Women Get 30% Extra Cover: Is Your Plan Doing This?

A new savings-cum-insurance plan offers life cover plus a special top-up for women policyholders. Here's what goal-based insurance-linked savings plans offer — and what to check before buying one.

Here's what happened: Aditya Birla Sun Life Insurance launched a new savings plan combining life cover with goal-based wealth creation for families.. The plan includes women-centric benefits — offering higher sum assured or bonus cover for female policyholders at no extra premium.. Such plans bundle insurance with guaranteed or market-linked returns, targeting buyers who want savings and protection in one product..

What you should do: Compare the internal rate of return (IRR) of any insurance-savings plan — it should exceed 5.5% to beat a plain FD after charges.. Check if the women-specific benefit is built into the base plan or requires an optional rider that costs extra before signing up.. Calculate your pure term cover need separately — never rely solely on a savings plan's life cover, which is usually too low..

Insurance-savings combo plans often show returns as 'maturity benefit' — always ask for the IRR in writing. Anything below 5% post-charge means you're better off with a term plan plus a PPF or mutual fund SIP.