How much insurance do you need?

A life insurance is, without a doubt, the most key component of any financial portfolio. It is an ideal tool to provide financial security for your loved ones. For instance, a term insurance provides a life cover at lower premium rates, is easy to understand, flexible and provides a tax benefit. In perhaps the difficult moment of someone’s life, a life insurance provides the mental comfort that they are taken care of financially.

It creates an income replacement for your loved ones in case of your sudden demise and takes care of future financial contingencies during important life stages like your child’s education, marriage and more. Depending on your needs, there are a bouquet of life insurance products available – a term insurance, endowments policies, a unit linked insurance plan and more.
So, when buying a life insurance, how do you determine your life’s worth? Here are some factors to consider, when determining the answer to that question:

a)      Income replacement:

The most crucial aspect to remember when buying a policy is that it is before anything else an income replacement tool. Without an alternate source of livelihood, your loved ones may not be able to manage their expenses if your insurance does not provide an adequate cover.
The general rule of thumb is that the death benefit on your policy should equal at least 10 times your annual salary. However, it would be ideal that the death payout be in the range of 15-20 times your annual income.

b)      Liabilities and future expenses:

Liabilities – outstanding loans and mortgages – that you may have currently are an important consideration when determining the sum assured. In your absence, you have to ensure that your loved ones are not bogged down by your liabilities.   
Similarly, important life stages like your child’s education, and their marriage also factor into the math when deciding on the sum assured. While this might seem like a trivial factor, lifestyle and standard of living plays a key part too. You have to ensure that your death payout will enable your family to continue to live at the same standard of living you are currently.

c)       Cost of premium:

Paying the premium is a must if you want to keep your policy active. It could be a monthly, quarterly or annual payment cycle, depending on the choice you have made. When determining the sum assured, ensure that you will be able to pay the premium the policy will cost.   
Note that an uninformed purchase can lead to inadequate cover or worse yet an unideal insurance policy. Before you buy a term plan, it is crucial you conduct a thorough research and get a proper understanding of the product that matches your needs. With a wealth of information available at your fingertips, it is easy to compare the products as well.
In fact, there are simpler tools to identify your needs like the need-recognition and priority-ranking process by Edelweiss Tokio Life Insurance – Vijaypath. It easily identifies and ranks your six financial needs and suggests some really cool tailor-made insurance schemes to address your requirements. You can visit them at www.edelweisstokio.inand they would be happy to help you!

From comfort to passion, from romance to thrill and to escape the daily grill there are endless reasons why you buy a car. However, when you have a car, you also have the responsibility to take care of it. And what would be the best way than buying a Car Insurance! It enables safety, financial backbone and ease of life. Living in the metro cities like Mumbai, which is one of the busiest and crowded cities, you never know when harm can happen to your property. So better safe than sorry!

In India, if you possess a vehicle, like a car or a bike then it’s mandatory to have an Auto Insurance handy. But is this reason enough to get convinced to buy car insurance? Yes, No, Maybe!
Here is a checklist of things you ought to know, before opting for Car insurance.


Choosing the right car insurance policy can be a little tricky if you are not pro-efficient enough. For this, you need to understand the types of policies available in the market. There are different types of Motor Insurance policies like Car Insurance, Two Wheeler Insurance and Commercial Vehicle Insurance. Out of which, car insurance is the fastest growing business.
Various companies have exclusive deals comforting your car needs. Just surf the internet to recognize the ideal one. You can check this website called compare4cover which offers good deals and all the facilities you seek in a car insurance policy. Don’t get jumpy over low premium scheme just because it’s affordable. Not necessary that the lowest premium is always the best one. So ensure you don’t fall into that trap because admit it or not we are easily tempted by the words Discounts and Offers.

While buying car insurance in India, make sure you know the Insurer Declared Value (IDV) for the car. There are certain companies who try to allure you with lower premium by decreasing their insurer declared value. IDV is the maximum amount you can claim in case of vehicle damage beyond repair or vehicle theft. Therefore always aim for highest IDV with lowest possible premium.  

What are the benefits of Car Insurance?
A car insurance coverage is a protective umbrella for all these problems-
Bodily Injury - covers all bodily injuries caused during an accident.
Property damage – covers the damage caused to your car and third party damages like another person’s car.
Medical disbursement- covers all the people who suffered in a car accident including the policy owner.
Calamities- Covers both natural and manmade calamities like fire, rockslide, landslide, storm, flood, earthquake, burglary, theft, riots or any damage caused to the vehicle in transit by road, air, inland waterway or rail.
The coverage differs from company to company. There are comprehensive plans which cover all the above-mentioned liabilities. If you are paying a high premium you may also get extra cover for loss/damage to electrical/electronic accessories which are added bonus to your car insurance cover.
Always confirm that the insurance provider which you select has the highest claim settlement ratio. Take note that the company is capable of providing hassle-free cashless claim.

We hope you remember all these points before buying any car insurance policy and hit the road without any worries!