₹ 2 Crore Term Insurance Plan

What is a ₹2 Crore Term Insurance Plan?

A ₹2 crore term insurance is a basic form of life insurance that offers your family members a lump sum amount of Rs 2 crores in case of your unfortunate death. In exchange for paying premiums on a regular basis, these plans are sufficient to settle loans/debts, offer adequate coverage, and replace the regular income in the policyholder’s absence. This term insurance plan is an affordable type of life insurance. You can get a 2 crore term plan starting at just Rs 487/month. 

It is important to understand that the 2 crore term insurance plan doesn’t provide any maturity/survival benefits. In case of policyholder’s survival till the policy tenure, no payment is made unless the term plan has “return of premium” option. So, the main feature of a term insurance plan is covering risks, not providing returns or build savings. 

What are the Best Term Insurance Plan for 2 Crores?

Here is a table showing the list of life insurance companies in India that offer the list of best term insurance plan for ₹2 crore.

Disclaimer: ~Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

How to Calculate Term Insurance Premium Amount? 

This calculator will help you calculate your term insurance needs

Why Should You Consider Buying a ₹2 Crore Term Insurance Plan? 

Traditional term plans offer a life cover for a fixed tenure. But. nowadays, some of the variants provide coverage for the remaining years of your life. To learn about what is term insurance? Simply put, term plans offer financial coverage to your family members when they need it. The payouts from these term insurance plans helps your loved ones pay off debts/loans or acheive their future dreams. Before buying a term life insurance plan, you should decide how much coverage is required. Some choose Rs 1 crore term insurance, while others choose Rs 2 crore term insurance. You can choose the life cover amount on the basis of your Human Life Value (HLV). HLV refers to the actual value of future income expenses, liabilities and investment. 

Why Buy a 2 Crore Term Insurance Plan in India 2025?

Here is how you should buy a 2 crore term life insurance in India 2025:

• Budget-friendly Premiums: Young people can get coverage at an affordable rate, ensuring high protection without having large expenses. The earlier you buy, the lower your premium rate will be. In case of your unforeseen demise, your loved ones will not have to worry about money. They can use the sum assured amount of Rs. 2 crore to pay for children's school fees, home loans, or monthly expenses, etc. 

• Income Replacement: A 2 crore term life insurance policy can act as an income replacement term plan and allow your family to replace your income and manage daily expenses or future goals like education and home loans with ease.

• Comprehensive coverage: With Rs. 2 crore term insurance plan, you can also receive add-ons such as critical illness, premium waiver rider, or accidental death benefit. You can also choose the Return of premium option if you survive the policy term. 

• Boosts Savings & Investments: Because of the low premiums or using additional money for different financial objectives such as children’s education plan and more. You can avail tax benefits in the old tax regime under section 80C and section 10(10D), allowing you to reduce tax burden. 

How Does ₹ 2 Crore Term Plan Work?

Let’s understand the working of ₹ 2 crore term insurance plan with the help of a real life example: 

Rahul, a 32 year old IT professional from Bengaluru earning around 1 lakh per month. He decided to buy a Rs. 2 crore term insurance plan to basically protect the financial future of his family, home loan helps in paying for children’s education and daily expenses. 

He chooses to go for a monthly premium of Rs. 1100 till 60 years of age where the plan includes a critical illness rider. The appointed nominees are his wife and children. In case something happens to Rahul, his wife and children will get the death benefit in 3 ways: 

• Lump Sum Payment

• Monthly Income Payout

• Combination of Lump Sum and Regular Income

Here’s how the ₹2 crore payout could support his family’s financial needs:

What are the Benefits of 2 Crore Term Insurance?

Here is a list of benefits of buying the best term insurance plan for 2 crore in India:

• High cover at low premiums
  With 2 cr term insurance plan, you can secure a large sum assured for your family in your absence at affordable premiums. The term insurance premiums for a 2 crore life cover start at just ₹ 487 per month.

• Family’s financial stability
  The 2 crore term insurance offers your family the required financial stability by providing them with a large life cover to take care of their needs like paying the rent, child’s fees, paying off remaining loans, etc.

• Flexible premium payments
  2 Crore Term insurance plans provide you with flexible premium payment options, wherein you can choose to pay the premiums in the mode most suitable to you. You can pay the premiums in limited, regular, or single pay for monthly, quarterly, annual, or semi-annual modes.

