When it comes to safeguarding your family’s financial future, a term insurance policy is a prudent choice. Term insurance provides a safety net that guarantees a lump sum payout to your family in case of your untimely demise, offering them the financial stability they need during challenging times.
In India, the insurance market offers a variety of options, and among them, a 70 lakhs term insurance coverage stands out as a popular choice for those who wish to provide substantial protection to their family. This comprehensive coverage not only ensures that your loved ones can maintain their lifestyle and meet their financial obligations but also offers peace of mind to you as the policyholder.
70 lakh Term Insurance is a term insurance plan that offers a sum assured of Rs. 70 lakhs, in the case of the unfortunate death of the policyholder, the sum assured is paid as a death benefit to the family by the policyholder. In this article, we will delve into the 70 lakh term insurance coverage option, its benefits, features, and considerations to help you make an informed decision about securing your family's future.
What Does 70 Lakhs Cover?
A 70 lakhs coverage in a term insurance policy can provide substantial financial security to your family in the event of your untimely demise. This coverage amount can cover a wide range of expenses and financial responsibilities, making it a popular choice among individuals looking to protect their loved one's future. Firstly, it can cover outstanding liabilities such as home loans, car loans, or any other debts, ensuring that your family isn't burdened with these financial obligations after your demise. This means that they can continue to live in their home without the fear of losing it due to unpaid loans.
Benefits of Opting for 70 Lakhs Coverage
Here are some of the key benefits of opting for 70 Lakhs Coverage:
- Comprehensive Financial Protection: A 70 lakh coverage amount provides substantial financial protection to your loved ones in the event of your untimely demise. This amount can help them maintain their current lifestyle and meet various financial obligations.
- Sufficient for Most Needs: For many families in India, a 70 lakh coverage is sufficient to cover major expenses, including loans, mortgages, education expenses, and daily living costs. It can act as a safety net to ensure that your family doesn't face financial hardships after your passing.
- Affordable Premiums: Term insurance policies typically offer a high coverage amount at relatively affordable premiums. A 70 lakhs policy allows you to secure significant financial protection without straining your budget.
- Long-Term Financial Security: Beyond immediate needs, the 70 lakhs coverage can serve as a financial cushion for your family's long-term security, helping them build a better future.
- Education Expenses: If you have children, a 70 lakhs term insurance policy can provide for their education and ensure that they can pursue their academic goals, even if you're no longer around.
- Tax Benefits: Premiums paid for term insurance policies are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the death benefit received by your nominees is tax-free under Section 10(10D).
- Peace of Mind: Knowing that your family will receive a substantial sum in case of your demise can provide you with peace of mind. It allows you to focus on other financial goals and investments, knowing that your family's financial future is secure.
Factors Influencing the Coverage Amount
Determining the appropriate coverage amount for a term insurance policy is a crucial decision that depends on various factors. Here are some of the key factors that influence the coverage amount:
- Income and Expenses
- Financial Goals
- Outstanding Debts
- Education Expenses
- Mortgage or Rent
- Inflation
- Dependents
- Emergency Fund
- Life Stage
- Health
- Lifestyle, etc.
70 Lakhs Term Insurance Premium Calculator
Term life insurance premiums for 70 lakhs can be calculated by using the online life insurance premium calculator at PolicyBachat in 3 simple steps and the premium can be paid online before the issuance of the policy. The below steps are to be followed to arrive at the premium of 70 lakh sum assured term insurance policy.
Step 1: The first step in using the life insurance premium calculator is to visit the PolicyBachat website. Click on the “Term” tab.
Step 2: In the next step, enter the below details clearly and correctly.
- The gender of the applicant
- Tobacco consumption; Yes or No
- Annual income from the options given in the calculator
- Occupation type; Salaried or Self Employed
- Age of the applicant; to be entered as Date of Birth
- Name of the applicant and email ID of the applicant.
Step 3: In this step, you can enter your requirements such as:-
- Sum Assured required under the life insurance policy
- Tenure – maximum age the coverage is required
- Premium Payment Type - Regular or Lump Sum or Limited pay
- Premium Payment Frequency – Monthly/Quarterly/Half-yearly/Yearly
- Payout Type - Lump Sum or Income or Combination of both
- Add-ons such as Critical illness cover, Waiver of premium rider, and Accidental disability cover can be selected and the premium would change accordingly.
Step 4: The final step is where you need to make payment to the insurance company and it only takes a few minutes to finish this process. The premiums displayed may be changed subject to the medical underwriting. Once the premium payment is made, the customer receives confirmation regarding the same and the next step would be the Telemedia or physical medical verification where the customer needs to undergo medical tests or declare their health condition on the telephone to the insurance company before the policy purchase.
