Best Term Insurance Plan for ₹1 Crore in India

A ₹1 Crore term insurance plan is often the first “serious” life cover most people consider, and for good reason. It offers a meaningful safety net at a relatively affordable premium, especially if you buy the policy early.

For young earners and small families with moderate expenses, ₹1 crore can replace income, clear basic liabilities, and give dependents enough runway to rebuild financially. However, whether ₹1 crore is sufficient depends on your lifestyle, dependents, loans, and long-term goals.

So instead of asking “Which is the cheapest ₹1 crore plan?,” the better question is: “Is ₹1 crore the right cover for me?” Let’s break it down.

Who Should Buy a ₹1 Crore Term Insurance Plan?

Salaried Individuals

If you’re under 35, earn a steady income, and have monthly household expenses around ₹30,000–₹40,000, a ₹1 crore term plan works well as a base layer of protection. It can replace your income for 10–20 years, help your family manage rent or basic EMIs, and cover everyday living costs without immediately dipping into savings.

Self-Employed and Business Owners

A ₹1 crore term plan can suit self-employed individuals if their income is reasonably stable, personal expenses are modest, and the business does not depend entirely on their presence to survive. However, if your family relies heavily on business cash flows or you have significant personal or business loans, ₹1 crore may fall short, and higher coverage should be considered.

Married Individuals and Parents

For couples with a single dependent spouse and no major home loan or long-term education planning yet, ₹1 crore can offer short-term financial comfort. But once children, housing loans, or future education expenses come into play, most families require ₹2–3 crore or more to remain financially secure in the long run.

Young Professionals Planning Early

This is where ₹1 crore term plans deliver the most value. Buying in your 20s means very low premiums, minimal medical checks, and faster policy approvals. More importantly, you lock in cheap rates for 30–40 years and retain the flexibility to increase coverage later as your income and responsibilities grow.

Note

If you want to calculate how much cover is perfect for you, you can refer to Ditto’s Term Insurance Cover Calculator.

Best Term Insurance Plans for ₹1 Crore

Before we discuss the list, here’s how we decide what plans to feature.

At Ditto, every term plan goes through our six-point evaluation framework. It doesn’t mean these are the only good plans, but that they stand out after being scored across all six pillars.

You can learn more about how we evaluate term insurance plans here.

Best Term Insurance Plan for ₹1 Crore	Coverage and Riders	Ditto Rating
Axis Max Life Insurance Smart Term Plan Plus	Accidental Death Benefit, Critical Illness Cover (up to 64 illnesses), Regular or Smart Cover (1.5X coverage for first 15 years), Women's Perks (Lifeline Plus & Discounts), Waiver of Premium on Disability or Critical Illness, Zero-Cost Exit Option, Terminal Illness Benefit	4.6/5
HDFC LIFE Click 2 Protect Supreme	Accidental Death Benefits, Disability & Critical Illness Premium Waiver, Total Permanent Disability, Inflation-linked cover, Critical Illness Cover (60 illnesses, 90-day waiting period), Terminal Illness Benefit, Life Stage Increase Option.	4.25/5
ICICI Prudential iProtect Smart Plus	Accidental Death Benefits, Life Stage Benefit (increased coverage after milestones like marriage/childbirth/home loan), Terminal Illness Payout, Critical Illness Cover (60 illnesses), Zero Cost Option	4.25/5
Bajaj Life eTouch II	Accidental Death Benefits, Life Stage Benefit (increased coverage after marriage/childbirth), Critical Illness Coverage (60 illnesses), Terminal Illness cover, Waiver of Premium on Accidental Total & Permanent Disability, Zero Cost Option	4.25/5
Aditya Birla Sun Life Super Term Plan	Inbuilt Accelerated Critical Illness Benefit + premium waiver on diagnosis, Terminal Illness payout (inbuilt), Waiver of premium on Accidental Total & Permanent Disability, Life Stage Flexibility, Cover Continuance (premium deferment up to 12 months), Early Exit Value (specific age/tenure bands)	4.1/5

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Premiums of the Best Term Insurance Plans for ₹1 Crore

Age	ABSLI Super Term Plan	AMLI Smart Term Plan Plus	HDFC LIFE Click 2 Protect Supreme	Bajaj eTouch II	ICICI Pru iProtect Smart Plus
25	11,700	10,459	11,954	10,020	10,480
30	13,900	13,185	14,576	12,630	12,968
35	18,000	17,223	20,176	16,070	17,650
40	23,800	22,970	25,272	21,907	23,866

Premiums are calculated for a person seeking a ₹1 crore sum assured, with coverage up to age 70, for a non-smoking male, with no added riders or 1st year discounts.

