Life insurance is more than just protection for your loved ones in your absence; it also aids your long-term financial goals through assured benefits and returns.
The market offers numerous life insurance policies. For example, a term plan provides a substantial assured sum to your family if you’re not there, while Unit-linked insurance plans (ULIPs) help build wealth over time. Each policy has its pros and cons. Therefore, it’s vital to understand your needs before choosing the right one.
Here’s a comprehensive guide on life insurance, its details, and a list of top policies from leading Indian insurers.
ABSLI Fixed Maturity Plan (Endowment Plan)
The ABSLI Fixed Maturity Plan serves as a savings solution with added life coverage. It assures a lump-sum return and allows choosing from various sum-assured amounts. The policy includes death, maturity, and surrender benefits, granting flexibility. Surrendering the policy comes with no constraints, ensuring policyholders can access funds when needed. Additionally, policyholders can request a loan in emergencies.
Key Features:
- Guaranteed lump sum benefits at maturity.
- Life coverage via multiple sum assured options.
- Wide range of policy terms as per your flexibility.
- Policyholders can surrender the policy anytime during the policy term.
- Plan has a single pay option with policy term options of 5-10 years.
- Minimum annualized premium is INR 12,000.
Pros & Cons
- Avail policy loan against the policy.
- Provides death, surrender and maturity benefit.
- Avail tax benefits on premium paid and benefits.
- Policy does not cover Covid-19 claims.
- Weak investment returns.
Max Life Smart Secure Plus (Term Insurance Plan)
The Max Life Smart Secure Plus Plan acts as a term scheme, providing extra financial protection for your loved ones through the “two-death benefit” choice. This plan also comes with a built-in cover for terminal illness, covered by the insurance company if diagnosed during the policy term. Additional advantages include joint life coverage, premium breaks, and added payout for accidental death.
Key Features:
- The plan comes in three variations: Base Cover, with Accelerated Critical Illness Option and with Accident Cover Option.
- 100 % of the guaranteed death benefit, up to INR 1 crore under terminal illness benefit.
- In return of premium (RoP), the policyholder receives total premium paid till the end of the policy term, if they survive post maturity of the policy.
- Premium break feature allows the policyholder to take a break from premium payments for a while, if the policy has completed ten years.
- Offers joint life cover for the spouse of the policyholder.
- The policy comes up with waiver of future premium riders in case of critical illness or death.
Pros & Cons
- Voluntary sum assured top-up feature.
- Accelerated critical illness cover against 40 illnesses.
- Accidental death up to INR 1 crore.
- Several benefits to spouse under joint cover option.
- Plans do not cover Covid-19 claims.
- Life coverage is not up to 100 years.
HDFC Click 2 Protect Plus (Term Insurance Plan)
Including HDFC Click 2 Protect Plus in your insurance portfolio is crucial, as it stands among the most comprehensive term plans currently accessible in India. It caters to the policyholder’s way of life and assures protection at any life stage.
The plan is available in three options: Life Insurance and Critical Illness Rebalance, Life Protect, and Income Plus, encompassing death, disability, and critical ailments. Moreover, it offers premium discounts to female policyholders and those who don’t use tobacco.
Key Features:
- Plan comes in three variants:
1. Life and Critical Illness Rebalance
2. Life Protect Plan
3. Income Plus Plan
- Optional Add-on Covers:
1. Waiver of premium on critical illness option.
2. Accidental death benefit.
- Alteration of premium payment frequency.
- Option to reduce premium payment term from regular pay to limited pay.
- Flexibility to reduce premium payment terms from regular to limited pay.
- Auto balances death and critical illness cover.
- Offers 10% discount on online purchase.
- Covers Covid-19 claims.
- Lower premium rates for women policyholders and non-smokers.
- No return on coverage if the policy tenure ends unless one opts for RoP plan.
- Renewals are expensive.
Aegon Life iInvest (Unit-Linked Insurance Plan)
Aegon Life iInvest stands out as an all-inclusive ULIP plan with affordability in mind. The plan requires a minimum annual premium of INR 24,000 and accommodates a generous policy term of up to 25 years. It presents two portfolio strategies across six investment funds. Policyholders can choose from these six fund options or opt for a pre-defined fund allocation. Notably, Aegon Life iInvest does not levy any charges for premium allocation services.
Key Features:
- Policy Term: 10 to 25 years.
- Zero premium allocation charges
- 100% fund allocation in all secured six kinds of funds.
- Premium payment frequency is monthly and yearly.
- Number of free switches is four on a yearly basis.
- Top-up Premium is INR 5,000.
- Death benefit and maturity benefit, where the total fund value would be given back.
- Two portfolio strategies, where a pre-defined fund allocation strategy offers the right mix between equity and debt funds.
Pros & Cons
- No premium allocation charges.
