Edelweiss Tokio Life – TotalSecure+ (herein after referred as TotalSecure+) is a comprehensive protection plan which provides life cover with an option to cover up to 35 critical illnesses. It comes with multiple customizable options i.e. life cover, critical illness benefit, policy term, premium paying term, etc. which you can choose as per your needs.

TotalSecure+ is an individual, non-linked, non-participating term insurance plan with an option of accelerated critical illness (the Critical Illness benefit is an accelerated benefit and not an additional benefit which means the policy will continue with the Death Benefit reduced to the extent of the Critical Illness Sum Assured paid).

You can purchase the policy in 4 simple steps, as follows:

Step 1: Design your own comprehensive protection plan, as per your need, by choosing either:

• Benefit Option 1: Only Life Cover
• Benefit Option 2: Life Cover with 'Basic Health Cover' – Covers 7 Critical Illnesses
• Benefit Option 3: Life Cover with 'Comprehensive Health Cover' – Covers 35 Critical Illnesses

Step 2: Depending on your requirement, decide on for:

• Benefit Option 1: Base Sum Assured; or
• Benefit Options 2 and 3: Base Sum Assured and Critical Illness Sum Assured.

Step 3: Choose the policy term (duration of insurance coverage) and the Premium Payment Term (duration for which you need to pay the premiums) as per your need and convenience. You have the choice of:

• Paying throughout the policy term (regular pay) or
• For a shorter period (limited pay) or
• Only once at the beginning of the policy (single pay).

The Policy Term is available till age 80 for Option 1 and till age 75 for Option 2 & 3.

Step 4: Choose death benefit payment mode options as:

• Lump sum or
• Regular Income or
• Lump sum plus Regular Income.

If you opt for regular income, you can decide the period for which your nominee would receive the benefits i.e. over 3, 5, 10 or 15 years. You can also choose whether you want equal monthly pay-outs or increasing monthly pay-outs.

Before purchasing the policy one should note that, the death benefit payment mode option has to be chosen at policy inception and cannot be changed later. The premium rates for critical illness under Benefit Options 2 and 3 are guaranteed for the first five policy years and reviewable thereafter subject to prior approval of IRDAI.

The Plan Summary is as follows:

(Source: Brochure of Edelweiss Tokio Life TotalSecure+)

The key benefits under the policy are as follows:

1. Maximum Life Cover: The plan gives you an option to cover yourself till the age of 80.


2. Death Benefits: On death of the life assured during the policy term, the various pay-out options are:
   1. Under lump sum option: A lump sum amount equal to the death benefit will be paid.
   2. Under regular income option: A percentage of lump sum amount (death benefit) will be paid as monthly pay-outs. There is a choice of level pay-outs or increasing pay-outs and the number of months for which the pay-out is required.
   3. Combination of above two as per your choice.


3. Critical Illness Cover: On occurrence of any of the illnesses specified in the policy, the policyholder will receive a pay-out of the critical illness sum as lump sum. The critical illness cover will be terminated, but the policy continues with the base sum assured reduced by the amount of critical illness claim amount paid. After payment of critical illness benefit, future premiums payable under the policy for death benefit will be reduced proportionately.


4. Tax Benefits: As per the prevailing tax laws, you can avail tax benefits as under:
   1. Life cover: Under section 80C and section 10 (10D) of Income Tax Act, 1961
   2. Life Cover with Basic Health Cover: Under section 80D for premium paid towards Basic Health Cover and section 80C for premium paid towards Life Cover and section 10 (10D) of Income Tax Act, 1961
   3. For Life Cover with Comprehensive Health Cover: Under section 80D for premium paid towards Basic Health Cover and section 80C for premium paid towards Life Cover and section 10 (10D) of Income Tax Act, 1961

Let us understand the policy with the help of these case studies:

Case Study 1

Sunil is a brand manager in an FMCG company and is 35 years old. Sunil and his wife Reena have a three year old son Aahaan. His father Kishore is retired. Sunil wants to be well prepared for all unforeseen circumstances in life. For this, he chooses Edelweiss Tokio Life - TotalSecure+ (Benefit Option 3—Life Cover with a comprehensive health cover) with Base Sum Assured of Rs 1 crore and Critical Illness (35 illnesses) sum assured of Rs 10 lakh for a cover till 75 years of age. He pays annual premium of Rs 17,092/- (premium for non-tobacco consumer healthy male excluding the applicable tax and cess).

A few years later Sunil is diagnosed with one of the predefined 35 Critical Illnesses. Rs 10 lakh is paid as a lump sum and the policy continues with reduced base sum assured of Rs 90 lakh. The subsequent premiums are proportionately reduced to Rs 10,728. On Sunil's unfortunate death, his family gets lump sum death benefit of Rs 90 lacs and the policy terminates.

Here's a diagrammatic representation:
 

(Note: The picture is for illustration purpose only)
(Source: Brochure of Edelweiss Tokio Life TotalSecure+)

Case Study 2

Ajay is a purchase manager in an automobile company and is 37 years old. His family consists of his wife Neha, and a 7 year old daughter Ananya. He pays EMI of Rs 45,000 per month on a home loan that he has availed. He wants his family to live a comfortable life if he were to have an untimely death. He chooses Edelweiss Tokio Life TotalSecure+ (Benefit Option 1—Only Life Cover) with Sum Assured of Rs 1.5 crore for a cover till 80 years of age.

He chooses level regular income option for 10 years which will ensure an adequate monthly income for his family and also take care of his EMIs. He pays annual premium of Rs 22,587 (premium for non-tobacco consumer healthy male excluding the applicable tax and cess). After Ajay's unfortunate death, his policy ensures his family gets monthly income of Rs 1,62,750 per month for 10 years.

Here's a diagrammatic representation:

(Note: The picture is for illustration purpose only)
(Source: Brochure of Edelweiss Tokio Life TotalSecure+)

Note: Ajay can also take an increasing regular income option in which his family will get monthly income increasing at 5% per year (compounding).

To Conclude…

At the outset, the product looks appealing and seems efficient in terms of cost to benefit. A pure term insurance plan with a lump sum death benefit pay-out option is advisable. The objective here is to give the nominee the option to invest the proceeds as per his/her requirement.

But, at PersonalFN we believe that it would be wise not to commingle your life insurance cover with your health insurance cover, and likewise opt for a critical illness insurance plan separately. This may give a slight advantage in terms of cost to benefit and choose from promising respective policies.

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