Take a step ahead to secure your life
SHARE THIS PAGE
What Is A Term Insurance ?
“The Purpose of our lives is to be happy” – Dalai Lama
As a family person, you are concerned not just with your own happiness but also the happiness of your family and loved ones. One of the best ways to ensure that your family’s happiness and financial well-being is always taken care of is to buy a term life insurance plan.
Term insurance is a type of life insurance policy that provides coverage for a certain period or a specified "term" of years. Term insurance or term plan helps in securing the future of your family and financial dependents in case of death. If an unfortunate event occurs to the policyholder during the policy term, the nominee receives the cover amount also known as a death benefit or sum assured. The premium of term insurance is calculated based on the individual's health, age, gender, whether the insurer is a smoker or non-smoker, policy term, and the sum assured selected.
How Does A Term Plan Work?
In a term plan, the policyholder has to pay a specific premium amount for getting insurance coverage for a pre-defined tenure. If the policyholder passes away during this term, their beneficiaries will get the sum assured. If they survive, no maturity/survival benefit is paid out to the policyholder. Here's how a term insurance plan typically works:
- The policyholder selects the term of the policy, which can range from a few years up to 99 years of age.
- The policyholder also selects the amount of coverage they want, which is known as the death benefit.
- If the policyholder dies during the term of the policy, the death benefit is paid out to the designated nominee.
- If the policyholder outlives the term of the policy, the coverage ends, and no benefit is paid out.
Benefits of Term Life Insurance Plan
More Products You’d Love to Explore
Common Terminology Related to Term Insurance You Should Know
- Policyholder: The policyholder is the person who owns the policy and is responsible for paying the premiums to the insurance company. The policyholder is typically the person whose life is insured under the policy.
- Nominee: A nominee in a life insurance policy is the person who is designated by the policyholder to receive the death benefit in the event of the policyholder's death during the term of the policy. The nominee is also sometimes referred to as the beneficiary.
The policyholder can choose anyone as their nominee, such as a family member, or spouse. The nominee can be changed by the policyholder at any time during the term of the policy, and multiple nominees can be designated. - Policy Term: Policy term in insurance refers to the length of time during which an insurance policy is in force and coverage is provided by the insurance company. It is the duration of time for which the policyholder has paid the premium and during which the insurance company is obligated to provide coverage.
- Life Assured: In life insurance, the life assured is the person whose life is covered by the insurance policy. This is the person whose death will trigger the payment of the death benefit to the designated nominee.
- Sum Assured: In life insurance, the sum assured refers to the amount of money that is guaranteed to be paid out to the designated nominee in the event of the life assured's death during the term of the policy. It is also sometimes referred to as the death benefit.
When a life insurance policy is purchased, the policyholder selects the sum assured, which can vary depending on their financial needs and circumstances. The sum assured can be a fixed amount, or it can be a multiple of the policyholder's annual income. - Riders: Riders in life insurance refer to additional benefits or options that can be added to a basic life insurance policy to enhance the coverage or customize it to meet specific needs. Riders can be added to a policy at the time of purchase or during the policy term.
- Claims: A claim in life insurance refers to a request made by the nominee of a life insurance policy to receive the death benefit after the death of the life assured. The claim is initiated by the nominee, who must provide proof of the life assured's death, such as a death certificate, to the insurance company.
Once the claim is submitted and all required documentation is provided, the insurance company will review the claim and determine whether the death is covered under the terms of the policy. If the claim is approved, the insurance company will pay out the death benefit to the designated nominee. - Free-look Period: A free look period in life insurance refers to a specified period of time after the purchase of a life insurance policy during which the policyholder can review the policy terms and conditions and cancel the policy if they are not satisfied without incurring any penalty or fees.
The length of the free look period can vary depending on IRDAI and the specific policy but is typically between 15 to 30 days. During this period, the policyholder can carefully review the policy document, consider the terms and conditions, and decide whether the policy meets their needs and expectations.
What Are the Types of Term Insurance Plans?
Level term plans
It is a basic and simple form of term insurance where the life cover remains level or the same throughout the policy term.
