It is no secret that term insurance is a key component of any financial portfolio. It is an ideal, cost effective instrument to secure your loved ones and serves as an income replacement tool in case the breadwinner passes away. One of the latest entrants in this category has especially taken my notice. Before we dive into the product and its features, let me set the context.
Housewives form an important demographic in India, but are largely devoid of insurance currently. Considering there is no monetary value attached to the work they conduct on a daily basis, housewives are least likely to have a life cover. There is a massive need for a product that adequately protects them – especially considering that they usually take on the mantle of the household in absence of the breadwinner.
Zindagi Plus, which is a new generation term product by Edelweiss Tokio Life, addresses exactly that need. It comes with a unique and innovative ‘Better Half benefit’. To explain simply, let us consider the example of Aarav and Veera who are married with two kids. Aarav is the sole earner of the family and has bought Zindagi Plus with Better Half Benefit option worth sum assured of Rs. 1 crore.
In the event that Aarav passes away, Veera will be paid a death claim of Rs. 1 crore, as per the payment mode selected. She will additionally receive a life cover of Rs. 50 lakhs for herself without any future premium requirements for the rest of the original policy term. Unlike in a traditional joint life policy, Aarav will have to pay a premium only nominally higher than the base policy.
The Better Half benefit is not just innovative but is also thoughtful towards its customers and their loved ones. In the event of Aarav’s absence, insurance will be last on Veera’s priority as the new head of household. As age progresses, it will also become increasingly difficult for her to buy a life cover at an affordable rate. Zindagi Plus addresses all these concerns effectively; it infact anticipates these needs and makes adequate provision to take care of those who are left behind in case of the policyholder’s death.
Other than Better Half Benefit, the product comes with a bouquet of other features and options that give the customer a truly rounded proposition to choose from. It is a unique and comprehensive solution to all your needs – existing, emergent and unarticulated ones. It stays relevant throughout the customer’s life term and even beyond. In my view, it is not just a protection solution, it is a ‘Life Planner’ that adapts to your dynamic needs.
Another notable offering is the ‘Decreasing Sum Assured’ option in the plan. Under this option, the base sum assured remains constant until policyholder reaches the age of 60 years and reduces thereafter by 50%. Typically, an individual earns up to the age of 60, his liabilities, spending pattern and family’s financial dependency on him subsides by the retirement age. This option addresses this reality.
For those who do not want to opt for this option, the insurance plan also offers a Level Sum Assured option wherein the sum assured stays constant throughout the policy term. It is worthy to note that premium payable under Decreasing Sum Assured option is lower than that for Level Sum Assured.
The plan also provides several other options like a Top Up benefit (sum assured increases annually, starting from the first policy renewal), Life stage benefit (sum assured increases depending on the Life Stages achieved. E.g. marriage, birth of your children, or home loan), Pay till 60 benefit (the policy holder has to pay premium until the retirement age of 60 only), Waiver of premium benefit (all future premium requirements are waived off on diagnosis of specified critical illness) and Death benefit (sum assured paid to the dependent on policy holder’s death, under three options – Lumpsum or monthly income or a combination of both). The policy also provides riders that can be used to enhance protection in case of accidental death, total and permanent disability, critical illnesses and hospitalisation.
Edelweiss Tokio Life has been at the forefront of product innovation in insurance. This offering is definitely unique and is changing the way term insurance is being perceived in India.