IN UNIT LINKED POLICIES, INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
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.
|Basis||Term plan||Guaranteed savings plan||ULIPs||Health plan||Group life plan|
|Policy term||Generally, ranges from 5 to 50 years||Generally, ranges between 10 years to 35 years.||Term ranges from 10 years to 20 years.||Term ranges between 2 years to 3 years.||Generally, when an employee retires from the organization.|
|Maturity benefits||Maturity benefit is paid on survival only if a return of premium term plan is chosen.||You will be paid maturity benefits if you survive the tenure.||You can get the maturity benefits at the end of the policy as survival benefits.||Does not provide maturity benefits.||Does not offer any maturity benefit.|
|Death benefits||If you pass away while your plan was active, your beneficiaries will get the death benefit.||The death benefit is provided to beneficiaries when the policyholder passes away.||The beneficiaries will get the death benefit if the policyholder passes away when the plan was active.||Does not provide any death benefits.||If a member passes away during term of the plan, they get death benefits.|
|Optimal for||Term plans are optimal for individuals who are looking to safeguard their loved ones at affordable costs.||Ideal for individuals who want insurance coverage along with guaranteed returns from the investment.||Ideal for individuals who wish to earn market-linked returns and get insurance coverage for their loved ones as well.||Health plans are ideal for individuals who wish to safeguard themselves from healthcare costs.||Optimal for companies and organizations that wish to safeguard their 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:
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).
Depending on your need, you may buy any life insurance policy offered by insurers. For example, if you want a pure life cover, then you may buy a term insurance plan. If you need life cover and savings option in a single plan, then then you may think of buying a ULIP.
Usually, life insurance cover needs to be at least 10 times your annual income, when it comes to term insurance plans. Else, you can choose the suitable sum assured, bearing in mind the death benefits you may need to safeguard your family’s financial interests.
Life insurance is one of the primary and essential requirements of ensuring a financially balanced and comfortable life for your loved ones. The death benefits that come with life insurance help your family build a safe and safeguarded future, even in your absence. Moreover, under Section 80C and 10(10D) of the Income Tax Act, there are income tax benefits³ on life insurance. Under section 80C, premiums that you pay towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while Section 10(10D) facilitates income on maturity benefits/death benefits without any tax liabilities³.
Premiums paid towards your life insurance policy are eligible for tax benefits³ up to Rs. 1.5 Lakhs. The maturity benefits are also eligible for tax benefits³ if the premium amount is 10% or less of the sum assured. In short, the sum assured must be at least 10 times the premium amount or more to avail the tax benefits³. If the premium amount is greater than 10% of the sum assured, the deduction will be applicable only on the amount equivalent to 10% of the sum assured.
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
The rider will offer the financial assistance and support to deal with any immediate expenses or loss of income arising from permanent disability to the life assured.
If the life assured is hospitalized for the treatment of an injury or illness, the rider will offer a daily allowance, along with coverage of the actual medical expenses.
With this rider, the life assured will be liable to get a lump sum payout if they get diagnosed with any of the 12 listed critical illnesses.
This rider will offer additional sum assured to the nominee if the life assured loses their life in an accident.
Assured regular income to the family after the policyholder’s demise to secure their financial future.
All future premium payments are waived off and benefits are continued to be paid in case of listed critical illness diagnosis or accidental total disability or death.
Available for policies where the policyholder and insured are separate individuals, this optional rider waives off all premium payments in case of the policyholder’s death.
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.
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Our Promise of Integrity - 97.01% Claim Settlement Ratio for FY 2021.
BFSI Excellence - Life Insurance Company of the Year 2021^²
Best Customer Experience & Contact Center Management - Life Insurance 2021^³
No of Agents as on 30th Jun 2021 & No. of Branches as on 1st Nov 2020
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.
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The need for life insurance is not just getting financial security to your family in the event of your unfortunate demise, but also peace of mind in terms of post-retirement life sustenance. The maturity benefits/death benefits received from life insurance can be used to settle liabilities and take care of the family’s lifestyle. The corpus can also be utilized to finance your children’s education and other needs. Life insurance protects your family and Lets you leave them an income without tax liabilities³, at the time of death amount at the time of death.
There are several life insurance benefits that you can avail by purchasing the best suitable policy.
The average life insurance cost per month is subject to the plan you choose to buy. The premium cost also differs basis the life insurance amount you choose, i.e., the sum assured. Since all the policies, except term plans, offer cash-value benefits; the factors influencing the premium amount can be enlisted as-
Usually, premiums of the life insurance policy include all the processing fees and charges such as premium allocation charges, fund management fees, paperwork, etc.
There is no specific age to buy a life insurance policy as there is nothing precious than life. However, it is more important to secure your loved ones' financial future if they were to live without you. The early you buy the life insurance policy, the more corpuses you can accrue.