Increasing term plans
Policyholders get the option of increasing sum assured annually or after specific events, such as marriage or childbirth.
Term plan with optional Riders
These plans come with optional riders like accidental death cover, critical illness, etc. which enhance the coverage of the plan.
Term plans with Return of Premium (TROP) plans
In TROP plans, the sum of all the premiums paid towards the plan are provided as maturity/survival benefits if the policyholder survives the policy term.
Why Should Buy a Term Insurance Plan?
For the main earning member of the family, the feeling of being secured even in a situation of an adverse event makes him confident and prepared for the future. This is one of the main reasons why you should buy a term insurance plan.
Here are 5 other equally important reasons why everyone should buy a term insurance plan:
It Provides Financial Security
Every person who has financial responsibilities towards their family should consider the fact that they may not always be around. From household expenses to children’s education, everything can take a hit if the earning member passes away and one must take precautions to avoid a financial crisis in such a situation.
Provides Tax Benefit³
The Premium amount paid for term insurance is covered under tax benefits³ (under Section 80C), which helps you in saving money.
Flexibility
You can select how the policy proceeds can be disbursed in case of your death. Some term plans offer monthly payouts where the sum assured amount can be given as a family income benefit to provide the regular cash flow to your dependents.
Riders and Benefits
Even though choosing the best term insurance policy is a simple process and most term plans provide basic life cover, some also come with the option of getting add-ons. For example, you can opt to add critical illness cover, accidental death benefit, accidental total and permanent disability cover, etc. to a basic term policy to make the plan even more robust and risk-free. Insurance plans like Edelweiss Tokio Life Zindagi Plus provide the Better half benefit option that ensures enhanced financial security even in the absence of the main breadwinner. Under this benefit, after the death 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 ₹1cr. The spouse won’t have to pay any premium and the nominee will also get the sum assured.
Savings with Return on Premiums
A term plan with return of premiums ensures that you can have a savings fund at the end of your term insurance policy. If you outlive the policy term, you are entitled to a total of all the premiums of the term plan on maturity. With this benefit, you can save on the premiums of your term plan and plan your financial goals.
Protect yourself, your spouse and child
With options like the Better Half Benefit or the Child’s Future Protect Benefit of Edelweiss Tokio Life – Total Protect Plus, you can ensure additional life insurance coverage for your spouse or your child. Under the former plan option, your life partner receives the additional benefit of 50% of your life cover along with a waiver of premium till the end of the policy while the Child’s Future Protect Benefit plan option provides an additional sum assured to help your child fulfill their future financial goals in your absence.
Who Should Buy a Term Insurance Plan?
A term plan is one of the most effective ways of guaranteeing your loved one’s financial stability when you’re not around anymore. A term plan is a must-buy for individual who has individuals dependent on them.
- Parents: Parents are usually the sole source of financial support for their kids. The financial requirements to ensure a safe upbringing of your children will include school fees, university fees, living expenses, etc. However, if you pass away unexpectedly, it can jeopardize their future and hamper their academic and career growth. Therefore, parents must ensure that their children will be taken care of even in their absence. A term insurance plan is optimal as it will payout a lump sum amount to help the children with their future financial requirements.
- Newly married couple: Among the many gifts you receive from your wedding, the most optimal gift you should give each other is a term insurance plan. Therefore, Edelweiss Tokio Life – Zindagi Protect will ensure your spouse will stay secured even if you’re not around anymore. With the Better Half Benefit, you can cover your spouse under the same term insurance plan for the same amount of life insurance cover as yours. In your absence, your spouse not only gets the sum assured from the term plan but also the continued life cover protection until the end of the for an amount that is half of your life cover, that too, without paying any premiums.
- Women in the workforce: Women have entered the workforce en masse and are equally contributing to the finances required for running a family. With the growth in the number of women entering the workforce, the number of individuals dependent on them has also increased. Therefore, it is essential that they get a term insurance plan for to secure their families in their absence. Some term plans also come with critical illness covers that provide a payout if you’re diagnosed with a critical illness like cervical or breast cancer. Additionally, insurance companies also offer a term insurance plan for housewives.
