The bold step to ban the Rs. 500 & Rs. 1000 notes hogged the entire limelight and the 2016 USA Presidential Elections took a back seat on many news channels! Though there were some short-term problems that every commoner had to face because of this ban but definitely there seemed to be huge long-term benefits associated with this bold decision! Though the historic date of November 8th [when demonetization was announced] is long gone, it still remains a major point of discussion online as well as offline since this decision touched the lives of each & every Indian irrespective of the financial status of the person.
Some of the discussions divert towards Financial Planning, Tax Saving Techniques, Term Insurance, etc. Demonetization coupled with other factors like Donald Trump’s appointment as the President of USA did have a tangible impact on our overall economy but it also taught a very important lesson – Life is uncertain & Financial Planning should be followed with proper execution. Every investor is different and their asset allocation strategy primarily depends on factors like age, net worth, financial goals, existing portfolio and most important of them all is Risk Appetite.
There is a very famous saying Don’t put all your eggs in the same basket and hence along with wealth accumulation & wealth enhancement, it becomes imperative to look at a very important factor – Comprehensive protection plan. As it is said that ‘Sometimes you need to solely think about your near & dear ones and forget about profit creation while making an investment‘. Given the rapidly changing lifestyle, eating habits, uncertainty around life, etc. it becomes critical to invest in a Term Insurance plan.
Unlike normal insurance plans, Term Insurance is a type of life insurance that provides pure life cover. It provides insurance for a certain period of years and if the insured dies over the policy tenure, the death benefit is paid out. But in case the insured survives the tenure, no payout is made. There is no profit/savings component with a term plan but it is still one of the most affordable insurance plans compared to the normal insurance endowment plans. It is an ideal investment option for someone who has taken loan [whether it is a home loan, car loan, etc.], someone who has invested in new ventures, someone who is a sole bread-winner or someone who wants to ensure that his/her family stays in comfort even after his/her demise !! We earn for our family 🙂
Since Term insurance plans are directly linked with person’s feelings for the dear one’s, major insurance companies in India offer that product, though there are very few that offer excellent benefits coupled with customization like Edelweiss Tokio Life TotalSecure+
Edelweiss Tokio Life-TotalSecure+ is a comprehensive protection plan that provides the benefits of Life Cover as well as cover against critical illnesses. It provides an overall protection for your family. It is one of the best term plans that is highly customizable where you can customize the premium paying term, mode of payout [for death benefit]. The mode of payout can be lumpsum or a regular income. You can also choose a rider you want to strap on. There are no investment benefits and unlike traditional insurance plans, its T&C are very easy to understand 🙂
It provides life cover with an option to cover up to 35 critical illnesses. The basic plan covers 7 illnesses. Some of the important features of the Total Secure Plus are mentioned below
There is a flexible premium paying term where the insurer can do a Single Pay, Limited Pay [5, 10, 15, 20, 25] or Regular Pay for a Basic Life Cover and Regular Pay for Basic & Comprehensive Health Cover. For the Regular death benefit mode, the insurer can choose the period for which the death benefit can be paid [it could be either 36, 60, 120 or 180 months]. Monthly payouts can be customized in equal monthly sum or increasing monthly sums (increase annually @ 5.00% pa compounding). There is also a Combo option which takes care of immediate requirements as well as monthly expense.
Edelweiss Tokio Life-TotalSecure+ provides Tax Benefits where Life Cover is covered under 80C & Life Cover with Basic or Comprehensive Health cover is covered under 80D. As mentioned earlier, the premium is very less compared to traditional policies, so it’s a cost effective option. The lingering question now is whether Edelweiss Tokio Life-TotalSecure+ is cost-effective, so let’s look at the cost effectiveness of the term insurance.
At Rs. 9,180 per annum, the premium amount for a 1 crore cover/ 30-year policy term for a male, 33-year-old non-smoker [no frills] is low. Throw in the health cover options and the premium rises to Rs. 11,685 and Rs. 13,164 for the basic and comprehensive options, respectively. In comparison, the annual premium for other larger player’s e-Term is roughly Rs. 27,500 per annum under the same set of parameters – and this is minus the health cover benefit. The policy is indeed extremely affordable and cost effective.
Given the uncertainty surrounding our lives, the ever changing economic environment, fast forward lifestyle, increasing liabilities like home-loan, car-loan,etc.; it is very important to invest in a well-designed term insurance plan in India like TotalSecure+ by Edelweiss Tokio Life.
If you are an investor in the TotalSecure+ policy, please leave your review in the comments section…
Disclaimer: Information provided in the article is based on my research and I do not have any holding in it.