Skip to main content

Life-stage Protection Insurance



A no-frill term plan works better, but minimal documentation enagages buyers

Most life insurance term plans offer a life-stage protection feature, which allows you to increase your sum assured or cover at different milestones, without any medical examination. But is it worth it?

HOW Life-stage Protection Insurance WORKS

Life-stage protection feature of term plans gives you an option to increase your sum assured by a certain percentage of existing cover at two key milestones in your life: The first at marriage and the second at the birth of a child (up to two children).


For example, if you have taken a `1-crore term cover before marriage, you can enhance it by 50% or `50 lakh on marriage and then by 25% or `25 lakh each on the arrival of the first and the second child.


Some term plans also have a cap on the sum assured that you can increase. Of course, the premium will go up as it is re-calculated based on rising age along with higher sum assured and remaining policy term.


You can opt for this option within six months of an event occurrence or at the prescribed cut-off age. Remember, this feature is available only for life cover and not on any riders and is limited to pure term plans with `life option' in industry parlance.


The plus point is increased cover is available without any medical examination with most insurers.


When you buy a separate cover, you need to go through documentation process and medicals, which might lead to an additional increase in premium due to a new medical condition. Whereas in life-stage protection option, neither fresh documentation nor any medical test is required and the premium would be recalculated only based on the age.

IS IT ANY GOOD?


A back-of-the envelope calculation shows that a plain vanilla regular term plan with no frills works better.On the face of it, a `1-crore cover with no increasing life option is the cheapest. A `2 crore cover (with all three events factored in on day 1 and 200% cover opted on day 1) comes out to be the second cheapest. This is because the premium gets frozen at an early age. Whereas life-stage-increasing cover turns out to be the costliest option(See premium for different options) .


SHOULD YOU GO FOR IT?


You may skip this option and opt for an additional term plan based on changing life situations, say experts. Start with the minimum base life cover through a vanilla term plan and then take additional cover when required. You can completely skip this option if you have a working spouse as well as sizable assets that will take care of financial safety of your dependents


 There are many factors that determine life insurance requirements. He lists new responsibilities, income and expense patterns over time, the amount of savings and assets built (which decreases the need for cover), loans taken (which increases the need for cover) and any risk factors or money goals (which again increases the need for cover). Based on this assessment carried out once every three years, one may take appropriate further covers.


However, if you are relatively young and looking for a hassle-free process later at different life stages, this option could be for you as there is no documentation required again in the same plan. If you are young and yet to start a family, you could go for this option, especially if you are not looking at higher sum assured at beginning of buying term plan



imggallery


------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017 - 2018

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

------------------------------------


 

Popular posts from this blog

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...
Read more

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...
Read more

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...
Read more

Compared to Bank FDs, Debt Mutual Funds are more Tax-Efficient

It is a security vis-a-vis returns battle between bank fixed deposits and debt funds In the past few months, banks have been consistently increasing their rates of interest on different fixed deposits. And after the Reserve Bank of India's Annual Monetary Policy, even the saving deposit rates are up at 4 per cent. For a six-month fixed deposit, you can easily get a rate of anywhere between 6 and 7 per cent annually. However, experts feel if one is looking to invest for less than a year, debt funds could make a better choice. The reason: Liquid funds and ultra short-term funds are giving annualised returns of 8 per cent. Financial advisors suggest retail investors opt for mutual fund schemes as they are more flexible and give higher post-tax returns. Opt for fixed deposits only if you are comfortable being locked-in for the tenure as a premature exit can attract a penalty. If your main aim is to ensure liquidity, debt funds are preferable. Though a fixed deposit gives you a...
Read more

Reliance Health Total

  Reliance Life Insurance has launched Reliance Health Total, a non-linked, non-participating and non-variable health insurance plan . It provides a fixed benefit cover for hospitalisation, critical illnesses and surgeries. The customer can also make a claim for over-the-counter health-related expenses. This is a regular-pay, five-year plan that can be renewed till the age of 99. The plan comes with two options: customers can choose a higher medical reimbursement benefit or a higher sum insured. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - I...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now