- Young professionals: Young individuals who have just started their careers must opt for a term insurance plan as soon as possible. Most of them are not married or don’t have any individuals dependent on them. But, it will change as they go through the different life stages ahead. Hence, they’ll be at peace knowing their loved ones will be secure. Since they are young, it is optimal to purchase the plan young as their premium amount will stay the same throughout their lives.
- Taxpaying citizens: The premiums paid towards term plans are tax-deductible, i.e., they reduce the taxable income, as per Section 80(C) of the Indian Income Tax Act. Along with this, the life cover payouts from the term plan are also covered under tax benefits u/s 10(10D).
- Retirees: Retired individuals must get term insurance if they have individuals dependent on them. Getting a term plan will also help them leave an inheritance for their family. Term insurance is paid out to the beneficiaries when the insured individual passes away.
- SIP investors: Individuals who have invested in mutual fund SIPs allocate a fixed amount towards these funds. The wealth creation in a SIP is driven by a stream of regular instalments that will compound over time. However, if the investor passes away, their investment would stop as well. Term insurance plans will protect the SIP by offering beneficiaries the funds to uphold the regular payment.
When Is the Right Time to Buy Term Insurance?
The correct time to purchase the term insurance plan is NOW, if you haven’t already . When you purchase a term insurance plan early in life, the premium amount will be low compared to what you will have to pay 10-15 years later.
However, your age must not hold you back from purchasing the term insurance plan. If you have not purchased a term plan while young and have individuals dependent on you, then you must purchase them to ensure your loved ones are safe in your absence. With a term plan in place, your loved ones will get the financial support they need.
Term Insurance Riders
Term insurance riders are add-ons that are made in a term insurance policy that offer the policyholder with sufficient coverage for a specific situation. A rider will enhance a term insurance plan by offering multiple additional benefits along with the core death benefit.
Generally, most term insurance plans provide riders. But, the riders, their specifications, and their costs will depend on the term plan, premium, and the insurance company. However, some term plans come with inbuilt benefits. You will have to purchase other add-on riders that are part of the plan, separately by paying an additional premium.
While you cannot prevent any unfortunate events, you can plan for them. When you include riders in your term plan, you are protecting yourself from such unpredictable events. With the inclusion of riders in the plan, you’ll get the assistance you need. However, it is important you carefully understand your rider's requirements before including them in your plan, as including a rider will lead to an increase in the premium amount.
Riders available with Edelweiss Tokio Life Insurance Zindagi Protect term plan:
How Can You Save Tax With a Term Life Insurance Plan³?
Term life insurance plans in India not only provide financial protection to the family of the policyholder but also offer tax benefits. Here are some ways in which you can save tax with a term life insurance plan in India:
- Tax Benefits3 on premium payments: Premium payments made towards a term life insurance plan are eligible for tax deductions3 under Section 80C of the Income Tax Act, 1961. The maximum deduction allowed under this section is Rs. 1.5 lakh per financial year.
- Tax Benefits3 on Maturity Amount: The death benefit paid out to the nominee of a term life insurance plan is tax-exempted3 under Section 10(10D) of the Income Tax Act. This means that the entire amount received by the beneficiary/nominee is exempt from income tax.
- Tax Benefits3 for joint life policies: If the term life insurance plan is a joint policy taken out by the policyholder and their spouse, the premium payments made towards the policy are eligible for tax deductions under Section 80C for both individuals.
It's important to note that the tax benefits available for a term life insurance plan may vary depending on the specific policy and the current tax laws in India. It's advisable to consult a tax professional or financial advisor for guidance on how to optimize the tax benefits of a term life insurance plan.
How To Choose The Right Term Plan?
Buying a term insurance plan can be quite tricky, as you will have to deal with many factors. If you want to purchase a suitable plan, you can consider the parameters listed below:
1. Solvency ratio: The solvency ratio will tell you if the insurance company you have chosen is capable of settling your claim when the need arises. As per the IRDAI, every insurance company must maintain a solvency ratio of at least 1.5.
2. Claim settlement ratio: The claim settlement ratio of the company will help you understand the probability of your claim being settled. A higher claim settlement ratio means a higher chance of claim settlement.
