Matribhumi Samachar English
Every earning individual has financial goals, such as buying a house, funding children’s education, or saving for retirement. But life is unpredictable and the untimely demise of the earning member can disturb the financial goals and put the family in financial distress.
As a thumb rule, individuals must follow the ‘first Protect then Save’ approach. The starting point for building a financial savings plan is purchasing a term insurance plan. The reason is simple, what if the earning member passes away how will the family continue with the savings plan. Ideally the life cover amount should cover all outstanding liabilities and be sufficient for the family to continue with their lives.
ICICI Prudential Life offers the ‘Life Continuity’ option in its best-selling term insurance product, ICICI Pru iProtect Smart. This feature enables the family to receive the claim amount as monthly income which is very useful for families who may not know how to manage the lumpsum claim amount.
Another valuable add-on benefit is the critical illness benefit that should be taken. Studies suggest that approx. 10 crore Indian families are pushed into poverty every year due to healthcare expenses. For a nominal additional premium, iProtect Smart provides the critical illness benefit which covers 34 ailments such as cancer, kidney failure, leukemia, parkinson’s etc. The critical illness benefit pays out the claim upon diagnosis, ensuring individuals have the finances for medical treatment.
Checking the claim settlement ratio and the average claim settlement time are two important points which individuals should consider before buying a term insurance plan. In FY2024, ICICI Prudential Life had a claim settlement ratio (non-investigated) of 99.17% and the average settlement time of just 1.27 days.
Fulfilling the responsibility towards the family is making a commitment to secure and safeguard their future. Many financial experts agree that term insurance is the foundation of responsible financial planning.
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