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Investment Plans 228 views January 30, 2021
Often life insurance policies are branded as a tool that offers your dependents a lump sum amount i.e. sum assured if you die during the policy term. But they can offer beyond that too if you choose a traditional life insurance plan. It offers death benefits to your dependents so that your absence doesn’t hurt them, at least financially. In case you survive till the end of the policy term, you’ll get survival benefits too, unlike term insurance plans that do not have the same.
There are numerous traditional life insurance plans available for you. But the best one should have an optimal sum assured for your dependents in your absence, adequate guaranteed payouts and affordable premiums for you to pay to get these benefits. While some traditional life insurance plans could fulfill a few of these objectives, others could meet all. Naturally, your focus will go to the latter! We will thus show here the policies that have lived up to the expectations of people across India. Let’s read further and see if they meet your needs.
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All the top insurers like HDFC Life, ICICI Prudential, Bajaj Allianz, Aditya Birla, Bharti AXA offer traditional life insurance plans with attractive features. Let’s talk about their plans one after another.
HDFC Life Sanchay a non-participating insurance plan that gives you guaranteed benefits as well as the flexibility to select your investment period. With the completion of each policy year, guaranteed additions of 8% or 9% of the sum assured amount will accrue. This way, the total guaranteed additions will accumulate to 140-460% of the sum assured amount on maturity. All that takes is a bit of honesty from your side by paying all your premiums till maturity. Either you can choose to pay the premium one-time under Single Pay or for 5,6, 8 and 10 years under Limited Pay. For Single Pay, policy terms could range from 5 to 20 years, whereas for Limited Pay, you can choose a policy term from 10, 12 and 15 to 40 years.
The best part about HDFC Life Sanchay Plus is its guaranteed returns that you will get irrespective of market conditions. You can get guaranteed regular income till you become 99 years old. The regular income feature is available for a maximum term of 25-30 years. It comes in two variants – Lifelong Income Option and Long Term Option – and both have the clause of return of paid premiums. If you could pay an additional premium, you could increase your protection using the rider options. In case the annual premium exceeds INR 1,50,000, you can have additional maturity benefits.
It’s a traditional savings plan that offers you a lump sum payment at the end of the policy term. The payout of ICICI Prudential Assured Savings Insurance Plan will include accrued guaranteed additions and guaranteed maturity benefit. Guaranteed additions will happen at the rate of 9% or 10% every year. The addition rate is applied to the total paid premium in a year to arrive at a guaranteed addition payout. Whereas guaranteed maturity benefit payout depends on various factors such as policy term, premium payment term, age and gender.
In case you die during the policy term, your nominee will get death benefit payouts. Upon death, the nominee will get a sum assured, which remains 10 times the annual premium. The minimum life cover amount here could be the highest of the following –
One of the top selling traditional life insurance plans in India, ICICI Pru Guaranteed Income for Tomorrow helps meet the needs of customers who want a lump sum payout or even those seeking a regular income. From the second year onward, you can receive guaranteed income if you choose the Early Income Plan option. Here, you can pay a premium for either 7 or 10 years and receive income the second year onward. The life cover is available for the total policy term, which is a year more than the premium payment term. The highest of the following will be given as a life cover payout –
It’s a non-participating non-linked insurance plan that offers guaranteed maturity benefits, guaranteed additions at maturity, and comes with a limited premium payment term. In case the life assured dies during the policy term, the nominee will receive the death benefit, provided the policy is in force and all due premiums are paid. The nominee get the highest of the following as a death benefit with Bajaj Allianz POS Goal Suraksha.
One of the popular traditional life insurance plans in India, Bajaj Allianz Guaranteed Income Goal comes with two variants that you can choose from – Income Benefit and Lump Sum Benefit.
If you choose the Income Benefit option, you will get guaranteed benefits at an increased percentage of the sum assured amount at maturity. Whereas upon choosing the Lump Sum Benefit option, you will receive guaranteed maturity benefits at any of these intervals – monthly, quarterly, half-yearly or annually – that you choose for yourself. These are called Guaranteed Maturity Installments. All these guaranteed benefits, irrespective of the option you choose, will come only upon successful payment of premiums.
Besides, you have as many as 5 riders, multiple policy term and premium payment term options. Most life insurance plans expire after the policy term, except this plan from Bajaj Allianz. Yes, you have an option to get life cover even beyond the chosen policy term.
Aditya Birla Guaranteed Milestone Plan comes with guaranteed benefits on death or maturity. The sum assured for this plan amounts to 15 times the annualized premium. That sum assured will be paid to your nominee in 10 equal annual installments in case you die during the policy term. This will apply to a single life insurance plan. There’s a joint life plan too where there will be two life assured – primary and secondary. In case you survive till the end of the policy term, you will get a sum assured on maturity.
Besides, guaranteed additions will accrue monthly on each policy month till maturity. The accrual will happen only when you pay all your due premiums. These guaranteed additions are payable at death or maturity, whichever happens before. Annual guaranteed additions will be based on the premium amount you want to pay, premium band, the sum assured, the life assured’s entry age, policy term and Joint Life Protection Option.
If you want to extend your cover, you have as many as 6 riders to do so. These riders are – Accidental Death and Disability Rider, Accidental Death Benefit Rider Plus, Critical Illness Rider, Surgical Care Rider, Hospital Care Rider and Waiver of Premium Rider.
Eyeing corpus for the education of your children? Choosing the Aviva Young Scholar Secure can help ensure the same. The plan comes with a guaranteed Money Back, waiver of future premiums in the event of death, different premium band options ranging from INR 33,000-10,00,000 per year.
The guaranteed annual payouts starts from the end of the premium payment term and every year afterward till your child attains the age of 17 years. These payouts will help meet the tuition fee expenses of your kid up to the 12th standard. A lump sum amount is payable when your child is 18 years old and about to get admitted to a college. And when your child reaches 21 years of age, you will get another lump sum amount to help him/her pursue post-graduation.
Canara HSBC OBC Guaranteed Saving Plan not only provides your family members the financial support in case you die and leave them but also fulfills goals such as higher studies, travel, marriage and much more. It comes with a limited premium payment term. Once the term completes, you will start receiving guaranteed annual income every policy year till maturity should you survive by that time. Just pay all your due premiums till maturity to get this benefit. If you ensure that, there’s a guaranteed maturity benefit too. If you choose to pay a higher premium, the policy will ensure extra benefits for you.
The best part about Bharti AXA Shining Star Plan is the flexibility it offers to you when it comes to choosing the policy term and premium payment term. As many as 9 combinations of policy terms and premium payment terms are available for you. Just select the one you feel can meet your needs better. Besides, you can choose between two maturity payout options – Flexi Payout and Annual Payout. You can modify the payout at maturity according to your child’s needs.
With the Flexi Payout, you can go for a payout at the end of every year during the maturity period. In the case of annual payout, you can receive the lump sum amount of the present value for all outstanding payouts of the future. In case you die during the policy term, your nominee will receive the death benefit, as well as other payouts at maturity.
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