Natural disasters can be catastrophic! Are you still waiting to buy a term plan?

Ravi a 26-year-old man is enjoying a morning tea with his wife Priya. While reading the newspaper he said to his wife, “The floods in Kerala is really a bad news. We are really lucky that we live in Ahmedabad, no fear of flood here.” Priya replied, “Right. There is no fear of flood but on 26th January 2001, a massive earthquake hit the Bhuj district of Gujarat and an entire city was demolished within minutes don’t you remember ? Natural disasters can strike anytime and anywhere irrespective of your location Ravi. They come unannounced and cause unbelievable losses to the human lives and human habitat. In fact, in one natural disaster, you can lose everything you have ever established in your life.

The most important loss is the loss of lives. The demise of the breadwinner of a family due to any cause can change a family completely. While a person cannot be replaced in any way, the financial loss due to the absence of a person can at least be compensated.”

“I agree with you Priya”, Ravi said.

But does this mean you should remain scared all your life?

“Oh no. Not at all. There is something you can do to protect yourself. Natural disasters are unavoidable and uncontrollable, but a term plan comes here as a rescue for the dependents after the demise of the sole breadwinner. Term Insurance provides high coverage at a very low cost. This policy is meant to compensate you for financial losses. If the policyholder expires during the term of the policy, the insurance amount is paid to the nominee”.

“But I had never thought of it Priya. If something happens to me I don’t want you to suffer.” Ravi said in a distressing tone.

I know Ravi but there is nothing to worry I have heard about a Term Plan Edelweiss Tokio Zindagi Plus. The USP of Edelweiss Tokio Life – Zindagi Plus is the ‘Better Half Benefit’. Under this, after the demise of the policyholder, a life cover will start in his/her spouse’s name. This will be 50% of the life cover of the policyholder, up to an amount of Rs. 1cr. The spouse won’t have to pay any premium and the nominee will also get the sum assured. A very important feature of this benefit is that it also covers housewives. So you don’t have to worry about me.

Secondly, the Top-up Benefit which increases your life cover systematically as per your chosen rate. It shields you from future price rise and uncertainties. The Critical Illness Cover rider covers you against 17 Critical Illnesses. In this feature, the policyholder has a choice between two payout options. Single Claim, in which you will receive the selected amount and your policy, will get terminated. The other one is Multi-Claim in which you get the advantage of claiming the same amount THRICE without paying any future premiums.

In Accidental Total and Permanent Disability, you’ll get the amount you have selected in case an accident causes permanent disability. This takes care of all your expenses and the policy continues as usual.

Knowing the basic features of a term plan will certainly enable you to buy a product as per your requirement, budget, and financial objectives. Term plans bought at an early age will be the best financial decision which will keep you worry-free for the rest of your life and helps you to attain bigger financial goals in your life.

Despite an increase in natural calamities, people still ignore buying a term plan to financially protect their families. Disasters often create an interest in people’s mind but only for a few weeks. People need to understand the benefits involved and should buy a life cover especially if they are living in a disaster-prone area.” Priya added

The bottom line is that you can no longer bury your head in the sand and say that “such things will not happen to me!” It’s good to be optimistic, but for the sake of protection, it’s best not to leave things to chance!

Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.