The birth of a healthy daughter was one of the happiest occasions for Ravi and his wife Rashi on the3rd of April 2008. As she turned 3, most of them were already thinking and discussing their daughter’s career. Ravi was getting little weary of all these discussions. Several thoughts began to play in his mind. He thought, in a time span of 20 years; his daughter will be ready for college.
With a steady net income, Ravi decided to invest regularly. But though he intended that his money should grow he did not have the time to track or move his investments on a regular basis. Keeping in mind his financial goals and long-term investments, he decided to invest in ULIPs.
But until 2009, ULIPs were looked down upon by most individuals including Ravi. This was because ULIPs had an exorbitant charge structure in the form of premium allocation and administration charges. At times, these charges went as high as 80% of the first year premium, so the customer’s effective investment got eroded.
Over these years, ULIPs went through a lot of changes. The lock-in period increased from 3 years to 5 years. The charges involved in policy administration and premium allocation reduced.
After such modifications and innovations in ULIPs, Ravi decided to invest in the new age ULIP which not only gave him benefits on investments but it also provided him with additional advantages like life cover and Rising Star Benefit which covered his daughter’s future in his absence. This unbelievable plan is Edelweiss Tokio Life – Wealth Plus.
It is a market-linked insurance plan which aims at wealth creation and has no premium allocation & policy administration charges. The only assurance that the company needs from its customers is:
- Paying the premium on time, and
- Staying invested
As a percentage of annualized premium, there is an additional premium allocated on every premium paid and that increases over a period of five years. Additional 1% allocation is added with every premium instalment in the first 5 policy years.
Another useful feature of Edelweiss Tokio Life – Wealth Plus is the ‘Premium Booster’. Premium Booster is added at the end of each year starting from the 6th Policy year till the end of the Premium paying term. This amount increases to 3%, 5% and 7% of the premium amount as the policy term increases.
Investing in any fund becomes less beneficial if there are stringent terms associated with the fund. However, in case of Edelweiss Tokio Life – Wealth Plus, the investment terms are very flexible, and the policyholder is free to invest the premium in any of the available funds based on his/her risk appetite. This is termed as the ‘Self-Managed‘option.
The policyholder has the option to seamlessly switch between funds based on his/her choice. Also, your future premiums would be redirected to the newly chosen fund. Even if you are a passive investor in the equity market or just have knowledge about investing in the equity market, you can maximize the benefits of Edelweiss Tokio Life – Wealth Plus by switching between funds.
If you are a parent like Ravi, your child becomes your top priority. You ensure that your child is always happy and (s)he is given the best education so that (s)he can fulfil his/her dreams. Life is uncertain, and as parents, you can ensure that your child’s life is not adversely impacted when you are not around. Edelweiss Tokio Life – Wealth Plus caters to these customers where the policyholder can avail the ‘Rising Star Benefit‘, where on the untimely death of the policyholder [the parent/grandparent], following benefits are paid:
- Lump sum amount [based on the age of policy holder] becomes payable immediately
- Sum of all the future premiums are credited to the Fund Value
- All future premiums waived off
- Additional allocation will be added to the Fund Value as and when due
- Maturity Benefit becomes payable on maturity
There would be a lingering question what happens if nothing happens to the policyholder? In such circumstances, on maturity, you get the fund value. In case the life assured dies before the policyholder, the nominee would get either the fund value or higher of the sum assured [whichever is higher].
Edelweiss Tokio Life – Wealth Plus is truly a new age plan because of its superpowers which provide the policyholder with an ideal opportunity of investing along with securing you and your child’s future in your absence.
Ravi was convinced to invest in Edelweiss Tokio Life Wealth Plus. What about you?