Life insurance acts as a protection cover for your family in case of your absence. The biggest benefit of life insurance is that a certain amount of money is provided to your family when you are no more there to take care of them. They provide big financial relief to the family during the times when they need it the most.
There exist many life insurance companies in the country, which are offering life insurance policies with most competitive features to their customers. These life insurance policies can also be used as a money-saving investment plan.
A customer can choose from many different life insurance policies. Different policies serve different purposes of the customers and also have different features. It varies regarding coverage and policy terms.
As an aware customer, you must be knowing about companies who are offering top insurance policies. However, before finalizing an insurance policy, always compare these different plans thoroughly.
What Is Life Insurance Plan?
A Life insurance Plan is a bilateral agreement between an insurance policy holder and an Insurance Company. The Life Insurance plan assures the insured a predetermined amount of maturity or to the nominated beneficiary on the death of the insured person.
How to Choose the Best Life Insurance Plans?
Choosing the best life insurance plans requires a small amount of skill and awareness of you want.
Let’s Look at Some Helpful Pointers in Making the Right Choice:
- In order to secure protection against any risk and also to procure a good corpus at a lower premium rate, it’s important to purchase the Life Insurance policy early in age.
- Compare and choose from different Life Insurance Plans by saving and getting the best life insurance.
- Analyze different Life insurance plans and choose the best insurance plans according to present and future requirement, which will certainly help to estimate the necessary cover.
Types of Life Insurance Plans
Whole Life Insurance
This type of life insurance policy is meant to provide lifetime coverage. The life insurer has to pay the premium on a yearly basis. Whole life insurance is the greatest method of long-lasting life insurance. Whole life insurance defends the insured against the death, when it may occur. It means that there is no fixed term under whole life insurance. Most plans & policies offers a bonus to the policyholder, which helps with retirement.
In this type of plan, the company is obliged to pay the policyholder a lump sum after the death of the insurer or at the time of the maturity of the plan. LIC new endowment policy is a life insurance plan that contributing non-linked plan which provide a gorgeous combination of protection and saving features.
Money Back Policy
It is a good plan for investment purpose as it provides good returns. A money back policy is a policy that provides life coverage during the term of the policy. This money back policy is paid throughout the plan tenure and is a percentage of the Sum Assured. Money back expenses are called Survival Benefits.
Term Life Insurance
After the death of the insured person, the company provides a certain amount of money to the beneficiary’s family for maintaining their lifestyle. Term life Insurance is type of life insurance, which offers coverage at a fixed rate for a certain period of time.
Unit Linked Insurance Policies are a great way of providing insurance coverage as well as an investment plan. ULIP is a life insurance market-linked product or a combination of insurance and investment. Which offers risk coverage for the insurers along with investment options to invest in market such as stocks, bonds or mutual funds.
5 Best Life Insurance Plans in India
If you want to provide your family with an all-around protection coverage and also enhancing your savings, then you should invest in a good insurance plan.
Below is a List of Best Life Insurance Plans that can become your Number one Choice.
|Life Insurance Plans||Entry Age||Policy Term||Sum Assured|
|LIC New Jeevan Anand Plan||18-50 years||15-50 years||1 Lakh-NA|
|HDFC SL Crest Plan||14-55 years||10-10 years||(7 or 10) x Annual Premium/20 x Annual Premium|
|SBI eShield Life Insurance Plan||18-70 years||5-30 years||20 Lakh-NA|
|SBI Shubh Nivesh Plan||18-60 years||5-30 years||75,000-NA|
|Aegon Life iTerm Plan||18-75 years||5-40 years||10 Lakh-NA|
LIC New Jeevan Anand Plan
LIC has been a trusted name in the insurance world for many years. This product by LIC has been a number one choice for many as it fulfills the needs of a consumer that he/she wants in their insurance plan.
The LIC New Jeevan Anand Plan is a perfect combination of both- life protection coverage as well as a savings plan. So that means it is a good way of safeguarding the future of your family against any odds or ill-timed death and also enjoying maturity benefits otherwise.
The minimum age for entry in the policy is 18 years, and the maximum age is 50 years. The policy insurer enjoys the minimum sum assured of 10 lakh while there is no upper cap on the maximum sum assured to the customer.
The Policyholder has to lock in the sum for a minimum of 15 years, and the maximum term is 35 years. Premium can be paid easily through annual, biannual, quarter, or monthly mode. In case you forget to pay the premium, LIC offers a grace period of 15 days for monthly mode and 30 days for other types of mode.
Rider plans are also available with this plan such as- accidental death and disability benefit, permanent disability and so on.
HDFC SL Crest Plan
This is a type of ULIP (Unit Linked Insurance Plan) which works on achieving a target of a good investment goal within a fixed period of 10 years. In addition to this, it also provides coverage to the family against odds of life.
As a policyholder, one has to pay premiums for five years in a row and then enjoy the returns on the market linked plan for a full ten years.
The minimum age to enter the plan is 14 years, and the maximum age limit is 55 years. Payment mode for the premium is the annual mode which is not so flexible.
As It is a ULIP, It Allows Investment in 4 Options-
- Blue Chip Funds- The investment is made in large-cap quantities and equity-related One can enjoy very high returns, but the risks are also very high.
- Opportunities Fund- In this, investments are made in mid-cap equities and equity-related securities. This also entails the tag of high risks and High returns.
- Balance Fund- 0-20% of the funds are invested in money market instruments while 0-60% are invested in government securities and fixed income securities. The exposure to different funds is quite diverse and makes the risk less volatile. The risk-return tag is moderate to high.
