Sabse Pehle Life Insurance

Penetration of Life Insurance in India is very low. Some of the reasons for this are

• People perceive life insurance as a cost & not a necessity
• Unlike motor insurance, life insurance has not been made mandatory by the government
• People buy life insurance only for tax saving³ purposes

The Sabse Pehle Life Insurance Campaign has been launched to create awareness about the importance of Life Insurance and its benefits for everyone. There have been a lot of market myths which is causing confusion amongst customers, and the campaign aims to bring customer attention to the right things about why life insurance should be first. In addition, it also aims at demystifying the purchase process & encourages people to make life insurance their first priority.

Life Insurance is a contract between an insurance company and an insurance policyholder, where the company agrees to pay a pre-decided amount of money (called Life Cover or Sum Assured) in case of the unfortunate death of the policyholder. The policyholder has to pay premiums towards the policy. In the event of death, life cover helps the policy holder’s family take care of immediate financial liabilities such as loans, children’s education etc.

Because you are not Superman. We are human, we grow old, we may not always be around to provide for our family. A life insurance plan may not keep bad things from happening to you, but it offers a financial cushion to support you and your family. It also makes sure your family finances are taken care of, even if when you’re not around.

Yesterday.


We understand you’ve got your loans and your bills and your parties, and saving money for an insurance policy seems like a stretch. But it is simply a smart move to be financially prepared for the future.

Buying insurance is usually cheaper when you're younger. An insurance company calculates the premium based on your age and medical conditions. When you’re young > you’re healthy > risk to the company is less > lesser premium amount!

• Term Life Insurance Plans
  
• Unit Linked Insurance Plans
• Participating Plans
• Non participating/Guaranteed¹ Plans

There are different types of life insurance plans to cater to the needs of the buyers. For each type and plan, the policy premium amount is calculated differently.

If you are looking to purchase your first life insurance plan, you should look for term life insurance plans. As you can get a life cover of a considerably high Sum Assured for a minimal premium amount.

You can calculate term life premium yourself, and it takes just a few seconds. Let’s take the instance of Edelweiss Tokio Life – Total Protect Plus. Simply, 

1. Click here for Edelweiss Tokio Life – Total Protect Plus
2. Enter a few simple details
3. Hit a button that says “Calculate Premium”

Life Insurance policies offer life cover for the duration of the policy term or in case of death and settled as per the terms and conditions of the policy. The policy term is chosen by you at the time of purchase of the policy.

If you miss out on paying the premium for your Life Insurance policy, you are given a 30 day grace period (for monthly payment mode, the grace period is of 15 days). If premiums are still not paid during the grace period, the policy will lapse, and the benefits of the policy won’t apply to you. However, you can still reinstate your policy within a period of 5 years from the due date of the last premium.

At the end of your policy term, your life insurance policy ceases. For a money-back plan, it reaches its maturity date. You receive all maturity benefits of the policy, and the life cover ceases. And there is no need to pay further premiums. 

You can opt to pay your premiums through payment options like:

• Credit Card
• Debit Card
• Netbanking
• Payment Wallets

If you set a standing instruction (SI) with your policy and the premium amount will get automatically debited from your account at the time of renewal.

When you appoint a nominee, you enable that person to receive policy proceeds in the event of your untimely death without the necessity of producing any legal evidence of title to your estate.

All premiums subsequent to the first premium are called renewal premium.

The person named in the policy as the recipient of insurance proceeds upon the death of the insured.

There are different types of life insurance plans to cater to the needs of the buyers. If a single policy does not meet all your insurance objectives, you should go for a portfolio of policies to plan for your different life goals.

When you buy a life insurance plan online, the insurance company saves on distribution costs, which is reflected in a lower premium amount. Therefore, it is usually cheaper to buy an insurance policy online through discounts. For example, Edelweiss Tokio Life – Total Protect Plus offers a 6% discount if medical tests are completed within 7 days of purchase (login). There is also a discount on female lives covered. 

