Term insurance has become one of the most searched financial products in India. With rising living costs and financial responsibilities, many people are now considering higher coverage amounts like ₹2 crore.
Recently, insurers have started promoting ₹2 crore term insurance plans starting around ₹700 per month. But is this realistic? And more importantly — is it suitable for you?
Let’s break it down properly.
What Does ₹2 Crore Term Insurance Actually Mean?
A ₹2 crore term insurance plan means:
If the policyholder passes away during the policy term, the nominee receives ₹2 crore as death benefit.
It does not include maturity benefits in pure term plans. The primary purpose is financial protection.
Can You Really Get ₹2 Crore Cover at ₹700 Per Month?
Yes — but with conditions.
Premium depends on:
- Age
- Smoking status
- Gender
- Policy tenure
- Medical history
- Payment frequency
₹700/month is usually applicable for:
- Young individuals (early 20s)
- Non-smokers
- Long policy tenure
- Online purchase
- Basic plan without riders
If you are older or add riders (critical illness, accidental cover), premium increases.
Claim Settlement Ratio – Why It Matters
Claim settlement ratio indicates the percentage of claims settled by the insurer.
For example, 99.3% claim settlement ratio suggests that most claims are honored.
However, claim approval depends heavily on:
- Accurate information disclosure
- No hidden medical history
- Proper documentation
Never hide medical details while applying.
Key Factors to Compare Before Buying ₹2 Crore Term Plan
Instead of focusing only on premium, compare:
- Claim settlement ratio
- Solvency ratio
- Rider options
- Premium payment flexibility
- Early claim settlement record
- Online vs offline premium difference
The cheapest plan is not always the safest option.
₹2 Crore Term Insurance vs ₹1 Crore – Which Should You Choose?
If you have:
- Home loan
- Dependents
- Young children
- Single earning source
Higher coverage like ₹2 crore may provide better long-term security.
But if your liabilities are low, ₹1 crore might be sufficient.
Coverage should be 15–20 times your annual income ideally.
Term Insurance Riders Worth Considering
You may consider adding:
- Critical illness rider
- Accidental death benefit rider
- Waiver of premium rider
These increase premium but add financial protection layers.
Is Online Term Insurance Cheaper?
Yes, generally.
Online term insurance plans are often cheaper because:
- No agent commission
- Lower operational cost
- Direct-to-customer pricing
However, always verify insurer credibility before buying.
Who Should Buy ₹2 Crore Term Insurance?
Ideal for:
- Salaried professionals earning ₹8L+ annually
- Business owners
- Individuals with high financial liabilities
- Parents with young children
- Individuals planning long-term financial security
Final Verdict – Is ₹700 Per Month Worth It?
If you qualify for that premium category, it can be an affordable way to secure large coverage early in life.
But do not choose a plan based only on advertised premium.
Compare:
- Real premium based on your age
- Claim history
- Rider options
- Long-term affordability
Term insurance is not about finding the cheapest policy — it’s about finding reliable financial protection.
🔎 FAQ – ₹2 Crore Term Insurance Plan (2026)
1. Can I really get ₹2 crore term insurance for ₹700 per month?
Yes, but only if you are young (usually under 30), a non-smoker, medically fit, and buying the policy online without additional riders. Premium increases with age and health risks.
2. What is the ideal age to buy ₹2 crore term insurance?
The earlier you buy, the lower your premium. Many financial planners recommend buying term insurance in your 20s or early 30s.
3. Does term insurance provide maturity benefits?
A pure term insurance plan does not offer maturity benefits. It only provides a payout in case of the policyholder’s death during the policy term.
4. What happens if I hide medical information?
Non-disclosure of medical history can lead to claim rejection. Always provide complete and accurate information during application.
5. Is ₹2 crore coverage too much?
Coverage should ideally be 15–20 times your annual income. If you have loans, dependents, or long-term liabilities, ₹2 crore may be appropriate.
6. Which is better – ₹1 crore or ₹2 crore term insurance?
It depends on your income, lifestyle, and financial responsibilities. Higher coverage offers better security but comes with slightly higher premium.
7. Are online term insurance plans safe?
Yes, if purchased from a reputable and regulated insurer. Online plans are often cheaper because they eliminate agent commission.
8. What factors affect term insurance premium?
Premium depends on age, smoking status, gender, medical history, policy term, occupation risk, and riders selected.
9. Can I increase my term insurance coverage later?
Some insurers offer life stage benefit options that allow increasing coverage at certain milestones like marriage or childbirth.
10. Is claim settlement ratio the most important factor?
It is important, but not the only factor. You should also check solvency ratio, customer reviews, policy terms, and transparency.