Investment Options

Why is the ULIP by Edelweiss Tokio Life unique?

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“Make it simple, but significant.” Don Draper.

ULIP is a very popular insurance plan. It was first launched by UTI, in the year 2001. This is an insurance cum investment plan offered by insurance companies. The underlying principle is to use the fund invested to cover the cost of the insurance policy and the remaining amount is used for investments like in mutual funds.

While designing ULIP product, we, at the Edelweiss Tokio Life Insurance have considered the investors’ requirements carefully. Unique features of our ULIP serve both your investment as well as protection purposes a foreign trip, down payment for a home loan 10 years down the line, children’s education, their marriage or your retirement. You can plan all your long-term financial commitments with this product.

Unique Features of Edelweiss Tokio Life – Wealth Plus:

1) Investment of your fund:

Edelweiss Tokio Life – Wealth Plus is a new generation ULIP which has no premium allocation charges and no administration charges.

‘Money saved is money invested in the funds’. Everything adds up to higher returns on the premium paid.

2) Additional contribution from us:

Yes, this is a unique feature! Over and above your premium, we add our contribution to the fund. On one hand, we do not deduct premium allocation charges and administration charges and on the other, we add our contribution. This is our ‘Premium Booster’.

Not only do we add our contribution to your investments, we also increase the percentage as the investment tenure proceeds.

Percentage addition During the years
1

1%

1st 5 years
2 3% From 6th to 10th Year
3 5% From 11th to 15th Year
4 7% From 16th to 20th year

To illustrate, on Rs.1, 00,000/- monthly investments, we add Rs.1, 000/- every month for the first five years, From 6th year onwards Rs.3, 000/- per month and likewise after 15th year Rs.7, 000/- per month till the 20th year.

This benefit is given to the policyholder who pays the premium within the grace period. This helps the policyholder to remain a disciplined investor. Investment discipline is necessary when the matter is about the safety and security of the dependent family members.

3) Maturity Benefits:

At the end of the policy tenure, the policyholder will get total fund value as maturity proceeds. There are two options to withdraw the money.

  • Lump sum:

The total money is paid in one go to the policyholder.

  • Settlement:

Under this option, the policyholder can choose within how many years he/she wants to receive the money. Money is paid in monthly/quarterly/half-yearly/yearly instalments.

The balance of money after every payout will remain invested in the funds. The policyholder bears the risk and also reaps the benefit. You may switch the fund before the maturity to a less risky fund to protect the downward risk.

Partial withdrawals and fund switch are not allowed once the settlement period starts.

4) Partial Withdrawals:

To fulfil your emergency fund requirements, after the 5th anniversary of your policy, you have an option of partial withdrawals.

You can withdraw any amount above Rs. 500/-, but the fund value shall not go below 105% of the premium paid till date. Of course, the age of the insured shall be more than 18 to become eligible for the partial withdrawals.

The good news is, all partial withdrawals are free of any charges.

5) Death Benefits:

In the case of the unfortunate event of the demise of the life insured, the company would pay the following amount to the nominees:

Higher of the following three:

  • The fund value
  • Sum assured less partial withdrawals
  • 105% of the premium paid

Plus;

Higher of the following three;

  • Top up of the fund value
  • Top of the sum assured
  • 105% of the total top-up premium paid

In the case of reduced paid-up policy, reduced value as calculated above will be paid.

In the case of discontinued policy, discontinued policy fund value will be paid.

6) Rising Star Benefits:

This is another unique feature. If the insured person under the policy is a child, this feature can add value to the policy.

Benefits under this feature are triggered when the policyholder/proposer, who has taken policy for the child, dies before the death of the insured child. The benefits are;

  • A lump sum amount is paid immediately upon the death of the policyholder
  • An amount equal to the sum of the entire future model premium is added to the fund value.
  • The premium booster as and when due are also added to the fund value.
  • The policy will remain in order till maturity or death of the insured.
  • No future premium is required to be paid.
  • The policy will never be in discontinuance mode. It will remain in force till the maturity/death of the insured.

7) Life stage and duration based strategy:

The selection of funds is the choice of the policyholder. Here we give two options. Self-managed fund or we manage your fund as per your risk appetite.

We manage your fund as per your life stage risk appetite. As you age your risk appetite decreases. Therefore, as you age, we reallocate the fund as per your changing risk appetite.

For example;

Your age Policy Term Equity Fund Allocation Bond Fund Allocation
30 years 20 Years 85% 15%

After 10 years

Your age Policy Term (remaining) Equity Fund Allocation Bond Fund Allocation
40 years 10 Years 60% 40%

This way we keep rebalancing your fund to match your reducing risk appetite.

However, if your risk appetite is different, you think you can manage the fund as per your choice; self-managed fund option is also available.

You can switch the fund as and when you wish to. We have a mix of various funds to cater to the policyholder of different risk appetite.

Handpicked related pest: One thing you should know about ULIPs to increase your returns

8) Plan Flexibilities:

We offer several flexibilities to suit the policyholders’ needs.

  • Change of plan term is possible within the original plan terms.
  • An unlimited free switch is allowed.
  • Option to switch any time between life stage/duration based strategy to self-managed opt in and opt out.
  • Premium redirection is also allowed free of any charges. This means investing future premiums in another fund other than the fund originally selected.

In a nutshell, you can time your maturity; you can select the funds of your choice, you can manage your fund or leave it to our expert fund manager, and we further add to your fund by our premium booster feature.

We are happy to present to you this uniquely designed ULIP plan. This plan is flexible, unique and caters to the need of the policyholder.

“The role of the designer is that of a good, thoughtful host anticipating the needs of his guests.” Charles Eames.

Excited to know more? Click to check out our Wealth Plus ULIP Plan

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