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Sameer is a 25 year old individual working with a MNC company, earning Rs. 7 lakhs per annum. Sameer’s wife is a housewife and the couple has a 1 year old daughter. Sameer has taken a home loan of Rs. 28 lakhs.
Few days back Sameer’s colleague, Rohit died in a road accident. While attending Rohit’s funeral, Sameer was wondering what if he meets with some tragedy someday? In that event who will take care of his family’s monthly expenses, home loan, daughter’s education and marriage? If you are also worrying about the same thing, then stop worrying and start acting.
A term life insurance plan is the simple answer to your above worries. In the event of death of the life insured, a basic term insurance plan pays a lumpsum amount to the family. While there are variants of term insurance plans available, in this article we will focus only on Edelweiss Tokio Life – MyLife+ offered by Edelweiss Tokio Life Insurance Company Limited.
With Edelweiss Tokio Life – MyLife+, a 25 year old individual like Sameer (non-smoker) can get a life insurance cover of Rs. 1 crore for 25 years at an annual premium of Rs. 4,950 (exclusive of government taxes).
Basic features
| Minimum entry age | 18 years |
| Maximum entry age | 60 years |
| Maximum age at maturity | 80 years |
| Policy term (years) | Policy tenure can be 10, 15, 20, 25, 30, 35, 40 and (80 minus entry age) |
| Premium payment frequency | Annual |
| Minimum premium | Rs. 2,500 |
| Minimum sum assured | Rs. 25,00,000 |
| Maximum sum assured | No limit, subject to underwriting |
Females are offered discounted rates as compared to males.
Death benefit
The plan offers two death benefit options:
1) Lumpsum benefit option
If the life insured has bought a sum assured of Rs. 1 crore, then on death, a lumpsum amount of Rs. 1 crore will be paid to the nominee and the policy will terminate.
2) Income benefit option
If the life insured has bought a sum assured of Rs. 1 crore, then on death, 1% of the sum assured i.e. an amount of Rs. 1 lakh will be paid every month to the nominee for the next 130 months.
A customer can also choose a combination of both the above options. The death benefit option has to be specified at the time of buying the plan.
If the life insured survives the plan tenure, then NO maturity benefit will be paid.
Rider options
1) Edelweiss Tokio Life - Accidental Total and Permanent Disability Rider: It provides the life insured with a lump sum to cater to immediate expenses in case his / her income earning capacity is hindered due to an accidental disability.
2) Edelweiss Tokio Life - Accidental Death Benefit Rider: It provides an additional lumpsum amount to the family in the event of death of the life insured due to an accident.
3) Edelweiss Tokio Life - Waiver of Premium Rider: It provides for waiver of premium payment in the event the life insured suffers from critical illness or accidental total and permanent disability.
Income tax benefits
The premium paid is allowed as deduction from taxable income under Section 80C of the IT Act. The death benefit received by the nominee is tax free under Section 10 (10D).
The plan can be bought online from www.edelweisstokio.in
Comparison with some other term plans offered by some other life insurance companies.
| Edelweiss Tokio Life - MyLife+ | HDFC Life Click2Protect Plus | LIC e-Term | Max Life Online Term Plan | |
| Tenure | 10, 15, 20, 25, 30, 35, 40 years and (80 minus entry age) | 10 – 40 years | 10 – 35 years | 10 – 35 years |
| Maximum maturity age | 80 years | 75 years | 75 years | 70 years |
| Death benefit options | a) Lumpsum benefit option b) Income benefit option c) Combination of both |
a) Life option b) Extra life option c) Income option d) Income plus option |
a) Lumpsum benefit option | a) Basic life cover b) Life cover + Monthly income c) Life cover + Increasing monthly income |
| Rider options | a) Accidental Total and Permanent Disability Rider b) Accidental Death Benefit Rider c) Waiver of Premium Rider |
None | None | a) Max Life Comprehensive Accident Benefit Rider |
| Annual premium for 25 year old male individual (non-smoker) for Rs. 1 crore cover for 25 years | Rs. 4,950 | Rs. 6,954 | Rs. 12,200 | Rs. 5,900 |
Note: Above premiums exclude government taxes.
From above table, we see that Edelweiss Tokio Life - MyLife+ offers higher plan tenure, higher maximum age at maturity (80 years) and more rider options. Comparing the life insurance quotes, the annual premium is also lower as compared to other term plans.
Conclusion
We believe Edelweiss Tokio Life - MyLife+ is a good plan to have. Someone who is looking for a low cost term plan with a range of cover options like lumpsum payment after death or staggered monthly payments after death or a combination of the two options can consider buying for this plan.
Coming back to Sameer that we referred to at the beginning of the article, he can go for Edelweiss Tokio Life - MyLife+ for a cover of Rs. 1 crore for 25 years. During these 25 years if something happens to him, then the sum assured of Rs. 1 crore that will be paid to his nominee can take care of his family’s monthly living expenses, home loan and daughter’s education and marriage expenses.