/ -- The Coronavirus pandemic has left everyone scrambling back to drawing boards to design and accept a new normal for families, businesses and economies. With heightened health concerns across the globe, people are increasingly recognising the importance of insurance and India is no exception.
After all, this is an opportune time to relook and redesign financial portfolios, looking through the lens of three critical elements - protection, savings and wealth creation.
Here's how insurance can make financial portfolio robust and ready for any unforeseen financial challenges in the future:
Protection
Protection or Life Cover strengthens a long-term financial portfolio, as it mitigates potential risks and challenges. There are enough anecdotal references which show how unforeseen health expenses or loss of income due to the death of the breadwinner make a massive dent in a family's savings.
Protection products help loved ones to retain their lifestyle and long-term financial goals, without disruption. With innovative solutions now offering cover for both customers and their spouses at affordable costs, the future aspirations of loved ones can be easily secured. Similarly, some insurers offer critical illness plans that cover major or terminal illnesses like cancer.
It is ideal to buy protection products as soon as one's professional career is started. It is a fallacy that the young do not need life insurance, when, in fact, buying insurance early helps to lock into lower premium, which, in turn, results in considerable cost-saving in the long-term. Check out Edelweiss Tokio Life - Zindagi Plus, a term insurance plan which offers an industry-first feature, Better Half Benefit - an option to get additional life cover for spouse.
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Savings
It is advisable to set aside at least 10 percent of financial portfolio towards savings products. These plans are an ideal way for wealth accumulation, irrespective of risk appetite.
Amid heightened market volatility and a reducing rate cycle in the country, this product category has now become a far more attractive instrument for long-term savings. These products, such as Edelweiss Tokio Life - GCAP can give a steady returns of 5-6 percent annually with Tax Benefits.
Wealth Creation
Unit Linked Insurance Plans (ULIPs) have emerged as one of the leading options for wealth creation, with insurers facilitating ease of buying through digital platforms.
New-age ULIPs such as Edelweiss Tokio Life - Wealth Secure+ which subsequently has been ranked as the No.1 ULIP by CRISIL, offers flexibility in switching funds, systematic withdrawals, and life cover up to 100 years and starts with premiums as low as Rs 1,000 per month.
In fact, ULIPs can also be effectively used for child's future or legacy or retirement planning.
As the fight against COVID-19 is continued, protection will see a marked increase in terms of customer consideration. People will be more cognisant of buying insurance, complemented by increased awareness driven by the industry. With insurance penetration in India still in single digits, it will be interesting to see how increased digital penetration creates an impact.
About Edelweiss Tokio Life Insurance
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services, among India's leading diversified financial services companies, and Tokio Marine Holdings Inc, one of the oldest and largest insurance companies in Japan. Edelweiss Tokio Life Insurance launched its pan-India operations in July 2011, offering proprietary need-based solutions to help customers meet their life stage financial goals. Its lineage brings together a deep understanding of customer needs and international expertise. The company is headquartered in Mumbai serving over 2.02 lakh customers through 43,681 personal finance advisors as on March 31, 2019, across 121 branches in 93 major cities.
Awards:
Edelweiss Tokio Life Insurance has been consistently recognized for its Product Innovation capabilities at several forums, namely Outlook Money Award for Best Life Insurer 2016, Golden Peacock Awards 2018, Golden Globe Tigers Awards and ET NOW - BFSI Awards for Best Product Innovation 2018, Times National Award for Marketing Excellence 2018, India Insurance Summit 2019 and Skoch Awards 2019.
To learn more about Edelweiss Tokio Life Insurance, please visit www.edelweisstokio.in
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Disclaimer: No Business Standard Journalist was involved in creation of this content
