Life is uncertain. Though we can’t know the future, we can prepare for it. Term insurance is where this comes in. It ensures your family’s future if something unforeseen happens to you. You deposit a small sum annually (premium), and your family receives a huge sum (sum assured) if you’re not around. It’s a safety net for your family.
But here is the major question: how much coverage do you require? Do you opt for a ₹50 lakh, ₹1 crore, or ₹2 crore term plan? Let’s simplify it in the most basic manner.
What is a Term Plan?
A term plan is the purest and cheapest way to have life insurance. It leaves your family a lump sum amount of money if you die within the policy period. The amount can be utilised for loan repayment, paying daily expenses, and ensuring your children’s education or future.
You don’t receive any refund if you outlive the term (unless you opt for the return of the premium variant). But the reassurance it provides is worth its weight in gold.
Why the Right Coverage Matters
Suppose this: You purchase a term plan with ₹50 lakh cover. But nowadays, will ₹50 lakh last 10–15 years from now?
Prices are increasing every year. From school fees to hospital charges, everything is increasing. So, the selection of sum assured is very crucial.
If you select a cover that’s too less, your family could struggle. If you select a cover that’s too much, you could pay more than required. To make your decision easy and hassle free, you should use a term plan calculator.
Let’s now consider each option separately.
₹50 Lakh Term Plan – Who is it for?
A ₹50 lakh term plan may sound like a lot now. But is it sufficient?
Sufficient for beginners: If you’re in your mid-20s, recently employed, and don’t have too much on your plate yet, a ₹50 lakh cover may be sufficient, at least for the time being.
Reasonably priced: The premium is quite low. For instance, a 25-year-old non-smoker can avail of a ₹50 lakh plan for less than ₹500/month (basis the insurer).
But not future-proof: If you plan to get married, buy a house, or have kids, this amount may not be enough after 10 years. Inflation will reduce its value.
Verdict: Start with it if you really can’t afford more. But aim to increase your cover later.
₹1 Crore Term Plan – A Popular Choice
This is India’s best-selling choice. Most individuals believe that ₹1 crore is an “affordable amount” to go for life cover.
Balanced option: Suitable for individuals having mid-level responsibilities, such as home loans, car loans, education of children or elderly parents.
Inexpensive too: Even for ₹1 crore, premiums remain affordable. A 30-year-old non-smoker can purchase this plan for less than ₹800–1,000/month.
Future-proof: Ensures your family is able to lead their lifestyle when you’re away.
Could still fall short in metros: If your family resides in a metro city like Mumbai or Delhi, ₹1 crore may fall short in the long term.
Verdict: A good option for most Indian families.
₹2 Crore Term Plan – Is It Excessive?
A number of individuals believe that ₹2 crore is excessive cover. But is it? Let’s see why the best term insurance plan for 2 crore is a good deal:
- Considering the increasing cost of living, education, medical care, and rent—particularly in metro cities—₹2 crore may be the correct amount for a lot of individuals in their 30s and 40s.
- Suited best for individuals with large goals and responsibilities. In case you have home loans, two children, ageing parents, and a non-working spouse, you should opt for this plan.
- Helps beat inflation. What looks like a large amount today may feel small in 15–20 years. A ₹2 crore cover gives your family better financial security.
- Still affordable: Thanks to competition among insurers, even the best term insurance plan for 2 crore can be available for ₹1,200–1,800/month if you’re young and healthy.
- It may feel like overkill for single people with no dependents.
Verdict: Perfect for working parents, breadwinners, and anybody who wishes to secure their family’s future.
So, Which One Should You Choose?
Here’s an easy way to make the choice:
| Your Profile | Recommended Term Cover |
| Single, age < 30, no loans | ₹50 Lakh |
| Married, no kids yet, EMIs to pay | ₹1 Crore |
| Married, kids, home loan, dependents | ₹2 Crore |
So, if your salary is ₹10 lakh annually, you should consider ₹1.5 crore to ₹2 crore cover.
Tips to Select the Best Term Plan
Here are some instant tips to make the correct decision:
Compare policies online – Utilise reliable websites such as Policybazaar, Coverfox, or insurer websites.
- Look for claim settlement ratio – Choose insurers that have a high claim ratio (higher than 95%).
- Add riders – Such as accidental death, critical illness, or waiver of premium.
- Reveal all the truth – Don’t conceal your medical or smoking history.
- Purchase early – The younger you get, the better your premiums.
Final Thoughts
No matter if you opt for ₹50 lakh, ₹1 crore, or ₹2 crore term plan, one thing is sure—having a term insurance plan is always better than having none.
Begin small if you have to, but begin today. The sooner you purchase, the less expensive it will be. And don’t forget, it’s not merely a matter of figures. It’s an issue of responsibility, love, and peace of mind.
Your term plan is your family’s financial seatbelt—ensure they always wear it.