As the pandemic progresses, life becomes more and more uncertain. With people requiring extensive medical attention, there is a sense of precariousness that everyone is experiencing. Therefore, it can be an especially trying time for many parents or individuals financially supporting their families. Many breadwinners are now taking the responsible step of buying the best life insurance plans that would ensure their family’s well-being should anything happen to them.
3 Life Insurance Cum Saving Plan Options to Buy in 2021
Although many Indians know how important life insurance is, they may not know which plan will best suit their needs.
Canara HSBC Oriental Bank of Commerce Life Insurance has the following plans tailored for the specific needs of individuals:
1. Invest 4G
Invest 4G is an all-inclusive and unit-linked plan that can be started by a financially responsible individual belonging to any age group. The benefits offered in this plan range far and wide, covering both the insured as well as select members from their family. Often termed as the “Zero Worry Plan,” it offers these benefits:
I. Offers four portfolio investments that can help to further reduce or diversify the risk
II. One can also choose from 8 fund options, catering to individuals in any kind of financial situation.
III. Tax exemptions under section 80C as per the Income Tax act of 1961
IV. Options to reduce the premium in case times are hard.
V. Loyalty additions and wealth boosters of the same percentage of the average fund of the previous 5 years if the insured pays all premiums on time.
VI. Death benefits include payment of a lump sum or the fund value towards one’s loved ones on account of the insured death. The benefits differ depending on whether one has the life, century, or care option.
VII. According to the settlement option, an individual is capable of taking out small amounts periodically.
The best part about this plan is that the Life, Century, and Care options apply to separate age groups. That is, the Life option applies to newborns as well, with the other options having a minimum age of 18.
2. Guaranteed Income4Life Plan
Guaranteed Income For Life Plan is different from the Invest 4G plan as it is a non-linked and non-par insurance plan that acts as a savings and protection plan simultaneously. A non-par or non-participating plan will not involve the payment of policy dividends. The key benefits available here are:
I. In the case of an eventuality, the GI4L plan that has the premium protection cover option will not require one’s child or spouse to pay further premiums, and income will come in as planned.
II. One can choose to make premium payments at their convenience.
III. The premium protection cover offers a range of financial benefits to one’s family after the policyholder’s death. The most beneficial aspect being the payout option which resembles a monthly income.
IV. The monthly income will not be liable to tax cuts.
V. One can immediately cash out the money invested in the plan once the payments of premiums are done or opt for a set amount being paid monthly.
VI. It also becomes much easier for an individual to attain a loan at a high percentage of the surrender value.
VII. The plan also has three subtypes. Each type differs on the premium term and the number of years for which they will receive an income.
VIII. In case of an accident that leads to a permanent disability, all the future premiums will no longer be required to be paid.
3. Guaranteed Savings Plan
Guaranteed Savings Plan offers three variants as savings option, guaranteed savings with double protection, and, guaranteed savings with premium protection option. The three plans differ based on the entry ages. The ages range from 0 to a maximum of 60 years.
The benefits of this savings plan:
I. Death benefits include sum assured, which is 11 times the annualized premium and 105% of the premiums paid as per the date of the death.
II. The policyholder will receive an annual income which is guaranteed at the end of the policy years after the completion of premium till the maturity.
III. In case the policyholder is alive till the end of the policy term, they will receive a guaranteed sum assured.
IV. The capability of taking a loan is also flexible as the minimum loan amount is around Rs. 20,000 and can go up to 80% of the current surrender value.
V. There is a premium booster as well, which will increase the guaranteed annual income depending on the annualized premium booster.
The plan has two variants depending on the length of the policy term. The policy term of 12 years requires seven years, whereas the 15-year policy term requires 10. The income payout percentage for the latter is more (200%).
Now that the majority of the benefits are mentioned, one can make an informed decision regarding the kind of plan they would like to invest in. For a more comprehensive plan that can be invested in from a young age, one can opt for the Invest 4G plan. Guaranteed Income4Life and the Guaranteed savings plans have their fair share of benefits as well. But in all three cases, an individual is capable of providing for their family once they are no more as well.