- exclusive, Insurance, Latest News

Benefits of Life Insurance In current world

Life insurance is the financial protection plan that one buys to safeguard their family’s and loved ones’ financial future when the policyholder is no longer with them. In such unfortunate event, the policyholder’s nominees receive the death benefit amount that takes acre of the financial obligations and expenses thereon.


life insurance is like a gate of empire and acts as a first line of defense in protecting myself and safeguard my family. Every now and then you might have heard of someone diagnosed with cancer or a severe disease which takes toll on both physical and financial health. While I pray for a healthy life for you ahead, it is important to always be prepared for the worst case scenario. Now in case you get detected by any of these critical illnesses, you might have to dig into your funds that you were saving up for your retirement and other upcoming life goals. Most importantly, no one can predict the treatment expenses. There might be a good chance that it might erode everything you have built in from the past 20 years in just a month.

*But I don’t think anyone can be foolish enough and neither are you because you know what you got to do instead of scratching your savings account.

One can avail different types of insurance plans (Term, ULIP, Endowment, Savings, Whole Life, Retirement) today which can be either specific or a combined one, but what matters is what your insurance needs are? One should feel that the plan has been tailored especially for them which will cover anything which might bother their family. Also the pandemic was unseen before and came out of syllabus for everyone out there. Which means we all have to upgrade the insurance plans we have taken or buy a new one!

Now on what grounds did I select my plan? As COVID-19 acted like a nail in the coffin, people are looking for a plan that is designed to provide protection and life coverage against critical illness. Also at the same time, a lot of banks may default at the last moment. Hence, we need something which is long-term and sustainable i.e. SBI. Being a government body, the chances of it failing are very bleak.

I went through all the insurance plans of SBI Life Insurance and shortlisted a few namely SBI LIFE – PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA, SBI LIFE – SAMPOORN SURAKSHA and SBI Life – POORNA SURRAKSHA) and I selected SBI Life’s Poorna Suraksha Plan because:

1. The plan is a complete bundle of joy, consisting of both a Term plan and a Critical Illness cover for 36 critical illnesses.

2. It provides a waiver off premium, if diagnosed with any listed critical illness.

3. The rate of premium remains constant till the end of the policy term .

4. Both the term cover and critical illness sum assured gets automatically adjusted with the increasing age i.e every year on the policy anniversary.

6. Provides a lump sum amount in case of diagnosis with any of the critical illnesses mentioned in the policy.

Additional Benefits included in my plan include: Life Stage Benefit, Life Cover Benefit, Critical Illness Benefit and Waiver of Premium Benefit. I have prepared a checklist while buying a Life Insurance Policy and I must admit that SBI Life’s Poorna Suraksha Plan covered each one of them:

1. Financial Security: This will act as a financial cushion for my family in my absence or any unforeseen event.

2. Child’s Future: It will cover the dreams that I have always seen for my child if something goes wrong.

4. Tax Benefits: I can avail a maximum of 1.5 Lakhs under Sec 80c for premium paid annually.

Real Case Scenario : If I am diagnosed with Kidney Failure in the 6th Policy Year, then the lump sum benefit of Rs. 35,000,00 will be paid immediately to me and from the date of diagnosis of Illness, future payments will be waived off and the policy will continue for a life cover sum of Rs. 65,000,00. In case of my death in the 8th Policy Year, the benefit sum of Rs. 65,000,00 will be paid immediately to the nominee.

Refer to the following snapshots that will clear the upcoming doubts:

I would like to rest my case and hope I have helped you in making a sound and healthy decision for your family’s future. The future events are uncertain but we can protect them by getting insured which makes the future needs certain.

Term Insurance – Term insurance plans offer to protect your family’s financial future and offer high life cover at most affordable premium rates. They extend financial security to your loved ones even in your absence. ICICI Pru iProtect Smart Term Life Plan, apart from offering life cover, comes with additional critical illness rider and accidental death benefit rider to accommodate financial expenditure arising out of a major illness or increased cover due to policyholder’s death by accident. It pays a lumpsum amount on diagnosis of a critical illness to fund your treatment and household expenses during that phase of no-income period and later.

· ULIP – Combining life insurance and financial investment, ULIP plans are ideal for those who have set financial milestones to achieve specific goals like children’s higher education, marriage, buying property, etc. Unit-linked insurance plans offer a wide choice of fund options and portfolio strategies an option to withdraw money regularly from your policy after 5 years lock-in. ICICI Pru Smart Life Plan waives all future premium upon policyholder’s death, but financial protection cover is intact. Which is extended to the nominees at policy maturity.

· Savings Plan – Savings Plan are those financial protection plans that combine the features of a life insurance plan and investment plan. Apart from securing yourself and your family’s financial future, you can also create a robust savings fund to meet your financial milestones set for the times ahead. Most protection and savings plan usually offer you a fixed amount as Maturity Benefit when the policy ends, but some specific plans like ICICI Pru Savings Suraksha Plan also help you create a regular stream of income throughout your policy duration.

These life insurance plans come with added benefits and rider options to choose from which are tailored to meet specific needs of the policyholder. ICICI Prudential Life Insurance Company is a credible name to reckon when it comes to placing trust in a company with your hard-earned money. Their claim settlement record stands mounting at 98.6% and that says why ICICI Prudential is the most preferred choice of Indians when it comes to safeguarding their and their family’s financial future.

About Shandya Rajput

Read All Posts By Shandya Rajput

Leave a Reply