Insurer: ING Life Insurance

Category: Traditional Plan

Objective: Financial protection of family and periodic returns on investment

ING Secure Income RP is available in 2 variants- Base and Economy.

Bonuses

Loan facility

Maximum Entry Age: 60 Years

Maximum Age at Maturity: 70 Years

Policy Term: 10- 20, 25 and 30 Years

Premium Payment Term: Equal to Policy term

Minimum Premium: Rs 12,000 per annum (Base), Rs 8,000 per annum (Economy)

In case of unfortunate death of life insured, Sum Assured along with accrued bonuses will be paid.

For base variant, assured income for next 5 years which is equivalent to 120% of Sum Assured becomes payable.

Maturity Benefit:

On maturity, Sum Assured along with accrued bonuses will be paid. Additionally, 10% of Sum Assured will also be payable.

Riders:

You can opt for the following riders- Accidental death, disability, dismemberment rider, additional life cover and critical illness rider.

Loan:

After 3 policy years, you can avail loan facility.

Under Section 10(10D) death claim is completely tax free.

What else should I know about?

Reinstatement: If your policy has lapsed, you can revive within 5 years from the due date of unpaid premium.

Grace period: You can pay due premium within 30 days from renewal date.

Free Look Period: Secure Income Insurance RP plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Insurer: ING Life Insurance

Category: Traditional Plan

Objective: Financial protection of family and periodic returns on investment

• Bonuses
• Limited Pay Option
• Loan facility

Maximum Entry Age: 60 Years

Maximum Age at Maturity: 70 Years

Policy Term: 10- 20, 25 and 30 Years

Premium Payment Term: 5, 7, 10 Years

Minimum Premium: Rs 12,000 per annum

In case of unfortunate death of life insured, Sum Assured along with accrued bonuses will be paid. Additionally, assured income for next 5 years which is equivalent to 120% of Sum Assured becomes payable.

Maturity Benefit:

On maturity, Sum Assured along with accrued bonuses will be paid. Additionally, 10% of Sum Assured will also be payable.

Riders:

You can opt for the following riders- Accidental death, disability, dismemberment rider, additional life cover and critical illness rider.

Loan:

After two policy years, you can avail loan facility.

Are there any tax benefits?

Under Section 10(10D) death claim is completely tax free.

Reinstatement: If your policy has lapsed, you can revive within 5 years from the due date of unpaid premium.

Grace period: You can pay due premium within 30 days from renewal date.

Free Look Period: Secure Income Insurance Plus plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Money Back Life Insurance Plan

Money back plans have always been the preferred life insurance policies by the customers. The reason being simple- you get periodic payouts as well as lump sum benefits. So you can fulfill the expected oncoming financial goals and also end up getting maturity amount for future.

The Good:

What attracts people to money back policies is that they will be getting some amount of money every other year. So the intermediate expenses can be taken care of with the periodic payouts of money back plan.

There is also a lump sum benefit on maturity of money back plan. So one can use that amount as his or her future needs.

Most money back plan being traditional plan, the returns are guaranteed. And looking at the recent history of market ups and downs, the mindset of people is towards being safe than sorry.

The Bad:

Even though money back policies seem like to be excellent options, the reality is pretty different. First that most money back policies are traditional policies which means even though returns are guaranteed, they are low. And observing the rising costs, traditional plans are exactly what the name implies- outdated.

Secondly, if you cancel money back policy, you end up losing most of your basic investment as well. The guaranteed surrender value in most money back traditional plans is 30% of all premiums paid barring first year premium. There is no flexibility of withdrawing money at need. You can opt for loans but the interest rate charged could be more than the growth you might be getting on the money back plan.

ULIP’s or traditional life insurance plans?

For many years, traditional or endowment insurance plans has been the investment cum insurance solution for Indian customers. When unit linked insurance plans were launched with promises of high returns, the trend shifted and people started buying ULIP’s. In 2010, when IRDA put a cap on ULIP charges, traditional plans have made a comeback with the insurer’s promoting them.

Given below is analysis of ULIP’s versus traditional plans head to head:

Life Cover: The minimum life cover in most ULIP’s is 5 times the annual premium. And in many ULIP’s, death benefit is equal to both life cover and fund value.

In contrast, in most traditional plans, you get only Sum Assured (and bonuses if any) and life cover could be as low as Rs 50,000. It is true that you can increase the life cover in traditional plan as per your preference but that will also result in increase of premium.

Returns: The returns in Unit linked insurance policy depend on market performance. If you continue policy for longer term, risks are mitigated and you can get good returns. Traditional plans have guaranteed returns which are specified at the beginning of life insurance plans. However the returns are low and not practical as compared to the consistent increase in cost of living.

Charges: ULIP charges were high earlier but there is cap on charges now. New ULIP’s are coming with zero allocation charges and also can be bought online which further decreases the cost. In traditional plans, charges are unknown.

Flexibility: ULIP’s let you make switches between funds, make premium redirection and even partial withdrawal. Traditional plans do not offer such features. However there is loan feature with many traditional plans which you can apply against. The interest rate for loan will be charged for the same.

