₹ 2 Crore Term Insurance Plan

What is a 2 Crore Term Insurance Plan?

2 crore term insurance is a type of term insurance plan that offers an amount of 2 Crores to the policyholder’s family in case of the policyholder’s death during the policy term. While several plans are available in India, it is suggested that you always compare and select the term insurance plan for 2 Crores before buying.
With these plans, you can ensure the financial stability of your loved ones in your absence as they offer coverage for a specific tenure in exchange for regularly paid premiums. You can compare and buy the list of term insurance plan for 2 crore online from the comfort of your home.

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.

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

• A ₹ 2 Crore term policy provides financial safety to your family during difficult times.

• Make sure the sum assured is sufficient to replace your lost income and help your family pay off debts.

• Calculating your Human Life Value (HLV)can help determine the right sum assured.

• Individuals earning ₹ 10 lakhs per annum with outstanding debts of ₹ 50 Lakhs can get good benefit from a ₹ 2 Crore term insurance policy.

Why Do You Need 2 Crore Term Insurance in India?

Here are a few reasons why you might need a 2crore term insurance in India:

• In case of an eventuality, the financial future of the family will remain protected.

• Accessibility of high coverage at an affordable term insurance premium.

• Term plans are easy to understand, flexible and can be customized for different needs.

• Option to enhance the base cover of the plan by adding additional rider benefits.

One of the key aspects of buying a term plan or life insurance plan is the amount of life cover the plan provides. This is important as it determines the level for, which the family is going to be secured. A term insurance policy is preferred amongst individuals as it provides high coverage. You can take a look at the plans available in India and buy the best term insurance plan for 2 crores.

How Does ₹ 2 Crore Term Plan Work?

Let us understand how 2 crore term insurance works with the help of an example:

What are the Benefits of 2 Crore Term Insurance?

Here is a list of benefits of buying the 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 starts at just ₹ 678 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

  Term insurance plans provide you with flexible premium payment options wherein you can choose to pay the premiums in the modes 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

  You can customize the 2crore term insurance by adding riders to the base plan at nominal premiums. 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.

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

Choosing the best term insurance plan for 2 crore is a big step toward securing your family’s future. Here are the key things to look at before deciding:

• Compare the Premiums

  Term insurance plans offer large life cover at affordable prices. But not all plans cost the same. Compare the best term insurance plan for 2 crore premium rates from different insurers to find a plan that fits your budget without compromising on coverage.

• Check the Claim Settlement Ratio

  This is one of the most important things to check. The claim settlement ratio (CSR) shows how many claims an insurer has successfully paid out. A higher CSR means your family is more likely to get the claim amount without any hassle. Look for insurers with a CSR above 95%, ideally published by IRDAI each year.

• Look for Rider Options

  Term insurance riders are add-ons that give you extra protection for a small additional cost. Useful riders include:

  • Accidental death benefit

  • Critical illness cover

  • Waiver of premium in case of disability: Some plans also offer a Return of Premium (TROP) option, where you get your premiums back if you survive the policy term. Choose riders based on your personal and family needs.

• 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

  Think about who relies on your income, your spouse, children, or ageing parents. If you're the sole earning member, you may need higher coverage for a longer duration to ensure your family stays financially stable even in your absence.

*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

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

Buying a term insurance plan with a large cover like ₹2 crore is a big financial decision. Here are some important things you should keep in mind before making your choice:

Choose the Right Coverage Amount

Start by figuring out how much life cover your family would need if something happened to you. Think about your current loans (like home loans or EMIs), your family’s monthly expenses, and future goals like your children’s education or marriage.
A simple way to estimate this is:

• Multiply your monthly expenses by 150

• Add all your outstanding loans and future goals

• Subtract any savings or investments you already have
  This gives you a rough idea of how much term cover you actually need.

Decide on a Suitable Policy Term

The term (or duration) of your insurance should match how long your family will depend on your income. If the policy term is too short, your cover may end too soon. If it’s too long, your premiums might be higher. Ideally, your term insurance should last until your planned retirement age or until your major financial responsibilities are over.

Make Sure the Premium Is Affordable

Choose a plan that fits your current income and budget. While ₹2 crore coverage sounds like a lot, 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.

Check the Claim Settlement Ratio (CSR)

Always choose an insurance provider with a high claim settlement ratio. This ratio shows how many claims the insurer has paid out compared to the number they received. A higher CSR (like 97% or more) means your family is more likely to get the claim amount without any issues.

Consider Useful Add-On Riders

Even if you’re buying a ₹2 crore cover, adding riders can give extra protection. Useful riders include:

• Accidental Death Benefit

• Critical Illness Cover

• Waiver of Premium (in case of disability or illness)
  These riders increase the overall safety net for your family.

Know the Eligibility and Requirements

Before you buy the plan, make sure you meet the eligibility criteria. Most term plans are available to people between 18 and 65 years of age. You’ll need basic documents like ID proof, address proof, income proof, and may also need to take a medical test, especially for a higher sum assured like ₹2 crore.

Read the Policy Exclusions

Every term plan has some exclusions—situations where the insurer won’t pay the claim. Common exclusions include suicide within the first policy year, undeclared pre-existing illnesses, or death due to illegal activities. Always read the fine print to avoid surprises later.

Understand the Claim Process

The process to raise a claim should be simple and quick, especially in an emergency. Choose a company known for its easy and fast claim settlements. Look for support like a dedicated claims team or claim assistance services that help your family during difficult times.

Flexibility to Upgrade or Modify

Your life situation might change, and so might your insurance needs. Pick a term plan that lets you increase the cover or add riders later if required. This flexibility means you won’t have to buy a new plan every time your financial responsibilities grow.

Confirm the Tax Benefits

Term insurance plans offer tax savings under Section 80C for the premiums you pay and Section 10(10D) for the claim amount received by your family. These benefits help reduce your overall tax burden. Check what tax benefits your policy offers before purchasing.

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