Thanks for contacting us.
Will get in touch soon.
Table of Content
Life has a way of throwing nasty surprises at us. There are some events that are beyond our control, from wars to natural disasters and a pandemic of unprecedented scale. One way of tiding over such an uncertain situation is to get yourself an insurance plan.
There are many types of insurance plans, those that come with a purely protection component and those that also come with a component of savings. Term insurance, for instance, is a pure protection plan that offers you coverage for a specific term. On the other hand, there are insurance plans where a portion of your premium goes into the savings component, thereby offering you both coverage and savings.
The primary premise of an insurance plan is to offer coverage. In the unfortunate event of the insured person's demise, the nominee or dependent(s) can get the payout either in a lump sum manner or in a periodic manner.
If you opt for an insurance plan that is also a savings one with regular payouts, it can help your loved ones pay bills in case of a sudden job loss or financial emergency when regular sources of income are not enough. Coverage with payouts mean that there is a more comprehensive method of caring for your family. This comes into sharp focus when there are external events such as conflict, pandemics or natural disasters that can turn lives upside down. A regular payout/guaranteed income option ensures that you cope better with such uncertainties.
Having an insurance plan with a savings component also ensures that you have some sort of financial discipline. You may not be in the habit of saving regularly but when you opt for an insurance plan that also has a savings component, you automatically save a portion of your premium.
Now that you know all about a protection + savings plan, you should also know that the savings component can either be linked to the market performance or not. A non-linked savings insurance plan is one where your savings/investments are not linked to the market. This means there are no worries related to volatility in the markets and you can be rest assured that your savings are safe. This is a risk-free and guaranteed savings option. A non participatory plan implies that there are no dividends since there is no market participation. A risk-free non market linked savings insurance plan is reliable when there is too much uncertainty, such as the current situation of a pandemic. A public health crisis has also meant uncertainty on the economic and markets front so an insurance plan should ideally be one that is a zero risk one.
Choosing a reliable insurance plan is half the battle won in an uncertain time. You should look for a policy that is appropriate for your situation, life goals and commitments. Picking a non market linked and non participatory savings insurance plan such as HDFC Sanchay Plus helps you not only with a good cover but also savings in uncertain times.
ARN:ED/09/20/20580
We help you to make informed insurance decisions for a lifetime.