Life is full of ups and downs. One moment, everything is fine, and the next, life can take an unexpected turn. That’s why planning is so important, especially when it comes to your family’s future. One simple way to do this is by getting term insurance.
Term insurance is a sort of safety net. If something goes wrong with you while the policy is active, your loved ones receive a lump sum amount. They can use this money to keep themselves financially secure even when you're not there.
But here is the million-dollar question: how much coverage do you need? Nowadays, most folks are thinking about a 2 crore term insurance. Is that too much, or is it perfect for you? Let's break it easy.
What is Term Insurance?
Term insurance is one form of life insurance that provides your loved ones with a specific sum of money if you die during the policy period. It's not designed to provide you with returns or savings; it's solely for protection.
You pay an annual or monthly premium, and the insurer undertakes to pay your loved ones the entire amount assured if you are not there. That's why term insurance is such a cheap and valuable insurance policy you can purchase.
Why Do People Discuss ₹2 Crore Term Insurance?
Previously, it was considered sufficient to spend ₹50 lakhs or ₹1 crore. However, due to increasing expenses, school fees, housing loans, medical expenses, and daily expenditure, nowadays ₹2 crore term insurance is becoming an intelligent decision for most.
Here's how: Suppose you purchase a ₹2 crore term policy. Your family will get ₹2 crore in the event of your untimely death during the policy term. They can live easily with that amount.
Let's dissect whether you need that much cover.
1. Your Income Counts
An easy formula many experts use is: your insurance cover must be 10 to 15 times your annual income.
Then, if you make ₹12–15 lakh a year, a ₹2 crore cover is appropriate. This will enable your family:
Regular monthly bills
Pay for your children's education
Repay any loans
Save for long-term needs such as marriage or emergencies
The concept is straightforward: you need to substitute your income when you are no longer present.
2. Consider Your Family's Needs
Your family is not only reliant on your money. They look up to you for their support, planning, and protection.
Now think about them not having your income. Can they:
Pay rent or home EMIs?
Meet medical expenses?
Keep attending school or college?
Cover daily expenses?
A ₹2 crore cover can cover these expenses for years. It is your plan B for them.
3. Do You Have Any Loans?
A big loan, such as a home loan or auto loan, can be an additional burden on your family if you're not around to pay it.
Do you have any of the below:
Home loan over ₹50 lakhs
Large personal loans
Kids' future educational expenses
Only one earner in the family
Then, it is preferable to have a larger term insurance coverage. ₹2 crore can settle loans and still leave something for your family's future.
4. Is ₹2 Crore Term Insurance Costly?
Not at all, particularly if you purchase it early.
Assuming you are in your 20s or 30s. If you are healthy and do not smoke, you can secure a ₹2 crore term plan for a mere ₹1,000 to ₹2,500 per month. That is less than what you spend on restaurant meals in a month!
And the icing on the cake? Once you fix the premium, it remains constant for the term. The earlier you purchase, the lower it is.
5. When Is the Right Time to Buy?
There’s one simple answer, NOW.
The sooner you buy, the better it is for three main reasons:
Premiums are lower when you’re young.
You’re more likely to be healthy, so the process is easy.
Your family gets protection sooner.
Delaying term insurance doesn’t help. It just gets costlier and riskier.
6. What If You’re Not Sure About ₹2 Crore?
That's fine. You don't need to go for a large number immediately. Go for a cover according to your current income and life condition.
You can also:
Go for a ₹1 crore plan today, and enhance later
Purchase two different term plans (one today, one after a couple of years)
Include riders such as critical illness or accidental death cover
The idea is to ensure that your overall cover is adequate for your family's future.
Why Term Insurance is a Wise Choice
Here's why term insurance is a good idea:
It's low-cost and high-cover
It's easy to comprehend
It provides your loved ones with long-term security
It's simple to purchase online, usually without medical tests
Most importantly, it indicates that you care. It's your way of saying, "No matter what goes on, I've got your back."
How to Get a Good ₹2 Crore Term Plan
When you're selecting a plan, find:
High Claim Settlement Ratio (above 95%)
Recommended insurers with good ratings
Add-on flexibility to include riders
Duration of policy is long (up to 70–80 years)
You can shop around online for different insurers before making a purchase. Some of the best insurers in India are:
LIC
HDFC Life
ICICI Prudential
Max Life
Tata AIA
These insurers have high records of claim settlements, meaning your family will likely receive the claim without hassle.
Conclusion
Then, do you need a ₹2 crore term insurance plan?
If you're earning well, have a young family, have loan liabilities, or desire robust peace of mind, then yes, you likely do.
Even if you're not there, your family's dreams should survive. A term insurance plan makes it so.
Keep in mind, you're not purchasing an insurance policy. You're purchasing confidence, security, and love for your family's tomorrow. And that's always priceless.
Quick Recap:
Term insurance = straightforward, plain protection
₹2 crore term plan = suitable for high income and large responsibilities
Buy early = less cost, better benefit
Select reputed insurers with high claim settlement ratios
Because safeguarding your family should never be a question, it should be a certainty.