The process of claim settlement consists of three necessary steps.
On the demise of the life insured, in this case, to be specific- you; the family needs to inform us or the insurance company from which the life insurance policy had been purchased.
The proofs of the demise need to be provided to the insurer in terms of the death certificate or any equivalent document if required.
The insurance company then analyses the proofs submitted by the family, checks whether the claim made fulfills the policy terms and then insurance claim settlement happens by paying as per policy terms & conditions.
Life insurance claim settlement is increasing nowadays, as awareness is being created to disclose all the facts related to health and habits.
There are usually a few cases that are not covered under the base life policy. Here, life insurance riders help you get additional coverage against certain events.
What are the riders? It is nothing but a provision that helps people meeting specific or additional insurance needs at some extra premium. Usually, critical illnesses, permanent or partial disability etc. are not covered under the base plan. In such cases, riders help you get total coverage including a list of critical illnesses and partial disability occurring due to multiple accidents. The accidental death benefit or waiver of the premium rider also helps a lot in case of the unfortunate demise of the insured person or if he/she meets any severe accident, resulting in disability. In such cases, regular income needs to be processed to sustain the lifestyle of the insured’s family.
Life insurance coverage may depend on your financial goals and needs. While deciding the cover, it is important to remember that the objective of insurance is to provide financial support to your family and/or dependents, in case you (as the primary breadwinner) are no more or are unable to earn because of a permanent disability or illness. The life cover you decide on should be adequate to help your family maintain the standard of living you would have provided for them always.
So be sure to do your research and calculate well to ensure you acquire the best life insurance possible as per your needs.
* Claim statistics are for Financial Year 2020-21 and is computed basis individual claims settled over total individual claims for the financial year. For details, refer to Public Disclosures in our Website.
^ Get your spouse covered with the Better Half Benefit Option
^¹ - Festival Of Insurance Awards 2020 on Sahara Samay Hindi News Channel on 27th December, 2020 - YouTube. For CSR Activity and Digital Sales Channel (Insurance Alerts Excellence Awards 2020)
^² - https://cloud-user-recordings-ffmpeg-converted-prod.s3-ap-south-1.amazonaws.com/recordings/ccd117b0-be48-11eb-9782-b590083730e8/3b7e25a3-b9b4-47b0-9f68-70eeb8062d60/ccd117b0-be48-11eb-9782-b590083730e8_0001_474830a2.mp4
^³ - https://thealdenglobal.com/inflection-conference-awards/
0 - Provided the premium paying term is more than or equal to 10 years.
1 - This is applicable only if all due premiums are paid and the policy is inforce.
2- Policy loan are subject to terms & conditions of the product. Refer product brochure for more details.
3 - As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
4- Discount for large Sum Assured is available depending on the Sum Assured, policy term and premium paying term.
5- Premium calculated is for a 25 year old, male with DOB 01/01/1996, single, non-smoker, for a policy term of 20 years with 1CR life cover, whose premium is Rs. 5853/year that comes up to Rs.16/day, exclusive of taxes. The distribution channel is Online Sales, UW status is Medical, option chosen is ‘Lumpsum’.
9- Riders are Optional and available at extra cost.
*1- For enchanced Sum assured of Rs.25 Lakhs, healthy male, age 18 whose premium is Rs. 5329/year which amounts to Rs.15/day exclusive of taxes.
*2-At the discretion of the Company and based on the performance of the participating fund, Simple Reversionary Bonus, if any may accrue every year from first policy year.
^1 Please refer “Your Plan Benefits” section in product brochure for complete details.
The Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary or policy document of the Insurer. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
Edelweiss Tokio Life – Total Protect Plus is only the name of A Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings, Life Insurance Product and does not in any way indicate the quality of the plan, its future prospects or returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary. The tax benefits under this Policy may be available as per the prevailing Income Tax laws in India. For more details on risk factors, terms and conditions please read product brochure carefully before concluding a sale. Flower & Edelweiss are trademarks of Edelweiss Financial Services Limited; Tokio is Trademark of Tokio Marine Holdings Inc. and used by Edelweiss Tokio Life Insurance Co. Ltd. under license. UIN: 147N071V01
Edelweiss Tokio Life - Accidental Total and Permanent Disability Rider is only an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B001V03
Edelweiss Tokio Life - Hospital Cash Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance Rider. UIN 147B006V03
Edelweiss Tokio Life - Critical Illness Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B005V03
Edelweiss Tokio Life - Accidental Death Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance Rider. UIN 147B002V03
Edelweiss Tokio Life - Waiver of Premium Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B003V04
Edelweiss Tokio Life – Income Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Life Insurance Rider. UIN 147B015V01
Edelweiss Tokio Life – Payor Waiver Benefit Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Life Insurance Rider. UIN 147B014V04
ARN No: CP/1849/Aug/2021