To meet your long-term financial goals and offer financial protection to your family members, it is prudent to opt for a term plan. Online term insurance from a reputed insurer in India will offer unmatched coverage against several unprecedented incidents in life. So much so that if the policyholder dies during the duration of the policy, the beneficiaries will receive the exact sum insured as a death benefit.
However, most people get confused between buying multiple term policies and one comprehensive life insurance plan. If you are confused between these two options in hand, keep reading below.
Should You Opt for a Comprehensive Term Plan?
Comprehensive life insurance can protect you and your family and offer you significant benefits. Here are a few benefits that you can avail of with a comprehensive term policy in India –
- Accidental Death Benefit
With this benefit of a comprehensive online term insurance plan, the policyholder’s beneficiaries can get an additional lumpsum amount in case of the policyholder’s death due to an accident. Also, if the accident occurs due to the negligence of public transport, the insurer can double the payout.
- Hospitalisation Benefit
Suppose the policyholder needs to get hospitalised due to some medical emergencies. In that case, this benefit option will offer a payout as a per-day hospitalisation benefit of a certain pre-decided percentage of the sum assured. Also, if the person is admitted to the ICU (Intensive Care Unit), an additional pre-decided sum assured will be given for the treatment.
- Critical Illness Benefit
Under this benefit, the policyholder can avail of a lump sum payout on the first diagnosis of critical illnesses as included under the policy. Moreover, the policyholder can also get this payout while undergoing such critical diseases. Therefore, this provides comprehensive protection against various illnesses, including cardiac ailments, cancer, etc.
- Permanent Disability Benefit
Suppose the policyholder meets with an unfortunate accident where they end up experiencing total and permanent disability. The insurer will pay a lump sum to cover the treatment charges, loss of income, and modify their home or vehicles to meet their needs. Also, if the accident occurs in public transport, the insurer will double the payout.
- Life Cover Benefit
Finally, one comprehensive life insurance plan with a life cover benefit will offer absolute security to the policyholder’s family’s financial future if the policyholder dies of an unfortunate incident. This cover, therefore, takes care of the financial security of the family members and offers them monetary support in the absence of the sole breadwinner in the family.
Some of the most reputed insurance companies like Tata AIA offer almost all of these benefits (and much more) in their comprehensive Tata AIA term plan online.
Should You Opt for Multiple Term Insurance Policies?
If you opt for different term insurance plans, you can get multiple benefits. Here are three major advantages of opting for multiple term insurance policies –
- Firstly, in case of the sudden demise of the policyholder, the beneficiaries can receive the sum assured from different insurers. This ensures that the policyholder’s family members have ample financial support during such a tough time.
- With multiple term insurance policies, there is a lower risk of the claim getting rejected in case of the policyholder’s sudden death. Even if one insurer rejects a claim, the policyholder’s beneficiaries will still have other insurers to file a claim. This is one of the major benefits of having multiple term plans.
- The third advantage of having multiple term plans is that you will get to choose a plan from different insurers. In addition, you can take your pick from the insurers with higher claim settlement ratios.
Which One Should You Opt For?
If you opt for a comprehensive term insurance plan, you can get maximum coverage at an affordable premium. Moreover, you will only have to manage one policy only.
On the other hand, with multiple term insurance plans in India, you will need to pay higher premiums. However, as discussed above, your beneficiaries will get better financial protection in your absence.
Ultimately, it is up to you to decide whether you want to opt for a comprehensive term plan or buy multiple term insurance plans. Both have their own sets of advantages and depending upon your requirements you can make your choice.
Finally, it’s up to you to decide whether you wish to go for a comprehensive life insurance plan or multiple term plans. However, before choosing your plans, always compare the options at hand. Then, go through the policy documents to learn more about the features, inclusions, and exclusions to pick one that suits your insurance needs the best.