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How to Beat Rising Costs with Complete Life Cover

Happy parents laughing together with daughter blank space

Happy parents laughing together with daughter blank space

A typical drawing-room conversation often alludes to the times when inflation wasn’t such a bother. How often have you heard your parents lament about the high cost of living today? We have moved past those days when a litre of milk costs a mere ₹5, and a loaf of bread was available for less than a rupee. It seems like a lifetime ago. But even a decade back, you could tank up your car for ₹1000 and get through half a month. What you pay for your toddler's nursery classes today once covered your entire college education.

As per data released by the Ministry of Statistics and Programme Implementation, India’s benchmark inflation rate, measured by the Consumer Price Index (CPI) stood at  5.59 per cent  year-on-year in December 2021. In December 2020, retail inflation was 4.59 per cent, revealing that there has been a steep rise over 12 months.

These statistics bring to the fore how inflation and changing economies can throw our financial plans off track. Add to it the uncertainties brought on by the pandemic, and you know this is a recipe for sleepless nights. The truth is that the corpus we have put aside for retirement, children's education might not be enough. Even investment in that second home could be insufficient when you are in the middle of a financial crisis.

What’s worse is that if we are no longer around, these savings and investments may not help our dependents sustain a comfortable lifestyle. So, what is the solution?  Life insurance, yes. But will it meet all our future needs?

Is your life cover enough?

We have all bought insurance after facing pressure from agents or temptation by advertisements. Sometimes the purchase has been made just to save taxes without paying attention to how much we would need. You may be insured, but how do you know it is enough? The matter of fact is that even something like a  ₹1-crore insurance might not suffice in the future . Why so? This may be because you did not account for inflation, cost of living, and debts and liabilities. The result is limited protection for your family at a time when they need it.

How do you even arrive at a figure that will provide a financial shield to your loved ones long after you are gone?   The Human Life Value Calculator by HDFC Life is your answer . All you need to do is fill in your personal and financial details, wait for a few minutes, and you will arrive at the ideal sum assured. This is the cover you must have because #AdhuraNahiPooraLifeInsurance is a necessity.

How do you zero in on the right scheme?

The second step is identifying the right scheme that meets your needs, and also protects your family against uncertainties. Moreover, it must provide you with the sum assured identified by the calculator.  If you are determined to ace your financial plan for the future, your search ends right here with the HDFC Life Click 2 Protect Life Term Plan . It lets you choose your policy based on your needs and provides you with the flexibility to zero in on premium payment terms.

You could choose any of the three options available with this product:

  • Life Protect:  If you go for this option, your family will receive basic protection. In case you lose your life during the policy term, the nominees are given a lump sum payout so that they can meet their financial needs without compromising on their lifestyle.
  • Life and CI Rebalance:  With this plan, you get the benefits of both the death and critical illness rider. The good news is that critical illness cover will continue to go up every year, and at the same time, there will be a reduction in life cover. If you are detected with a critical illness during the policy term, the insurer waives off your future premiums but your life cover continues.  
  • Income Plus : Under this plan, the policyholder is covered for the entire policy term. Plus, they also get a lump sum payout, once the policy matures along with regular income after they cross the age of 60.

What about the other benefits?

  • Avail a 98.01% Claim Settlement Ratio
  • Additional Sum Assured on Accidental Death
  • Receive premium(s) paid on survival until maturity with Return of Premium option
  • Waiver of premium if you get diagnosed with a critical illness
  • Enjoy tax benefits
  • Special premium rates for women and non-tobacco users

The last word

The time to fret about inflation and rising costs is behind you. You can easily calculate the right sum assured and zero in on a life insurance plan to face the future with a smile.

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Printable version | Jun 25, 2022 5:39:12 am | https://www.thehindu.com/brandhub/how-to-beat-rising-costs-with-complete-life-cover/article38355407.ece