Premiums of the Best Term Insurance Plans for ₹2 Crore

Age	ABSLI Super Term Plan	AMLI Smart Term Plan Plus	HDFC LIFE Click 2 Protect Supreme	Bajaj eTouch II	ICICI Pru iProtect Smart Plus
25	₹20,538	₹18,400	₹21,003	₹16,105	₹17,014
30	₹24,400	₹22,556	₹26,471	₹20,717	₹21,237
35	₹31,597	₹28,506	₹35,241	₹26,953	₹28,238
40	₹41,779	₹38,760	₹44,798	₹36,951	₹39,594

Premiums are calculated for a person seeking a ₹2 crore sum assured, with coverage up to age 70, for a non-smoking male, with no added riders or 1st year discounts.

Insights: A key takeaway from the tables is that term insurance premiums do not increase proportionately with the sum assured. Moving from a ₹1 crore to a ₹2 crore cover typically raises the premium by only about 60%–80%, not 100%. In other words, you get nearly double the coverage without paying double the price. This makes higher covers far more cost-effective and better suited to replace income and support dependents for a longer period, especially in the face of inflation and rising living costs.

How to Choose the Best Term Insurance Plan for 1 Crore?

Before finalizing a term insurance plan for 1 crore, take a look at the following pointers:

1) Coverage vs Premium Balance

The cheapest plan is rarely the best plan. A good ₹1 crore term policy should strike a balance between affordability and meaningful protection. Look for reasonable premiums, strong core benefits, and useful riders such as waiver of premium, critical illness cover, disability cover, and flexible payout options. Also, remember that once you buy a term plan, the premium usually stays fixed for the entire policy duration, so over time, its real cost becomes relatively insignificant. Saving a small amount every year makes little sense if your family struggles during claims.

2) Insurer Reputation and Claim Settlement Record

Your nominee will deal with the insurer, not you. That’s why it’s important to check the insurer’s claim settlement ratio, amount settlement ratio, customer complaint volumes, solvency ratio, and how transparent their claims process is. A reliable insurer often matters more than marginally lower premiums.

3) Policy Term and Payout Options

Ideally, your policy should cover you until at least age 60 or 65. You should also evaluate how the payout will be made, whether as a lump sum, a monthly income, or a combination of both. Longer coverage periods generally offer better financial security for dependents.

4) Importance of Policy Wordings

Policy documents decide what actually gets paid. Always review how “death” is defined, the exclusions (such as suicide or non-disclosure), rider conditions, and disability definitions. Two plans may look identical on paper, but perform very differently during claims.

Note

Inflation quietly erodes the value of your cover. At 6% inflation, ₹1 crore today is worth only about ₹42 lakh in 15 years and roughly ₹31 lakh in 20 years in today’s terms. Similarly, if your family needs ₹8 lakh per year today, maintaining the same lifestyle could cost around ₹26 lakh per year after 20 years.

How to Buy the Best 1 Crore Term Insurance Plan Online

The following infographic neatly sums up the step-by-step purchase process for the best term insurance plan for 1 crore in India:

Remember: Hiding or misreporting details such as smoking habits, alcohol consumption, past illnesses, or existing medical conditions is one of the most common reasons claims get rejected. Always disclose everything honestly, even if it slightly increases your premium, because an unpaid claim costs your family far more than a higher premium ever will.

Why Choose Ditto for Term Insurance?

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Conclusion

A ₹1 crore term insurance plan is a strong starting point for building financial security, especially if you’re young, have moderate expenses, and want affordable long-term protection. It can replace income, cover basic liabilities, and give your family the breathing room they need during difficult times.

However, the right plan is about choosing reliable insurers, adequate coverage duration, and clear policy terms. As your income and responsibilities grow, revisiting and increasing your cover can make your protection truly future-proof.

Quick Note

Our rankings here reflect an objective view of the numbers insurers report to IRDAI, combined into a simple 5-point score so you can compare them easily. Partner or not, every insurer on this list is evaluated using the same criteria, which is why you’ll see a mix of both, including partners such as Axis Max Life, HDFC Life, and ICICI Prudential, as well as non-partner insurers like Aditya Birla Sun Life.

For more details on how we approach reviews and partnerships, you can refer to our Editorial Policy & Disclaimers.

And as always, remember that this list is based on publicly available information and is not personalised advice. Please review the policy brochure carefully and speak with a licensed advisor before choosing a plan.

Frequently Asked Questions

Is the best term insurance plan for ₹1 crore enough for a family?

It can be sufficient for small families with modest expenses, but households with home loans, children, or higher living costs often need higher coverage.

Can I increase my ₹1 crore term insurance cover later?

Yes. Many plans allow coverage increases through life-stage benefits or by buying an additional policy later.

Do I need medical tests for a ₹1 crore term plan?

Young, healthy applicants may only need a tele-medical check, while older applicants or smokers usually require physical tests depending on the insurer's underwriting guidelines.

Is the payout from a ₹1 crore term insurance plan taxable?

No. Death benefits from term insurance are generally tax-free under Section 10(10D) of the Income Tax Act.

What happens if I miss paying premiums for my term plan?

Most policies offer a grace period. If premiums remain unpaid, the policy may lapse, and coverage will stop.

Last updated on: 20 Jan, 2026