Are you looking for the right Life Insurance plan? Here are the top five for 2018. Read on!
Are you still in two minds about investing in a Life Insurance plan? It’s high time you think about getting one. Why? Here are the reasons:
To meet the financial requirements of your family
In case you are the only earning member in your family, then your dependents will need a source of income to meet daily expenses in case of your untimely death.
Their standard of living is likely to be affected significantly if they have no source of income, making it increasingly difficult to meet expenses related to education or other necessities. By purchasing a Life Insurance policy, you will be ensuring that your family will be financially secure in case you are no longer in a position to provide for them.
Repayment of debt
Regardless of whether you have availed a Home Loan or a Personal Loan, have borrowed funds from a colleague or friend to start your own business, got married recently and have a relatively young child, it is essential to ensure that your loved ones will have the financial resources to make any repayments on your behalf in case of your untimely death.
By purchasing a Life Insurance policy, your spouse and dependants can repay all your debts and meet expenses in your absence.
Investment and loan options
Insurance policies not only offer life cover to customers but can also be used to repay your mortgages and loans. Loans against insurance policies are gaining an increasing amount of popularity in recent years as it is a facility that makes it easier for customers to avail financing.
Moreover, Life Insurance policies can also be used as efficient investment instruments. Since there are so many different types of insurance policies, they can be used for different reasons.
For instance, Child Insurance Plans, retirement plans, Term Life Insurance policies, Whole Life Insurance policies, etc. are not only good options as Life Insurance policies, but are also good investment instruments with a potential to deliver good returns.
Accidents and illnesses
Life is uncertain. Accidents and illnesses can occur at any time and leave you in a position where you cannot earn income for your family. In such situations, Life Insurance policies work as a great solution.
In case you meet with a serious accident that renders you disabled or an illness that incurs significant expenses, you can always count on your insurance policy to not only avail treatment from some of the most effective medical institutions, but to also provide financial cover that will reduce your medical expenses while providing income for the period of time that you are unable to work.
Tax benefits
Tax savings are one of the least known benefits of a Life Insurance policy. Section 80C of the Income Tax Act, 1961, provides for tax deductions on premium payments.
Additional Reading: Mistakes To Avoid When Buying A Life Insurance Policy
Here are the top five Life Insurance plans of 2018:
SBI Life eShield
SBI Life eShield is a non-linked, online insurance plan which provides higher returns on premiums. It is designed basically to safeguard your family in your absence and secure them financially. The plan does not offer survival benefits at the time of maturity.
Here are some of the noteworthy features of this insurance plan:
- Cover options: Level cover, level cover with accidental benefit, increasing cover and increasing cover with accidental benefit
- Maximum age at entry: 65 years for both level cover and level cover with accidental death benefit, 60 years for increasing cover and increasing cover with accidental death benefit
- Minimum age at entry: 18 years
- Minimum sum assured: 20,00,000
- Maximum sum assured: No limit (subject to underwriting)
- Minimum policy term: 5 years (for level cover & level cover with accident benefit), 10 years (for increasing cover & increasing cover with accident benefit)
- Premium payment mode: Yearly
- Premium term: Same as policy term
- Minimum premium amount: 3,500
- Maximum premium amount: No limit
HDFC Life Click 2 Protect Plus:
Click 2 Protect Plus is a term insurance plan launched by HDFC life that assures extensive protection to your loved ones against life’s uncertainties.
Here are some of the noteworthy features of this insurance plan:
- Cover options:
- Life option: It offers a lump sum at death of the policyholder
- Extra life option ( Accidental Death Benefit): It provides an extra sum assured in addition to the lump sum offered on death
- Income Option: Provides 10% of sum assured on death and the remaining is paid out on a monthly basis for 15 years
- Income Plus Option: The option provides 100% of sum assured on death and also an arrears on 100% of sum assured which is paid on a monthly basis
- Maximum age at entry: 65 years
- Minimum age at entry: 18 years
- Minimum sum assured: 25 lakhs
- Maximum sum assured: No limit (subject to underwriting)
- Premium payment mode: Yearly, half-yearly, quarterly, or monthly
- Premium paying term: Regular, limited, or single
Aviva i-Life:
Aviva i-Life is a term insurance plan that offers comprehensive financial protection to your family in case of your death. The plan which comes at a nominal cost acts as an additional backup when your loved ones are faced with unfortunate incidents.
Here are some of the noteworthy features of this insurance plan:
- Maximum age at entry: 55 years
- Minimum age at entry: 18 years
- Maturity age: 70 years
- Minimum policy term: 10 years
- Maximum policy term: 35 years
- Premium payment frequency: Yearly and half-yearly
- Premium payment term: Equals the policy term
- Riders: None
- Tax: Tax benefits under Section 80C will be applicable
Future Generali Care Plus:
Emotional losses are irreparable, yet we can secure the lives of our beloved ones and provide them a smooth living even in our absence. Care Plus is a simple Life Insurance plan that offers a high life cover at an easily affordable price, which will ensure complete financial protection to your family even when you are not around.
Here are some of the noteworthy features of this insurance plan (classic option):
- Maximum age at entry: 60 years
- Minimum age at entry: 18 years
- Minimum sum assured: 10,00,000
- Maximum sum assured: 24,99,999
- Minimum policy term: 5 years
- Maximum policy term: 30 years
- Maximum coverage age: 65 years
- Minimum premium: 2,500 per annum
- Premium modes: Yearly, half-yearly, quarterly, and monthly
Here are some of the noteworthy features of this insurance plan (premier option):
- Maximum age at entry: 60 years
- Minimum age at entry: 18 years
- Minimum sum assured: 25,00,000
- Maximum sum assured: No limit
- Minimum policy term: 5 years
- Maximum policy term: 30 years
- Maximum coverage age: 65 years
- Minimum premium: 5,000 per annum
- Premium modes: Yearly, half-yearly, quarterly, and monthly
Birla Sun Life BSLI Protect@Ease Plan:
BSLI Protect@Ease Plan is a Term Insurance plan that guarantees end-to-end financial protection to your family in the event of your death. The plan has been tailored to meet each and every requirement of a family, and hence it comes with flexible coverage options.
Here are some of the noteworthy features of this insurance plan:
- Maximum age at entry: 65 years
- Minimum age at entry: 18 years
- Plan options: Level Term Insurance, Increasing Term Insurance
- Minimum policy term: 5 years
- Maximum policy term: 40 years
- Premium paying term: Single payment, limited payment, regular payment
- Premium payment mode: Yearly or monthly
- Minimum sum assured: 30,00,000
- Maximum sum assured: No limit (subject to underwriting)
- Riders available: BSLI Accidental Death & Disability Rider, BSLI Hospital Care Rider
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