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One Crore Term Insurance for Single Parents: Protecting Your Child's Future

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One Core Term Insurance for Single Parents
January 12, 2024

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Parenting is not a cakewalk. It involves not just raising the child, but financially protecting their future as well. If you are a single parent, the responsibilities double. While you raise the child single-handedly, it is your sole responsibility to create a corpus for his/her secured future. Here’s where a Rs 1 crore term insurance can help. To decide on the purchase, you can always rely on the term life insurance calculator to check the premium affordability and the corresponding policy tenure.

What is a Rs 1 crore term insurance plan?

A ₹1 crore term insurance is a traditional life insurance plan with a life cover of Rs 1 crore at a low premium payment. The sum assured is paid as a death benefit if the policyholder dies untimely within the policy term and the maturity benefit is payable if he/she survives. The 8-figure death benefit can help your loved ones sail through the crisis without having to struggle financially while it doesn’t pinch your pocket either as you pay the premiums.

Why does a single parent need a Rs 1 crore term insurance plan?

For a single parent, protecting the child’s future is the sole responsibility. The way life is uncertain these days, it’s important to ensure that he/she doesn’t face any financial hardship if you are suddenly not around. Thus, building a sufficient corpus beforehand is essential. You also need to remember that prices and costs of living are bound to increase over time. Hence, the amount you choose to save for your child’s future should be enough to fund his/her future needs. Through a Rs 1 crore term insurance plan, your child will get a decent amount if you die an untimely death. 

Features and Benefits of a Rs 1 crore term insurance 

Following are the key features and advantages of the Rs 1 crore term plans. 

High coverage at an affordable premium:

A Rs 1 crore life cover is available at low premiums per month if you start early in life. In addition, the premium remains fixed for the entire policy term ensuring no further financial stress. The term life insurance calculator helps to determine the best possible premium rate you can afford.  

Wholesome security for your child:

The high coverage amount as a death benefit will save your child from unwanted financial troubles. It will not only help him/her maintain the same lifestyle and fulfil life goals but also will help to steer clear of debts by repaying outstanding loans, if any.

Comprehensive coverage:

Adding optional riders like coverages for accidental death benefits and critical or terminal illness, waiver of premium etc at an additional premium will ensure a stronger financial shield for your child.

Tax benefits:

Not just the child, you can gain from the Rs 1 crore term life plan as well. The premium payment of up to Rs 1.5 lakh per year is exempted from tax under section 80C of the Income Tax Act,  19611 while the death and maturity benefits are tax-free subject to section 10(10D).

Factors to consider while buying a Rs 1 crore term insurance plan

As a single parent, it’s crucial to pick the best 1 crore term insurance plan according to your needs and affordability. The following are the things you need to consider.

  • Different plans come with varied options for premium rates. Use the term life insurance calculator to determine the premium rate that best fits your budget.

  • Check additional riders available with different plans to zero in on your policy of choice.

  • Every policy plan has certain coverage exclusions. Carefully read and understand them before making a purchase.

  • Check the claim settlement ratio and the solvency ratio of the insurance company you are considering. It will save you and your family from future hassles.

Being a single parent isn’t easy. Make your life smoother by trusting the term life insurance calculator and picking the best Rs 1 crore term plans. The solid coverage is sure to give you peace of mind!

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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  1. Tax benefits are subject to conditions under Sections 80C, 80D, Section 10(10D) and other provisions of the Income Tax Act, 1961.

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