- Allows to enhance top-up premium.
- Option of partial withdrawal of funds post lock-in-period.
- Benefits of loyalty additions.
- Avail tax benefits as per section 80C and Section 10D of the IT Act, 1961.
- No unlimited free switches.
- No optional riders along with the plan.
LIC New Jeevan Anand Plan (Whole Life Insurance Plan)
LIC’s New Jeevan Anand presents a blend of savings and life insurance, combining the advantages of an endowment policy and a whole life policy. This unique amalgamation ensures both protection and savings. The plan aids in financial support upon the policyholder’s demise and also facilitates savings accumulation if they outlive the policy term. Furthermore, the plan addresses liquidity requirements through its accessible loan facility.
Key Features:
- Offers death benefit as sum assured on death along with additional bonus and reversionary bonus.
- Death benefit is not less than 105% of the total premiums paid up to date of death.
- Plan also provides a maturity benefit which is paid at the end of the policy term, if all premiums have been paid.
- Policy term ranges from 15 to 35 years.
- Option to receive death and maturity benefits in installments such as monthly, quarterly, half-yearly or annually.
- Offers riders such as LIC’s accidental death and disability benefit rider, LIC’s accident benefit rider, LIC’s new term insurance rider and LIC’s new critical illness benefit rider.
- Provides rebates, such as:
1. Yearly mode – 2% of Tabular Premium
2. Half-yearly mode – 1% of Tabular premium
3. Quarterly, Monthly mode & Salary Deduction – Nil
High Sum Assured Rebate on Premium:
| Basic Sum Assured (B.S.A) (in INR) | Rebate (INR) |
|---|---|
| 1 lakh to 1.95 lakh | Nil |
| 2 lakh to 4.95 lakh | 1.50% of B.S.A. |
| 5 lakh and 9. 95 lakh | 2.50% of B.S.A. |
| 10 lakh and beyond | 3% of B.S.A |
- Policy provides surrender benefits.
- Avail loan facility against policy.
- Plan can be purchased online with no hassles.
- Flexibility of premium payout options.
- Maturity benefits are not enough to meet your financial goals.
- Bonus declaration varies for each year
- The policy can be surrendered only after the lock-in-period of two years.
SBI Life- eShield Next (Term Insurance Plan)
The SBI Life eShield Next stands as a modern and affordable term plan that offers complete coverage for an entire lifetime, extending up to 100 years. This term plan comes in three variations: Level Cover, Increasing Cover, and Level Cover with Future Proofing Benefits. It includes a built-in terminal illness benefit that provides coverage equivalent to the sum assured, with a maximum limit of up to INR 2 crore, upon diagnosis of a terminal or end-stage disease. Moreover, it incorporates a better-half benefit, enabling policyholders to extend coverage to their spouse under the same plan.
Key Features:
- Comes in three variants such as:
1. Level Cover Benefit
2. Increasing Cover Benefit
3. Level Cover with Future Proofing Benefit
- Option to choose from two benefits such as death benefit payment mode or better half benefit option.
- Death benefit can be paid in either lump sum, monthly installments or the combination of both.
- In-built terminal illness benefit, subject to a maximum of INR 2 crore.
- Option to pay the premium amount either only once or for a limited period or entire policy term.
- Add-on cover such as accidental death benefit rider and accidental total and permanent disability rider.
Pros & Cons
- Flexibility of premium payment options.
- Whole life coverage up to 100 years.
- Inbuilt terminal illness benefit.
- Option to cover your spouse.
- Lower premiums for non-smokers.
- No maturity and surrender benefits.
Edelweiss Tokio Life Flexi-Savings Plan (Money Back Plan)
Consider the Edelweiss Tokio Life Flexi-Savings as a strong choice if you desire both insurance coverage and assured returns. This plan uniquely offers an income benefit starting as early as the second year of the policy. Edelweiss Tokio Life Flexi-Savings aims to furnish policyholders with death and maturity benefits. Returns come in the form of guaranteed income, cash bonuses, and reversionary bonus payouts. Additionally, the plan provides an array of six optional riders for further customization.
Key Features
- Option to choose from three plan options: Flexi-income option, flexi-income pro option and large sum option.
- Enhance your savings with cash and reversionary bonuses.
- Option to choose income benefit from the second year of policy.
- Option to receive survival benefit instead of cash payouts.
- Option to choose from six riders: Accidental death rider, accidental disability rider, critical illness rider, waiver of premium, income benefit, hospital cash rider.
- The minimum premium is INR 50,000 (annually), and INR 25,600 (semi-annual).
- Option to receive a policy loan against this plan.
- Whole life coverage up to 100 years.
- Provides death, surrender and maturity benefit.
- Avail tax benefits on premium paid and benefits.
- No special discount for women policyholders.
Analysis done by Forbes Advisor