• Customisation with riders
  Riders can be added to the base plan at nominal premium amount with which you can customize the 2 crore term insurance plan. The most common riders available in India are terminal and critical illness riders, accidental death benefits, accidental total permanent disability, and waiver of premium riders.

• Tax-saving benefits
  You can save on your yearly taxes with term insurance tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act of 1961.

Who Should Buy 2 Crore Term Insurance Plans in India?

Here is the list of individuals who can benefit from buying the best term insurance plan for 2 Crore:

How to Determine the Right Coverage Amount for the Best Term Insurance Plan for 2 Crore? 

You need to consider some factors to determine the right amount of life coverage: 

• Look for the needs for Financial Dependents: It is important to calculate the financial needs of your loved ones. In order to do that, consider calculating the daily expenses of your family such as educational or marriage expenses. Let’s say if you have a spouse and 1 child to get covered, you need approximately 10-15 times your current annual income. In case you have more children, the term insurance coverage amount increases then it should be around 15-20 times your yearly income. 

• Your age: At young age, you have less responsibilities and you need to pay a lower amount of premium. This helps you to get higher coverage at a low cost. With age, your responsibilities increase and you need a high amount of coverage to meet future expenses. 

• Annual Income: Your current earnings and what you expect to make in the future are the foundation for figuring out your coverage amount. As a rule of thumb, your Sum Assured should be at least 10 to 15 times your yearly salary. For example, if you earn ₹5 lakh a year, aim for coverage between ₹50 lakh and ₹75 lakh.

• Inflation: Inflation reduces your money's buying power over time. So, it's absolutely an important factor in the expected inflation rate when calculating the required coverage. Because this ensures that years from now, your family’s payout will still have enough real value to cover their daily expenses, even with rising prices.

• Check for your future milestones: It’s important to think beyond today's immediate needs and consider your long-term responsibilities. What are your biggest concerns? Will you be funding your child’s higher education or their wedding? Do you want to guarantee your spouse's retirement income or maintain your family’s current lifestyle in your absence? If these major goals are part of your life plan, opting for a higher cover, perhaps ₹2 crore, makes far more sense than settling for a low amount that won't last.

• Get prepared for Uncertainties: You should definitely include a financial safety cushion for life’s emergencies. Things like unexpected medical bills, urgent financial needs, or any other sudden, additional costs can strain a family's finances immediately. Adding this term plan gives your loved ones an extra layer of protection when they need it most.

• Premium Affordability: When looking for the right coverage amount, it is also important that premium should be low at the time of buying a term plan. To calculate the estimated price for different amounts of coverages you can use an online term insurance premium calculator. Always opt for a plan that provides financial protection at low premium rates without straining your budget. 

How to Choose the Best Term Insurance Plan for 2 Crore?

Here are the key things to look at before deciding:

• Premium comparison:
  Term insurance plans provide high life at lower premium rates. Though, the prices are not the same. You can compare the premium rates and best term insurance plan for 2 crore from Policybazaar to choose a plan that fits your budget. 

• Check the Claim Settlement Ratio (CSR)
  The claim settlement ratio (CSR) refers to how many claims an insurance company has paid out successfully . A higher CSR means your family is more likely to get the claim amount without any hassle. Always look for insurers with a CSR above 95%,

• Look for Rider Options
  These are add-ons that give you additional protection for a small additional cost. Useful riders include:

  • Accidental death benefit

  • Critical illness cover

  • Accidental total and permanent disability

  • Terminal illness cover

  • Hospicare Rider 

  • Waiver of premiums

• Buy Early for Lower Premiums
  Your age plays a big role in how much premium you’ll pay. The younger you are, the lower the cost of your term plan. Buying early also means you are less likely to have health issues, which keeps your premiums low and approval easy.

• Consider Your Financial Dependents
  Before buying term insurance with high cover always think about who depends on your income , your children, your spouse or parents. If you are the only breadwinner, you may need high cover for a longer term to make sure your family stays financially secure even when you are not around. 

*Note: It is wise to firstly know what is term insurance and then buy 2 Crore Term Insurance Plan.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

When is the Right Time to Buy 2 Crore Term Insurance?

