Life coverage is a basic method to protect your family in your absence. However, it cannot suffice for all the financial needs. Financial security is now an even greater priority considering the uncertain times we live in. So, if you are looking forward to a peaceful future and to keep your family’s well-being foremost then a comprehensive life insurance policy is a good choice. It is a complete all-inclusive benefits plan that can help you manage your financial commitments systematically. Let us look at the plan in a little greater detail.

 

 

What do you understand about a comprehensive plan?

A comprehensive insurance policy offers life coverage, including savings and investment benefits. It provides diversified benefits under a single plan and cost.

 

Comprehensive plans generally combine two or more existing and popular products of a life insurance provider and create a comprehensive solution that satisfies a range of insurance needs. Hence, it is a one-point solution for all your financial needs.  

 

Why should you choose a comprehensive plan?

Life coverage alone is not sufficient in financial planning. Achieving your other financial goals are equally important for which a comprehensive plan will come in handy.

Here are a few reasons to prefer a comprehensive plan.

 

• Ensure family needs: If you are the only earning member in the family, you need to plan for the financial commitments at different stages in your life. A basic life cover can provide the sum assured to the nominee in case of your unexpected demise. It can at best be sufficient to reduce the financial burden for a short period. To manage long-term commitments such as your child’s marriage or education, a wide-ranging savings plan with different payout options should be chosen. This will bring regular income for your dependents.  

 

• Savings: A basic life policy will secure your family. And, if you start early the sum assured can be relatively more in the long term. However, a savings plan is required to manage short-term commitments or emergencies as also for planned expenses like vacations, anniversaries etc. You also need to save for buying a house, your own or your children’s higher education, their marriage and so on.

 

• Investment: Apart from basic life cover, it is also important that you make sufficient investments to meet your future financial needs considering the increasing inflation rate. However, returns are always related to the risk you are willing to assume. If you are a beginner at investing or burdened with family commitments, investing in high-risk securities is not advisable. A comprehensive insurance policy with investment opportunities such as the ULIP will suffice for a safe investment with good returns. 

 

 

 

A ULIP is a systematic savings method in which you choose a fund based on your risk tolerance level. The funds are managed by professional fund managers who will act on your behalf to achieve good returns with optimum risk. This makes ULIP investing reliable.  You can choose an equity fund for high risk, a debt fund for low-risk and hybrid funds for moderate risk levels. If you feel the funds in which you have invested are not performing well, you can always switch between the funds subject to a few rules. Thus, you get life cover and market-linked returns too. 

 

• Retirement benefits: Basic life cover provides funds for immediate relief to your family. To plan for your retirement, you need a full-fledged financial plan. Start with estimating your expenses, any unfinished goals or a new venture that might need funds, and projected medical expenses. You can choose flexible premium payment options so you don’t have to give up your lifestyle in your golden years. 

 

L&C/Advt/2022/Aug/1878