Top 5 Best 70 Lakhs Term Life Insurance Plans in India
| Plan Name |
Claim Settlement Ratio |
Policy Term |
Premium ( Per Monthly) |
|
| Max Life Smart Secure Plus Plan |
99.35% |
20 Years |
845/- |
Buy |
| HDFC Click 2 Protect Plan |
98.66% |
20 Years |
958/- |
Buy |
| Bajaj Allianz Smart Protect Goal Plan |
99.02% |
20 Years |
812/- |
Buy |
| TATA AIA Sampoorna Raksha Supreme Plan |
98.02% |
20 Years |
845/- |
Buy |
| ICICI iProtectSmart Plan |
97.9% |
20 Years |
947/- |
Buy |
*The above-mentioned values are for reference purposes only *Compare quotes for exact values.
Who Should Consider 70 Lakhs Term Insurance?
A 70 lakhs term insurance policy is a substantial coverage amount that can provide financial security to your loved ones in case of your untimely demise. It's a suitable choice for several individuals and families in India, but whether it's the right option for you depends on various factors. Here are some considerations to help you determine if you should consider a 70 lakhs term insurance policy:
- If you are the primary breadwinner of your family and your income significantly contributes to your family's financial well-being, a 70 lakhs term insurance policy can ensure that your family remains financially stable in your absence. It can replace your income and cover daily expenses, loans, and other financial obligations.
- If you own a home with a mortgage or have taken loans for various purposes, a 70 lakhs term insurance policy can be instrumental in ensuring that your family can continue living in their home without the burden of debt payments.
- Parents who are planning for their children's education expenses can benefit from a 70 lakh coverage. It can help secure funds for their educational needs, ensuring that they can pursue their dreams even if you're not there to support them financially.
- Married individuals often have shared financial responsibilities. A 70 lakh policy can safeguard your spouse's financial well-being, allowing them to maintain their lifestyle and meet shared expenses.
- If you have specific financial goals, such as building a retirement fund, starting a business, or investing in assets, a 70 lakhs term insurance policy can ensure that these goals are not derailed in the event of your passing.
- Younger individuals may find the premiums for a 70 lakhs policy more affordable. However, individuals with health issues may face higher premiums. It's essential to consider your age and health when deciding on coverage.
Frequently Asked Questions – 70 Lakhs Term Insurance
What is 70 Lakhs Term Insurance?
A 70 lakhs term insurance is a life insurance policy that provides a death benefit of Rs. 70 lakhs to the nominee if the policyholder passes away during the policy term.
How Do I Calculate the Premium for a 70 Lakhs Term Insurance Policy?
The premium for a 70 lakhs term insurance policy is influenced by factors such as your age, health, policy term, and lifestyle. You can use online premium calculators provided by insurance companies to estimate the premium cost.
Is a Medical Examination Required for a 70 Lakhs Term Insurance Policy?
In most cases, insurance companies may require a medical examination as part of the underwriting process, especially for higher coverage amounts. Your health condition can impact the premium you pay.
Can I Customize My 70 Lakhs Term Insurance Policy with Riders?
Yes, many insurance providers offer riders or add-ons that can be added to your policy to enhance coverage. Common riders include critical illness, accidental death, and waiver of premium.
What is the Policy Term for a 70 Lakhs Term Insurance Policy?
The policy term for a 70 lakhs term insurance policy is flexible and can typically range from 10 to 40 years, depending on your age and specific requirements.
Are the Premiums for a 70 Lakhs Term Insurance Policy Tax-Deductible?
Premiums paid for term insurance policies are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the death benefit received by nominees is tax-free under Section 10(10D).
Can I Change the Coverage Amount of my 70 Lakhs Term Insurance Policy Later?
Some insurance policies offer the flexibility to increase or decrease the coverage amount during the policy term, subject to certain conditions and underwriting requirements.
What Happens If I Outlive the Policy Term of my 70 Lakhs Term Insurance Policy?
If you outlive the policy term, there is no maturity benefit, and the policy expires. However, some insurance companies offer the option to convert the policy into a whole life insurance policy.
Conclusion
A 70 lakhs term insurance policy serves as a robust financial shield for individuals and families in India. It offers comprehensive coverage, ensuring that your loved ones can weather the storms of life with financial security and peace of mind. Whether you are the primary breadwinner, a homeowner, or have significant financial responsibilities, this coverage amount can be tailored to meet your specific needs. It is also essential to compare life insurance quotes online at PolicyBachat to ensure that the coverage amount aligns with your family's requirements and aspirations.