Life Insurance in India is understated due to the lack of awareness and importance, apart from not making it mandatory for every citizen to have a life cover/protection. But due to the trending times, the IRDAI regulations in 2010 made significant changes to make life insurance more appealing to the citizens of India. Let’s have a close look at one such Life Insurance Plan from Edelweiss Tokio Life which will inspire you to think and opt for a Life Insurance if you haven’t taken one yet.
Edelweiss Tokio Life Wealth Plus Plan, which was recently launched in the Indian market, is significantly more than just a Life Insurance plan. It not only covers life but also makes your premium work by investing into Equity and Bond Funds respectively according to the risk appetite which is calculated considering the age and no of years of insurance plan.
Some of the key features of this Edelweiss Tokio Life Wealth Plus Plan are:
1) Allocation of Premium to Equity and Bond funds, which works as a ULIP, so it takes cares of premium as investment and Iife insurance in one Plan.
2) Extra Allocation of Funds: If the Premium is paid on time and within the Grace Period, then from the 1st year to the 5th Year, 1% of Annualised Premium is added to funds and it grows along with 3% in the coming 6th to 10th year of policy, 5% from 11th to 15th year, and 7% from 16th to 20th year of the policy, which is a very robust module of Life Insurance I have come across.
3) Maturity Benefits and Settlement options: At the maturity of the policy, one has the option of gradually getting paid through instalments monthly, quarterly, half-yearly and yearly. This facility can be availed for a period of 1 to 5 years or even on lump sum, whatever is suited. Premium Boosted will be available at the time of settlement, whichever you choose. In case of death of the Life Insured during the Settlement Term, balance Fund Value is payable to the nominee/ legal heir.
4) Partial Withdrawals: Partial withdrawal is available after the 5th year of the policy. Minimum amount withdrawal is 500, and there are no charges on partial withdrawal even if it’s multiple times.
Some additional flexible advantages of Edelweiss Tokio Life Wealth Plus Plan are:
1. Flexibility of Premium Paying Term: At any point of time, you can decide and increase or decrease your premium paying term subject to it is allowed in the plan, other conditions are met in the plan, and previous premiums that are due have been paid.
2. Unlimited Switches: If you have selected to self-manage your premium fund allocation, you can avail the ‘switch option according to your financial priority’ without any extra cost. The minimum amount per switch is Rs. 5000.
3. Unlimited Opt-in and Opt-out Option between Investment Strategies: If you have chosen the Life Stage & Duration based Strategy, you have an option to opt-in or opt-out of it at any point of time during the Policy Term. You may choose the Self-Managed Strategy by opting out of the Life Stage & Duration based Strategy at any point of time during the Policy Term.
4. Unlimited Premium Redirection: If you have chosen Self-Managed Strategy, you can choose to allocate future premiums including Top-up Premiums in fund(s) different from that/those selected at policy inception or previous premium redirection request. This facility is called premium redirection and is available free of cost.
5. Partial Withdrawals: You may withdraw a part of your Fund Value as per your liquidity requirements at any time after the completion of the fifth Policy Anniversary, subject to following conditions:
a. The Life Insured has attained the age of 18 years.
b. Partial Withdrawals will be first adjusted from the Top-Up Fund Value (which excludes the Top-Up Premium locked in for 5 years), if available, and then from the Policy Fund Value.
c. There is a lock-in period of five years for each top up premium from the date of payment of that top up premium for the purpose of partial withdrawals.
d. Minimum amount that can be withdrawn is Rs. 500 per withdrawal.
e. You can make unlimited number of partial withdrawals as long as the resultant Fund Value after payment of such partial withdrawal is greater than or equal to 105% of total premiums paid (including Top-up Premiums).
f. The partial withdrawals will not be allowed which would result in termination of a contract.
g. The partial withdrawals are free of cost.
6. Top-up premiums: You can invest your surplus money as Top-up Premium over and above the Premium subject to following conditions:
a. Top-up premiums are allowed at any time during the policy term, except in the last five years prior to the maturity date and only if all the due premiums have been paid at the time of making the top-up premiums.
b. Each Top-up premium will be invested in separate Top-up account with a 60 months’ lock-in period from the payment date except in case of complete withdrawal.
c. At any point of time during the Policy Term, the total top-up premiums paid shall not exceed the sum total of the base premiums paid to date.
Rising Star Benefits
Following benefits are paid on the death of the parent (policy holder):
• Lump sum amount (based on age of policy holder at policy inception) becomes payable immediately
• Sum of all the future premiums shall be credited to the Fund Value
• All future premiums will be waived off
• Additional allocation will be added to the Fund Value as and when due
• As age of the life insured increases and the remaining policy term reduces, this strategy ensures money is moved automatically from riskier fund to safer fund progressively
This is one of the most significant Life Insurance plans that I have come across, with a lot of added benefits and flexibility. Moreover, it also works as an investment proposition, and everything can be handled in a single plan. All the above benefits make it much better investment option than a mutual Fund. Life Insurance in India has seen a lot of traction due to multifaceted plans by a company like Edelweiss Tokio Life, which help bridge the gap between securing lives.
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