How Much Will a Rs 2 Crore Term Insurance Plan Cost in India?


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Planning to invest in Rs 2 crore term insurance for your family’s future? Here’s how much it’s going to cost you to buy a lifetime of security for your loved ones.

A man earns his entire life for the sake of his loved ones. His family means the world to him. He struggles all day long only to earn bread for the family as long as he can. But what he sometimes fails to realize is who would earn bread for his loved ones when he’s not around? While working to make our present comfortable, it’s equally important to think and plan for the future, especially that of our family. This is where term insurance plays a significant part.

Term insurance plans are essentially pure risk plans which means that they are designed to cover the biggest risk of all, death. In case of an unfortunate and untimely demise of the sole breadwinner for the family, a term insurance plan provides financial coverage for their family’s needs. This ensures that life for the policyholder’s family still moves on without much financial trouble.

Now there are a variety of term life insurance plans available with different insurance companies in the market. You can make your own choice based on your budget and actual requirements. Here we discuss in detail the cost (premium-wise) of a 2 crore term insurance plan to help you make an informed choice for your family’s future.

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How Much Would a Term Life Insurance Policy of Rs 2 Crore Cost?

As stated earlier, you may choose to invest in a term insurance plan worth any amount, based on your individual requirements and budget preferences. Of course, the higher the amount of coverage that you opt for, the better it would be to secure your family’s future optimally. However, note that while choosing the coverage amount for your term insurance, there are a number of factors that would need to be taken into consideration.

10 Factors that Help Determine the Term Life Insurance Policy Premium

All of these factors would help determine the premium payable on that plan:

  1. The current age of the policyholder (higher the age, lower the sum assured owing to the probability of risk being high)
  2. The current income of the policyholder which determines their exact paying potential (whether or not they would be able to pay the premium for a certain high-value plan)
  3. The current medical condition of the policyholder and their medical history, if any (to determine the probability of risk involved for the insurer)
  4. The gender of the policyholder
  5. Any history of hereditary health conditions in the family
  6. Any pre-existing illnesses (which again helps the insurer determine the amount of risk involved in the term insurance plan)
  7. The current occupation of the policyholder (high-risk jobs are generally insured at lower sum assured)
  8. The lifestyle of the policyholder (determining addictions to smoking, drinking, or drugs)
  9. The term of the plan chosen
  10. The chosen term and frequency for premium payment by the policyholder (monthly, quarterly, six-monthly, annually)

Now, based on a thorough assessment of all these factors taken together, the insurance company would calculate the exact premium amount that the policyholder would need to pay for the term of the policy.

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If you wish to know the premium payable prior to buying the term insurance plan with an insurer, you can do so by referring to several online tools available. The online term insurance premium calculator can help compute the exact premium amount that needs to be paid for different term insurance policies of different coverage values.

Just how your insurer would calculate the premium for you after entering all the required details (mentioned above), you can do the same on this online tool and you’d get the premium calculated in a few seconds!

Now, to give you a clearer idea on the exact cost of a 2 crore term insurance plan, we have tried to explain through an example below how much premium would you actually need to pay if you chose to invest in a term insurance policy that promises a high-value coverage of 2 crores for your family after your death.

The values used for the purpose of this example are imaginary (only for your understanding) so we recommend determining the exact cost of the specific plan that you wish to purchase from the insurance company that you intend to buy it from. Your insurer would be able to tell you the exact premium payable for your plan based on an assessment of the various factors, as discussed above. However, this example is only for illustrative purposes, to help you make an educated choice.

  • Gender of the policyholder: Male
  • Age of the policyholder: 35 years
  • Lifestyle habits: Non-smoker
  • Term of the plan: 40 years
  • Term of premium payment: 40 years
  • Frequency of premium payment: Yearly  

Also note that the table below enlists the premium amount payable on the plan for different variants of the 2 crore term insurance plan that you may wish to invest in. Based on the type of plan that you choose, the premium amount would vary.

Type of Term Insurance Plan Sum Assured to the Beneficiary Upon Policyholder’s Death Premium Payable Annually (GST Included)
Basic Life Cover Plan Rs. 2 crore Rs. 25,549
Fixed Income Protection Plan Fixed monthly income of Rs. 83,000 assured after death, until the insured attains 60 years of age or for a term of 10 years, whichever is later Rs. 12,841
Increasing Income Protection Plan Fixed monthly income of Rs. 125,000 payable after death, until the insured attains 60 years of age or for a term of 10 years, whichever is later. Income increases by 10% annually. Rs. 43,200
Basic Life Cover + Fixed Income Protection Plan Rs. 2 crore paid in a lump sum upon death; Rs. 30,000 fixed income paid monthly until the insured is 60 years old or for a term of 10 years, whichever is later Rs. 30,456
Basic Life Cover + Increasing Income Protection Plan Rs. 2 crore paid in a lump sum upon death; Rs. 30,000 fixed income paid monthly until the insured is 60 years old or for a term of 10 years, whichever is later; income increase by 10% annually Rs. 34,488

Read More: Term Insurance Plan for Organ Transplantation and Its Benefits

Summing Up

Term insurance is one of the wisest choices to make in your present to secure your family’s future for a lifetime. You can look for the best term insurance plan for 2 crore with an insurer of your choice or any term life insurance policy based on your budget and actual financial needs. We hope that the information in this blog would help you make an informed decision; however, do consult your insurance company before making any purchase.

Also read: What is Term Insurance with Maturity Benefits?

FAQs on 2-Crore Term Plan

What sum assured amount should I choose?

As you can see from the information provided above, the sum assured amount depends on your family’s financial needs. Ideally, the amount you pick should help cover any lost income and cover outstanding debts.

What plan tenure should I pick?

Your term plan tenure should cover you at least until you retire. So, a 30-year old might pick a tenure of 40 years. On the other hand, a 40-year-old might opt for a policy term of 20 years.

Will the term plan premiumchange during the tenure of the policy?

No. Once you purchase a policy, the premium amount will stay the same for the entire policy tenure.

Are term insurance riders necessary?

Term insurance riders can provide additional financial protection, but they aren’t always necessary. Individuals who work in factories or travel often for work might have more use for an accidental death rider than a stay-at-home mom. You should pick the riders based on your personal needs. Remember, the riders and add-ons you select will affect your term plan premium.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.



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Oct 28, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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