Edelweiss Tokio Life Insurance
Edelweiss Tokio Life Insurance
  • Customer Service
    Customer Service
    • Report A Claim
    • Renew Your Policy
    • Payment Receipt
    • Premium Paid Certificate
    • Fund Statement
    • Register for E-Nach
    • Claim Tracking
    • Register Complaint
    • Update FATCA/CRS
    • Update Contact Detail
    • Unclaimed Amount
    • Contact Us
    • NB Payment Link
    • SI - Credit Card
    • Application Tracker
  • Our Products
    Our Products
    • Capital Secure+ – A combination of market-linked and guaranteed returns

    • Edelweiss Tokio Life –Wealth Rise+ – A double-advantage ULIP

    • Edelweiss Tokio Life – Premier Guaranteed Income – A guaranteed income plan

    • Edelweiss Tokio Life – Wealth Secure+ – A new generation ULIP

    • Edelweiss Tokio Life – Zindagi Protect – A comprehensive term plan

    • All Products
  • Resume Application
    Resume Application
  • Blogs
    Blogs
  • Knowledge Center
    Knowledge Center
    • Life Insurance
    • Term Insurance
    • Unit Linked Insurance Plans
    • Guaranteed Income Plans
    • Retirement Insurance
    • Health Insurance Plans
    • Child Plans
    • Covid Insurance
    • NRI Insurance
    • Investment Plans
    • Endowment Plans
    • Group Insurance
    • Micro Insurance
    • Sabse Phele Life Insurance
    • Income Tax
  • About Us
    About Us
    • Why Choose Us
    • Public Disclosure
    • Awards & Recognition
    • Testimonials
    • Our Funds
    • Careers
  • Login
    Login
    • Customer Login
    • Partner Login
  • FOR CUSTOMER SERVICE
    Mon-Sat (10 AM TO 7 PM)
    1800 2121 212
    FOR PRODUCT QUERIES
    (Give a missed call on)
    022 6611 6040
    • Customer Login
    • Partner Login
Icon
Icon

Thank You!!

Icon

Error Message!

Error

Icon

Error Message!

Error

In the News

COVID-19 Crisis: New Rules For Financial Planning In A New World

NDTV.com : 20 July 2020

 

To say that the COVID-19 pandemic took the world by surprise would be an understatement. It has destroyed economies and businesses. Companies across sectors are reinventing business models to stay relevant in the changing ecosystem, and individuals are forced to reorient their finances to survive in the new world. To put it simply, the coronavirus pandemic has triggered the onset of a new world, which has new rules for financial planning.

With heightened uncertainty amid a continuing pandemic situation, having financial foresight has become crucial. The data being reported from all quarters, especially on unemployment, is inducing more panic and underlining the need for updating financial planning practices to stay protected from any uncertainties.

The Indian Society of Labour Economics expects job losses to be the severest impact of the pandemic in the near term. Since the lockdown began, India's average unemployment rate has hovered around 24 per cent, a significant jump from 8.8 per cent in March, according to data from the Centre for Monitoring Indian Economy. While self-employment activities and other causal work has led to a sharp fall in unemployment in June, a recovery in formal sectors is still some time away.

These job losses have hit families and dent household income significantly. Latest available data suggests that household income has dramatically fallen from 9 per cent in late February to 45.7 per cent in mid-April. Things have only worsened for families with a single bread earner.

However, taking knee-jerk decisions based on the current economic situation may not be the best course of action. Considering the pandemic is still spreading, comparing any impact with pre-lockdown levels is not ideal, and should only be perceived as indicative of a cyclical change. The best course of action is to evaluate your long-term goals, current income levels, likelihood of income loss, and provisions for any emergent financial impact like health risks.

So, with such continued uncertainty looming on the horizon, here are some measures you can take, both in the short and medium term, to financially tide through this time:

a) Managing your liquidity:

The first course of action is to draft a monthly household budget. The idea is not to curb every petty expense but to follow a more conservative lifestyle by avoiding certain discretionary spends.

