Considering the uncertainties in daily life, people have started to realize the importance of having a traditional life insurance plan. A life insurance plan can help protect your family’s finances even when you are not there to take care of it. A traditional life insurance plan is also known as whole life insurance or money back or endowment life insurance. With some top traditional life insurance plans, individuals can enjoy other benefits too! These include the return on the invested amount, maturity benefits, tax benefits, etc.
‘What are the top five traditional life insurance plans in India?’ — This is one of the questions that people ask since there are so many options available in the market. But if were to choose the top five plans, these will be HDFC Life Sanchay, ICICI Prudential Assured Savings Insurance Plan, Bajaj Allianz POS Goal Suraksha, Aviva Young Scholar Secure, and Canara HSBC OBC Guaranteed Saving Plan. These plans come with attractive sum assured, high maturity proceeds and a flexible premium payment term, etc.
In this article, we will tell you about the features and benefits of all these traditional insurance plans so that you can choose the suitable one for you. To know more, read on!
Features and Benefits of Top 5 Traditional Life Insurance Plans in India
Now that you know the top 5 traditional life insurance plans in India, you should know about their features and benefits. We are showing the same for all these plans, starting with HDFC Life Sanchay. Have a look!
Top Features of HDFC Life Sanchay Plan
- One of the most striking features that make HDFC Life Sanchay Plan one of the top 5 traditional life insurance plans in India is the guaranteed additions ranging from 8-9% of your sum assured at maturity. The additions will accrue at a simple rate for each completed policy year.
- Policyholders can also enjoy guaranteed maturity benefits that will range from 140-160% of the sum assured at maturity if they have paid all the due premiums.
- HDFC Life Sanchay plan also gives you the option to choose the policy term ( 5 to 40 years) and premium payment term according to your convenience and payment mode (Single Pay and Limited Pay).
- Policyholders can also choose HDFC Life Critical Illness Plus Rider that can protect them from as many as 19 critical illnesses.
- The sum assured amount can be as low as INR 2,461 with no maximum limit on it. Do remember that this policy can only be taken on a single life basis.
Premium Amount for HDFC Life Sanchay Plan
The minimum premium amount for the HDFC Life Sanchay Plan depends on the frequency of premium payment that you can see in the table below. Also, there is no limit on the maximum premium amount. Have a look!
Striking Features of ICICI Prudential Assured Savings Insurance Plan
- With the ICICI Prudential Assured Savings Insurance Plan, policyholders can get a lump sum payout to secure their future. The lump sum amount will be a sum of accumulated guaranteed additions and guaranteed maturity benefit.
- Policyholders can grow their wealth with the help of guaranteed additions at 9% or 10% (depending on the policy term) every year that will be accumulated on your policy.
- Your family will receive a lump sum amount as a death benefit in case you die during the policy term.
- Policyholders can choose policy terms and premium payment terms according to their convenience.
What is the Minimum Annual Premium Amount?
In the case of the ICICI Prudential Assured Savings Insurance plan, the minimum premium amount will depend on the chosen premium payment term and policy term option. It can be INR 12,000, INR 18,000 or INR 30,000.
Highlights of Bajaj Allianz POS Goal Suraksha
- With this traditional life insurance plan from Bajaj Allianz, individuals can enjoy handsome payouts as well as guaranteed additions at maturity.
- These guaranteed additions will be a multiple of your single annualized premium amount. Do remember that it will depend on several factors such as the entry age, policy term, and premium payment term.
- The policy term options are 10 years and 12 years while the premium payment term option can be 7 years for a 10-year policy term and 5, 7, 10 and 12 years for a 12-year policy term.
- The minimum sum assured amount for this policy can be INR 30,000, while the maximum can be INR 10,00,000.
- Once your policy acquires surrender value, you can get a loan up to 75% of the overall surrender value of the policy, with an interest rate of 9% per annum. The interest will get compounded half-yearly.
Minimum Premium Amount for Bajaj Allianz POS Goal Suraksha
In the case of Bajaj Allianz POS Goal Suraksha, the minimum premium amount can be INR 450 if you are choosing monthly mode. However, it will be INR INR 3,000, INR 2,100 and INR 1,250 for yearly, half-yearly and quarterly modes, respectively.
Features of Aviva Young Scholar Secure Plan
- The thing that makes Aviva Young Scholar Secure plan one of the best traditional life insurance plans in India is the Tuition Fee Support (TFS) that policyholders will start to receive in the form of annual payout until the time their children reach the age of 17 years.
- At maturity, this plan also provides a lump sum amount. This amount can be considered as the College Admission Fund (CAF) as it will be given when your child turns 18 and is ready for admission to a college.
- When your child turns 21 years old, you will get another lump sum amount in the form of Higher Education Reserve (HER).
- Aviva Young Scholar Secure Plan also ensures that your child will not face any financial benefits even when you are not around. For this, all due premiums should have been paid till death.
- Individuals can choose from 4 different options – Silver, Gold, Diamond, and Platinum. The premium amount also varies according to the plan chosen by you.
Premium Amount for Aviva Young Scholar Secure Plan
The minimum premium amount in the case of Aviva Young Scholar Secure Plan can be as low as INR 2,900 per month if you are choosing the Silver option. However, it can go up to INR 10,00,000 per year for the Platinum option.
Salient Features of Canara HSBC OBC Guaranteed Saving Plan
- Canara HSBC OBC Guaranteed Saving Plan comes with different options at the time of inception. These options are Guaranteed Savings, Guaranteed Savings with Double Protection, and Guaranteed Savings with Premium Protection. You can choose from them according to your requirements.
- This plan also provides a premium protection option with which your family will receive a lump sum amount in case of your death and guaranteed benefits at maturity.
- Policyholders can also choose the policy term according to their convenience and financial goals.
- You can also enjoy a High Premium Booster if you choose to pay a higher premium amount, enabling extra benefits for you.
- If an individual pays all due premium amounts until maturity, he or she will receive guaranteed benefits.
Premium Amount for Canara HSBC OBC Guaranteed Saving Plan
In the case of the Canara HSBC OBC Guaranteed Saving Plan, the minimum premium amount can be as low as INR 9,000 if you are choosing a monthly premium payment option. However, the minimum annual installment would be INR 1,00,000.