Even before you start to invest for long-term financial goals, most financial planners will suggest you to get health and term life insurance plans. While buying insurance, you cannot ignore the importance of term life insurance as it gives financial security to your dependents in case of an unfortunate event. Similarly, the skyrocketing prices of quality healthcare in India has made health insurance as important as a term life insurance. A health insurance policy provides you financial protection up to the sum insured in case of hospitalisation of the member/s insured.
However, the real hassle comes when you have to buy and manage both the policies at the same time. While both – health and term insurance plans – are fundamental needs, it is often observed that many people who buy one do not buy the other because they find the individual process for each policy a bit cumbersome.
Simplifying the Insurance Process
In order to simplify the entire buying process, insurance market place PolicyBazaar has partnered with Bajaj Allianz Life Insurance and Religare Health Insurance to offer its customers a combination of Term and Health Insurance plan.
“The plan is designed to help customers in protecting their family’s health and ensure a secure financial future for their loved ones, even when they are not around through a single product. The product is live on PolicyBazaar’s official website and can be bought in easy monthly instalments. The combo plan is a one-stop-solution for overall protection coupled with convenience as it involves one transaction and one form for buying the product. A combo product, the plan is a solution that offers you the benefits of both health and life insurance in a single plan. The health insurance benefit under the plan is offered by Religare and the life cover is offered by Bajaj Allianz,” says Santosh Agarwal, CBO-Life Insurance, Policybazaar.com.
Features of the Combo Plan
Specific insurance plans are highly beneficial and the combination plans compliment the provided benefits in a broad manner. Different insurers may offer ranging benefits and this is what makes combo plans so attractive. Apart from being a convenient way to attain overall protection (as it allows you to save your time and energy by following a minimal documentation), a combo plan saves you from the burden of seeking detailed comparisons to know what is best suited for you and your family’s needs. India is highly underinsured. Often, people do not estimate the impact of an unforeseen medical or accidental emergency. Through the combo plan, the insurance ecosystem i.e. PolicyBazaar aims at helping customers to take the first step towards insuring themselves through a single product and a seamless process.
“Under the offered plan, the sum insured for the health cover and the sum assured for term life cover both are fixed at Rs 1 crore. The health plan – Religare’s Care Advantage is available with the combination of Bajaj Allianz’s Smart Protect Goal term life insurance plan. A 30-year-old individual can get the combination of 1 Crore Term Life Insurance (cover up to 70 years) and 1 Crore Health Insurance at a monthly premium as low as Rs 2,177. The same plan can be bought for a 35-year-old individual at a monthly premium of Rs 2,464 while for a 40-year-old individual, the plan costs Rs 3,082 per month,” informs Agarwal.
The monthly payment mode in health insurance is exclusively available with PolicyBazaar and it has increased affordability. Now, people can easily buy health insurance with greater sum insured by paying premium in easy monthly instalments. For an individual experiencing job loss or pay cut, paying premium in monthly instalments is much more affordable than paying the entire premium in just one month as a lump sum. Another prominent benefit of buying the combo plan is that the entire buying process involves just one transaction that means you do not have to make transactions for both health insurance and term plan separately.
You can also avail tax benefits under different sections by buying the combo plan. While the premiums paid for health insurance will qualify for tax exemption under Section 80D of the income tax act, the premiums paid for term plan are eligible for tax exemption under 80C. Yet another useful feature of the combo plan is that both the plans are active simultaneously. For instance, say a policyholder meets with a severe accident and gets hospitalised. Now, for the treatment of the insured, the Religare’s Care Advantage plan will pay all the treatment expenses up to the sum insured i.e. Rs. 1 crore. However, if the insured dies while taking the treatment, the treatment expenses will be paid by the Religare’s Care Advantage health plan and the dependents of the insured will get Rs 1 crore sum assured from the active term plan of Bajaj Allianz as death benefit.
Benefits of Health and Term Insurance Plans
The Religare’s Care Advantage plan provides you with a much needed financial backup at times of medical emergencies up to the sum insured. “Some prominent features of plan include cover for treatment of COVID-19 and all other ailments up to 1 crore. The policy secures the insurer by allowing cashless treatment facilities across India in over 5000 network hospitals across the country. Most importantly, the plan comes with zero co-pay and no capping on room-rent and various day-care procedures,” says Agarwal.
Similarly, according to Policybazaar, Bajaj Allianz’s Smart Protect Goal term insurance is one of the most basic life insurance plans available in the market these days. The product is basically a no-frill plan that offers highest life coverage at most affordable prices.