|Objective||This policy aims at providing financial stability to a family, in case of death of the breadwinner, by replacing the insured's income with monthly payouts.|
|What does it do?||This term plan pays sum assured as monthly installments to the nominee in case of death of the insured. Monthly benefit will be calculated as sum assured divided by policy term in months.
The nominee can also ask for premium as a lump sum which will be a discounted value of remaining monthly payouts.
The plan allows the policyholder to surrender the policy after second policy year. Surrender value will be calculated as per the predefined formula.
There is no survival benefit.
|Pros||The policy gives rebate to high sum assured policies. Non-smokers also enjoy discount on premium.
Plan provides surrender value as well.
|Cons||Premium can be paid in single installment only.|
|Suited for||This policy is suitable if your family cannot deftly manage a lump sum amount in your absence.|
|Our View||Premium towards this policy can be paid as single amount only which is a major drawback.
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.
Consider this policy only if you feel no one in your family can handle a lumpsum amount after you.