3. Option to get cover against critical illness: A critical illness diagnosis like brain surgery or cancer can be quite expensive and may cause a huge dent in your savings. However, with the lump sum payout from a critical illness rider you can protect your savings. It rider benefit pays out at the time of diagnosis.
4. Option to stay covered against accidental deaths: If you have selected the accidental death benefit rider, your beneficiaries will get an additional payout if you pass away due to an accident.
5. Option to waive off premiums on terminal illness diagnosis: If you get diagnosed with a critical illness, the insurance company will waive off payment of any future premiums, allowing you to continue the coverage.
If you’re planning to purchase a term insurance plan from Edelweiss Tokio Life Insurance:
- You can visit the website. From the all products dropdown, select from Edelweiss Tokio Life Zindagi Plus, or Edelweiss Tokio Life Total Protect Plus.
- Determine the life cover you will need. You must calculate your life cover carefully, taking into account the current financial status, income, assets, liabilities and number of dependents.
- Once you have planned your insurance coverage, you should calculate your premium. You can use the insurance calculator provided on the website to get an estimate on the premium amount you will need.
- After you’ve gotten the premium amount, fill out the proposal forms and provide all the required documents.
- Make the payment online.
- After successful verification of all the submitted information and documents, we will provide you with your Edelweiss Tokio Life term plan policy.
How Much Term Insurance Cover Do You Need?
If you have decided to purchase a term insurance plan, you must understand how much insurance coverage you will need. To calculate your insurance coverage requirement, you can follow the steps listed below:
Calculate the monthly expenses of your household:
You must calculate the amount that is required for running your household smoothly. It will include factoring in different monthly bills, groceries, children’s education etc. After you get a clear understanding of the amount, you must account for it in the insurance coverage. Your family should be able to take care of their day-to-day needs comfortably, even in your absence.
Estimated outstanding financial liabilities
Outstanding financial liabilities will include any of your loans, debts or financial liabilities that are yet to be paid. It is essential to include them in your insurance coverage, to ensure that the burden of loan repayment doesn’t befall your family.
Assess important life goals and events
Children’s higher education, their marriage, buying a house, loan repayment, etc. are major goals in an individual’s life. Determine the money that will be required to fulfil these goals and ensure that you account for it in your term plan cover.
Plan a retirement corpus for your spouse
Learn about the funds your spouse will require when they retire. This will allow them to lead an independent and financially secured post-retirement life, even in your absence.
Factor in your existing wealth
Calculate your funds in investment instruments, especially liquid investments. The total amount of these liquid financial assets can be deducted from the calculation as your family can access them anytime.
How Long Should Be the Term Insurance Policy?
The duration of the term insurance plan is one of the most critical factors you should assess before purchasing the plan. Some of the factors that will help you determine the tenure for your plan are:
- Liabilities: If you have any outstanding debt obligations, your term insurance cover must include the amount, and the plan tenure must be equal to or more than the balance EMI tenure. It would help your family to repay the balance loan in the event of your untimely death.
- Age: Your age will play a crucial role in deciding your plan tenure. If you’re young, you’ll be covered for a longer duration.
- Financial goals: You must keep in mind the different financial achievements that you wish to meet. You can coincide the duration of the plan with your life goals. It will help your family handle the financial responsibilities with the sum assured in your absence.
What Are The Factors That Affect Term Insurance Premium?
When you purchase a term plan, you will have to pay a specific premium amount towards the plan to earn the benefits from them. The premium amount of the plan is based on several factors. The different factors that affect a term insurance plan are:
1. Age:
It is a popular belief that when an individual is young, they are less prone to any life-threatening diseases. Therefore, when an individual has a lower probability of getting life threatening diseases, they won’t be filing a claim anytime soon and their premium amount will be low. However, when an individual is a bit old, their premium amount will be high.
2. Profession:
If the policyholder is working in an environment with a high-risk of accidents like transport, mining oil, shipping and much more, the term insurance premium will be high compared to the jobs that have a safe environment. This is because, these individuals are putting their lives in danger, increasing their risk-factor.
