When it comes to securing your family’s future financially, choosing a term insurance plan is one of the smartest decisions you can make. Among the various options available, a term insurance plan for 1 crore has become increasingly popular among Indian earners. This is especially true for millennials and Gen Z professionals who understand the importance of financial security.
In this article by Money Moksh, we will look at the best term insurance plans in India that offer a ₹1 crore cover. We will also discuss why this amount is ideal and how current market trends and news impact your decisions.
Why 1 Crore Term Insurance Plan Is Gaining Popularity in 2025
Over the past few years, India has seen a rapid increase in insurance awareness. According to IRDAI’s 2024-2025 report, purchases of term insurance among people aged 25 to 45 have grown by 28% year-over-year. The post-pandemic world, rising medical costs, and inflation have made families more financially vulnerable than ever.
A recent news article from The Economic Times (June 2025) states that urban professionals are increasingly opting for higher coverage term plans, with ₹1 crore emerging as the ideal amount. This amount is often enough to cover a family’s major financial obligations, such as home loans, children’s education, and lifestyle needs, in the unfortunate event of the breadwinner’s absence.
What Makes A Insurance Plan for 1 Crore So Popular?
Here are some reasons why this coverage amount is becoming the new standard :
1. Affordability : Thanks to digital insurers and competition, premiums for a ₹1 crore cover are now more affordable than ever.
2. Rising inflation : While ₹1 crore may seem like a large sum now, inflation could mean it’s just enough to cover 15 to 20 years of family expenses.
3. Income Replacement : For someone earning ₹10 to 15 lakhs annually, this amount can provide 6 to 8 years of income replacement.
4. Loan Protection : This coverage can pay off home loans or personal loans, so liabilities don’t fall on loved ones.
Top 5 Best Term Insurance Plans for 1 Crore in India (2025)
Based on claim settlement ratios, premium costs, features, and customer service, here are Money Moksh’s top picks :
1. LIC Tech Term Plan (Online)
Premium : ₹9,200/year (30-year-old non-smoker male)
Claim Settlement Ratio : 98.52%
Highlights : Trusted LIC brand, customizable coverage, optional riders.
2. HDFC Life Click 2 Protect Super
Premium : ₹8,800/year
Claim Settlement Ratio : 99.39%
Highlights : Flexible benefit options like Life, Life Plus, and Income Plus.
3. Max Life Smart Secure Plus Plan
Premium : ₹8,100/year
Claim Settlement Ratio : 99.50%
Highlights : Critical illness rider, premium back options, accidental death cover.
4. Tata AIA Sampoorna Raksha Supreme
Premium : ₹8,500/year
Claim Settlement Ratio : 99.01%
Highlights : Life stage options, health riders, optional return of premium.
5. ICICI Pru iProtect Smart
Premium : ₹8,300/year
Claim Settlement Ratio : 97.80%
Highlights : Multiple payout options, terminal illness benefit included.
Note: Premiums are approximate for a 30-year-old male, non-smoker, with a policy term of 30 years. Rates may vary based on lifestyle, age, and medical history.
Term Insurance in the News : What’s Trending?
In 2025, IRDAI has proposed several reforms to make term insurance plans simpler and more transparent. The “Simplified Insurance Norms Bill” aims to :
– Make disclosures easier for buyers.
– Encourage standard term insurance products with minimal riders.
– Promote quick claim settlements under ₹1 crore for verified nominees.
These changes have encouraged more people to see term plans as financial safety nets rather than complicated investment-like products.
In a popular Twitter post in May 2025, India’s Finance Minister stated, “A good term insurance plan is not just protection; it’s dignity preserved for your family.” This quote has gained traction, motivating young earners to invest in straightforward protection policies.
How to Select the Ideal 1 Crore Insurance Plan?
Here are a few important points to remember :
1. Age & Health Profile : The younger you are, the lower your premium. Don’t wait until your 40s to get a plan.
2. Claim Settlement Ratio : Opt for insurance providers that have a claim settlement ratio exceeding 97%. This indicates their trustworthiness.
3. Add-On Riders : Look for riders like critical illness coverage, premium waiver, and accidental death benefits.
4. Premium Payment Options : Some plans have limited payment options or return of premium. Choose based on your long-term goals.
5. Online vs Offline : Generally, online term insurance plans tend to be more affordable and clearer. Always compare before making a purchase.
Real-World Example : The Logic Behind 1 Crore
Let’s consider Rajesh, 32, who works in Bangalore and earns ₹15 lakh per year. He has a home loan of ₹50 lakh, two kids, and a dependent spouse.
If Rajesh were to pass away suddenly :
– A sum of ₹50 lakh would settle the home loan.
– An amount of ₹25 lakh might cover his children’s college education.
– ₹25 lakh could help his spouse cover monthly expenses for several years.
A term insurance plan with ₹1 crore coverage is suitable in this situation—affordable and meaningful.
Conclusion : Is ₹1 Crore Term Insurance Enough?
The simple answer is yes, it is sufficient for most people, especially if you’re in your 20s or early 30s. It covers major financial liabilities and provides your family with peace of mind. However, if you are the sole earner or have multiple dependents and significant obligations, consider increasing your coverage to ₹1.5 to 2 crore.
At Money Moksh, we believe that financial planning begins with term insurance—not stocks or mutual funds, but pure protection. A ₹1 crore term insurance plan is not just about death benefits; it’s about living confidently, knowing your family will be financially secure, no matter what.
If you need help deciding which ₹1 crore term insurance plan fits your needs, share your age and income details in the comments. The Money Moksh team will assist you personally.
Also If you are looking for reliable life insurance as well? Click here to explore trusted life insurance plans and secure your family’s future today.