ASHWIN B
There has been growing focus on health and well-being over the past decade which has increased significantly during the Covid-19 pandemic. While on the one hand it exposed the fragility of life, it also encouraged individuals to reassess their lifestyle and look at changes that they need to make to live a healthier life. With improved healthcare, socio-economic development and scientific advancement in medicine, there will continue to be an improvement in the life expectancy, says an expert.
According to the World Health Organization, globally, life expectancy has increased by more than 6 years between 2000 and 2019 – from 66.8 years in 2000 to 73.4 years in 2019. While a longer life is a very positive sign, and means most of us will probably live a healthier and a longer life, it also calls for better financial planning in order to be able to sustain a good lifestyle, while simultaneously protecting against any unforeseen events. It is imperative then that everyone needs to create a holistic financial plan comprising long-term savings and protection, which would need to include term policies, endowment plans, retirement plans etc.
According to this author, while there is a shift in perception towards life insurance, many of us are either not insured or underinsured. In 2011, life insurance penetration was at 3.4 percent which declined and touched its decadal-low in 2014 at 2.62 percent. According to the Economic Survey 2021-2022, life insurance penetration in India rose from 2.82 percent in 2019 to 3.20 percent in 2020.
- According to the World Health Organization, globally, life expectancy has increased by more than 6 years between 2000 and 2019 – from 66.8 years in 2000 to 73.4 years in 2019
- It is imperative then that everyone needs to create a holistic financial plan comprising long-term savings and protection, which would need to include term policies, endowment plans, retirement plans etc.
- Exide Life’s latest launch, the Smart Income Plan, has been a clutter-breaking product as it offers two survival benefit options to suit the customers at the time of purchase– Enhanced Maturity and Enhanced Income
- Insurers are also factoring in the financial appetite and life goals of individuals and amidst the vast range of products available in the market today, there is a product for all.
Insurers are customising and introducing products to suit the evolved customer needs. For instance, ULIPs have gained significant traction primarily for the flexibility they provide to manage funds and offering wealth creation along with a life cover. Of late guaranteed insurance products have become very popular as they provide a long term guaranteed return in addition to a life cover. Insurers are also factoring in the financial appetite and life goals of individuals and amidst the vast range of products available in the market today, there is a product for all.
Exide Life’s latest launch, the Smart Income Plan, has been a clutter-breaking product as it offers two survival benefit options to suit the customers at the time of purchase– Enhanced Maturity and Enhanced Income. This feature empowers the policyholder to choose the receipt of survival benefits during the income pay-out term as per the financial needs.
Bearing in mind the dynamic and ever-evolving choices and lifestyle of new age individuals, it is advisable to get a life insurance at a young age to be able to get maximum benefits at a lesser premium. Individuals should consider three key elements for choosing the right plan: what liabilities need to be provided for; what are the significant life goals to be achieved and how much life income would be required. This will ensure a financially comfortable life for the dependents that aligns with their plans such as children’s education and marriage, buying the long planned dream house or building a corpus for a comfortable post retirement life.
The right life insurance plan not only lays the foundation for a sound financial planning but also possesses an intangible promise of being there forever for our loved ones. It allows a peaceful night’s sleep and helps accomplish major life goals without interference from unforeseen events such as a sudden loss of life, a hefty amount on the medical bills or an unprecedented pandemic such as the Covid-19 outbreak that filled our lives with uncertainties.
(The author of this article, Mr Ashwin B, is the Chief Operating Officer of Exide Life Insurance.)