3. Policyholder’s medical history and pre-existing health conditions:
If the policyholder has a pre-existing disease or illness like diabetes, obesity, then the insurance company will consider them as high risk. For example, if the policyholder is obese, they have high blood pressure and may face heart-related illnesses which could lead to a stroke. Therefore, if the policyholder is living with any conditions like these, the premium amount they will have to pay will be higher compared to an individual who is physically fit.
4. Medical history of family:
If the policyholder has a history of any medical illness in their family, then their term insurance premium will be affected. For example, if the policyholder’s family has a history of heart-related, cancer, etc. diseases, there is a high probability that the policyholder may get the disease as well. This means their chances of getting ill may also increase. Therefore, the premium amount will be high.
5. Lifestyle:
One of the crucial factors that decide the premium amount is the policyholder’s lifestyle. If the individual consumes alcohol or smokes regularly, then it might affect their premium amount. This is because, they pose a threat to their health and increase their chances of getting ill.
Term Plan Calculator
A term plan calculator is a tool that insurance providers offer to help potential customers calculate the premium amount they have to pay for the term plan. To use the calculator, you will have to input the necessary information and the calculator will churn out the term plan premium payable for the coverage of your choice.
Reasons Why You Should Buy A Term Insurance Online
- Affordable Cost: The primary aspect of online buying life insurance is the amount of savings in terms of time, money, and effort. By buying life insurance online you can do the purchase process without the unnecessary effort of going places. And not only time and effort, but online also offers a discount. Online policies are affordable as these don’t have expenses, which are typically incurred by an offline channel.
- Empowering the customer : Searching for information and finding the relevant sections is much easier online. It also provides the option for self-paced learning, undisturbed by external factors. Thus, searching for the right life insurance plans is not difficult online. In fact, before you can search for the plans best suited for your needs, you need to look for what these plans should look like. The digital world is full of information and you can read through the clause and select a plan that suits you the best. Online is the best mode for step-by-step approach of qualified purchase decisions.
- Lesser Paperwork: The tedious process of the long list of forms and documents that need to be curated and signed becomes virtually stress-free when we turn to the online insurances. With easy upload options for documents and digital verification, buying insurance becomes comparatively hassle-free and quicker, when done online.
Steps To Buy A Term Plan Online
- Step 1 : Choose your plan
- Step 2 : Determine your life cover
It is usually suggested that a term life insurance cover should be at least 10 to 15 times of your annual income and 15 to 20 times is an even be. If you have loans such as home loans, car loans, etc. then you should factor that in too.
You can use this simple formula to determine your ideal life cover: Life Cover = [10 x annual income + total outstanding loans + other liabilities]
For instance, if your annual income is ₹ 15 Lakhs, it is ideal to buy term life insurance cover of at least ₹1.5 Crore, assuming that you do not have other liabilities. In case you have a home loan of ₹50 lakhs, include this amount in your life cover.
- Step 3 : Calculate your premium
The cost of a term plan varies depending on various factors such as age and gender, the amount and tenure of insurance coverage, health condition, and whether you are a smoker/non-smoker. - Step 4 : Make Payment
You can opt from monthly, half-yearly or yearly mode of payment and choose from a list of payment options such as:
- Credit Card
- Debit Card
- Netbanking
- Online Wallets
- Step 5 : Fill the proposal form
You will be asked to fill out the proposal form with your details.
- Step 6 : Submission of documents
You will have to submit the following or more KYC documents for issuance of policy::
- KYC documents such as proof of name, address, identification and photo
- Income proof
How will a Term Insurance Plan Secure Your Family’s Financial Future?
Term insurance plans from Edelweiss Tokio Life Insurance offer a range of features to secure the financial future of your family:
1. The term insurance payout helps them lead an independent and dignified life.
2. To cater to people in the ongoing COVID-19 pandemic, we offer COVID-19 coverage to offset the financial impacts of the virus.
3. The Better Half Benefit option from Edelweiss Tokio Life - Total Protect Plus extends your life cover to your spouse after your demise. The total coverage offered is 50% of your base sum assured.