While it might seem ideal to keep all your money liquid, it may not necessarily be beneficial for your long-term aspirations. It is important to keep cash in hand only for your urgent needs, or you risk eating up your savings. This can hamper your medium to long-term liquidity, and you will end up with no reserves by the end of this pandemic.

b) Managing your investments:

After you have drawn up a budget, review your financial portfolio to find avenues for short-term liquidity. But avoid any abrupt decisions like liquidating all your assets. If you are hard-pressed for money, start by liquidating a bank FD or debt funds instead of equity-linked investments. Unless you are in survival mode, do not dip into savings earmarked for your retirement or child's future planning.

Simple measures like moving your investments from high-risk to low risk ones can also make a huge difference. Similarly, it might be a good time to re-look at your financial managers, be it the banks, or the mutual funds, and the sectors you are invested in - review the risk levels to ensure your investments aren't hurt in the near term.

c) Paying your EMIs:

A big worry, following a job loss or furlough, is likely to be paying EMIs for your home, car and other personal loans. In case you are unable to honour your commitments, talk to your bank about an EMI holiday for a few months. Some banks may apply a penalty for the EMI deferment, but your immediate concerns can be resolved through this route. Some banks may also accommodate individual requests to temporarily lower your EMI and extend the tenure of the loan. However, this may briefly impact your credit rating as it could be perceived as loan restructuring.

d) Use your credit cards responsibly:

You might be tempted to frequently use credit cards in this scenario. But it is inadvisable, because irresponsible use of credit cards can land you into further trouble by putting your finances into complete disarray. If there are dues pending on your card, do not roll them over as they will incur heavy interest. Prepare a plan to repay your credit card dues over the next 2-3 months instead.

e) Learn lessons from today's uncertainty:

Once your financial situation normalises, learn from the lessons of the challenges you have faced. You might want to create a contingency fund in case any such concerns crop up again in the future. Focus on increasing your savings; it is advisable to earmark at least 10% of your financial portfolio towards savings products.

Evaluate guaranteed savings and income plans for wealth accumulation towards long term goals. If you haven't yet started planning your retirement, it might be an opportune time to evaluate annuity or pension plans. Income concerns are likely to hit you again once you retire, and this is a good time to start planning for it.

This pandemic has shed light on another crucial element of financial planning - need for protection products like term and health insurance. While COVID-19 might be a unique event, there are several other critical illnesses that impact families much more, like heart ailments and cancer. Apart from making a massive dent in a family's savings, lack of protection leaves you and your family grappling with undue stress of the day-to-day living, while coping with stress or a tragedy. An insurance product will help your loved ones retain their lifestyle and long-term financial goals, without disruption.

(Anup Seth is Chief Retail Officer at Edelweiss Tokio Life Insurance)

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same

source - https://www.ndtv.com/business/opinion-financial-planning-new-rules-for-the-new-world-2265916

 

0

    Top Press Release

    #news

    Here are some essential tips for building financial stability for women through life insurance

    13 May 2023

    17
    #news

    Life Insurance For Women Key To Ensure Financial Stability

    11 May 2023

    10
    #news

    How Edelweiss Tokio Life Insurances CSR campaign took their online initiative offline

    26 Apr 2023

    5
    #news

    Yielding independence in marketing

    23 Mar 2023

    20
    #news

    The pyramid of financial planning

    20 Mar 2023

    14
    #news

    20-day campaign ends with a marathon

    23 Feb 2023

    11
    #news

    Zindagi Express begins a 5,500-Km journey to raise Organ Donation awareness in India

    07 Feb 2023

    12
    #news

    Edelweiss Tokio Life rolls out campaign for organ donation

    05 Feb 2023

    16
    #news

    Zindagi Express reaches Bhopal to create awareness about organ donation

    24 Jan 2023

    6
    #news

    Edelweiss Tokio Life launches Premier Guaranteed STAR, a simplified income solution

    24 Jan 2023

    18
    • About Edelweiss Tokio
    • All Plans
    • Customer Service
    • Legal
    • Support
    • About Edelweiss Tokio

