What does it do?
Like every other term insurance policy, it pays out the sum insured to the nominee in case of your death. The policy also covers terminal illness and accidental total and permanent disability on paying additional premium. It has need-based payout options to choose from—lumpsum and monthly income.
Pros
It provides both level and increasing cover options. Under increasing cover option, the sum assured increases by 25 per cent every 5th policy year, upto the 20th year. This could be helpful to automatically increase the cover viz a viz inflation and increasing responsibilities for someone who is buying it at a very young age.
The monthly income payout option can be beneficial where the nominee is not financially savvy to handle the whole sum assured as a lumpsum. Under the monthly payout option the sum assured is paid in equal monthly installments. You may also choose a combination of lumpsum and monthly payouts.
Provides an option where the spouse of the assured can also be insured for a maximum of Rs 25 lakh.
Cons
The maximum amount to be paid under accidental total and permanent disability is limited to Rs 1 crore.
Accidental Total and Permanent Disability cover is available for level cover option only.