4. The Child’s Future Protect Benefit Option under the same plan, ensures that your child’s growing years are protected with the same term plan, and you can receive additional coverage to secure them.
5. With a return of premium term plan like Edelweiss Tokio Life – Total Protect Plus, you can receive the total of all the premiums paid, at the end of your policy term.
What Makes Edelweiss Tokio Life Your Ideal Partner?
98.09% Claim Settlement Ratio^²
Our Promise of Integrity - 98.09% Claim Settlement Ratio^² for FY 2021.
Best Customer Experience
Best Customer Experience & Contact Center Management - Life Insurance 2021^³
Fire Away Queries
Like teachers say, there are no silly questions
What is the eligibility for term insurance?
The minimum entry age to purchase term insurance is 18 years, while the maximum entry age while purchasing can be up to 60 years. Term Insurance Plans provide longer protection for you and your family.
Is natural death covered in term insurance?
Your family will receive the claim amount in the event of both natural and accidental death. Term insurance is designed to provide your family with a certain amount of money, irrespective of the reason of death. However, there are some exclusions like suicide in 1-year, non-disclosure of rightful facts that can lead to a decline of your claim amount. To know more about such exclusions, please refer to the policy document. T&C apply.
How much term insurance you need?
It is usually suggested that a term life insurance cover should be at least 10 times of your annual income and 15 to 20 times is an even better option. If you have loans such as home loans, car loans, etc. then you should factor that in too.
For instance, if your annual income is ₹ 15 Lakhs, it is ideal to buy term life insurance cover of at least ₹1.5 crore, if you do not have other liabilities. In case you have a home loan of ₹50 lakhs, include this amount in your life cover. It is best to use the term calculator provided by insurance companies before deciding on your life cover.
How to choose a best term insurance plans in India with right life cover for your family’s financial security?
Here are a few guidelines for you to help you find and purchase your ideal and best term insurance plan that suit your needs -
1) Assess Your Needs
For term insurance, like any other insurance, you need to assess your requirements before you proceed to buy a life cover. To determine your life insurance requirements, do a close assessment of following factors -
• How many family members are dependent on you?
• Are there any other sources of income for the family or are you the sole breadwinner?
• Do you have any financial liabilities and unpaid loans?
2) Make a Budget
The term insurance premium you pay is dependent on the volume of the life cover, the term of the policy, the riders added, etc. You, therefore, need to make a budget before you buy the insurance. Take note of how much you can spare towards your term insurance expenses. You may surely want to have the highest possible cover, but you need to be realistic and stay within your budget. Thankfully, the term insurance policies are available in a wide range of prices. You are assured of finding a best term life insurance plan within your desired budget.
3) Take Stock of Your Health & Lifestyle
The term insurance premium will depend on your health and lifestyle. If you are healthy and maintain a good lifestyle, your term insurance premium will be lower. If you have a few ailments, you smoke and drink or you are overweight, your term insurance premium will be much higher. Therefore, you need to take stock of your conditions before you apply for a plan.
4) Provision for Inflation
When buying term insurance, you must make provisions for inflation. Remember, college admission fees that cost Rs 50,000 today will cost a lot more in 20 years’ time. Keep all such factors in mind when looking to cover your family financially.
5) Choosing Right Duration
A term life insurance plan should ideally cover your earning years. If you die while you are employed and earning a salary for your family, the term insurance cover can take care of their financial challenges after you are gone. For the more concrete answer you can ask yourself these key questions to find the right term -
• How long will you work or at what age you will retire?
• How long will your family be financially dependent on you?
• Are your parents dependent on you?
• Is your spouse working? How long will he/she be working?
• For how long are your children going to be financially dependent on you? If they are in their teens, then consider how long it will take them to become independent.
• Gauge the timeline when your liabilities will end that is, if you have 10 years pending to pay the loan amount, consider that. The most common maturity age for a policy term is 65 to 85 years of age. As per your present age, you can decide the term.
6)Additional Riders
It is always better to get extra protection. Riders are known for that. But not all companies offer them to their customers. So, it is recommended to go with the insurance provider who has listed additional rider(s) in its umbrella of protection.