Just select a plan which best suits your needs after carefully understanding the product, fill in the required details accurately and pay the premium. Your application will be checked by underwriting teams and processed. You’ll get the policy document in just a few days!

Select a plan which best suits your needs after carefully understanding the product, fill in the required details accurately and pay the premium. Your application will be checked by an underwriting team and processed further. You’ll get the policy document in just a few days!

The premium generally varies from a smoker to a non-smoker. Premium is generally higher for a smoker as he/she falls in a high-risk category.

Once the policy is issued to you, the premium amount stays the same throughout the entire tenure of the policy, except for factors like the addition of riders or declaration of habits like smoking, drinking etc. or the declaration pertaining to a hazardous employment nature etc.

Yes. Term insurance, once in effect, will apply even in case of the policyholder’s unfortunate demise outside India.

Yes, accidental death is covered under base term insurance plans, but having an additional accidental death benefit cover serves as a great benefit. In case of an accident, an additional amount will be paid to you by your insurer along with the base life cover during the term of the policy.

Riders are ways to customise your policy. They offer additional covers for situations like death by accident, critical illness, permanent disability etc. The riders you choose depend on your way of living, requirements as well as financial stability.

Yes. You have an option to change the nominee whenever you want during the policy term as per the terms and conditions of the policy you’ve purchased.

You should decide your life cover keeping in mind your income, the debts or loans you have and your financial dependents. It is usually suggested that your life cover should be at least 10 to 15 times your annual income. If you have loans such as home loans, car loans, etc., then you should factor that in too.

Use this formula to know your ideal life cover:

Life Cover = [10 x annual income + outstanding loans + other liabilities]

Buying a life insurance policy, as early as you can, is always a wise financial decision, here’s why:

• FINANCIAL SECURITY
  Term Life Insurance plans are a great way to make sure that your family will be financially secure even after you’ve passed on.

   

• WEALTH CREATION
  Unit-linked Insurance plans offer you an opportunity to build wealth. Most of the premium you pay towards these policies is invested in markets to get you returns over the long term.

   

• RETIREMENT PLANNING
  Retirement and Pension plans help you accumulate wealth during your work life. Once you retire, this plan offers an option for regular pay-outs.

   

• CHILD EDUCATION PLANNING
  A child plan makes sure that money problems never get in the way of your child’s education, even in your absence.

   

• TAX SAVINGS³
  Life Insurance premiums paid are deductible from taxable income under Section 80C. The payout (maturity amount) received under an insurance policy also has tax benefits under Section 10(10D) of the Income Tax Act, 1961. This means that neither the amount you invest will be taxable nor the returns that you would get at the end of the policy.

   

Term plans offer you a pure life cover for the duration of the plan.
If something unfortunate happens to you, your nominee receives the life cover amount.
All Edelweiss Tokio Life term plans have useful benefits and advantages; click here for more details.

ULIPs or Unit linked Insurance plans are essentially life insurance policies which also help you create wealth over the long term.

You can save for your future goals in life like child’s education, retirement, foreign trip. etc.

Wouldn’t you like to have a steady income even after retirement?

Pension Plans or Retirement Plans help you do just that. The premium you pay towards these plans helps you create a retirement corpus. And after you retire, the plan gives back regular pay-outs.

But, if you ask us, a ULIP is a good option to plan for your Retirement. You’ll have options to switch between the funds your ULIP invests in depending on your risk appetite. On the tax-savings³ front, ULIPs are eligible for tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961.

So, don’t wait up. Start saving with our award-winning ULIP - Edelweiss Tokio Life Wealth Secure+.

Some of us like to keep investments simple. We just want a guaranteed¹ amount at specific intervals and/or a maturity benefit after the policy term ends, and tax benefits³ don’t hurt anyone. We want to stay away from the markets and bulls and bears and bells.

If plans like this mildly excite you, go for money back plans.

Edelweiss Tokio Life has created a plan which guarantees¹ the amount that you would get at the end. Figure out what we mean by that; click here.

