says H.Vinod, Chief of Sales, South & East, ICICI Prudential Life Insurance
Traditionally, in India life insurance has been purchased as a tax saving tool. This trend has changed and individuals today purchase life insurance to mitigate the risks of life and provide financial security to their families. Term insurance plans offer a significantly large quantum of cover for a low premium. Customers have the flexibility to choose from single, limited or regular premium payment options.
Life insurance companies have developed innovative term insurance plans which provide cover against critical illnesses. Let us take the example of, ICICI iProtect Smart, this product provides cover against 34 critical illnesses such as Cancer (including ovarian, cervical and breast), Kidney failure, Alzheimer’s, Parkinsons etc.
For certain, critical illnesses, this product makes a lumpsum payment to the policyholder upon diagnosis. With the claims proceeds in the bank account the policyholder can focus on getting medical treatment without having to worry about raising funds. A term insurance plan with built-in critical illness benefit ensures that the savings kept aside for the family remain intact. Importantly, the life cover continues even after the critical illness claim is paid out.
Term insurance plans are the foundation on which individuals should build their long term financial savings plans. These plans act as an income replacement tool for the family in case of untimely demise of the earning member. With the claim proceeds the family can continue with their lives. It will even enable the continuance of the financial savings plan of the family.