An increasing number of Indians are feeling the need for insurance. Both life and health insurance are essentials in modern financial planning and the absence of any one of these exposes any household to grave financial risk. The interesting point is policies that offer a combination of health and life policies are being offered by major insurers.
These offer tangible benefits such as cost-effectiveness as well as fewer hassles for the policyholder in the form of keeping track of premium payments of two different policies. A combination policy needs just one premium payment to buy two protections – almost a one-stop shop arrangement with life insurance and health insurance companies.
Life and health insurance benefits
If one scans major insurers for features in these combo plans, it is clear that they offers a host of benefits on both domains health and life. These are cashless treatment at hospitals (obviously within certain limits), surgery expenses and hospitalisation. Like life insurance plans these policies also offer death benefits with nominees getting the appropriate coverage amount.
What’s more, insurers offer different variants in the same plan that would fit the needs of different classes of customers. The plans also typically include additional benefits with riders. Most plans also offer loyalty bonus points to encourage policyholders to stick to healthy practices so that they fall ill less frequently.
Another significant benefit is income tax deductions according to Section 80C of the Income Tax Act 1061. However, it must be remembered that only those who file their income tax according to the old regime are entitled to get income tax deductions.
HDFC Life example
For example, Click 2 Protect Optima Restore from HDFC Life is a combo plan that offers the opportunity of choosing from 3 cover plans, cashless treatment facility from more than 10,000 hospitals and nursing homes across the country. It also offers add-ons such as restore benefit, multiplier benefit and stay active benefit.
It also offers preventive health-check up, no sub-limit of room tariffs in hospitals, no sublimits based on geography. There is also an “income payout” from the age of 60 years under the income plus option.
A combination of life and health insurance plans leads to more cost-effectiveness and less headache for the policyholder. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