Understanding what your child wants can be tricky. Your kid might want to become a dog-petter one day and a cricketer the next. Whatever the dream, it is always wise to be financially prepared for their education and a good future. Savings &  Investment Plan makes sure that money problems never get in the way of your child’s education, even in your absence.

Click here to know more.

A claim on an insurance policy is a formal notification to the insurance company that you have suffered a loss that is covered by the policy, and you are requesting the payout.

The insurer reviews your claim and checks if the event or circumstances are risks covered by the policy.

If your claim is accepted, any payment by the insurer is called the benefit or payout.

Claims Settlement Ratio is the total number of death claims approved by an insurance company divided by the total no. of death claim the insurance company receives. The balance claims are either rejected for impersonation, misrepresentation, fraud, etc. or pending for decision by the life insurance companies. This ratio is generally measured over a period of one financial year.

1. Make full disclosure about your previous medical conditions

2. Fill in all the details yourself (as an agent or intermediary might not be aware of your personal details and may miss out on crucial information)

3. Make your nominee aware of the claim process and the documentation

Term plans offer you a pure life cover for the duration of the plan.
If something unfortunate happens to you, your nominee receives the life cover amount.
All Edelweiss Tokio Life term plans have useful benefits and advantages, click here for more details.

Besides the peace of mind which comes from knowing that your family would be financially secure even after you’ve passed on, buying a life insurance policy has many benefits.

• HIGH LIFE COVER 
  Term Insurance Plans offer you a high life cover at affordable premiums.

   

• TAX BENEFIT³ U/S 80c
  Of course there are tax benefits³! Life Insurance premiums paid are deductible from taxable income under Section 80C. The payment (maturity amount) received under an insurance policy is also covered under tax benefits u/s 10(10D) of the Income Tax Act, 1961.

   

• LONG TERM PROTECTION
  Term Insurance Plans offer you a life cover up to the age of 99. Or you could opt for the Limited Pay option where you can opt to pay premiums for a short period of time and get a life cover for a longer one.

   

• ADD ON BENEFITS
  Many term insurance plans offer a host of add on benefits and riders such as accidental cover, critical illness cover, etc. These modifications help you make the term plan stronger.

   

First of all, put down your calculators, your abacuses and no, you can’t count it on your fingers and toes.

Calculating your term life insurance premium is just a matter of a few clicks. To calculate your premium:

1. Enter a few simple details
2. Hit a button which says “Calculate Premium”
3. C’mon now, give it a try. Click here for Edelweiss Tokio Life - Zindagi Plus

A pure term insurance plan covers an individual through the policy term and does not have a maturity amount for the policyholder in case he/she survives the policy term. The life cover can be up to age 100, protecting him/her for whole life.

On the other hand, savings insurance plans can offer a maturity amount or an income or a combination of both, along with a life cover. These may be for short term or for whole life.

Congratulations on your decision to secure your family’s future! Let’s get you insured, shall we?

Step 1: Choose a plan

A term plan like Edelweiss Tokio Life - Total Protect Plus offers total protection^ to you and your family. It secures the financial future of you, your spouse, and your child.  

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. If you have loans such as home loans, car loans, etc. then you should factor that in too. Use this formula to know 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

And, that’s simple enough! Simply click here, enter a few details, select the amount and tenure of insurance cover and click on ‘Calculate Premium’

Step 4: Make Payment

You can opt to pay your premiums monthly, half-yearly or yearly through payment options like:

• Credit Card
• Debit Card
• Netbanking
• Payment 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 documents for issuance of policy

• KYC documents such as proof of name, address, identification and photo e.g. Aadhar Card
• Income proof e.g. Income Tax³ Returns

Apart from being a great way to make sure you save regularly for your family’s future, Life Insurance plans are also an efficient tax-saving instrument. You get tax benefits on premiums as well as on death benefits under section 80C and 10(10D) respectively.

Under Section 80C, premiums that you pay towards a life insurance policy qualifies for a deduction up to ₹1.5 lakh, while Section 10(10D) offers income on maturity with tax benefits, if the Life Cover is at least 10 times the premium.

