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Two Crore Term Insurance: Will it be Adequate to Cover for Rising Protection Needs?

  • April 16, 2024
  • 6 min read
Two Crore Term Insurance: Will it be Adequate to Cover for Rising Protection Needs?

The cost of living, soaring inflation rate, and uncertainty around the future demand that individuals avail of robust financial coverage to safeguard the future of their loved ones. In this regard, having a financial protection cover in the form of a 2 crore term insurance policy can provide ample support to the insured’s family members.

Such a high financial cover will act as a required safety net in the face of unforeseen situations, especially when the insured is no longer around to support their dependents. The 2 crore cover amount would help the insured’s family to tide over immediate financial gaps, recover from the income gap created in the event of the insured’s unforeseen death, and meet upcoming obligations without straining their budget or withdrawing their savings.

However, besides the 2 crore term insurance sum assured, individuals should check other key features of the policy to ensure such a plan would provide adequate financial support in case of needs. That said, let’s check the key features of the two crore term insurance plan.

A high cover amount

The high sum assured of two crore is designed to offer ample financial assistance to the policy beneficiary in the event of the sudden death of the insured. A substantial financial benefit is made available to policy beneficiaries after they raise a claim following the death of the insured. 

With the disbursal of the policy amount, individuals would be able to account for the financial gap left behind by the policyholder. It would also allow them to pay for financial obligations like ongoing loans, EMIs, mortgages, bills, etc. 

The substantial amount can also help account for upcoming expenses and obligations including the child’s education, wedding party, etc. Such financial assistance allows individuals to become independent and account for their expenses without seeking others’ health. 

Individuals further have the option to increase their coverage but adding riders benefits to the base plan. They can add riders like accidental cover, premium waiver benefits, and critical illness riders to enhance their coverage. 

Affordable insurance premiums

It is common to believe that a high cover amount would accompany a high premium. However, plans like 2 crore term life insurance are designed to help individuals avail of a high cover amount to tide over financial hardships. This is why insurers offer them at an affordable premium so that more individuals can benefit from the high coverage. However, individuals must note that the cost of a premium depends on several factors including the individual’s age, coverage requirement, income, health condition, and liabilities. Also, adding riders to the basic plan can increase the premium. Individuals can use an online term insurance calculator to understand how different variables can affect their premiums. Based on this they can decide whether the premium would be suitable for their budget or not.

What Should We Consider To Ensure We Pick The  Right Coverage?

Individuals should weigh these things to select the best-suited coverage for their needs – 


With increasing age, the risk associated with individuals increases. This is because insurers perceive older adults as more likely to raise a claim early in the term and suffer from age-induced ailments that demand financial care. As a result, they charge them a higher premium amount to offset the risks. This is why to ensure individuals can avail of a 2 crore term insurance at affordable premiums, they must buy the plan at an early age. To clearly the extent to which one’s age can influence premium they can use an online calculator.


To find the ideal life insurance plan and coverage, individuals should weigh their total income. This will help them estimate the coverage they would need to safeguard the financial future of their dependents. Typically, income includes one’s monthly earnings, savings, and earnings from investments. Based on the insight individuals would be able to understand if their income would be enough to meet the cost of premium and will not strain their budget.  


Having a clear idea of one’s expenses would help understand the liabilities one would have. It will also help understand the financial burden their family members would have to shoulder in their absence to tide over the obligations. Finding out one’s existing financial burden along with one’s upcoming obligations would help one understand the same and enable one to plan provisions to account for them. Typically, expenses include monthly EMIs, loans, bills, mortgage, child’s education fund, parents’ medical fund, or retirement corpus. A sum of this would help us understand whether a 2 core term insurance would be enough to meet the financial burden or not.

Based on these insights and planning, one can pick a suitable plan be it a two crore plan or otherwise.

Who Should Buy 2 Crore Term Plan?

Essentially, any adult can avail of 2 crore term insurance plan to support their family’s financial future. However, the key is to get the policy at an early age to avail of the high coverage at affordable premiums. However, specific cases can benefit more from such a cover than others. For instance, individuals who are young and do not necessarily have a lot of financial responsibilities can buy a policy with a high cover at a low premium.

This will help them build a reliable corpus at an affordable premium without straining their budget and provide the dependents with a financial safety net that will account for their needs in their absence.

Individuals who have multiple dependents such as their retired parents, spouse, and children could benefit the most from a 2 crore term insurance. The high cover amount will help to ensure that their dependents can account for financial obligations and meet unforeseen situations with ease and without eroding their corpus. It will also help ensure that the family can lead a comfortable lifestyle and doesn’t have to depend on external sources to meet their living expenses at least for the short term.

Getting a term insurance plan is a personal choice and should depend on one’s needs and requirements. Individuals must factor in their needs and weigh their family’s financial needs to determine which policy would be best suited for their immediate and future requirements. 

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