Thursday, June 13, 2024

How to make the most of my life insurance policy?

How to squeeze the most out of my life insurance policy?

A life insurance policy is a financial instrument designed to ensure that your dependents are protected in case of any eventuality. However, one can also accomplish their financial objectives and ambitions through life insurance plans. One such plan is the money-back scheme which allows periodic payment of the insurer during the tenure of the policy. In this blog we will discuss how to extract maximum value from your life assurance policy and highlight the Canara HSBC Life Insurance iSelect Guaranteed Future Plan as an appropriate choice for your financial aspirations.

Money-back plans are structured in such a way that they provide regular payouts throughout the policy term and also offer life protection cover. These policies can be helpful for people who have constant need for money or constant aspirations. Payouts can be used to satisfy short-term goals or meet ongoing expenses. Moreover, if an insured person survives till a certain time he/she will get summation assured as one lump sum amount.

One such plan is Canara HSBC Life Insurance iSelect Guaranteed Future Plan which is a non-linked, non-participating and limited premium payment policy. This coverage provides a life cover along with guaranteed benefits and pay-outs. Let us look at some of these advantages:

Protection for dependants

The plan offers comprehensive life cover that provides financial security to your loved ones in case of any unforeseen event. The sum assured may be chosen by the policyholder according to his/her needs vis-a-vis his/her family’s future security.

Gift of guarantee

This plan offers guaranteed payouts at specific intervals during the policy term, which can help in meeting the policyholder’s short-term financial goals or expenses. Besides, it has guaranteed maturity benefits thereby implying that upon reaching maturity, an individual gets paid all sum assured at once.

Let’s take an example where a 25 year old healthy male pays ₹2,10,000 as annual premium with a 10 years premium payment term and a policy term of 20 years, he would be entitled to receive maturity benefit of ₹51,84,468.

Boost the maturity benefit

The iSelect Guaranteed Future Plan provides additional boost in the maturity benefit during the last five years of the tenure which raises the total payout at the end of the policy term. Boosting is done through an added percentage of sum assured for realization of long-term financial plans by a policyholder.

Payer premium protection cover

This plan offers an additional feature called payor premium protection cover which ensures that irrespective of whether or not there is death or critical illness to happen to me, this insurance will still be in place. The remaining premiums for the policy are paid by the insurer and helps it continue providing financial security to my family.

Pay as you like

It offers you with optionality on how frequently you can “pay your way” into its scheme. The policyholder can choose from annual, half-yearly, quarterly or monthly payment options according to his/her financial planning.

Tax benefits

Moreover, this product comes with tax advantage under Section 80C and Section 10(10D) of Income Tax Act, 1961. The premiums paid towards such policies are eligible for tax deductions whereas payouts received from them are entirely tax-free.

To sum up, a life insurance policy can be considered as an important instrument towards achieving your lifetime intentions and targets. The Canara HSBC Life Insurance iSelect Guaranteed Future Plan is an advantageous scheme that offers full coverage to your dependants and assured benefits and payouts. This plan allows you to maximise use of your life insurance policy because it has a flexible premium payment options and additional advantages too.


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