Insurance companies are offering combo plans with life and health cover in a single policy. Policyholders have a single point of contact for all their insurance needs, making it easier to track coverage, pay premiums, and handle claims.
In combo plans, policyholders are covered for both life-threatening events and medical expenses. This ensures that policyholders and their families are better protected in case of health emergencies or untimely demise. The combo plans include additional riders such as critical illness coverage, accidental death benefits, or waiver of premium benefits, which can provide added security and financial support.
Sharad Bajaj, COO, Insurance Dekho, says, combo insurance plans, which bundle life and health insurance, often come with added features that may not be available when purchasing separate policies. These features can enhance the overall value and convenience of the coverage. “Combo plans often come with additional benefits such as cashless hospitalisations, coverage for critical illnesses, and death benefits. These added features enhance the overall value of the policy,” he says.
Some of the comprehensive combo policies are ICICI Prudential’s iShield, Max Life’s Secure Earnings & Wellness Advantage Plan and PNB MetLife’s Mera Mediclaim Plan. The maximum age at entry for these plans is 65 years. The plans provide cashless hospitalisation at the insurance company’s network hospitals, rider benefits, coverage against death, terminal illness and disability.
Managing one policy instead of two often means less paperwork and fewer documents to keep track of. This can simplify the process of renewing or making changes to coverage. Policyholders can avail tax benefits on premiums paid under Sections 80C, 80D and benefits received under Section 10(10D) of the Income Tax Act.
Cost effective plans
Combo plans are cost-effective as bundling life and health insurance into one policy results in saving costs as compared to purchasing separate policies. Insurance companies often offer combo plans at a discounted rate compared to the cumulative cost of individual life and health policies. These plans eliminate the need for overlapping coverage between separate policies, which reduces the overall premium expenses. So, by consolidating coverage, policyholders avoid paying for redundant benefits and managing one premium payment is simpler than handling multiple payments.
Rakesh Goyal, director, Probus, an insurance broking firm, says combo plans are cost effective because the administrative costs and underwriting processes are streamlined when both coverages are bundled together. “However, it is essential for policyholders to carefully review the features and coverage offered by these plans to ensure they meet their specific needs before deciding on a combo plan.”
Additional features
Combo plans have additional features such as integrated benefits, where a portion of the life cover may be utilised for health emergencies or hospitalisation. Some combo plans may offer wellness benefits, preventive health check-ups, and even return of premium options if no claims are made during the policy term. “These plans may include riders such as critical illness cover or accidental death benefits at a lower cost when bundled compared to adding these to individual plans separately,” says Bajaj.
Some insurers offer higher coverage limits or enhanced benefits in combo plans as an incentive. This means more substantial payouts for both health and life coverage compared to separate policies. Combo plans may offer more flexible terms or customisation options, allowing policyholders to tailor their coverage to meet specific needs or preferences that might be more cumbersome to arrange with separate policies.