Family Life Insurance Plans
It’s not totally true; you can add your spouse, child, or business partner to a single life insurance plan with a joint life cover option. You have two options here: either each family member buys a separate policy, or you opt for a term insurance policy with a joint life cover option that only provides cover for two people in a single policy.
However, you can even customize your life insurance plan according to your family’s needs.
For instance, let’s assume you need a lump sum payout for your kid’s higher education. Hence, it would be best if you opt for a guaranteed life insurance plan like HDFC Life Sanchay Plus.
A family life insurance plan is also not restricted to a single life insurance product; you can select a type of product based on your future goals.
Which Life Insurance Plan is Best for Your Family?
Choosing a life insurance policy for your family can depend on a few factors, like the type of payout you want, future goals, and the number of family members. There are many different life insurance products that one can choose from; the most preferred ones are discussed below:
Types of Family Life Insurance Plans
Term Insurance Plans
Term insurance is a protection-oriented plan that offers life cover for a specified period. It covers the untimely death of a policyholder, wherein the death benefit is paid out to the nominee. With joint life cover options, you can add two people in a single plan, like a spouse, child, or a business partner. It is a cost-effective way to secure your family in a single plan, and if one policyholder meets with an unfortunate death, the cover is paid to another holder.
Savings Plans
A savings plan offers the dual benefit of savings and protection in a single plan. It combines the benefits of long-term savings and a life cover to provide financial security to you and your family.
There are 4 types of saving plans:
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Guaranteed Plans
It offers guaranteed returns, as mentioned in the bond paper, after the completion of the policy period.
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Non-Guaranteed Plans
Under this plan, you’ll get a combination of guaranteed and non-guaranteed returns.
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Participating Plans
It only offers a return on your investment of up to 4% to 8%.
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Pension/Annuity Plans
Under this plan, you’ll get a combination of guaranteed and non-guaranteed returns.
Child Insurance
Child Insurance is the best way to secure your child’s financial future in the unfortunate event of the parent’s demise. The funds can be used to assist children in pursuing their higher education or to pay towards life events like marriage, etc. Under this plan, parents can pay the regular premiums till the child turns 18, and once the child crosses the age of 18, you can either claim the entire corpus or opt for regular installment payments.
Conclusion
Though you cannot add your entire family to one life insurance policy, you can buy a joint life policy where you can add your spouse, one child, or a business partner under one plan. Buying an accurate life insurance policy serves the purpose well for your family, even if they cannot be added under the same plan. Buying a reliable, accurate term plan will make sure that its benefits reach them on time without any hindrances.
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