Life insurance policies provide the safety net in the face of life’s uncertainties. They ensure that you and your family are protected financially even after your time. The most necessary life insurance feature is that it protects against the risk of premature death. Let’s see if your life insurance policy is covered in the list of top 4 policies.
Currently, investors can find several life insurance policies in the market with varied features. However, you should ensure that they choose one with the best benefits, in case of death and survival, so that you and your family’s financial needs are fulfilled in the future with no fuss.
5 features of the best life insurance policies
The importance of a life insurance policy is well known. The question is, is your life insurance policy the best fit for you? Does it cover all the necessary life insurance features and provide the insured with a death benefit? What are its maturity benefits?
These are some of the questions that one should ask themselves while getting a life insurance policy. A life insurance policy can be a way to provide financial security to you and your family, or it can also be a secure way to invest money for the future. Whatever your reason for getting a policy may be, you must check if it consists of the following features.
These are the salient features that make your life insurance one of the top four policies.
Protection
The first feature that defines a life insurance policy is protection. Check the number of people it covers under the plan. It should provide financial support to your family, including your parents, spouse, children, and siblings who are dependent on you. The terms of the life insurance policies should give assurance to your family members.
Maturity benefits
Various policies offer different maturity benefits. You will find some that do not have any maturity benefit. That is, the policyholder will receive the payments in the form of regular pension once the term of the policy has expired. Maturity benefits are applicable if the insured survives after the maturity of the plan.
These may include additional interest or benefits payment that is paid at the end of the term. Getting a life insurance policy with maturity benefits like the Guaranteed Savings Plan can give you an extra layer of financial security.
Death benefits
Death benefits are applicable if the policyholder dies before reaching the end of the term of the policy. The nominees included in the policy by the insurer receive these benefits. Other than the regular or lump sum pay-outs that are one of the basic life insurance features, the nominee may receive an exclusive death benefit under some policies. Check whether your policy offers any return on investment or an assured sum payable in case of death of the policyholder—this can place your policy among the top four.
Term
There should be variation in the term period offered under life insurance policies. The best policy will be one that provides a bracket of 10 to 40 years so that the policy can be viable for people of all ages. If you are someone in your twenties or thirties, then getting a life insurance policy with a longer term will be the best way to secure yourself financially.
If you are getting a policy in your fifties, then pick the term accordingly. Some policies are available for a term as short as 5 years. Ensure that the term is fixed so that you can get maturity benefits once the term reaches its end.
Return on investment
Various insurance providers offer different life insurance features that can match your present and future financial needs. Some policies offer protection in addition to the payables that are featured in the policy. Others offer investment along with the insurance policy. In such policies, the investment and insurance payables are unit-linked and participatory. That is, the insured can choose whether they want to invest a part of their insurance sum to get better interest and benefits.
Top 4 Life Insurance Policies in India
Based on these factors, the following life insurance policies are considered to be the top 4 policies in the market currently. You can compare their features to find the one that meets your needs and expectations in the best way possible.
1. Future General Life Insurance: Comprehensive Health Insurance
The Comprehensive Health Insurance policy comes in two variants to meet the needs of the insured. These variants are based on the number of family members that need to be insured under the policy. There is no age limit on the plan.
One can get up to 1 crore as the sum assured upon maturity of the policy. You can get an online quote from the website of the insurance provider and review the features of the policy in detail.
Some of the features include:
- Family discount of 10% if multiple family members are covered in the plan
- Multiple premium payment options
- Covers expenses before, during, and after hospitalisation
2. Canara HSBC Oriental Bank Of Commerce Life Insurance: iSelect Star Term Plan
One of the most inclusive and flexible life insurance policies, the iSelect Star Term Plan, comes with whole life cover and assured return of premium.
You can avail of limited premium payment under the policy along with other add-ons that can enhance the features of the insurance policy.
Some of the features include:
- Additional inbuilt coverages like child support benefit, accidental death benefit, accidental disability benefit
- The option of adding a spouse to the same policy
- Multiple premium payment options
- Increasing life cover based on personal milestones
- Discount on premiums for higher sum assured and female lives
3. HDFC Life Insurance: HDFC Click 2 Protect Life
HDFC Click 2 Protect Life is another flexible plan that changes as the lifestyle of the insurer changes with age and time. It accommodates its terms as per the stage of life to make sure that the financial needs of the insured are fulfilled.
The plan balances death and critical illness cover as well. Along with that, the insurer has the ability to reduce the premium payment term from regular to limited pay.
Some of the features include:
- The auto-balance between death and critical illness benefits with increasing age
- Waiver of premium upon critical illness diagnosis
- Additional sum assured in the event of accidental death
4. Edelweiss Tokio Life Insurance: Zindagi Plus
Zindagi Plus offers a special top-up benefit option through which one can increase the amount of premium payment year by year as the financial condition of the insured improves.
The plan also provides cover against 35 critical illnesses. Along with that, one can avail of different variants of the plan as per their needs. These variants include the non-medical option, waiver of premium option, better half benefit option, etc.
Some of the features include:
- Covid 19 cover along with life coverage
- Option to add a spouse
- Waiver of premium in case of critical illness
The age at which you get your life insurance policy can define the number of payables you get as well as the returns on investment applicable. Some insurance providers offer policies for people who have reached the age of 18 years up to 65 years old.
When the features mentioned above come together in a policy, you can be sure that you and your loved ones have the best coverage. These life insurance features are provided as per the amount of the premium and the sum assured. As such, be sure to choose a plan with a suitable premium and assured amount that can protect your family better.
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