-
✅ What is the Sabse Pehle Life Insurance campaign all about?
Life Insurance should be the base of your financial planning. Before you decided to look at other financial instruments, ensure that you have protected and provided for those who matter in your life.
Sabse Pehle Life Insurance is Indian life insurance industry’s first joint mass media campaign launched by the Life Insurance Council. This campaign aims to encourage Indian households to opt for adequate life insurance cover as the fundamental necessity in their lives.
-
✅ Why was the Sabse Pehle Life Insurance Campaign launched?
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 saving purposes
The Sabse Pehle Life Insurance Campaign has been launched to create awareness about the importance of Life Insurance and it's 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.
-
✅ What is life insurance in simple words?
Life Insurance is a contract between an insurance company and an insurance policy holder, 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 policy holder. The policy holder has to pay premiums towards the policy. In event of death, life cover helps the policy holder’s family take care of immediate financial liabilities such as loans, children’s education etc.
-
✅ Why should I buy Life Insurance?
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.
-
✅ When is the best time to get life insurance?
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!
-
✅ What are the types of life insurance policies in India?
-
✅ How much does life insurance cost?
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. Simply,
1. Click here
2. Enter a few simple details
3. Hit a button which says “Calculate Premium”
-
✅ Till when can a life insurance policy provide life cover?
Life Insurance policies offer life cover for the duration of the policy term or till a claim is filed 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.
-
✅ What will happen to my policy if I miss out on paying premiums on time?
If you miss out on paying premium for your Life Insurance policy, you are given a 30 day grace period. If premiums are still not paid during the grace period, the policy will lapse and benefits of the policy won’t apply to you. However, you can still reinstate your policy within a period of two years from the due date of the last premium.
-
✅ What happens after the policy term ends?
At the end of your policy term, your life insurance policy matures. You receive all maturity benefits of the policy, if any, and the life cover ceases. And there is no need to pay further premiums.
-
✅ How can I pay Life Insurance 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.
-
✅ What does appointing a nominee mean?
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.
-
✅ What is renewal premium?
All premiums subsequent to the first premium are called as renewal premium.
-
✅ Who is a beneficiary?
The person named in the policy as the recipient of insurance proceeds upon the death of the insured.
-
✅ Do I need more than one Insurance Policy?
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.
-
✅ What are the benefits of buying Life Insurance plans online?
When you buy a life insurance plan online, the insurance company usually saves on distribution cost, which is reflected in a lower premium amount. What we mean is, it is usually cheaper to buy an insurance policy online.
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!
-
✅ How to buy a Life Insurance plan online?
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!
-
✅ Why do insurance companies ask for personal habits like smoking etc when buying a term life insurance plan?
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.
-
✅ Will my premium amount increase or decrease over time?
Once the policy is issued to you, the premium amount stays the same throughout the entire tenure of the policy. Except for factors like addition of riders or declaration of habits like smoking, drinking etc. or the declaration pertaining to a hazardous employment nature etc.
-
✅ Will term policy apply in case of the policyholder’s demise outside India?
Yes. Term insurance, once in effect, will apply even in case of policyholder’s unfortunate demise outside India.
-
✅ Why should I add an Accidental Death Benefit rider if accidental deaths are already covered under base plan?
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.
-
✅ Why should I add riders to my term life insurance plan? Are riders important?
Riders are ways to customize 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.
-
✅ Can I change my nominee or include one after the policy is issued?
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.
-
✅ Will my premium amount increase or decrease over time?
Once the policy is issued to you, the premium amount stays the same throughout the entire tenure of the policy. Except for factors like addition of riders or declaration of habits like smoking, drinking etc. or the declaration pertaining to a hazardous employment nature etc.
-
✅ How much life cover do I need?
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]
-
✅ What are the benefits of buying a Life Insurance plan online?
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 great 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 SAVINGS
Life Insurance premiums paid are deductible from taxable income under Section 80C. The payout (maturity amount) received under an insurance policy is also exempt subject to conditions 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
-
✅ What is a Term Plan?
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 unique benefits and advantages, click here for more details.
-
✅ What are ULIP Plans?
ULIPs or Unit linked Insurance plans are essentially life insurance policies which also help you create wealth over the long term.
Part of the premium you pay for ULIP plans goes towards your life cover and the remaining amount goes into a fund which is then invested in the markets.
If the fund you’re invested in does good, the returns you get on your investment would be good.
Edelweiss Tokio Life has won multiple awards for its ULIP plans, check them out here.
-
✅ What are Pension Plans or Retirement Plans?
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 help 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-savings front, ULIPs are eligible for tax exemption under Sections 80C and 10D of the Income Tax Act, 1961.
So, don’t wait up, start saving with our award-winning ULIPs. For more details, click here.
-
✅ What are Money Back Plans?
Some of us like to keep investments simple. We just want a guaranteed amount at specific intervals and/or a maturity benefit after the policy term ends and tax benefits 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 guarantees amount that you would get at the end. Figure out what we mean by that, click here.
-
✅ What are Health Insurance plans?
Hospitals are expensive. They will never stop being expensive.
Even a tiny surgery takes a big bite out of your savings. More serious the surgery, bigger the bite.
Health Insurance plans help you get financial support if you are diagnosed with a serious illness.
Edelweiss Tokio Life – Health Shield+ is custom-made to help you fight against cancer and heart illness. Whether the degree of illness is minor or major, this plan offers a survival benefit on diagnosis. During tough times, your focus should only be on recovery, this plan offers option Waiver of Premium. You can also opt for the Return of Premium option, which not only cover you against cancer ailments but we will also return all the premiums paid by you minus any claim(s) paid by us, on maturity.
For more information about the plan, please click here.
-
✅ What are Child Plans?
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.
A child 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.
-
✅ What is an insurance claim?
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.
-
✅ What is claim settlement ratio in simple words?
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.
-
✅ What can I do so that mine or my family member’s claim is not rejected?
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 claim process and the documentation