Insurance

TERM LIFE INSURANCE

Term Life insurance provides coverage for a fixed period of time at a fixed premium rate. In the unfortunate event of the life insured’s untimely death during the policy term, the nominee receives the Total Payout/Benefit. This benefit can be structured as a lump sum payout, a combination of lump sum and monthly payout, or only as a monthly payout. Term insurance plans are considered pure protection plans, ensuring the financial stability of dependents in case of the life insured’s untimely death.

Benefits of Term Life Insurance:

1. Death Benefit:
Lump sum payout to address immediate financial liabilities.
Monthly income to sustain the family lifestyle.

2. Tax Benefit:
Premiums paid for Term Life Insurance are tax-free under section 80(C) up to an amount of Rs 1,50,000.

3. Rider Benefits:
Riders enhance the basic plan, allowing customization of coverage.
Accidental Death Benefit rider provides an additional sum assured in case of death due to an accident.
Accidental Disability rider offers an immediate lump sum payment for disability due to an accident.
Critical Illness rider provides an additional sum assured for diagnosed critical illnesses.
Waiver of Premium rider waives all policy premiums in case of permanent disability or critical illness.

4. Option to Increase Death Benefit:
Some plans allow the life insured to increase the life cover at key stages in life, such as marriage or the birth of a child.

Key Terms when Comparing Term Life Insurance Plans

Total Payout of each plan.
Premium amount paid for the desired Total Payout.
Policy term offered.
High claim settlement ratio.
Riders offered with the plan.

HEALTH INSURANCE

Health insurance plays a crucial role in managing medical expenses, ensuring that out-of-pocket costs are minimized up to the sum insured. A health insurance policy facilitates cashless treatment at network hospitals, typically covering 30 days and 60 days pre and post hospitalization in most plans.

Benefits of Health Insurance

Health coverage provided by insurance plans encompasses a broad spectrum, with family health plans offering comprehensive coverage for all family members under a single umbrella.

Medical Bills: Coverage against medicinal expenses, including pre and post hospitalization.
Pre-existing Diseases: Coverage for pre-existing diseases after a certain waiting period.
Claim Reimbursement: Coverage for hospitalization expenses due to medical conditions.
Tax Rebate: Annual premiums for health coverage qualify for tax exemption under section 80D of ITA, 1961, ranging from Rs. 25,000 to Rs. 75,000 (subject to changes in tax laws).
Other Benefits: Innovative features include coverage for OPD expenses without hospitalization for a minimum of 24 hours. Standalone OPD plans are also available in the market.

Additional Benefits

Complementing a Base Health Insurance Plan with extra benefits such as Personal Accident (PA) Cover and Critical Illness (CI) Cover adds value. These additional benefits come at a nominal cost, addressing aspects not covered in the basic health insurance plan. For example, a PA plan provides coverage for disabilities without waiting periods or medical checkups.

Investing in popular senior citizen health insurance policies is essential for comprehensive security during old age, addressing the medical needs that often accompany aging.

COVID-19 Specific Cover

All health insurance plans include coverage for Coronavirus treatment, following IRDAI guidelines. Two specific COVID health insurance policies, Corona Rakshak and Corona Kavach, offer lump sum payments upon diagnosis and cover costs of consumable items like PPE Kits, Masks, Gloves, etc.

Key Points to Remember when Comparing Health Insurance

Sum Insured Amount.
Policy Premium.
List of Network Hospitals and Claim Settlement Ratio.
Sub-limits (if any) and Waiting Period (for Pre-existing Diseases)
Co-payment Clause