Edelweiss Tokio Life Insurance has launched Wealth Plus – a ULIP aimed at the digitally-savvy customers. The plan is available only online.
It’s a unit-linked insurance plan which covers life and also provides tax benefits.
A few salient features of this plan are:
- It has no premium allocation and policy administration charges.
- Additional allocation as a percentage of annual premium and increases every 5 years.
- Over a 20-years premium paying term, 80% of one year’s premium is invested via additional allocation.
Zero Allocation and Administration Charges
100% of your premium is invested into the funds as per your chosen investment strategy. No premium allocation and policy administration charges are levied throughout the policy term.Previously ULIPs had a bad name due to high charges which have now been regulated well and zero allocation charges is a good thing offered by Edelweiss Tokio.
Every year, additional allocations are added to the fund on every premium paid by you during the premium paying term. These allocations start at 1% and increase every 5 years to 3%, 5%, and 7% thereby accelerating your wealth accumulation. The longer you pay, the higher will be the additional allocation.This feature will enable you to invest with a long-term perspective. The longer you stay invested, the more benefits you will be offered. Also, empirical evidence suggests that investing in markets from a 10-years plus perspective has proven to be profitable.
The fund offers you with an option to choose one of the following investment strategies based on your profile and risk appetite:
- Lifestage and duration based strategy – Edelweiss will manage your asset allocation based on your age and remaining years to your policy maturity
- Self-Managed Strategy wherein your money will be allocated to your choice of fund(s)
- Unlimited Opt-in and Opt-out option between Investment Strategies
Not only that, the fund offers unlimited opt-in and opt-out option between Investment Strategies so that you can change the strategy as per your needs and circumstances, which is not at all possible with mutual funds. Also unlike wealth plus, mutual funds don’t provide life cover
Rising Star Benefit
You may opt for the Rising Star Benefit to ensure that your child’s future financial needs are taken care of even in your absence. On the death of the parent, a lump sum amount will be paid immediately. All future premiums would be waived off and immediately credited to your fund value by the Company plus all the applicable additional allocations will be added to the policy as and when due. Your child will continue to enjoy the policy benefits.
You may be eligible for tax benefits as per applicable tax laws.
80C/80CCC: Deduction is allowed for the premium payable as does not exceed 10% of the actual capital sum assured. The maximum amount of deduction that you can claim under Sections 80C, 80CCC will be limited to Rs. 150,000/-
Liquidity or Partial Withdrawal: You have an option to partially withdraw your money in case of emergencies from the 6th policy year.
Not only this, but all the ULIP’s offered by Edelweiss Tokio Life Insurance are top rated once by MorningStar. Here is a glimpse of it.
You can find more about the product on the company website.