As you grow through life, both your investment and insurance requirements also evolve. Does this mean you need to buy new instruments every time you reach an important milestone in life? Maybe so, but there is a much better option available: Edelweiss Tokio Life – Wealth Secure+.
To begin with, Wealth Secure+ is a product that combines the benefits of a term life insurance plan with an investment plan. It provides not just a cover against any risk to your life but also helps build wealth not just to meet any large expenses but also for your future generation.
Wealth Secure+ offers you three primary benefits:
- Death benefit: the sum assured which is paid in case of the demise of the insured
- Maturity benefit: the value of the fund which is paid on maturity of the policy
- Tax benefit: the investment enjoys tax exception under section 80C of the Income Tax Act. Further, remember that the amount received on maturity of Wealth Secure+ enjoys tax exemption under Section 10(10D). This means you will not have to worry about LTCG taxes on the profit made through your investments.
Edelweiss Tokio Life understands that your investment strategy and goals change as you grow. Similarly, as your investment portfolio matures – your requirements from Wealth Secure+ may also change. Therefore, Wealth Secure+ allows you to allocate your investments to a bouquet of seven funds. You can choose the funds based on your risk appetite and investment goals.
If you are young and have just started earning, you will not have many financial responsibilities to worry about yet. You may also feel that you do not earn enough to save and will start saving once your income goes up. With Wealth Secure+, all you need to start saving is ₹1,000 a month, and at 8% per annum, you would have built a corpus of ₹15 lakhs in 30 years.
That is not all. With Wealth Secure+ you also earn fund additions that give your investments a boost over and above the returns it earns through the investment in the underlying funds.
These boosters include:
- Loyalty additions made every year starting the 6th year of your investment in the plan.
- Booster addition added at the end of 10th policy year, and every 5th year after that i.e. 10th, 15th, 20th, 25th and so on – as long as your policy is in force.
- Maturity additions added at maturity.
If you are planning a large expense, like buying a house or your child’s education, you can use Wealth Secure+ to save towards it. The plan offers a five-year maturity period, among the shortest in investment schemes. Further, you can select to invest in debt-oriented funds to ensure that your investments carry a low risk.
When you build a corpus for your long-term financial goals – like retirement, you can take a higher risk exposure. As you move towards your goal, you should look to reduce your risk exposure as capital preservation becomes more important. Towards this, you can use Life Stage and Duration based strategy offered under Wealth Secure+.
Under this strategy, fund switches happen automatically based on the life stage you are in. Remember that your risk appetite depends on two primary factors:
- Age: The younger you are, greater is the risk you can absorb
- Duration of investment: The shorter the duration, the smaller is the risk you would be willing to take
This strategy ensures that your investments are moved from equity-oriented funds to debt- oriented funds as you get closer to the maturity date of your plan. This ensures that your risk exposure is reduced with time – meaning both as you age and as your investment duration reduces, so does the risk your investments carry. With this option, you never have to worry about switching funds or redirecting premiums. That said, if you change your mind and wish to manage your investments yourself – you can opt-out of this strategy at any point in time.
The immense flexibility offered by Wealth Secure+ makes it an ideal choice for you, regardless of what your financial goals are.