|Objective||This is a pure term insurance plan with death benefits. One can choose two riders with the policy- dreaded disease and accident death.|
|What does it do?||The nominees receive death benefit on demise of the policyholder and there is no maturity benefit available. The two riders can be availed only with the regular premium payment option.|
|Pros||The combination of accident death benefit and dreaded disease enhance the scope of cover in this plan.
Dreaded disease rider provides extra protection on 18 listed diseases.
Policies with sum assured greater than Rs 25 lakh are can avail rebate on premium.
Women can avail premium at rates lower than men, as they have lower mortality rate.
With the combination of accident and dreaded disease rider; the policyholder can maximise deductions under Section 80C and Section 80DD on premiums paid.
|Cons||The minimum sum assured in this plan is Rs 10 lakh.|
|Suited for||This policy is suitable for those looking for high value term plans because there is no limit on the sum assured.|
|Our View||A pure risk term plan is a definite buy for everyone. Although there is a single premium option available in the plan, which also comes with surrender value, we would recommend you to avoid it. Single premium plan may prove to be expensive as compared to regular premium payment option as you lock in a large amount for a fixed cover. The reason we say this is because in case something goes wrong in early years of the policy, you have already paid a huge chunk of amount as premium to the insurance company. The dreaded disease and accident death benefit rider enhance the scope of cover. The dreaded disease rider qualifies for deductions under Section 80D. The rider will automatically terminate if policyholder develops any of the 18 listed diseases.|