool, you may get the impression that the price fluctuates depending on your selections. Here are a few things that mainly determine your premium:
- Your Age: As referred to earlier, with each birthday, the premium price you’re going to be charged in the future is getting higher. Purchasing now is always less expensive than purchasing next year.
- Smoking Habits: Tobacco usage results in health degradation. If you happen to smoke cigarettes or use tobacco, your premium rate can increase even by 50% to 70% as compared to a non-smoker.
- Medical History: Upon having a health condition, for instance, high blood pressure or diabetes, a slight increase in price is likely after undergoing the medical test.
- Policy Term: This includes the number of years for which you want to be protected. If you wish to be protected until you are 60 years old (retirement), it will cost you less than wanting to be protected until you are 75 years old.
Can ₹1.5 Crore Provide Your Family with Adequate Cover?
It is quite natural that you will ask yourself whether ₹1.5 Crore is an overestimate or underestimate. A middle-class family in India will, most of the time, find that amount to be a good compromise.
Imagine your present financial situation. Do you have a home loan of ₹40 lakhs? Also, car loans and personal debts definitely need to be cleared. Then, consider your children’s higher education and marriage expenses. Lastly, work out your family’s monthly grocery, electricity, and medical bills for 15 to 20 years ahead.
When everything is summed up, a 1.5 crore term insurance cover represents very good financial protection. It guarantees that your family will not have to give up their desires or borrow money from others in a sad situation.
Easy guide to buy your policy
At present, safeguarding your family becomes a highly simple and stress-free way. You can even finish everything online just in a few steps:
- Via a term insurance premium calculator, you can check and compare various insurance companies in India. Also, check their claim settlement records.
- You just need to complete a simple online application form, providing your accurate health and income info.
- Book your medical examination. Most insurance companies provide free health check-ups either at your home or at a nearby clinic.
- When your medical reports are approved, your cover is in force.
Doing this one little step today will make sure that your family’s happiness and financial well-being are secured for life.
