Investment Plan

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Zindagi Gulzar Hai – Life is like a Garden!

 

It’s filled with the fruits of the past and the blossoming buds of tomorrow. However, it is also filled with the thorns of uncertainties and eventualities. Most of us, in our worries about the uncertain, forget to enjoy our lives. 

 

Edelweiss Tokio Life Insurance offers solutions in the form of Savings and Investment Plans. These plans offer protection for life as well as the opportunity for wealth creation, so that you can reap its benefits in the future and enjoy the fragrance of flowers!

What are Savings and Investment Plans?

 

Savings Plans, or Saving and Investment Plans in India, are financial products that provide the opportunity to create wealth for the future. They help you meet your financial goals by accumulation wealth over a period, like child’s education, buying a house, car, or even planning your dream vacation! Savings and investment plans help you save in a systematic manner, protect your loved ones and save on taxes.

 

A savings plan is an insurance plan that combines savings and life cover under a single plan. The premium payments are divided into two, i.e., to build a savings corpus, and to provide life cover to the you (policyholder) and your family. People choose savings plans because they offer guaranteed1 returns on maturity.

 

An investment plan is a Unit Linked Insurance Plan (ULIP) that combines the benefits of investments and life cover under a single plan. Premiums paid are invested in market-linked investment instruments, as well as to provide life cover to you and your family. Though ULIPs are moderate-to-high-risk plans, they are mainly chosen for their potential to generate higher returns.

 

Savings and investment plans also act as a great means to plan your retirement and to invest in your child’s future.

 

 

Detailed Guide on How Savings and Investments Plans Work

Guaranteed¹ Returns Plans

You pay a premium towards securing a Guaranteed¹ Income. The premium can be paid as a single, lumpsum pay, for a limited period, or for the entire policy tenure.

The premium is used by the insurance company for two aspects – offering life cover and investing in no-risk, non-market-linked avenues for guaranteed¹ growth of wealth.

The life cover continues for the entire policy term. If you face any uneventful situation during this term, the sum assured is the death benefit that the authorised beneficiary from your family will receive.

On survival till the end of the policy term, the wealth invested accrues interest as per pre-determined rate of interest, and the guaranteed¹ amount is paid out at specified intervals and on maturity.

The insurance company also offers certain fund additions, such as Loyalty Additions, Booster Additions and Maturity Additions throughout the policy term².

You pay a premium towards securing a Guaranteed¹ Income. The premium can be paid as a single, lumpsum pay, for a limited period, or for the entire policy tenure.

The premium is used by the insurance company for two aspects – offering life cover and investing in no-risk, non-market-linked avenues for guaranteed¹ growth of wealth.

The life cover continues for the entire policy term. If you face any uneventful situation during this term, the sum assured is the death benefit that the authorised beneficiary from your family will receive.

On survival till the end of the policy term, the wealth invested accrues interest as per pre-determined rate of interest, and the guaranteed¹ amount is paid out at specified intervals and on maturity.

The insurance company also offers certain fund additions, such as Loyalty Additions, Booster Additions and Maturity Additions throughout the policy term².

Market-linked Plans (ULIPs)

You pay a premium towards the ULIPs. The premium payment modes could be Single Pay, Limited Pay, or Regular Pay.

The insurance company invests the money in market-linked investment avenues, also known as funds.

You get to choose the type of funds you wish to invest in based on your risk appetite. Equity funds are for high-risk investors, debt funds for low-risk and hybrid funds for medium-risk investors.

Life cover is available for the entire policy term and is the sum assured that the authorised beneficiary receives on your demise.

The invested money grows, basis market forces and the accumulated amount is paid to you (the policyholder) on maturity.

If you die during the policy term, either the sum assured (minus any partial withdrawals) or the accrued amount of investment (the fund value) or 105% of total base premiums paid till date, whichever is higher, is paid to the family members (beneficiary).

You pay a premium towards the ULIPs. The premium payment modes could be Single Pay, Limited Pay, or Regular Pay.

The insurance company invests the money in market-linked investment avenues, also known as funds.

You get to choose the type of funds you wish to invest in based on your risk appetite. Equity funds are for high-risk investors, debt funds for low-risk and hybrid funds for medium-risk investors.

Life cover is available for the entire policy term and is the sum assured that the authorised beneficiary receives on your demise.

The invested money grows, basis market forces and the accumulated amount is paid to you (the policyholder) on maturity.

If you die during the policy term, either the sum assured (minus any partial withdrawals) or the accrued amount of investment (the fund value) or 105% of total base premiums paid till date, whichever is higher, is paid to the family members (beneficiary).

Savings and Investment Plans from Edelweiss Tokio Life Insurance

Top Features of the Savings and Investment Plans in India

Life Cover
Savings and Investment Plans offer a sum assured as life cover which is applicable for the entire policy period.
Returns on Wealth Invested
The winning feature of savings and investment plans is that contrary to pure insurance plans, these plans offer returns on the invested premium, thereby enabling wealth creation.
Ease of investment
With Savings and Investment Plans, the insurance company takes care of the investment aspect. Where the money is invested, the proportion of invested funds, etc. is all determined by the insurer. You can choose to self-manage your funds, or you can also choose to leave it to the expertise of the insurance provider.
Free Partial Withdrawals²
You can opt to liquidate part of your funds in case of any urgent financial needs, after the 5th policy year.
Supplementary Income
Some savings plans, such as regular income or monthly income plans, offer a regular payout to supplement your primary income and boost your earnings.
Unlimited Funds Switching
Edelweiss Tokio Life ULIPs allow you to switch funds unlimited times, at zero cost, to match your financial needs and life stage.
Multiple Additions and Boosters²
The longer you stay in the plan, the more is the savings. Additional allocations are made to the fund value, for maximized returns.
Top-Up Facility
You can buy additional units in most ULIPs or invest additional money with savings plans with an extra payment over and above your base premium.
Affordable Investment Options
The monthly amount for investment is affordable to make savings and investment plans accessible for all income groups.
Tax Benefits³
Save up to Rs. 46,800* with premiums paid u/s 80C, and the returns or sum assured paid are eligible for tax benefits³ u/s 10(10D).

 

Fulfil Life Goals with Savings and Investment Plans


Whether you wish to send your child abroad for higher education or go on a European holiday in the next 5 years, all your financial goals require you to invest in advance.

 

Your income is limited, while your needs are many. Apart from your basic and immediate needs, which you may spend a considerable amount of your income on, you have long term needs that need planning in advance.

 

It is recommended that before using up your income for monthly consumption, you save for future expenditure first. This often poses a problem, as your immediate needs may seem never-ending. That’s why you need to think of wealth building rather than just savings. Investment plans help you utilize your savings and grow them over time for future needs and goals.

 

Benefits of Savings and Investments Plans 


It is important to have a robust monetary fund to meet emergency or future financial needs. To accumulate this fund, it is essential to save or invest a part of one’s income. With a savings plan, you can ensure guaranteed1 returns at the end of the plan’s tenure to fulfil your financial goals and ensure a steady flow of income, while an investment plan can offer high returns that can help you grow your wealth and fulfil your financial requirements.

 

Additionally, having the benefit of a life cover also makes a savings and investment plan ideal for protecting your family against financial burdens.

 

These are some of the main benefits that a savings and investment plan can offer:

Saving for Future Goals

When it comes to fulfilling future goals such as buying a new home, children’s education, retirement planning etc., savings are a must. Without long-term saving plans, it is difficult to balance short term needs and future goals. ULIPs help you save systematically and help you plan for these future goals.

Family’s Protection

A ULIP is a life insurance plus investment plan that offers a life cover to you (the policyholder). In case of an unfortunate death, your dependent family will still be financially secured.

Good Returns
Unlike other investment plans, ULIP gives you the advantage of switching between funds depending upon their performance. This helps you to get a higher return on your invested amount by monitoring the growth.
Flexibility
ULIPs let you choose the premium amount, as per your requirements. They also give you the option of selecting funds as per your choice. Many ULIPs also offer the possibility of increasing your premiums during your premium paying term. One can opt for a particular plan based on their financial goals and risk appetite.
Liquidity

No matter what your premium paying term or policy term is, after the lock-in period of 5 years with your ULIPs, you can fully or partially withdraw funds2 from your account when you need urgent funds.

Systematic Savings

ULIPs give you the benefit of putting aside a chunk of your income and saving it for future use.

 

Wealth Accumulation

ULIPs not only let you save for your future, but also help in growing wealth by allocating it to market-linked funds.

Tax Benefit3 under Section 80C

Premiums paid for Savings and Investment Plans help you save taxes up to Rs. 46,800* every year u/s 80C. The maturity amount received is also covered under tax benefits3 u/s 10(10D) of the Income Tax Act, 1961.

Saving for Future Goals

When it comes to fulfilling future goals such as buying a new home, children’s education, retirement planning etc., savings are a must. Without long-term saving plans, it is difficult to balance short term needs and future goals. ULIPs help you save systematically and help you plan for these future goals.

Family’s Protection

A ULIP is a life insurance plus investment plan that offers a life cover to you (the policyholder). In case of an unfortunate death, your dependent family will still be financially secured.

Good Returns
Unlike other investment plans, ULIP gives you the advantage of switching between funds depending upon their performance. This helps you to get a higher return on your invested amount by monitoring the growth.
Flexibility
ULIPs let you choose the premium amount, as per your requirements. They also give you the option of selecting funds as per your choice. Many ULIPs also offer the possibility of increasing your premiums during your premium paying term. One can opt for a particular plan based on their financial goals and risk appetite.
Liquidity

No matter what your premium paying term or policy term is, after the lock-in period of 5 years with your ULIPs, you can fully or partially withdraw funds2 from your account when you need urgent funds.

Systematic Savings

ULIPs give you the benefit of putting aside a chunk of your income and saving it for future use.

 

Wealth Accumulation

ULIPs not only let you save for your future, but also help in growing wealth by allocating it to market-linked funds.

Tax Benefit3 under Section 80C

Premiums paid for Savings and Investment Plans help you save taxes up to Rs. 46,800* every year u/s 80C. The maturity amount received is also covered under tax benefits3 u/s 10(10D) of the Income Tax Act, 1961.

 

Types of Savings and Investment Plans

 

Guaranteed¹ Return Plans

 

As the name suggests, a guaranteed¹ returns plan gives you assured returns on the completion of the maturity period. This assurance and predictability of cash flows make your long-term financial plans easier to manage and execute. You can even opt for monthly savings plans for regular income. You can feel secure to have funds when you need them.

 

What are the benefits of buying a guaranteed¹ returns plan?

Less Risk

A guaranteed¹ returns plan is a risk-free investment, as the returns received are guaranteed. On survival up to maturity date, you will receive guaranteed income. This is contradictory to market-linked returns, where the income is basis market performance.

Tax Benefits³

Along with safety and security, choosing a guaranteed¹ returns plan also lets you avail tax benefits³. While planning for your taxes, it is advisable to choose instruments that serve two purposes: tax saving up to Rs. 46,800* with premiums u/s 80C and returns that do not involve tax³ deductions u/s 10(10D). 

Flexible Premiums

A guaranteed1 returns plan makes provisions for flexible premiums. Based on your income and liquidity levels, choose the amount and mode of premium payments.

Flexible Time Period

In your portfolio, a guaranteed1 returns plan takes the place that you want it to take. It allows you to choose your own maturity period; you can choose for how long you want to pay the premium and maturity period. You can choose between a long-term or a short-term savings plan. This allows for every individual buy a plan which is most convenient to him and falls within his financial goals.

Less Risk

A guaranteed¹ returns plan is a risk-free investment, as the returns received are guaranteed. On survival up to maturity date, you will receive guaranteed income. This is contradictory to market-linked returns, where the income is basis market performance.

Tax Benefits³

Along with safety and security, choosing a guaranteed¹ returns plan also lets you avail tax benefits³. While planning for your taxes, it is advisable to choose instruments that serve two purposes: tax saving up to Rs. 46,800* with premiums u/s 80C and returns that do not involve tax³ deductions u/s 10(10D). 

Flexible Premiums

A guaranteed1 returns plan makes provisions for flexible premiums. Based on your income and liquidity levels, choose the amount and mode of premium payments.

Flexible Time Period

In your portfolio, a guaranteed1 returns plan takes the place that you want it to take. It allows you to choose your own maturity period; you can choose for how long you want to pay the premium and maturity period. You can choose between a long-term or a short-term savings plan. This allows for every individual buy a plan which is most convenient to him and falls within his financial goals.

 

Endowment Plans

 

An endowment plan is a type of life insurance policy, which gives you the dual benefit of a life cover and future savings. It enables systematic savings and over a period that would help you in getting a lump sum amount on surviving the policy term.

 

An endowment policy most often gives you guaranteed1 returns and hence is good for those who do not wish to take higher investment risks. You will get sum assured on a fixed date in future as per the policy terms and conditions. However, in case of your (the policyholder’s) sudden death, the insurance company will pay the sum assured (plus the bonus4, if any) to the nominee of the policy. Besides, it is also useful to secure yourself or your family post-retirement or to meet various financial needs such as funding for children's education and/or marriage or buying a house.

 


Why should you buy an Endowment Policy?

Guaranteed Returns

Endowment policies offer low returns available with low risk. It offers the dual benefit of death cover and savings feature. These policies offer upfront guaranteed1 returns, and they are not linked to the market’s performance. The guaranteed1 returns such as guaranteed1 additions remain fixed and are payable on death or maturity (as applicable).