Term insurance plan can be one of the preferred choices to secure your family’s financial future and help them maintain their standard of living with ease. The best term plan will not only take care of all your existing liabilities and but also provide for the long-term financial goals that you and your family had planned together.
Is it secure to buy a term insurance plan online?
Online transactions are completely secure and are done directly on the insurance company’s website. Today almost all financial transactions including banking, stocks, etc have moved completely online and lacs of people are making online payments every day.
How much does term insurance cost?
The cost of a term plan varies depending on various factors such as age, annual income, premium amount, tenure of insurance coverage, health condition and whether you are a smoker/non-smoker.
What is the difference between the term plan and endowment insurance plan?
They serve different purposes and cater to different needs. Term insurance is a pure risk cover and a product which is an absolute must for every individual who has any financial dependent relying on their income. An endowment plan is for savings purpose, it has a nominal death benefit and provides maturity benefit³ as well.
Why is there a vast difference in premiums of various term insurance plan?
The insurance premium is an amount paid by the policyholder to the insurance company in return for the risk cover. Every insurance company assesses the risk differently and accordingly, decides the premium. So, if Company A assesses your risk as low, they will offer you the plan at affordable premiums
Should husband & wife/married couples buy joint term insurance?
Buying term insurance for a couple is a good option indeed. If you wish to safeguard your spouse as well as your family financially in your absence, you should consider term life insurance. Term life insurance for married couples is a great option that works as a security cover for the unforeseen future.
- Better half benefit - You get life coverage with additional life coverage for your spouse. In short, the partner is covered under the same plan with a marginal increase in premium.
- You can also increase the life coverage every year with a Top Up Benefit.
Term plans for couples are amongst the most affordable life insurance policies in India. You get a high life coverage amount for a low annual premium. In the unfortunate event of death of the policyholder, the surviving spouse(nominee) gets the sum assured benefit. The spouse (nominee) can use this money for any future liability.
Does a term plan for NRI make sense?
Yes, mostly all the life insurance companies in India offer term plan for NRIs for people who reside outside the country. If you are a non-resident Indian, the term plan for NRI will help you secure your loved ones’ financial future.
You can get the term insurance best suited for NRIs; it has all the specifications as same as the regular term policy.
Can a smoker get a term insurance plan?
Yes, smokers are eligible for term insurance subject to prescribed medical tests.
Insurers typically charge a higher premium for term insurance for smokers. Most life insurance companies charge a higher premium amount for smokers.
It is essential that you do not hide your smoking habit from your insurer. If you are found to be lying about it:
1. Your insurance cover will be null and void, and insurance claims will not be honoured.
2. You may be charged with fraud.
Are senior citizens eligible for term life insurance?
As the life expectancy rises, there are circumstances under which even a senior citizen may need a life insurance. Remember that a term insurance is meant to take care of your liabilities and secure the future of people who may be dependent upon you. In most cases, all the liabilities would have been fulfilled by the time you reach the age of sixty. But here are a few circumstances when a term insurance plan for senior citizens is a must:
1.Dependant kids
Couples nowadays have kids much later in their lives. This means, it is possible that kids may not be financially independent at the time of your retirement. If this is the case, it is imperative that you get a term insurance plan till they are able to take care of their finances.
2.Your spouse depends on your pension
It is possible that your spouse is dependent on your pension for their financial needs. You would want her to be financially independent even if something happens to you. One of the ways of ensuring this is through a term insurance plan.
3.You continue to work post-retirement
If you continue to work post-retirement, you are responsible for the work that you take on. This is especially true if you are an active co-founder of a business. In such a scenario, get a term insurance is a way to ensure that the business does not suffer in case of your sudden demise.
4.Unpaid debts
If, for any reason, you still have unpaid debts - you should get a term insurance for the outstanding amount to ensure that the burden of repayment does not fall on your family.
A few years back, it might have been a challenge to get a term insurance for senior citizens. However, today you can get term insurance, subject to clearing medical tests & validation of source of income. Remember that a term plan at this age would attract a high premium, but it is still better than not having a cover when your dependents need the protection.
Can a heart patient get term insurance?
