Must you purchase life insurance coverage and medical insurance combo plans?

Lately, some insurance coverage suppliers have launched plans that merge life and medical insurance advantages, aiming to supply a one-stop answer to policyholders.

On this article, we delve into a number of such mixed insurance coverage, together with Max Life’s Safe Earnings & Wellness Benefit Plan (SEWA), HDFC Life’s Click on 2 Defend Optima Restore, and PNB MetLife’s Mera Mediclaim Plan, to evaluate their options.

Key options

Allow us to first take a look at a number of the frequent options of those plans.

Complete well being protection: All three plans provide intensive protection for hospitalisation, surgical procedures, and different health-related bills. Whereas some may need a set day by day cashless compensation, which can rely on the kind of surgical procedure, others work like common medical insurance and provide cashless hospitalisation, which can rely on the price of hospitalisation and different bills.

Demise profit: Like life insurance coverage, these insurance policies provide the nominee or beneficiaries loss of life advantages.

Cashless remedy: Policyholders can get cashless therapies throughout a community of hospitals in India.

Flexibility in plan choices: Every plan supplies a number of variants or choices to cater to the various wants of policyholders.

Add-on advantages: Every plan contains further advantages, enhancing the core protection. These can vary from wellness applications to multiplier advantages.

Assured returns/advantages: These plans provide maturity advantages in addition to add-on advantages after deducting the entire withdrawals. 

Tax advantages: Policyholders can get tax advantages on the premiums paid beneath Sections 80C and 80D and the advantages acquired beneath part 10(10D) of the Earnings Tax Act.

Loyalty and wellness applications: Loyalty additions or boosters are supplied based mostly on the coverage’s tenure and the policyholder’s adherence to a wholesome way of life.

Must you spend money on these plans?

Subsequent, we’ll take a look at some options to grasp if these plans are higher than conventional life and medical insurance plans.

Sum Assured: The utmost sum assured of those plans ranges between ₹10 to 50 lakhs. If we evaluate it to conventional time period insurance coverage, the utmost sum assured on these plans won’t be satisfactory.

Nonetheless, the added loss of life and well being advantages can complement present life and medical insurance plans.

Wealth era: Time period insurance coverage doesn’t provide wealth era, and medical insurance takes care of the hospitalisation and different bills. Nonetheless, these plans provide maturity advantages and revenue choices.

As an example, allow us to try the Mera Mediclaim Plan.

The plan supplies a set revenue possibility the place the policyholder receives a month-to-month revenue for 10 years. Alternatively, within the case of the rising revenue possibility, you’ll obtain an rising month-to-month revenue for 10 years. The revenue quantity usually rises regularly over time, serving to you address potential inflation and elevated dwelling prices.

Within the Click2Protect Optima Restore plan, policyholders get revenue payouts from age 60 onwards beneath the Earnings Plus Choice.

Within the case of SEWA, it gives assured returns payable as a lump sum at maturity, which may be thought of a type of wealth creation. The plan additionally supplies a number of boosters to extend returns, reminiscent of loyalty additions, wellness boosters and financial savings boosters.

Maturity advantages: Medical health insurance insurance policies usually don’t return the premium paid if no declare is made throughout the coverage time period. The premiums are utilised to cowl the prices of claims made by different policyholders. Some insurers provide reductions on premiums if the coverage is claimed throughout the 12 months.

Within the case of time period insurance coverage, you may get the premium again for those who go for a return on-premium plan.

Nonetheless, for those who don’t declare in these plans, you may get your premiums again together with the advantages accrued throughout the coverage interval. The overall quantity and advantages will rely on the chosen possibility.

As an example, Mera Mediclaim gives maturity advantages for purchasers who’ve chosen ‘with Return of Premiums’.

Premium: Premiums rely on numerous components reminiscent of age, intercourse and way of life habits. Nonetheless, the premium of time period insurance coverage most often is the bottom because it solely focuses on offering life cowl. Time period insurance coverage with out return of premiums have the bottom premiums.

Alternatively, these plans provide life and medical insurance protection. Therefore, the premium of those plans may be increased than a standard time period life insurance coverage plan.

Premium fee and tenure: Within the case of time period insurance coverage, you’ve gotten the choice to proceed paying premiums until the tip of your coverage interval, say until you attain 60 or pay for a restricted interval and revel in the advantages. Nonetheless, these insurance policies mature after a sure interval, and also you received’t be capable of get the loss of life advantages after maturity.

In conclusion, though these plans provide life and medical insurance advantages, they’ll’t be thought of substitutes for pure-term plans or medical insurance plans. It may be thought of as a plan to enhance your life and medical insurance plan.

As an example, most time period insurance coverage don’t have a cap on the utmost sum assured, whereas most plans providing life and well being advantages have a most sum assured. So, it won’t present satisfactory loss of life advantages.

Discuss to your monetary advisor/registered insurance coverage agent earlier than shopping for insurance coverage.

Padmaja Choudhury is a contract monetary content material author. With round six years of whole expertise, mutual funds and private finance are her focus areas.

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Up to date: 31 Oct 2023, 02:14 PM IST