The right time to buy 2 cr term insurance is as early as possible, as the premiums increase with age. Therefore, if the plan currently costs you ₹487 per month, it could cost a lot more as your age increases. Thus, insurance advisors suggest buying term insurance for the right policy term as soon as you start earning after turning 18 years of age.

Calculator for ₹2 Crore Term Insurance

2 Crore term insurance calculator is an easy-to-use online tool designed to help you estimate your premium instantly for a ₹2 crore term life insurance plan. 

Here’s is a step-by-step guide:

• Give Personal Details: Enter personal information such as your age, income, gender, and lifestyle habits.

• Choose Coverage & Policy term: Choose ₹2 crore as the coverage amount and choose the desired policy term.

• Get Quote Instantly: Instantly check premium estimates for monthly, quarterly, or yearly payment options.

• Add Riders (Optional): Include add-ons such as critical illness or waiver of premium riders for increased protection.

FAQs

Factors to Consider Before Buying the Best Term Insurance Plan for 2 Crore

Here are some of the important points that you should keep in mind before making your decision of buying 2 crore term insurance plan:

1. Choose the Right Coverage Amount

   Always check out the money your family needs if you were not around someday. This means looking up your current outstanding debts (such as EMIs and home loans), the monthly expenses of your family and future goals such as children’s marriage or education. 

2. Choose a Right Policy Term

   The duration of your insurance is important. It should match exactly how long your family will be financially dependent on your income. If the policy tenure is short, your cover can end soon. If it is too long, your premium amounts might be higher. Ideally, your term insurance should run until your planned retirement age (when you expect to be debt-free) or until your biggest financial responsibilities are completely over.

3. Make Sure the Premium Is Affordable

   Choose a plan that fits your current income and budget. While ₹2 crore coverage is enough, you can still find affordable plans, especially if you’re young and healthy. The premium amount will depend on your age, health, lifestyle habits, and policy term, so pick a plan that gives good cover without straining your monthly finances.

4. Look for the Claim Settlement Ratio (CSR)

   Always check the Claim Settlement Ratio of the insurer. This ratio shows how many claims they paid out versus how many they received. Choosing a provider with a high CSR (look for 97% or more) is your guarantee that your family will receive the full claim amount quickly and easily when they need it most.

5. Consider Useful Add-On Riders

   Even a ₹2 crore term insurance policy can be enhanced by adding riders. It’s like upgrading your financial safety net. Look for essential riders like:

   • Accidental Death Benefit

   • Critical Illness Cover

   • Waiver of Premium

   • Terminal Illness Benefit

   • Accidental Disability Benefit

   • Hospicare Rider Benefit

   These riders increase the overall safety net for your family.

6. Read the Policy Exclusions

   Every plan has some exclusions, situations where the insurer won’t pay (like suicide within the first year, or death due to undeclared health issues). Understanding the exclusions prevents major shocks later.

7. Understand the Claim Process

   Choose a company known for its simple and fast claim settlements. Look for dedicated claims support services that promise to help your family during the most difficult time.

8. Flexibility to Upgrade or Modify

   Life is unpredictable and your life situation can change anytime and your insurance needs. Choose a term insurance plan that helps you increase the base plan cover or add term riders later in case it is required. This means you do not have to buy a new plan every time when your responsibilities grow. 

How to Buy Term Insurance Online From Policybazaar? 

Below mentioned is the step-by-step guide to buy the best term insurance plan for 2 crore term plan from Policybazaar:

• Step 1: Visit Policybazaar and Go to the Term Insurance page

• Step 2: Fill in the basic details such as name, Date of Birth, and contact number and click on ‘View Plans’

• Step 3: Answer the questions about smoking habits, annual income, occupation type, and educational qualification

• Step 4: After submitting all the details, a list of all available 2 Crore term insurance plans will be displayed

• Step 5: Choose the best term insurance plan for 2 Crore that suits your financial needs and proceed to pay the first premium

Wrapping it Up

A 2 crore term insurance ensures that your family is financially protected in the event of your unfortunate demise with a large life cover. The best term insurance plan for 2 crore allows you to customise the plan as per needs, save on taxes, and get peace of mind. You can easily compare and buy the best term insurance plan for 2 crore online via Policybazaar in just a few simple steps.

FAQs