Traditional Insurance Plans primarily offer a combination of protection and savings benefits to customers. Popular Traditional Insurance Plans are the Endowment Insurance Plans and the Whole Life Insurance Plans. These plans broadly include features such as life insurance cover, guarantees, returns, safety and tax benefits. Traditional policies are considered risk-free, as they provide fixed returns in case of death or maturity of the policy. Investment guidelines given by the regulator (IRDA) also ensure safety of funds with a cap on equity investment for the underlying participating fund in which all monies are invested.
Here are some of the reasons that tell you how traditional savings insurance plans are beneficial for you: