Until 2009, ULIPs were looked down upon by many individuals. ULIPs had an exorbitant charge structure in the form of premium allocation and administration charges. Some fund houses did not even have a clear explanation of the various ULIP charges, nor was there a way to know the ULIP charges comparison across the board. At times, these charges went as high as 80% of the first year premium, so the customer’s effective investment got eroded due to the charges instead of being augmented
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 and were better streamlined. The leading ULIPs such as the Edelweiss Tokio Life – Wealth Plus made the process of choosing and investing in the ULIP much easier.
Why invest in Edelweiss Tokio Life – Wealth Plus plan
When you invest in Edelweiss Tokio Life Wealth Plus, you ensure that 100% of premium paid by you is invested in the fund of your choice and investment strategy.
You are aware that ULIP is a combination of protection and investment. It combines insurance with investment. It provides life insurance and also invests in market-linked assets so that you meet your long-term goals.
The ‘mortality charge’ you pay towards the ULIP gives you a life cover. It is calculated by the insurer after factoring in your age and health risk.
Edelweiss Tokio Life Wealth Plus has only two charges involved i.e. mortality and fund management charges (which is fairly lower in comparison).
The best part about investing in this ULIP is that you get the flexibility to switch between funds as per your risk appetite and the market’s performance.
So, how does Edelweiss Tokio Life Wealth Plus stand out among other ULIPs?
The Edelweiss Tokio Wealth Plus performance is quite high, for several reasons.
It doesn’t charge you for switching between funds. Also, unlike other ULIPs, Edelweiss Tokio Life Wealth Plus has no premium redirection, premium withdrawal or policy discontinuation charges.
Apart from negating all the above charges, Edelweiss Tokio Life Wealth Plus is the only investment plan which invests with you.
Let us explain.
When you invest, the company also invests with you by providing additional allocations. Say you stay invested for the next 20 years, then for the first 5 years the company will invest 1 % of your premium towards your funds, from the 6th to 10th year it will increase its investment to 3%, in the next five years i.e. from 11th to 15th year it will increase to 5%, followed by 7% from the 16th year onwards. This acts as a bonus to your investment and actually gives you better returns and creates wealth, as it has combined the benefits of long-term market’s performance, compounding effect, additional allocations and tax benefits on both premiums paid and investment returns.
Wealth Plus is truly a new age plan because of its features and benefits that provide the policyholder with an ideal opportunity of investing along with securing their future.