We, Indians will celebrate one of the most popular festivals Raksha Bandhan on 26th of August this year. This is a celebration of a beautiful relationship between brother and sister. A sister wishes for the protection of her brother by tying a Rakhi is a wonderful way of expressing love for her brother.
The brother in return gives a gift to her sister. When the whole celebration is about the protection, what could be a befitting gift by a brother to his sister and her family than a life insurance policy? Life Insurance is also about the protection, the financial protection when a sister needs it the most.
Brother’s best gift to his married sister could be a life insurance policy term plan in the name of his brother-in-law protects his sister if and when any untoward incidence happens with the sister. An unmarried sister would benefit from investments in ULIP.
Our newly launched Edelweiss Tokio – Zindagi Plus is a term plan with multiple options that cater to the needs of our customers.
We present here unique features of both these plans.
Unique Features of ULIP Scheme known as 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 return 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 feature we call ‘Premium Booster’.
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.
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.
Under this option, the policyholder can choose within how many years 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.
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
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 fund 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.
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.
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.
Know more about the plan, download the brochure.
Unique options of Zindagi Plus Term Plan
Once you choose your policy amount, tenure, and premium paying frequency, the policy offers various optional additional benefits
Your optional benefit 1:
Top up benefits.
Under this benefit, you can start small and built as you age. For any policy above Rs.50,00,000/-, an insured can opt for a top-up option.
This could be 5% or 10% as selected by the insured.
For example, for 10% option, the policy starts with Rs.50,00,000/- and every year 10% is added to the policy amount. After one year it becomes Rs.55,00,000/- and after 2nd year it becomes Rs.60,00,000/-. The premium amount increases but risk cover also increases as you age.
It can be continued until any of the following is first achieved.
- The base amount is doubled. So under the 10% option for 10 years and under the 5% option for 20 years. Thereafter the increased policy will continue till the maturity. Under the above example policy at the end of 10 years will become Rs.1,00,00,000/-.
- Insured attains the age of 60
- Outstanding policy term is less than 5 years
- Death of the insured.
This option can be stopped anytime during the policy tenure.
This is a good way to increase the policy amount as you age and the risk of death increases.
Your optional benefit 2:
Life stage benefit.
This is another way to cover additional risk in the policy without any medical examination. Here again, you can start with a smaller policy and increase the value as the responsibility increases.
Under this option if the base policy amount is Rs.50,00,000/- or more, you have an option to add an additional amount at the following stage of the life:
- 1st Marriage of the insured – 50% of the base policy
- Birth of the first child – 25% of the base policy
- Birth of the second child – 25% of the base policy
- Home loan availed after the risk commencement date – 50% of the base policy or the loan amount lower of the two.
Rs. 50,00,000/- policy can become Rs. 75,00,000/- on the wedding of the insured
Another Rs, 12,50,000/- each are added on the birth of both children.
So after the birth of the 2nd child, policy amount becomes Rs,1,00,00,000/-
Now you decide to take home loan of Rs. 30,00,000/- . Then again 50% of the base some i.e Rs.25,00,000/- will be added to the policy amount. At this stage, the policy amount will be Rs,1,25,00,000/-.
A base policy of Rs.50,00,000.- can go up to Rs,1,25,00,000/- if all the life stage increases are opted. Of course, there will be an additional premium but there won’t be any medical examination if the original policy is issued at the standard rate.
This one policy can take care of your additional risk coverage at different stages of life.
Your optional benefit 3:
Better half benefit.
This is one more unique feature.
Under this option after the death of the insured, the policy continues. This way it helps your children if something happens to your spouse after your demise.
Usually, you take policy in the name of the bread earner. Non-working housewives are generally uninsured. This option insures them when you want it the most.
Any policy above Rs.50,00,000/- this option can be selected by the insured. This option is available if;
- The age difference between the life insured and spouse is 10 years or less
- The policy is accepted at the standard rate
- The life insured dies, the spouse is alive and the policy is in force.
Under this option, the spouse gets an insurance of 50% of the base policy. Premium payable for the remaining tenure is waived on the death of the insured.
The amount to the spouse is not payable if:
- Both the insured and the spouse die simultaneously.
- The spouse has attained the age of 75 years at the time of the death of the insured.
- Spouse dies of suicide within 12 months of the death of the insured.
This option is apt for the young couple who really needs risk protection for the spouse and young children.
Your optional benefit 4:
Waiver of premium benefit.
Under this unique option, all the entire future premiums are waived if the insured is diagnosed with the select critical illness. All the policy benefit will continue.
This option is applicable in case of the diagnosis of critical illness and survival for 30 days post the diagnosis.
However, this option is not available if during the waiting period i.e. 90 days from the issue of the policy, any critical illness of which the signs or symptoms have occurred or for which care, treatment or advice was recommended by or received from a Physician, or which first manifested itself or was contracted.
These are four unique benefits specially designed keeping in mind the risk coverage requirements of the family. Your life uncertain and therefore, our well-thought-out options can take care of your requirements.
In case the insured person dies during the policy tenure death benefit is given as per the option selected at the beginning by the insured.
- One time lump-sum money or
- Monthly Income. This is based on a percentage of policy amount and as per the tenure selected i.e. for 3 years to 15 years.
Know more about the plan, download the brochure.
Remember this Raksha Bandhan is an opportunity to gift your sister with one of the most valuable gifts – Life Insurance Policy.