It is wise to consult a tax expert and make an informed decision because the benefits can vary for your specific case and tax bracket.

If you were planning to do just that or you’ve already done it, please make sure you know everything about the insurance plan. We write stuff like “Please read the sales brochure carefully before concluding a sale” in all our disclaimers for a reason.

You should decide your life cover keeping in mind your income, the debts or loans you have and your financial dependents. It is usually suggested that your life cover should be at least 10 to 15 times your annual income. If you have loans such as home loans, car loans, etc. then you should factor that in too.

Use this formula to know your ideal life cover:

Life Cover = [10 x annual income + total outstanding loans + other liabilities]

Accidental Death Benefit Rider is a rider you add to your base plan. If Accidental Death Benefit is included in your term plan, 100% of the rider sum assured is paid on top of the base sum assured in case of the policyholder’s unfortunate demise due to an accident.

A critical illness insurance benefit offers an insurance cover to the policyholder against life threatening critical illnesses like cancer, heart-related illness, etc. It provides a lumpsum benefit on the diagnosis of any critical illness that is predefined in the plan.
The health insurance plan you may have or the health insurance coverage which your employer provides, may not be sufficient. Because when it comes to critical illnesses, it’s not just hospital expenses, there’s doctor visits, medical expenses etc. So, it’s better to get an added critical illness benefit pay out to help you with the added expenses without dipping into your long-term savings.

A term insurance plan offers a life cover to the policyholder only. But, you can ask your insurer for a plan which covers both you and your family members.
If you ask us, we’ll tell you that Edelweiss Tokio Life Zindagi Plus offers a better half benefit option which means, a single term life insurance plan can have benefits for both you and your spouse. Click here for more details.

ULIPs or Unit linked Insurance plans are essentially life insurance policies that also help you create wealth over the long term.
You can save for your future goals in life like a child’s education, retirement, foreign trip. etc.

ULIPs help you build wealth over the long term thanks to the power of compounding, which means that even if you invest a small amount for several years consistently, it will grow into a large corpus.
ULIPs offer benefits like tax deductions (under Section 80C) and returns generated are also covered under tax benefits (under Section 10(10D)).

The Power of Compounding

One of the main benefits of starting early is the power of compounding which provides the foundation for time value for money. Even if you invest a small amount for several years consistently, it will grow into a large corpus.

Balanced Investment Portfolio

The other basic rule of sound investing is to have a balanced investment portfolio. This simply means that you need a mix of financial plans for both your long-term goals and short-term goals. This strategy attempts to balance risk versus rewards by adjusting and rebalancing each asset in an investment portfolio according to the investor’s risk appetite.

Here are a few things you should keep in mind before choosing a ULIP:

• Always good to have options
  Go for a ULIP plan which offers a wide range of fund options with varying allocation in equities. It’s better to diversify and have lower risk than to stick with one or two funds.
• Switch karo, khush raho
  Always go for ULIP plans that offer the facility of unlimited switching between funds. This means you can, anytime, choose to stop investing in a fund and switch to another fund if you think that will be a more suitable option for you.
• Don’t pay more than you have to
  Always choose a ULIP plan after looking over your financial position so that the premium doesn’t create a financial burden on you. Keep in mind that if you are unable to pay the premium your policy can lapse, which is never good.
• Redirect at your will
  Go for a ULIP plan that offers the facility of redirecting your premium. This means that you can choose what percentage of your premium is invested in which fund and can anytime, reduce or increase that percentage as you deem fit.
  
