Effective financial planning is a hallmark of peaceful and happy living. It can organise your financial resources and help you manage your liabilities and uncertainties with confidence. And, life insurance policies are an ultimate requirement as it offers a lump sum death benefit to your family in case of your uncertain demise. In addition, insurance providers have introduced the combo insurance plan that provides additional benefits to enhance your savings policy and investment plans. So, which is a better option? Single insurance or the combo insurance plan? Let us get ahead and know the features to understand which is ideal for your financial needs.
 

Which Plan Should You Opt For?
 

Some of the prominent features of single insurance and combo insurance plans are mentioned below. Choosing the right product will be based on your financial needs.
 

Single Insurance
 

If you are the sole earning member in your family, your family's financial future is of utmost importance. Therefore, you should ensure a financial resource to help your family manage their financial expenses in your absence. A single insurance plan will be ideal in such a scenario. Flexible features help you customize the insurance plan based on your steady flow of income and financial needs. For instance, you can choose to pay the premium amount monthly, quarterly, semi-annually, or annually.
 

There is also the option to choose the add-on riders^#, such as the critical illness rider^#, that enhance the financial payout in an emergency. So, suppose your family has a medical history of cancer. In that case, you can get the insured amount to pay for your medical expenses if you get diagnosed during the policy term. Therefore, it helps you manage your hospitalisation expenses without introducing a financial burden to your family.
 

Combo Insurance
 

Suppose you have huge family commitments and personal desires at different stages in your life. In that case, you have to make sure you get a life cover to provide financial support in your absence and sufficient investments to accomplish your money goals.
 

In such cases, an insurance savings plan will be an ideal option. You can plan for your financial goals, such as purchasing a new house, going on a vacation, paying for your higher education, starting a new business, etc. We offer a range of investment funds ranging from debt funds for less-risk investors, equity funds for more-risk investors, and hybrid funds for moderate-risk investors. There is also the option to switch between the different funds based on the market fluctuations. If you have an emergency and want a portion of the investment, you can take a partial withdrawal after the lock-in period.
 

And, if you are looking for early retirement, you can always choose the regular income option to receive the maturity benefit for the specific income period monthly. When you opt for the endowment option, you will get the maturity benefit as a lump sum which can be used for paying for your child's education or marriage after your retirement.
 

Single Insurance vs Combo Insurance
 

S.No	Single Insurance	Combo Insurance
1	Single insurance is a life insurance policy introduced to serve a specific financial need. For instance, a term insurance plan provides the sum assured to your nominee in case of your unexpected death during the policy term.	A combo insurance plan is a comprehensive insurance plan that provides certain investment benefits apart from life cover. It is a combination of two or more life insurance policies. For instance, with the TATA AIA Life combo plans, you get a life cover, the option to invest in the financial market, and secure the returns to a considerable extent simultaneously.
2	Single insurance plans may or may not guarantee1 a maturity return. It depends on the policy features and the preferences chosen. For example, term insurance with the return of premium2 option will refund the premium amount paid on maturity if you survive the policy term. Therefore, the primary objective of a single insurance plan is to secure your family's financial future.	A combo insurance savings plan will provide a guaranteed1 return on maturity. In addition, you can choose to invest in market-linked investment based on your risk profile. If you choose a risky fund, our expert fund managers can withstand the economic downturn and the impact to secure your investment and ascertain a guaranteed1 return.
3	Single insurance plans are affordable and provide a huge sum assured in the longer term. And, it is even more beneficial if you purchase it early in life for a cheaper premium rate.	Combo insurance savings policy is cost-effective opposed to other life insurance plans as it provides multiple benefits.
4	Single insurance plans are easy to manage. However, if you choose a different financial product for your saving and financial needs, managing it in the long term can certainly be difficult if you are a busy professional with your career and family responsibilities.	Combo life insurance plans provide multiple benefits with professional fund managers at your side to offer their assistance when the situation demands their interference. Therefore, managing your financial assets becomes our fund managers' responsibility making it easy to monitor your investment progress to ensure safe investments and guaranteed1 returns.

 

 

Conclusion

Life insurance is an effective financial backbone for unexpected scenarios. It can provide the necessary financial support for long-term family commitments and secure your family's financial future in your absence. There are single insurance and combo insurance plans to choose from. Single insurance plans ideally provide the sum assured to your loved ones after your unexpected demise, while combo insurance plans provide multiple benefits such as life cover, savings, and investment solutions. The choice of insurance plans depends on your personal and financial commitments. Investigate, compare and purchase the best option and ensure to stay invested!

 

L&C/Advt/2023/Feb/0558