Despite being a crucial aspect of financial planning, life insurance is something that people don’t consider buying because ‘death’ is a topic of difficult conversation. However, life insurance should be your top priority if the thought of leaving your financial obligations to your dependents terrifies you.
It’s more than simply a piece of paper; it’s a pledge to protect the policyholder’s family after his/her demise. According to official industry data from the Insurance Regulatory and Development Authority of India (IRDAI), 75% of Indians do not have any type of life insurance.
In this post, we will explore the two popular life insurance providers and highlight their key differences so that the readers can make a wise decision when choosing any one of them!
About Kotak Life Insurance
Kotak Life Insurance is one of India’s fastest-growing life insurance service providers, which has provided coverage to more than 50 million people across the nation (as of June 30, 2023).
It offers a wide range of life insurance products, including term insurance, savings plans, retirement plans, health insurance, ULIP plans, and child insurance, to cater to different requirements of people. Its primary goal is to raise people’s quality of life through the use of financial instruments that provide safety and long-term savings.
What Are The Special Benefits & Features Offered By Kotak Life Insurance?
Key benefits and features of Kotak Life Insurance are as follows:
Wide Variety Of Products:
Life Insurance from Kotak includes a wide range of insurance products, such as retirement, savings, term insurance, child insurance, health insurance, and ULIP plans. They are designed to take into account the demands and financial circumstances of each individual.
Robust Customer Support:
All customers have round-the-clock access to Kotak Life Insurance’s strong customer care service via a variety of channels. To meet the needs of their consumers, they base their work on strong value pillars such as professionalism, continuous improvement, financial responsibility, integrity, and more.
Financial Protection & Wealth Creation:
Life Insurance from Kotak Mahindra offers financial protection to the policyholder and his/her insured family member over the long run. Moreover, many savings cum protection products from the service provider assist policyholders in creating wealth for achieving their important life goals, like retirement, child’s education, etc.
High Claim Settlement Ratio:
The ratio of successful claims resolved by the insurance provider to the total number of claims they received in a given year is called the claim settlement ratio. Additionally, an insurance provider performs better the greater the claim settlement ratio. In the fiscal year 2021–22, Kotak Life Insurance had a claim settlement ratio of 98.82%.
Customization:
The customers of Kotak Life Insurance have various personalization options, such as enhancing coverage with riders, multiple insurance options, choosing a premium payment mode, selecting the insurance term, or choosing an investment fund. This allows them to customize the insurance as per their needs and goals.
Pocket-Friendly Products:
Kotak Life Insurance products are designed to meet the needs of potential customers at an affordable rate. Some products are even made to offer as many benefits as possible for a very low cost.
About Edelweiss Tokio Life Insurance
Incorporated in 2011, Edelweiss Tokio Life Insurance is certainly a new-age life insurance player in the country. It is a joint venture between Edelweiss Financial Services Limited and Tokio Marine Holdings Inc.
It has more than 69000 agents working in over 100 branches across the nation. The service provider has designed more than 30 life insurance policies by identifying some major financial needs of customers, including retirement funding, wealth accumulation, and income replacement, to name a few.
Prominent Features & Benefits Of Edelweiss Tokio Life Insurance
Some of the key features and benefits offered by Edelweiss Tokio Life Insurance are as follows:
Best Customer Experience:
The service provider has been rewarded ‘Customer Experience Excellence’ in CX 2022. Every product and service of the provider are carefully designed while keeping in mind their customer’s point of view and needs.
Rider Benefits:
For enhancing any Life Insurance from Edelweiss Tokio, customers can choose any of the following riders by paying an extra amount:
- Edelweiss Tokio Life Income Benefit Rider
- Edelweiss Tokio Life Critical Illness Rider
- Edelweiss Tokio Life Accidental Total & Permanent Disability Rider
- Edelweiss Tokio Life Accidental Death Benefit Rider
- Edelweiss Tokio Life Waiver Of Premium Rider
- Edelweiss Tokio Life Payor Waiver Benefit Rider
- Edelweiss Tokio Life Group Extended Critical Illness Rider
- Edelweiss Tokio Life Hospital Cash Benefit Rider
- Edelweiss Tokio Life – Group Critical Illness Rider
Wide Range Of Products:
The insurance provider has a wide range of life insurance products, from term and wealth to retirement and health. This allows the potential customers to choose a product that best fits their needs.
Affordable Premiums:
The products of Life Insurance by Edelweiss Tokio are designed to offer maximum coverage at pocket-friendly prices. For example, the premium of Edelweiss Tokio Life Zindagi Protect starts at only Rs. 19 per day. Such products eliminate the financial strain that an individual has to bear while paying premiums for life insurance.
Simplified Claim Process:
The service provider promises to offer prompt claim settlement for genuine claims using a hassle-free and transparent process. Once all the submitted documents are verified, one can expect the processing within 24 hours.
Point-By-Point Comparison Between Kotak Life Insurance & Edelweiss Tokio Life Insurance
| Parameters | Kotak Life Insurance | Edelweiss Tokio Life Insurance |
| Premium Underwritten (2021-22) | 13,015.11 | 1,464.20 |
| Solvency Ratio (March 2022) | 2.73 | 2.11 |
| Equity Share Capital (As On March 31, 2022) | 510.29 | 665.55 |
| Mobile App | Kotak Mobile App | NA |
| Number Of Plans | 7+ | 35 |
| Claim Settlement Ratio (2021-22) | 98.82% | 98.09% |
| Types Of Plans Offered |
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| WhatsApp Support | Available | Not Available |
| ChatBot | Available | Available |
| Rider Benefits |
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Note: The premium underwritten, solvency ratio, equity share capital, and claim settlement ratio of the life insurers have been taken from the IRDAI report for the fiscal year 2021-22.
What To Choose: Kotak Life Insurance OR Edelweiss Tokio Life Insurance?
The life insurance products from both providers come with their own sets of pros and cons. While Tokio’s products are carefully designed from the customer’s point of view, Kotak Life Insurance is also famous for its higher flexibility and customization options.
Given the variety of products, benefits, and features offered by Kotak Life and Edelweiss Tokio, it may be a matter of dilemma which one is better. However, no matter what you choose, priority should be given to some factors, such as pricing, coverage, solvency ratio, claim settlement ratio, types of benefits, type of customer service given, and many more. By doing so, one can prepare and construct their family’s future with the appropriate insurance and sum insured without worrying about being there in person to see it or not.