  

Edelweiss Tokio Life Wealth Plus provides you with features that make up for a ULIP plan that contains facilities like:

1. Facility to switch your accumulated investment from one fund to another at the opportune time 
2. Option of redirecting your premium in funds of your choice
3. Access to your wealth, through partial withdrawal²
4. You can choose to pay a premium for a limited time, yet the wealth accumulation and insurance protection for a longer period of time
5. Tax benefits³ under Section 80C and Section 10 (10D) of Income Tax Act, 1961
6. Additional allocation⁵ and premium boosters will help in accumulating your wealth to a great extent
7. Rising Star Benefit Option, under which if an unfortunate event occurs to the policyholder then all the future premiums will be immediately credited in the fund. This acts like a child plan where the nominee receives a lump sum amount and the investment grows as planned by the parent.

Death and maturity benefits are central to any ULIP policy irrespective of the insurance provider the scheme is availed from.

Death Benefits

Death benefits of ULIPs are offered in case of unfortunate demise of the policyholder.

Maturity Benefits

Maturity benefits are offered to policyholders when the policyholder survives till the maturity period. Maturity benefits are equal to the amount of fund value.

A ULIP plan helps you build wealth over the long term. It provides life cover and market linked returns. The returns you get from these plans depend on the fund performance. So surely you can buy for 5 years. However, the longer you stay with the plan, the better are the chances of building your wealth.

Apart from being a great way to make sure you save regularly for your family’s future, Life Insurance plans are also an efficient tax-saving instrument. You get tax deductions on premiums as well as death or maturity benefits under section 80C and 10(10D).

You can avail of tax benefits of up to Rs 150,000 under Section 80C of the Income Tax Act, 1961 towards premium paid on life insurance policies. This also includes premium paid by you for life insurance for your spouse or your child.

No. If you stop paying premium for your policy, the policy lapses and you are not eligible for the benefits offered by the policy.

For tax-saving³ purposes under section 80C, all life insurance plans are equally beneficial as the application of tax laws are same for all plans. However, you need to check for tax free³ maturity benefit in case of pension plans

ULIP maturity amount is exempt subject to conditions under Section 10(10D) of the Income Tax Act, 1961.  WEF 1 Feb 2021, ULIPs shall be taxable if annual premium exceeds Rs 2.5lakhs.

Tax Benefits under Section 80C on Premium Paid:
The premium paid in a financial year is eligible for deduction under section 80C of the Income Tax Act, subject to conditions prescribed therein. An individual or a HUF can claim this deduction under Section 80C.

The premium paid by a tax payer is eligible for deduction irrespective of which Life Insurer you choose. Premium paid towards a life cover taken with any insurer that is approved by the Insurance Regulatory and Development Authority of India (IRDAI), is eligible for a Section 80C deduction.

In order to claim deduction under section 80C, the premium paid should not exceed 10% of the sum assured. Further, here it is important to note that covering the life of an individual with a disability referred to under Section 80U or a disease referred to under Section 80DDB, the requirement to claim the deduction under Section 80C is that the premium should not exceed 15% of the sum assured.

Tax Benefits under section 10(10D) on Maturity amount received
The maturity amount in a ULIP has tax benefits under Section 10(10D) of the Income Tax Act, except for high-value ULIPs issued from 1 Feb’21 onwards.
When the premium paid is more than 10% of the sum assured for policy issued after 1st April 2012 or more than 20% for policies issued prior to 1 April 2012, the maturity amount received from life insurance policy is fully taxable.

Before lock-in-period
If the policy is surrendered before the lock-in-period of 5 years, then the entire surrender value will be treated as income for the current year and will be added in Gross Total Income and thus will be taxed as per applicable tax slab rate of the individual.

For instance, if surrender value of ULIP is ₹3 lacs and total income apart from surrender value is ₹15 lacs. Therefore, the total income will be ₹18 lacs and the entire income will be taxed as per slab rate.

After lock-in-period
If the policy is surrendered after the lock-in-period of 5 years, then the surrender value will be covered under tax benefit³. For instance, if the surrender value of ULIP is ₹3 lacs and total income apart from surrender value is ₹15 lacs. Therefore, the total income will be Rs. 15 lacs and the entire income is taxed as per slab rate.

No, life insurance proceeds including the maturity benefit is not taxable in accordance to Section 10(10D) of Income Tax Act, 1961.