Comprehensive insurance in India has become increasingly popular in the current scenario. With the tremendous uncertainty in life due to several factors, financial stability is considered very important. Planning your savings and allocating among various investment avenues are the keys to a satisfied and secure financial future. A life insurance plan is a simple method to protect your family in the long run and give wings to their dreams. Here are five reasons why comprehensive insurance can offer total protection for your family. 

What is a comprehensive life insurance plan?

Basic life insurance plans offer life cover under which the insurance company pays the sum assured to the nominee if the policyholder dies during the policy term. A combo life insurance plan has larger benefits. It ensures that your family has regular returns and adequate growth for the future. Here are five reasons why a comprehensive insurance plan is a sound option for your family’s protection. 

1. Insurance: A life insurance policy is the most important lifeline for your family in your absence. There are various flexible features in life insurance to customize a plan according to your financial needs. A  comprehensive insurance policy is designed to provide insurance features, add-on rider^# benefits and other financial advantages.
   
   
2. Life insurance is given equal importance and remains intact in a comprehensive plan during the policy term. Based on your income and family requirements, you can use the online premium calculator and estimate the premium amount to be paid. You can also choose the mode and frequency of the payment as desired. 
   
   
3. Savings:  A comprehensive insurance policy such as the guaranteed return insurance plan(Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan (UIN: 110N152V09) provides life cover and, additionally, guaranteed¹ returns. The returns accumulate to a huge sum in the long term, and as it is guaranteed¹ during inception, you can plan for your financial goals in the short term or long term precisely. It can help you handle financial crises such as an emergency as well as long-term financial commitments such as children marriage, higher education etc.
   
   A guaranteed¹ return insurance plan(Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan (UIN: 110N152V09)  also offers varied payout options such as a lump sum, a combination of a lump sum amount and regular annual income or regular monthly income. Suppose you have a desire to pursue higher education abroad. You can hope to do it with a comprehensive insurance policy without disturbing your family and at the same time ensuring life cover in case of unfortunate death. Compared to the traditional savings plan, it offers dual benefits at a reasonable premium amount. Also, the returns are guaranteed¹!

    

4. Investment: A comprehensive insurance plan provides an opportunity for receiving life cover along with market-linked returns. One of the most renowned products for this purpose is the ULIP². The premium amount paid towards such a plan is used for two purposes, insurance and investment in the financial market. As the returns are market-linked, it offers good returns considering the inflation and allows for wealth creation in the long term.
   
    Based on your risk appetite, you can invest in an equity fund for high risk, a debt fund for low risk and a hybrid fund for moderate risk levels. If you feel that your investments are not performing well, you can switch between the funds during the policy term. As the funds are decided and provided by the insurer, it is extremely reliable. You don’t have to spend a lot of time choosing the securities or managing the fund, and the fund manager will make the essential changes based on your consent.
   
    Investment with equal importance to life cover is a valuable feature and reason to choose a comprehensive plan.
   
   
   • Safety: The comprehensive plan is relatively safer because the returns are guaranteed¹ as far as the savings component is concerned. And, with the investment option, there are sufficient flexible features to protect your investment from market fluctuations and aggressive price movements. It acts as a tax* impact as well. 
     
     
5. Retirement planning: Retirement is a period of golden years and you should not be bogged down with financial worries. It should be planned with utmost care with sufficient surplus amount to survive and manage uncertainties. A comprehensive product with well-planned savings and investment components will deliver the best returns.
   
   

   With the guaranteed¹ return insurance plan with a regular monthly income, you can manage a retirement life just as you went through your employment phase. Also, you will leave a regular source of income for your dependents in your absence.
   
   

   A comprehensive insurance policy such as the one offered by the TATA AIA life insurance plan is suitable for a  comfortable retirement along with other features for your family’s protection. 
   
   

Chart out your requirements, consider your daily utility bills and the family commitments and consider family insurance plans, comprehensive insurance plans and other life insurance products based on your needs.  

Conclusion

We have seen how a comprehensive insurance policy will protect your family in the long run. It will suffice for their survival in your absence, achieving their short-term and long-term financial crises and for living expenses. It is extremely safe for investment. However, you need to put your earnings in such a plan early in life to receive cost advantages and long-term benefits to ensure maximum protection. So, start early, analyse your financial status, decide on your financial goals, compare different plans, and embark on the one that will best suit your needs!

L&C/Advt/2022/Jun/1115