Life is full of surprises, some good, some difficult. While we cannot always predict what will happen, we can take steps to prepare for it. One simple way to look after your family’s future is by buying a term insurance plan.

In 2025, more people are choosing higher insurance amounts, like 2 crore. This may sound like a big number, but it is becoming a practical choice for many Indian families. Also, it is important to understand the relevance of the Claim Settlement Ratio in such a high amount.

What Is a Term Insurance Plan?

A term insurance plan ensures your loved ones do not have to go through financial struggle in case of your untimely demise. The sum assured can help your family manage life in your absence. If you choose a cover of 2 crore, it can help your family manage education, loans, medical needs, daily expenses or any other such expenses. It is one way to keep your loved ones financially safe.

Why  2 Crore and Not Less?

Years ago, 20 lakh or 50 lakh may have been enough. Today, that amount does not go very far. City living is expensive. Children’s education costs more. Medical bills are rising. A 2 crore cover can help your family live without financial stress if you are no longer there. It is not just a large number. It is a safety net for the people you care about.

Who Should Think About a 2 Crore Cover?

This type of plan is suitable if you are:

• In your 30s or 40s
• Supporting children or elderly parents
• Paying off loans, such as a home loan
• The only or main earning member in your family
• Running a business or working freelance

Starting early is better. The younger you are, the lower your premium will be.

How to Choose the Better Term Insurance Plan for  2 Crore

Here is what to check when choosing the best term insurance plan for 2 crore:

• Claim Settlement Ratio. This shows how many claims the company has paid out. A higher number means your family is more likely to receive the money without trouble.
• Policy term. Try to make a plan that covers you till the age of 60 or 65.
• Extra features or riders. You can add covers like critical illness or accidental death for added protection.
• Premium. Choose a plan that you can afford to pay every year.
• Claim process. Make sure the company has a clear and simple way to make a claim.

What Is Claim Settlement Ratio and Why Does It Matter?

The Claim Settlement Ratio is the percentage of claims that an insurance company pays in a year. It is a numerical representation of an insurance company. The better the CSR, the more reliable a company is. It is a number you must check before buying a plan, especially one with a large sum like  2 crore. A ratio above 97 per cent is considered good.

Are You Underinsured Without Knowing It?

Many people think they have enough insurance, but they do not. Experts say your life cover should be around 10 to 15 times your yearly income. So, if your yearly income is  15 lakh, a 2 crore term plan is a suitable choice. Employer insurance usually ends when you change jobs. That is why a personal policy is important.

How Much Does a  2 Crore Term Plan Cost?

You may be surprised to know that it is not very expensive. Below is a basic idea for a healthy 30-year-old man who does not smoke and has a plan for 30 years:

This cost stays the same every year once you buy the plan. It is better to start early and lock in a lower premium.

A Simple Example to Show Why It Helps

Anita, a 36-year-old teacher, bought a  2 crore plan when her son was three years old. Sadly, her husband passed away in a road accident. The insurance money helped Anita:

• Pay off their home loan.
• Save for her son’s school and college fees.
• Cover monthly expenses without worry.

This shows how one smart decision can protect a whole family.

Mistakes You Should Avoid

Even good plans can go wrong if certain things are overlooked. Here are some common mistakes people make while buying term insurance:

• Do not delay buying a plan. The longer you wait, the higher the premium.
• Do not hide any medical history. This can cause claim rejection later.
• Do not go for the cheapest plan only. A low premium may come with fewer benefits.
• Do not forget to review your plan. Update it when you get married, have children or take on new loans.

What About Taxes?

The money your family gets from a life insurance plan is usually not taxable under Section 10(10D) of the Income Tax Act.

Earlier, many people also saved tax under Section 80C. That benefit is available under the old tax regime.

It is a good idea to check with a tax expert before choosing between the old and new tax rules.

Conclusion

A  2 crore term plan is not about fear. It is about care. It is a simple and wise step you can take today to protect your family tomorrow.

When choosing a good term insurance plan for  2 crore, always look at the company’s Claim Settlement Ratio, plan benefits and clear claim process. This plan is not just a piece of paper. It is your way of saying, “No matter what happens, I have your back.”