Surrender: If you cancel ULIP before 5 years, there will be cancellation charges and the premium will be paid only after lock-in period. For that time duration, it will put in discontinued fund. After the lock-in period of 5 years, you can surrender ULIP without any cancellation charges. The fund value will be paid as per the NAV of the fund. Traditional plans have surrender value after policy has been continued for 3 policy years. The surrender value is higher of special surrender value or guaranteed surrender value. Special surrender value is declared by insurer from time to time and guaranteed surrender value in most traditional plans (regular premium) is equal to 30% of all the basic premiums paid minus first year premium.

Conclusion:

Unit linked insurance plan is for individuals who can manage and shift funds when required and are comfortable around equity based risks. The life cover is good but not enough for securing family members.

Traditional plan (Invest n Forget) are for individuals who are unable to manage funds and do not understand the intricacies of unit linked insurance plans. The life cover in traditional plan is not enough and one should always go for term plan for ensuring financial security for family members.

Both traditional and ULIP’s should be kept for complete term to reap the benefits.

How and when to discontinue from Life Insurance?

Life insurance is a complex financial product. More often than not, one gets stuck by buying the wrong insurance policy and seeks a way out. However after buying life insurance policy, it is not easy to discontinue as it is a long term insurance product. There is free look period of 15 days when you can cancel the policy with just few nominal charges which get deducted as a part of medical tests, stamp duty etc.

The following exit strategies are provided based on life insurance products:

Term Plans:

With the onset of many online term plans which are comparatively very cheap, many people want to discontinue their old term plans. However before discontinuing, it would be best to buy the new term plan as the cover should not break and there might be medicals involved which could take time. Once the new policy gets issued, you can cancel the earlier term insurance policy.

ULIPs:

All ULIP’s have lock in period of 5 years. So if you cancel policy within 5 years from the commencement of policy, you will have to wait till the 5^th year to get the fund value. There is no point cancelling unit linked insurance plan within 5 years as the cancelling charges along with other charges will reduce invested amount too much.

Exit a ULIP if you are near to mid policy term, charges are high and fund value is not getting much growth.  If your ULIP is not performing due to higher charges, hold on to them for few more years till the fund value improves. Because most ULIPs charges drop over the policy term and stock markets could also improve in longer duration. Do not cancel ULIP if you are near to maturity as you might get loyalty additions.

If you have taken child plan, make sure there are safeguards for your children when you withdraw from the plan.

Traditional Plans:

These plans are tricky. In traditional plans, you get surrender value after 3 years. The surrender value is equal to higher of special surrender value or guaranteed surrender value. In most traditional plans, the guaranteed surrender value is 30% of all base premiums paid barring first year premium. The special surrender value is declared from insurer from time to time. So if you can cancel traditional plan, you are entitled to higher of the surrender values among the two.

It is best to continue the traditional plan as cancelling traditional plan leads to the good loss of invested amount. If emergency amount is required, you can apply for loans against the policy after ascertaining the interest rate charged from the insurers. Loan facility is available with many insurers.

Sahara Life Amar Jeevan Review

Plan Name: AmarJeevan

Insurer: Sahara Life Insurance

Category: Traditional Plan

Objective: Provides regular income post retirement

Major USP of Sahara Life Amar Jeevan

• Bonus
• Riders available
• Rebates

Eligibility of Sahara Life Amar Jeevan

Minimum Entry Age: 25 Years

Maximum Entry Age:  55 Years

Maximum Age at Maturity: 65 Years

Policy Term: 10 Years to 40 Years

Premium Paying Term: Same as Policy Term

Minimum Age for start of Pension: 50 Years

Premium Payment Frequency: Yearly, Half-Yearly, Quarterly, Monthly

What benefits does Sahara Life Amar Jeevan offer?

Death benefit:

If the life insured passes away, the Sum Assured along with vested bonuses will be paid to the nominees. Also if the policy has been in force for 15 years or more, terminal bonus if any will also be payable.

Maturity Benefit:

The Sum Assured along with vested bonuses will be payable at the end of policy term. Also if the policy has been in force for 15 years or more, terminal bonus if any will also be payable. The policyholder has option to take one third of the maturity amount in lump sum while the rest of the amount must be used to purchase annuity.

Discount:

For Sum Assured equal and above Rs 200,000, rebate on premium will be given.

Riders:

By paying additional nominal premium, you can add Accidental benefit & accidental total & permanent disability and critical illness benefit rider.

What will be my returns from Sahara Life Amar Jeevan?

Illustration:

Mr. Singla aged 35 invests Rs 12,077 annually for policy term of 25 years.

Death Benefit: If Mr. Singla passes away after 13 years, his wife will get the Sum Assured along with vested bonuses. In this case, his wife will get Rs 300,000 as death benefit apart from bonuses.

Maturity Benefit:

At maturity, the guaranteed returns are Rs 806,250 assuming bonus of 10%.

Are there any tax benefits?

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

What else should I know about?

Paid-up Value: After three policy years if you are unable to continue policy, you can convert to paid up. The policy will not participate in future performance. On maturity or death, reduced Sum Assured vested bonuses will be paid.

