Life Insurance Plans

Life is beautiful, but also uncertain. We can never predict what could happen the very next moment. In such cases, the financial security of the family becomes most important. One such security medium is life insurance.

“Life Insurance” is defined as a financial product that pays you or your dependents a sum of money either after a set period or upon your death. In other words, life insurance is an insurance tool or a provision that helps you secure your family’s financial future by getting adequate risk cover for your life. In return, you pay a particular premium amount to the insurance provider and can be rest assured that your family will be financially secured even in your absence.

There are numerous variants of life insurance policies available in the country that will suit the different requirements of the customers. Before buying a life insurance plan, you must learn about its features in-depth.

• Term insurance:
  A term insurance is an insurance policy that provides one of the purest forms of insurance coverage. Term insurance plans provide a high sum assured at affordable premium plans. If the policyholder passes away during the pre-defined tenure of the plan, their beneficiaries will get the coverage. If the policyholder opts for a return of premium term plan and survives the policy tenure, a maturity benefit will be paid out, which is the total of all premiums paid till date.


• Guaranteed savings plans:
  A guaranteed savings plan provides policyholders with insurance coverage along with the ability to build, save and earn a guaranteed financial corpus. With a guaranteed savings plan, if you pass away during the plan's tenure, your beneficiaries will get the sum assured. If you survive the plan's term, you get guaranteed returns from the plan as a maturity benefit.


• Unit Linked Insurance Plans (ULIPs):
  A unit linked insurance plan (ULIP) is an insurance-cum-investment policy that will provide the policyholder with the dual benefits of insurance coverage and market-linked returns. Therefore in these plans, the premium amount paid by the policyholder is used for two benefits. The first part is used for life insurance coverage, while the second part is used for market-linked securities based on the policyholder's suitability and risk profile. Investment plans also allow individuals to switch between their investments during the plan's tenure. 


• Health plans (critical illness):
  A health insurance plan is an insurance policy that assists the policyholder in dealing with the medical expenses and the costs attached to the treatment of an illness. The health insurance plan is quite beneficial for dealing with the rising healthcare costs and protecting your savings.


• Group life plans:
  A group life insurance is a life insurance plan that offers affordable life insurance to a group of individuals like employees or members of an organization. Employers usually provide life insurance to their employees through a single Master Life Insurance. A group life plan is an effective way to ensure the safety of a company's employees.

The premium in a life insurance policy is the amount that a policyholder pays to the insurance company periodically. These payments are made to ensure that their insurance policy stays in effect. The premium amount is calculated by the insurance company and will depend on different factors like: 

• Type of plan


• Age of the Policyholder
  


• Gender of the Policyholder
  


• Medical History of the Policyholder


• Lifestyle Habits of the Policyholder (Smoking, Alcohol, etc.)


• Occupation of the Policyholder


• Riders opted for

If the policyholder skips out on making the premium payment on time, their policy may lapse and the insurance coverage stops.

Insurance companies have made provisions to allow policyholders to make the premium payments as per their suitability. Policyholders have the flexibility of choosing the premium payment mode (Single Pay, Limited Pay or Regular Pay) and premium payment frequency (monthly, quarterly, half-yearly, or annually).  

The Internet has changed the world drastically and, due to the widespread connectivity, the number of people who buy insurance online is increasing. One of the primary reasons for purchasing insurance online is that communication between the Customer and Company is directly leading to transparency and clarity. The process of buying life insurance online is hassle-free, paperless, and usually cheaper.

Moreover, with the ongoing threat and spread of the COVID-19 pandemic, buying life insurance online is a great way to avoid unnecessary contact and avail of a life insurance cover from the safety of your home.

If you wish to buy your life insurance plan smoothly, you must ensure that you provide all the relevant documents needed for the purchase. The documents required for buying the life insurance policy are:

1. Income certificate: It is required to estimate the sum assured or the cover which would be offered to the insured. You can provide your ITR documents, salary slips, etc.

2. Address proof: You can provide any legal documents that withhold information about your residential address.

3. Identity and age proof: You can provide documents like your PAN card, Aadhaar card, Voter ID card, etc.

4. Medical certificates: Test reports of the medical checkup mandated by the insurance company or the set of existing medical reports for any pre-existing medical condition or ongoing treatment.

5. Other relevant documents: These may differ for different life insurance plans and providers.

A life insurance rider is additional insurance coverage that you can include in your insurance policy. When you include a life insurance rider in your plan, you will be covered for specific situations. With a rider's help, you can enhance the coverage you get through the plan. Including a rider will mean a hike in your premium amount, based on the rider you choose. Therefore, you must choose your riders carefully. 

Some of the riders Edelweiss Tokio Life provides are:

LIFE INSURANCE RIDER offered by Edelweiss Tokio Life

To estimate life insurance cover amount you need, you must:

1.  Factor in the monthly expenses and lifestyle costs of the individuals dependent on you.Plan a retirement net for your spouse. It will help your spouse spend their golden years without worrying about money.

2. Calculate the number of liabilities you hold – outstanding debt obligations, loans, etc.

3. Evaluate different life goals and events of the individuals dependent on you. You must factor in events like your children’s educational future, higher education, marriage, etc.

4. Plan a retirement net for your spouse. It will help your spouse spend their golden years without worrying about money.

5. Calculate your existing wealth that exists in savings and investments. You can deduct this amount from your cover.

To use the calculator, you must:

1.       Go to the product page of the plan you wish to purchase.

2.       Click ‘Get Quote’.

3.       On the calculator, you must enter details like gender, name, birth date, income, etc.

4.       After you’ve provided these details, the calculator will provide you with the premium amount.

5.       If you’re satisfied with the amount, you can go ahead and purchase the plan.

6.       You can also modify the details you enter which will help you understand how different factors affect the premium amount.