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Articles 332 views October 14, 2021
Getting insured financially against uncertain events such as death and expensive hospitalization is paramount to lead a stress-free life. You can thus choose the best life and health insurance products to get maximum financial protection amid such circumstances. These products come with a wide range of benefits, some popular ones and some lesser-known ones. The latter may be a point of interest too; it may either add to your savings or give you the comfort you seek in tough times.
For example, how would you feel when you get back some or the entire paid premiums? But how you will get that should matter to you more. Hence, we’ll focus on all such aspects so that you could make the most of these insurance products. Let’s begin by focusing on the unheard things about life insurance.
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Life insurance, which is best known as a tool to get cover for your family in the advent of your death, comes in multiple variants. A pure term plan may be known to many, but they may not be familiar with other plans such as ULIPs, endowment and money back. These plans also deserve attention owing to their unique features. Let’s focus on the same.
Getting rewarded is always a good feeling – That’s what policyholders feel when they get loyalty additions and add to their wealth over time. Such additions are available in ULIPs and some endowment plans. These additions come as a certain percentage of the sum assured, premium amount, or the fund value in the case of ULIPs. The insurance company credits loyalty additions based on the premium amount, premium payment term, policy term as well as the period of guaranteed additions. These additions come to you after continuing the policy for a certain period. That ‘Period’ could differ from one insurance company to another. It also depends on companies whether they will credit all at the end of the policy term or get the same accrued periodically. You should thus check the same with the particular insurer when looking to deal with it.
ULIPs come with wealth boosters accounting for a certain percentage of the fund value. It’s up to the insurance company to decide when they will start crediting or accruing the same. Here also, the premium amount, premium payment term, policy term and other factors will decide the payout of wealth boosters.
Many know that a life insurance policy covers their family in case of their death during the policy term. But what they don’t know is that it also takes care of the loan availed by them in their absence. It’s actually a term cover only that comes to use in case of your death during the policy term. The insurer will pay the pending loan dues to the financial institution and relieve your family from this undue obligation, thereby preventing the seizure of assets that happens in case of non-payment.
What also matters is the type of cover you will get – level or decreasing cover. A level cover means the sum assured to be given as promised at inception. Whereas the decreasing cover leads to a reduction in the coverage amount with the payment of each loan EMI. The level cover will be better to have given that you would like to cover your family too along with a loan. You may find it hard to ensure the same with a decreasing cover.
You should up your comparison game even further by checking the sum assured of a pure term plan. In case that exceeds the one available with a level cover loan protection plan, choose the former.
Most don’t know about the regular payout from life insurance upon survival during the policy term. However, that’s not the case with every life insurance policy. This feature is available in money back plans whose name itself suggests the feature pointed out here. At specific blocks after a few years into the policy do these payouts happen. Most money back plans come with payments at a 5-year interval after serving the policy for a certain period as specified by the insurer.
You would even be surprised to know that life insurance plans pay you bonuses too. The bonus might get released upon your death or maturity of the plan. But plans that participate in the profits of the insurance company offer the same and not all. You could identify such plans by checking whether the word ‘Participating’ is marked against them in the brochure. If so, bonus payments become a formality for you!
Given the tall expenses involved in today’s healthcare services, getting a health insurance plan is imperative. It ensures cashless treatment when admitted to a network hospital of the insurer. In the case of treatment at a non-network hospital, the reimbursement option comes to your use. Not only will it help you during hospitalization but even before and after the same. While many know this aspect of health insurance, they are not aware of home treatment cover, cumulative bonus, cover restoration, health rewards, etc. Let’s discuss these without any further delay.
We saw how tough it was to get a hospital bed during the second wave of COVID-19. But those having health insurance with home treatment cover must have felt better. Yes, the home treatment cover is provided when you don’t get a bed in a hospital or when you can’t go to the hospital due to certain health conditions. All you need is a letter from a doctor advising you to go for home treatment. Although most insurers offer this service on a reimbursement basis, a few could give you a cashless option too for the same.
Health insurance comes with a unique feature of cumulative bonus by which the sum insured (coverage amount) rises automatically when you don’t claim in a financial year. It rises by 5-20% on average and can go up to 100% of the original sum insured.
Ever wondered what would happen in case your health insurance sum insured gets exhausted. Well, you could claim even then as the sum insured will get restored automatically. While some insurance companies restore upon full exhaustion, others do it on even partial exhaustion. However, they could place a condition that the restoration would happen for illnesses other than for which you had claimed earlier. So, check all these with the insurance company before signing a deal with it.
Do you know staying fit can come with a reduced premium on renewal? Yes, Aditya Birla and a few other health insurance companies offer you the same on meeting certain health parameters as laid down by them. For example, Aditya Birla Activ Health Platinum Enhanced offers up to 100% of your premium as Health Returns. To earn such premium discounts, you need to complete 325 Activ DaysTM in a year. 1 Activ DayzTM equals to 10,000 steps or 300 calories burned or a gym session lasting for 30 minutes per day or a fitness assessment on a half-yearly basis.
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