- Income Fund- The returns from this investment have high potential. It has a moderate risk rating.
The policyholder is given a flexible choice to choose the sum assured. It ranges between 10 to 20 times the premiums laid. The policy is very easy to avail. One has only to fill a medical questionnaire, and no medical tests have to be done.
The policy is also beneficial for enjoying tax benefits. Under the section 80C and section 10(10D) of the Income Tax Act, the policyholder can enjoy tax benefits on premiums as well as claims.
Partial withdrawals are allowed annually which should be of the minimum amount of Rs 10,000. Fund switching facility is also available every available. Depending on your investment strategy, you can switch between the funds. Premium redirection to another chosen fund is also allowed under this scheme.
The policy is made keeping in mind the interests of the consumer. A 30 days grace period is offered to pay premiums. Also, consumers are also offered Free Look Period. If you are not satisfied with the terms and conditions or any other clause of the policy, you can terminate it within 15 days of the receipt of the policy.
SBI eShield Life Insurance Plan
SBI is a trusted name not only in the banking sector but also in the insurance policies it offers. The insurance policy offered by them is robust.
The comprehensive term plan is not linked as well as non participating. It is best recommended for those who want financial protection.
The Plan offers Four Different Variants for People to Choose According to Their Own Needs.
- Basic Level Cover- The sum assured remains the same throughout the term of the plan.
- Accidental Death Benefit- In this type of plan, the policyholder receives the sum assured as well as the accidental death benefit rider. In case the person insured dies in an accident, the beneficiary will receive the additional sum.
- Increased Cover- In this option, after the completion of 5 years, the minimum sum assured keeps increasing at 10% simple interest. But the premium remains the same. It is best for those individuals who want high insurance coverage.
- Increased Cover Along with Death Benefit- It offers dual benefits. The increased coverage after five years as well as the accidental death benefit rider.
The Policyholder enjoys the tax saving option on paying premiums and claims received under the Section 80C and Section 10(10D) of the Income Tax Act.
Many other additional features come with this plan such as premium discounts for non-smokers and female lives. SBI Life Insurance also offers Free Look Period of 15 days in case you are not satisfied with the policy terms.
SBI Shubh Nivesh Plan
This is another one of the popular products offered by SBI Life. This policy is a non-linked unity, and it provides benefits of both- endowment benefits as well as live coverage.
In this policy, the policyholder can enjoy maturity benefits. A lump sum is paid after the completion of the tenure. It can also be received in the form of regular income for a certain period.
One can easily avail this plan and pay the premium on a regular basis or in a single payment of premium.
It Also offers Three Coverage Options-
- Endowment Option- It is a traditional option which gives simple bonuses. The sum assured and the bonus is paid to the policyholder after the maturity or the beneficiary in case of death of the person insured.
- Endowment with Whole Life- The policy offers extensive benefits, and this option can be used to increase the insurance cover for the whole life or till the age a person reaches 100 years of age, in case of policy term 15 years or more.
- Deferred Maturity Payment- It is a part of the above two options.
Just like SBI eShield option, SBI ShubhNivesh offers 15 days for the monthly payment of premium and 30 days for any other type of payment.
Surrender benefits are also provided under this scheme if the policyholder decides to terminate the plan according to the terms and conditions of the plan. The special surrender value calculated depending on the terms and conditions of the plan is the surrender value of the plan.
Additional benefits are also provided under the SBI ShubhNivesh. Rebates on the large sum assured is Rs 1.5 lakh and above. It also offers three riders such as- accidental death benefit rider, disability benefit rider, and preferred term rider.
AEGON Life iTerm Plan Plan
It is a type of online term insurance plan that fulfills the needs of the policyholder at minimal costs. It can only be bought online and is quite popular among people.
It is a type of term insurance plan and has flexible premium payment option such as single pay or regular pay option. The plan also offers terminal illness benefit.
30 days grace period is allowed for the payment of premiums. Free look period is also available with this plan. If the policyholder is not satisfied with policy and any of its terms and conditions, one can easily cancel the policy within 30 days of the receipt of the Policy documents. However, no claims should be made until then.
In case the person insured is found to be terminally ill, all the future premiums are terminated, and 1/4th of the sum assured is paid immediately which should be up to a limit of Rs 100 lakhs. In case of death of the policyholder, the sum assured is paid to the beneficiary.
The plan has some exclusions in case of suicide or terminal illness benefit arising out of own injuries. If the policyholder commits suicide within 12 months of the start of the policy, the beneficiary will receive only 80 percent of the premiums paid by the policyholder.
If the terminal illness has taken place because of alcohol addiction, inability to follow medical advice, HIV and AIDS infection, then the benefits of the policy are outside the bounds of this plan.
This plan has no maturity benefits, and four additional rider benefits are provided with this plan for the policyholder to choose from if he/she is interested. The policyholder also enjoys tax benefits on the premiums paid and the claims received under section 80C and section 10(10D) of the Income Tax Act.
The policy also provides different rider options. Riders such as disability rider, women CI rider, WoP on CI rider, etc.
Life Insurance should be taken seriously by everyone. Life is uncertain, and nobody knows what the future has written for us. It ensures that your family should not suffer and compromise in your absence.
There are a lot of products of life insurance in the market provided by different companies. Each of these products is offering different benefits and come with additional features.
Choosing from these products can be troublesome, but once you decide on the features that you would like to have in your insurance policy, it becomes an easy choice.
The policies mentioned above are some of the best policies available in the market right now. Research about them and narrow down your choice.