Components That Are Covered Under Life Insurance Cover

A life insurance policy is an agreement between an insured and an insurance company which puts an obligation on the part of the company to offer an assured sum of money either on maturity to the insured or as a death benefit to the nominee. Being a life coverage, it protects the financial wellbeing of your dependents completely, thereby helping you lead a stress-free life. This also works as a financial shield against any debt or loan you are unable to pay before your death because the amount is sufficient enough to take care of obligations as well as serve as a saving for the dependents. Finally, the tax benefits that come with every insurance product is also present here to help you reduce your tax liability.

What Is Comprehensive Life Insurance?
A comprehensive life insurance a life cover where the coverage is extended for as long as the policyholder lives and is able to pay the premiums. Since the coverage is provided for life, the premium cost is also enhanced. However, the significant advantage of a comprehensive life insurance cover is that as long as you pay the premium, you need not worry about the term duration of life insurance. Moreover, the premium cost is depended on other factors, including the age of the insured person, health factors, the nature of his work, etc.

The component or features that are associated explicitly with comprehensive life insurance are:

1. Permanent coverage
   As already discussed, the period of life cover is extended and not limited to 20 years or 30 years. This kind of extended life cover is usually beneficial for long-term financial planning, such as wealth creation or asset building that can help the younger you live a better lifestyle.
2. Level premiums
   Being a lifelong cover, the premium must also be paid until the same duration. But the best part of life insurance is that the cost of premiums remains the same throughout the life insurance policy. Such level premiums have the advantage of predictability, where the policyholder knows how much one has to save in order to pay for the premium, thereby increasing affordability over a period of time.
3. Comes with a death benefit
   Comprehensive life insurance takes care of the insured person’s family when the policyholder meets an untimely death. This death benefit is a sum assured that was mentioned in the life insurance policy and is paid at the event of a policyholder’s death. Since there is no time limit associated with it, the death benefit continues to exist whether you are 50 or 90.
4. Builds cash value
   A comprehensive life insurance plan ensures that you are able to build a cash value. Most insurance companies offer guaranteed as well as non-guaranteed cash value which is referred to as dividend value. Hence, it can also be termed as serving as an investment vehicle for the policyholder.
5. Special needs
   Comprehensive life insurance plans are one of the best policy options for parents blessed with special children. It will financially protect the child because of its considerable sum when you are not alive.
   Similarly, homemakers who are financially dependent on their spouses can also tremendously benefit from this life insurance policy.
6. Borrow against the cash value
   As there is an option to build a cash value, which is a liquid asset, it also provides an opportunity to borrow as an emergency fund, thereby making it a rainy-day account.
7. Partial withdrawals
   There is an option of partial withdrawals in a comprehensive insurance plan. This is applicable only after completing a certain period of premium payment.
8. Age no bar & no medical test
   It comes without any age limit with respect to the eligibility criteria. Moreover, if you are planning for a comprehensive insurance plan, there is no medical test prior to the enrolment.

Apart from the aforementioned feature, there are some additional components of life insurance which includes maturity benefits that can be availed after the age of 80. However, just like any other agreement, it also has some specific conditions and limitations, in the form of exclusions or inclusions, which must be thoroughly read while going for any life insurance. Browse the website to know more about Term Insurance, Long Term Savings and the various Term Plans offered by PNB MetLife.