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Planning to get a 2 crore Term Insurance? Look for these factors!

Having a comprehensive 2 crore term insurance plan is increasingly becoming crucial amid the rising cost of living and inflation levels. This is because such a high cover helps the insured build a robust financial cover for their family members so that they can lead an independent financial life and meet their financial obligations without depending on others. The coverage offers peace of mind to the insured, assuring them that their loved ones will have the required financial support in the event of the sudden death of the insured Diwali Gifts

Typically, a substantial cover amount would help dependents meet their financial obligations, cater to their daily expenses, meet financial expenses, and retain their lifestyle even in the absence of the breadwinner of the family. This will allow them to become financially independent and tide over the financial strain left by the sudden death of the insured. 

Additionally, a high cover amount would allow them to meet their future financial obligations and pay off loans and EMIs, while they get back on their feet. This will help them to meet the financial burden without dipping into their savings or seeking assistance from someone else.

In this regard, a 2 crore term insurance plan would help the insured build a reliable safety net for their family and ensure that they are well taken care of even in the face of unforeseen situations. However, individuals must check other features of the two crores plan other than the cover amount to understand whether it would suit their needs and requirements or not.

Features of a 2 Crore Term Plan 

The features and benefits of an insurance plan set them apart from the rest and add to their usability. This is why it is important to check insurance features and compare them.

  • High cover value

A 2 crore term plan can serve as an ideal financial buffer for the policy beneficiaries, allowing them to get back on their feet in the face of unexpected hardships. This high-value sum assured is essentially disbursed to the beneficiaries following the death of the insured under a situation covered by the term plan. Subsequently, their beneficiaries can access the fund and help them manage immediate and future expenses with more ease and control. It allows them to account for financial expenses until they get back on their feet. 

  • Affordable term premium

Premium is one of the most crucial factors when deciding the merit of a term plan. This is because the premium helps understand whether individuals can pay it without straining their budget. Typically, a two-crore term insurance plan comes with an affordable premium so that more individuals, especially those in need of high cover can benefit from it. Individuals may use an online term insurance calculator to estimate the premium they are likely to pay for such a plan and proceed accordingly. They may also use the tool to compare different plans of a combination of cover and premium to pick the one that suits them the best.

What to Check When Buying a Term Plan?

Before getting a 2 crore term insurance plan, check these features into consideration to understand the plan’s scope better –


Having an idea about one’s income and earnings will help decide two crucial things. First, the ability to pay the insurance premium on time without straining disposal income. Second, to find a cover that is equivalent to the income so that the beneficiaries can lead their current lifestyle without any concern even in the event of loss of income caused by the insured’s unforeseen death. It is suggested to factor in one’s annual income, including salary, savings, and returns from investments to gain a better insight into one’s financial standing and to build a financial safety net for the family that is equivalent to or higher than the current income. This will help protect the financial future of the family and allow them to lead their lifestyle without changing it.

Financial obligations:

Individuals should factor in their current and upcoming obligations to understand the financial corpus the family would need to remain self-sufficient in the face of expenses and tide them over with ease. Typically, individuals must factor in things like their ongoing loans, bills, EMIs, mortgage, and living expenses to understand their financial burden. In addition, they should check the upcoming expenses related to a big purchase, payment towards a child’s education, or wedding to build a financial safety net for their family to rely on.


Age is a decisive factor when purchasing a term insurance plan. This is because insurers attach different degrees of risk to different age brackets of applications. As per their understanding, older adults are more prone to seek financial assistance, surrender policy, or raise a claim in the early policy term. This makes them riskier compared to younger adults. On the other hand, younger adults are deemed healthier and less prone to raising a claim.  So to offset the risk associated with older adults, insurance companies offer them 2 crore term insurance at a higher premium than what a younger adult would pay. 

So, it is recommended to not delay the process of getting high-coverage insurance and avail it at an early age to receive a high sum at affordable rates.

Coverage and exclusions:

Individuals must check the extent of coverage of the 2 crore term insurance to ensure it covers many unforeseen situations. This will help them ensure that their family members can seek assistance in case of emergency and tide over the situation better. In addition, they should check the list of exclusions and terms related to raising claims to understand the full scope of the plan and the probability of the claims raised getting settled. They must check the insurance provider’s claim settlement ratio of critical illness policy or term insurance to understand their track of settling claims against the number of claims they receive. Typically, a ratio of over 90% is deemed favorable. In addition, individuals must read the fine print related to coverage and exclusions.

These aspects make it essential to get a 2 crore term insurance plan. Any adult individual can apply for this cover and protect their family’s financial future. Individuals with multiple dependents would benefit the most from this plan as the high cover would allow their dependents to tide over immediate and future financial obligations while they get back on their feet after the death of the insurer.