Grace period: Amar Jeevan can be renewed within 30 days from due date for yearly, half yearly and quarterly. Grace period of 15 days is for monthly mode.

Free Look Period: Amar Jeevan plan can be cancelled within 15 days of receiving the policy

contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

How can I buy Sahara Life Amar Jeevan?

Policybazaar representatives will assist you in buying AmarJeevan.

What’s Policybazaar opinion on Sahara Life Amar Jeevan?

Sahara life primary is a traditional pension plan which provides Sum Assured and bonuses. The plan has very essential rider which you can add. Also you get discount on premium for large Sum Assured.

Insurer: Shriram Life Insurance

Category: Traditional Plan

Objective: Financially Securing Child’s Future

Comprehensive death benefit

Premium Rebate

Accidental Rider available

Loan facility

Maximum Entry Age: 50 Years

Maximum Age at Maturity: 70

Policy Term: 10 Years

Premium Payment Frequency: Yearly, Half Yearly, Quarterly

The accumulated amount is paid to the policyholder.

Death Benefit:

In the case the life insured passes away during the policy term, Sum Assured with vested bonuses will be paid. Also 1% of Sum Assured monthly payouts will be paid till the end of policy term.

Guaranteed Benefit: If the life insured dies or survives, 25% of Sum Assured will be paid during the last 4 consecutive years of the policy term.

Maturity Benefit: The vested bonuses will be paid at the end of policy term.

Riders: The riders add extra layer of protection for your child. You can add Accidental death benefit rider with the plan.

Discount: If you opt for Sum Assured equal and above Rs 100,000, rebate on base premium will be given.

Loan: You can apply for loan against the policy, the maximum loan amount you can get is 90% of surrender value.

Under Section 10(10D) death claim is completely tax free.

Surrender Value: In case you want to cancel Shri Vidya after 3 years, the minimum guaranteed surrender value will be paid which is equivalent to 30% of all premiums paid barring the first year premium.

Free Look Period: WealthOne plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Insurer: Shriram Life Insurance

Category: Traditional Plan

Objective: Financial protection of family and returns on investment

Riders available

Loan facility

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term:  7 Years - 25 Years

Premium Payment Frequency: Yearly, Half Yearly, Quarterly

What benefits does Shri Life offer?

Death benefit:

In case of unfortunate death of the life insured, Sum Assured along with vested bonuses will be paid.

Maturity Benefit:

At the end of policy term, Sum Assured with vested bonuses will be paid.

Riders:

You can opt for the following riders with the plan- Accidental death benefit and family income benefit rider.

Discount:

For Sum Assured equal and above Rs 100,000, rebate on base premium will be given

Loans:

You can get loan up to 90% of the surrender value.

Under Section 10(10D) death claim is completely tax free.

Surrender Value: In case you want to cancel Shri Life after 3 years, the minimum guaranteed surrender value will be paid which is equivalent to 30% of all premiums paid barring the first year premium.

Free Look Period: Shri Life plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Insurer: Shriram Life Insurance

Category: Traditional Plan

Objective: Financial protection of family and periodic returns on investment

Accidental Rider

Large Sum Assured  Rebate

Maximum Entry Age:  60 Years

Maximum Age at Maturity: 75 Years

Policy Term:  15 Years to 20 Years

Premium Payment Frequency: Yearly, Half Yearly, Quarterly

In case the Life Assured passes away during the policy term, Sum Assured with the vested bonuses will be paid to the nominee.

Money Back Benefit:

Depending on policy term, a % of Sum Assured is paid on 5^th policy year and every 5 years thereafter.

Maturity Benefit:

A % of Sum Assured is paid on maturity.

Riders: 

Accidental Death benefit rider can be opted with Shriram Akshay Nidhi plan.

Discount:

For Sum Assured equal and above Rs 200,000, discount on premium will be provided.

Under Section 10(10D) death claim is completely tax free.

Surrender Value: In case you want to cancel Shriram Akshay Nidhi plan after 3 years, the minimum guaranteed surrender value will be paid which is equivalent to 30% of all premiums paid barring the first year premium.

Free Look Period: Akshay Nidhi plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Plan Name: Raksha

Insurer: Shriram Life Insurance

Category: Traditional Plan

Objective: Financial protection of family and returns on investment

• Bonuses
• Riders available
• Large Sum Assured Rebate
• Loan facility

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Premium Paying Term: 10 Years- 25 Years

Premium Payment Frequency: Yearly, Half Yearly, Quarterly

What benefits does Shri Raksha offer?

Death benefit:

In case of unfortunate death of the life insured during the premium paying term, double the Sum Assured along with vested bonuses will be paid. If death occurs after the premium paying term, Sum Assured along with vested bonuses will be paid.

Maturity Benefit:

At the end of policy term, Sum Assured with vested bonuses will be paid.

Discount:

For Sum Assured equal or above Rs 100,000, rebate on premium will be made.

Riders:

By paying additional nominal premium, you can opt for the following riders- Accidental benefit rider, family income benefit rider and extra insurance rider.

Loans:

You can get loan up to 90% of the surrender value.

Under Section 10(10D) death claim is completely tax free.

Free Look Period: Raksha plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.