Living Benefits in Insurance Plans

Insurance serves as a protection in case of any unfortunate event but one must also keep the living benefits in mind while choosing the plan. The insurance plans like Health Insurance, Critical Illness plans etc. are much more affordable today and serves as a protection tool and saves loss of income due to hospitalization.

Here is a transcription of the video in which, Anuj Mathur, MD and CEO, Canara HSBC Oriental Bank of Commerce Life Insurance, is talking about living benefits and affordability in the insurance plans.

Vivek Law – One of the areas where you are more experience to tell our viewers is that a far greater interest seems to be around health insurance. I think people are beginning to realize because penetration levels are still very low but given the steps the government is taking in popularizing health insurance providing it such as Ayushman Bharat scheme and all sector there seems to be a far more amount of awareness and recognition that health is something that I need to protect health expenses I need to protect. Do these new age ULIPs come with good competitive top up’s around critical illness.

Anuj Mathur – Right! so this is something which is really important for our viewers to understand the longevity, the number of years that we are going to live is going to be much more than our parents, grandparents and that is one because of the lifestyle number two because of the medical facilities which are available so we are going to live longer. If you are going to earn for about let’s say thirty years on an average then it is quite possible that you may have to live for thirty or thirty five years post retirement without income, so it’s really important that living benefits should not be ignored. While insurance perceive to be kind of protecting life but some of these products which insure you against critical illnesses are really important and they are gaining importance. There are cancer products, in fact we are launching a critical illness product very soon where cancer we’ll be protecting customers against various diseases so there are about twenty four or more diseases in addition to the cancer and heart. If you buy this product and God forbid if something happens to you ten or fifteen years later you actually get a lump sum amount. There is a distinction between these plans and typical medical insurance which are mostly reimbursements now the benefit with this is that if you are contracted with the disease then you get the lump sum money so that actually help you in terms of maintaining your life style, meeting the medical expenses and all of that, so this is something which is recent.

Vivek Law –  The health inflation is almost 14-15%, so there is no way you can run for that absolute investment which will give you better return.

Anuj Mathur – So, I think the living benefits are again very important and for that customers should look at some of these plans.

Vivek Law – Would you say Anuj that the rates have gone down here as well?

Anuj Mathur – Yes, because of the competition which is there and also because of the availability of more and more data over a period of time rates have gone down be it pure protection, be it mortality charges on ULIPs or be it critical illness. Now, insurance is available at very affordable premiums and maybe one can actually benchmark against the global rates in India which is really complicated.

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