      • About Us
      • Board of Directors, Committees and Resignations
      • Key Management Persons
      • Edelweiss Tokio Life CSR Policy
      • Terms and conditions of appointment of the Independent Directors
      • Testimonials
      • Customer Advisory
      • Our funds
      • Become An Advisor
      • The Buzz
      • Notice & Scrutiniser Reports
      • Careers
      • Sitemap
      • Whistle Blower Policy
      • Remuneration Policy
      • Annual Return
      • Awards & Recognition
      • Branch List
    • All Plans

      • Term Insurance Plan
      • Term Insurance Plans - Hindi
      • Unit Linked Insurance Plans
      • Guaranteed Income Plan
      • Investment Plans
      • Child Insurance Plans
      • Retirement Insurance Plans
      • Retirement Insurance Plans - Hindi
      • Group Insurance Plans
      • Endowment Plans
      • Micro Insurance Plans
      • Sabse Pehle Life Insurance
      • Life Insurance Plan
      • NRI Insurance Plan
      • COVID-19 Insurance Plan
      • Health Insurance Plan
    • Customer Service

      • Service Parameters & TAT
      • Renew Online
      • Riders
      • E-Statements
      • NAVs
      • Grievance Redressal
      • Products and Riders
      • Unclaimed Amount
      • Payment options
      • Account Value Declaration
      • Fund history
      • Application Tracker
      • NB Payment Link
    • Legal

      • Terms & Conditions
      • Privacy Policy
      • Chat Policy
      • Fund Benchmark
      • Email Disclaimer
      • Institutional Disclaimer
      • Insurance Disclaimer
    • Group Companies

      • Edelweiss Financial Services Limited
      • Tokio Marine Holdings Inc.
    • Support

      • File A Complaint
      • Live Chat
      • Call Back
      • FAQ
      • Pre-sales process
      • Contact Us
    • Important Links

      • IRDAI
      • Life Insurance Council
      • Insurance Ombudsman
      • Anti Fraud Policy
      • Public Disclosure
      • Premium Calculator
      • Do Not Call Registry
      • Corporate Agents
      • Discontinued Products & Riders
      • Bonus Rates
      • Public Disclosure-Agent List
      • Goods and Services Tax
      • Consumer Education
      • Pre-Sales Process
      • Downloads
      • Terminated agents
      • IRDAI on Spurious Call
      • Electronic Insurance Account
      • Edelweiss Tokio CSR Policy
      • T&C of Appointment of ID
      • Proposal Forms
      • Notice on cash collection
      • Compounding Calculator
      • Retirement Calculator
      • Income Tax
      • UW Philosophy for PLHA
      • UW Philosophy for Disability / Mental Illness
      • UW Philosophy for Transgender Persons
      • Organ Donation
      • Simplified Claim Process
    Registered & Corporate Office: 6th Floor, Tower 3, Wing ‘B’, Kohinoor City, Kirol Road, Kurla (W), Mumbai – 400070
    T: 1800-212-1212 F: (022) 6117 7833care@edelweisstokio.in https://www.edelweisstokio.in

    Edelweiss Tokio Life Insurance Company Limited. All Rights Reserved. Registered with Insurance Regulatory & Development Authority of India (IRDAI) as Life Insurance Company. IRDAI Regn. No.: 147. CIN: U66010MH2009PLC197336. Tax benefits are as per the Income Tax Act, 1961, and are subject to amendments made thereto from time to time. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding a sale. Flower & Edelweiss (as displayed above) 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. Edelweiss Tokio Life Insurance Company Limited. Registered & Corporate Office: 6th Floor, Tower 3, Wing ‘B’, Kohinoor City, Kirol Road, Kurla (W), Mumbai – 400070.  Toll Free No.: 1800 212 1212 | Fax No.: +91 22 6117 7833 | www.edelweisstokio.in This is a Private website owned by the Company. Unauthorized scanning of vulnerabilities and exploitation of the same is strictly prohibited. If you have been found to do so, Company may bring Civil and/or Criminal action and/or legal proceedings against you which shall be entirely at your costs and consequences.

    BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/ FRAUDULENT OFFERS

    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

    Copyright © 2019 Edelweiss Tokio Life Insurance Company Limited. All rights reserved.
    • Term of Service
    • Privacy Policy
    • Term of Service
    • Privacy Policy