An insurer would be willing to provide you with a life cover based on your health condition, even if you suffer from heart related ailments. Remember that an insurer decides on the premium to be charged based on your health condition, age at the time of entry, tenure of the coverage requested and your medical history. In case you are a heart patient, you would be considered at a high risk and therefore attract a high premium.
The underwriters would consider your health condition, and the risk associated with heart disease when deciding upon the cover to be provided. Typically, the premium would be higher side for a heart patient than for someone without a heart ailment - all things being equal. Though, remember that both the severity of your condition and steps you have taken to manage your health will be the deciding factor.
Some of the factors that an insurer would consider are your age, family history related to heart ailments, obesity, use of tobacco, diabetes, blood pressure, nutrition being taken and exercising habits. If the insurer thinks you are doing your best to manage your condition, they would be more willing to provide you with a term cover. Many insurers have special plans for term insurance for heart patients India, make sure you research the market before applying for one.
Can a diabetic get term insurance?
Yes, even if you suffer from diabetes you can get a term insurance subject to medical tests, and whether your condition is under control. Usually, insurers require you to have your diabetes under control for at least a period of six months. Remember that you must have a healthy lifestyle to get a term insurance for a diabetic in India. If the proposer suffers from additional health risks such as obesity or high blood pressure or are smokers or tobacco users - the insurer may consider the risk too high and impose forbiddingly high premiums. Usually insurer consider insulin dependent diabetics to be “avoid cases” but under control cases still have a chance, therefore one should always check out the possibility of issuance of the policy with the insurer.
Before you get a term insurance, you may have to undergo a medical exam for ascertaining the extent of diabetes. Usually, type 2 diabetes is considered less dangerous and may not require a test. Type 2 diabetics can expect to affordable premiums for term insurance plans in india for diabetics compared to type 1 diabetics. Remember that the most important factor for the insurer is whether the diabetes is under control or not. Be truthful about your condition, and you will be able to get the best life insurance for diabetics and ensure your family’s financial future.
Will I have a problem at the time of claim if I buy online term insurance plan?
Every insurance company has a centralized customer service team which attends to all the customer query/complaints. The IRDAI regulations are the same for both online and offline customers and hence there is no differentiation between customers who have purchased online or offline.
What kind of deaths are not covered in term insurance?
Term insurance is the only type of life insurance that offers a considerable death benefit that even no other policy provides. It comes at great convenience in terms of online purchase & renewals.
However, there are certain exclusions some of which are mentioned below
- Accidental death occurred as a result of inhaling drugs, narcotics or alcohol, legally or illegally
- Death occurring due to life-threatening hobbies and activities
- The demise due to any pre-existing medical condition, specifically not mentioned in the policy documents
- Act of suicide happened within the first year of the tenure
- Any sexually transmitted disease causing death and not mentioned in the policy terms
- Any self-inflicted injury causing death
- The death occurred due to any illegal activity
Make sure you go through all the policy details carefully before you make a buying decision.
We are always there for you! For queries, write to onlinesales@edelweisstokio.in
Disclaimer
^ - The word Total Protection is derived from the product name Edelweiss Tokio Life – Total Protect Plus.
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 - Partial withdrawals will be calculated subject to terms & conditions. 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.
9- Riders are Optional and available at extra cost.
^² - Claim statistics are for Financial Year 2021-22 and is computed basis individual claims settled over total individual claims for the financial year. For details, refer to Public Disclosures in our Website.
^³ - Excellence in CX-2022 has been received at the 3rd Edition of The Economic Times CX Summit. This award has been given to those organisations who have demonstrated excellence in Customer Experience in FY22.
Edelweiss Tokio Life – Zindagi Plus (UIN: 147N056V04) is only the name of a Non-Linked, Non-Participating Individual, Pure Risk Premium, Life Insurance Product and does not in any way indicate the quality of the plan, its future prospects or returns.
Edelweiss Tokio Life – Total Protect Plus (UIN: 147N071V01) 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.
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 - 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 - 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 - Waiver of Premium Rider is only the name of the Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance rider. UIN 147B003V04
ARN: CP/3231/Mar/2023
