It is estimated that only 10% of Indians have life insurance. The first experience of buying life insurance for many of these policyholders would have been when a friend or family member decided to take up a part-time job as an insurance agent. So, they hadn’t actually BOUGHT life insurance, it was SOLD to them. But is insurance something that you buy out of obligation; isn’t it something that you really need? While the former may seem to be true for some, insurance is actually a crucial buy as far as your financial planning is concerned.
As you grow older and have a family, you will realise that life and health insurance are fundamental for a sound financial future. These indispensable financial planning tools will offer you peace of mind for years.
The significance of insurance combi plans
Insurance companies in India have started offering plans with life insurance protection and health insurance coverage under one product. This is very useful for individuals who do not have insurance protection and are reluctant to approach different insurance companies for the same. These products simplify the process of searching for two different plans, purchasing the policies, and maintaining these as well. It should be noted that the management of combi plans is much easier than individual policies. However, there may not be too much cost benefit from buying such a policy; the convenience is the key factor here.
Some of the popular life and health insurance combi plans available in the market are described below:
1. Aviva Extra Cover - This is a unique insurance product that is essentially a combination of Aviva’s i-Life, a term insurance product, and Health Secure plan. Aviva Extra Cover offers you comprehensive life insurance protection and coverage for 12 critical illnesses as well. There are no maturity benefits under the policy; hence you can receive extensive coverage at a nominal cost. The benefits that are offered under the policy include:
a. Death benefit - This is paid to the nominee when the life assured passes away.
b. Critical illness benefit - In case the life assured is diagnosed with any of the 12 predefined critical illnesses, he/she will receive the sum assured under the health insurance part of the plan.
The premium for the plan may be reviewed and updated every 5 years. The policy can be purchased online in a hassle-free manner, and a 30-day free-look period is offered by the insurer.
2. Star First Optima - Star Health Insurance has an assortment of combi plans that offer life and health insurance protection under the same product. These include:
a. Star First Delite
b. Star First Care
c. Star First Comprehensive
d. Star First Classic
e. Star First Optima
Let us take a look at Star First Optima, a plan that provides insurance protection for the whole family at affordable costs. Under the health insurance part of the plan, the life assured can receive auto recharge facility on sum insured at no extra cost. A health checkup is offered whenever the policyholder observes a claim-free year. One of the highlights of the policy is the coverage offered for assisted reproductive treatment. Automatic restoration of sum assured is offered 3 times, and coverage is provided for all day care procedures.
Under the life section of the coverage, the policyholder’s family receives a death benefit at his/her untimely demise. There is no maturity benefit under the plan.
3. HDFC Life Click 2 Protect Health - Apollo Munich Health Insurance and HDFC Life have come together to offer a health and life insurance combi plan that is affordable and comprehensive. This insurance policy offers you tax benefits under Sections 80D, 80C, and 10D of the Income Tax Act. Under the life insurance coverage section, it is possible to increase your insurance cover each year by opting for top-ups. Attractive rates of premium are offered for female customers and non-smokers.
As part of the health coverage, automatic restoration of sum assured is offered. The multiplier benefit is another attractive feature of the policy as it increases your sum assured by 50% when you observe a claim-free year. If the life assured leads a healthy lifestyle, he/she is eligible to receive a discount of 8% on renewal premium.
To add to this, the insurer’s vast network of more than 4,500 cashless hospitals and quick claim settlement guarantee make this one of the most sought-after combi plans in the insurance market today.
Insurance needs change with the different stages of a person’s life cycle. You should compare policies online and buy a plan based on your financial dependencies and obligations. If you plan to buy car insurance from the same company that provides you other insurance products, you may be eligible for bundling or loyalty benefits. So, consider this when investing in insurance products.
(This article was originally published on BankBazaar.com)