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Finance

All You Need to Know About Comprehensive Life Insurance Plans

Life is full of possibilities and probabilities; nothing is certain. When the tide of life is sailing smoothly, we don’t care much about the uncertainty. However, when situations start getting out of hand, we fear the same uncertainty.

Life insurance plans are usually designed to help policyholders and their families tackle the negative financial impacts of these uncertainties. However, most insurance plans have some limitations. For example, some are for a fixed tenure, while others do not provide good returns on investment. This is where the need for a comprehensive life insurance plan comes into the picture.

Highlights of Comprehensive Life Insurance Plans

The features of these plans are a combination of two or more plans – life insurance and savings. Moreover, not every insurance provider offers this insurance. So, you need to know the primary highlights of the plan, or else you might get confused and end up buying the wrong plan for you.

Here are the primary highlights of the plan:

  • Complete life coverage for everyone

In layman’s terms, life insurance offers coverage for an individual’s life. Your family will receive the death benefit in case of your untimely demise during the tenure of the policy. Life insurance plans, including a ULIP policy, offer life insurance with a component of market-linked returns. For example, in the case of comprehensive Tata AIA life insurance plans, you will receive the death benefit in case of the death of the policyholder.

  • Lump-sum death benefit

The death benefit is one of the most basic features of any life insurance. So, all types of Life insurance plans including Comprehensive life insurance have this feature in common.

ULIP plans also provide a death benefit to the family of the policyholder in case of the demise of the policyholder.

  • Market-linked returns

Basic insurance plans with a return on premiums are a great option if you want to get a life cover and a maturity benefit combined into one. However, somewhere in your mind you always feel as if you could have invested some part of the money directly in the market.

Stock markets have the potential to give more usual returns, but they are also risky. Without proper research, you might lose all your money. However, with unit-linked plans, you get the option to invest in the market while also getting a life cover. In addition, most insurance companies also offer different market-related investment fund options for you to choose from.

  • Option for supplementary riders

Most insurance policy offerings are limited to life cover and maturity benefits. However, with comprehensive insurance plans, the situation is different. They have riders that include additional protections such as accidental death, disability, critical illness and hospital care benefits.

In fact, some insurance providers offer an equal sum assured to the death benefit in case of accidental death and twice the amount if it’s an accidental death in public transport. These riders come at an additional premium payment, however, it is still cost-effective from buying a new plan altogether. Therefore, owing to the comprehensive protection these plans are considered the best life insurance plans.

Final Thoughts

While comprehensive life insurance is a great investment and insurance option, you should always be careful about where to buy it from. If your insurance provider is not credible and does not have a good claim settlement ratio, the whole point of buying an insurance plan goes in vain.

Another aspect that you need to be careful about comprehensive insurance plans is to study the policy document carefully. Since it is a combination of different features, you need to be aware of the exclusions also.

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