Bonus

The insurance company usually declares bonuses4, depending on how the investments have performed. When an insurance company makes profits from its investments, it distributes a part of funds to you (the policyholder) at the end of each financial year. The profits or surplus of a life insurance company is determined after the valuation of its assets and liabilities. Under an endowment policy, Simple Reversionary Bonus and Terminal Bonus are added to the sum assured and payable on death or maturity under the policy. Simple Reversionary Bonus is declared annually and accrued to be payable on death or maturity claim. Terminal Bonus a type of loyalty bonus and is paid only at the time of maturity of the policy.

Long-term Financial Planning
An endowment policy yields high returns when you maintain it for a long term. When you buy an insurance endowment plan, the benefits are payable, only in case of death or maturity claim. Surrendering the policy is not advisable, as it provides you meagre returns. You are required to choose a policy term that helps you to achieve savings and fulfil your financial objectives.
Premiums Benefits

With endowment policies, the premium amount goes towards the mortality component and to earn returns. Under this policy, you can avail maturity benefit or in case of any unfortunate event, your family can avail the sum assured.

Guaranteed Returns

Endowment policies offer low returns available with low risk. It offers the dual benefit of death cover and savings feature. These policies offer upfront guaranteed1 returns, and they are not linked to the market’s performance. The guaranteed1 returns such as guaranteed1 additions remain fixed and are payable on death or maturity (as applicable).

Bonus

The insurance company usually declares bonuses4, depending on how the investments have performed. When an insurance company makes profits from its investments, it distributes a part of funds to you (the policyholder) at the end of each financial year. The profits or surplus of a life insurance company is determined after the valuation of its assets and liabilities. Under an endowment policy, Simple Reversionary Bonus and Terminal Bonus are added to the sum assured and payable on death or maturity under the policy. Simple Reversionary Bonus is declared annually and accrued to be payable on death or maturity claim. Terminal Bonus a type of loyalty bonus and is paid only at the time of maturity of the policy.

Long-term Financial Planning
An endowment policy yields high returns when you maintain it for a long term. When you buy an insurance endowment plan, the benefits are payable, only in case of death or maturity claim. Surrendering the policy is not advisable, as it provides you meagre returns. You are required to choose a policy term that helps you to achieve savings and fulfil your financial objectives.
Premiums Benefits

With endowment policies, the premium amount goes towards the mortality component and to earn returns. Under this policy, you can avail maturity benefit or in case of any unfortunate event, your family can avail the sum assured.

UNIT LINKED INSURANCE PLANS (ULIPS)

 

A unit linked insurance plan (ULIP) is a life insurance plan with an additional feature of investing your money in the market for future financial goals. It also provides tax benefits3 as the premium paid helps you save taxes up to Rs. 46,800* u/s 80C. The amount received on maturity is also covered under tax benefits3 u/s 10(10D) of the Income Tax Act, 1961.

 

Why should you buy an ULIP Plan?

Market-linked returns

ULIPs offer you an opportunity to invest in market-linked investment avenues for wealth accumulation.
Dual benefit of life cover and investments
You enjoy the benefits of growing your wealth through market investments, while assuring a secured financial future for your family with life insurance cover.
Choice between long-term and short-term investment plans

With a lock-in period of just 5 years, ULIPs offer you the ability to opt for a short-term investment plan for short-term financial goals. Or you can choose to stay invested for the long-term by choosing a longer policy tenure.

Liquidity

ULIPs allow for partial withdrawals2 from the fund after the lock-in period, making ULIPs a highly liquid financial instrument.

Suitable for all risk-appetites

ULIPs offer a choice of funds for investment – equity funds for high-risk investors, debt funds for low-risk investors, and hybrid or balanced funds for mid-risk investors. Thus, no matter your risk-taking capabilities, you can choose a ULIP investment that suits your specific needs.

Market-linked returns

ULIPs offer you an opportunity to invest in market-linked investment avenues for wealth accumulation.
Dual benefit of life cover and investments
You enjoy the benefits of growing your wealth through market investments, while assuring a secured financial future for your family with life insurance cover.
Choice between long-term and short-term investment plans

With a lock-in period of just 5 years, ULIPs offer you the ability to opt for a short-term investment plan for short-term financial goals. Or you can choose to stay invested for the long-term by choosing a longer policy tenure.

Liquidity

ULIPs allow for partial withdrawals2 from the fund after the lock-in period, making ULIPs a highly liquid financial instrument.

Suitable for all risk-appetites

ULIPs offer a choice of funds for investment – equity funds for high-risk investors, debt funds for low-risk investors, and hybrid or balanced funds for mid-risk investors. Thus, no matter your risk-taking capabilities, you can choose a ULIP investment that suits your specific needs.

When Should buy the Savings and Investment Plans

 

Though there is no perfect time to invest in a savings and investment plan, it is recommended that you start at an early age. When you begin earning an income, investing in a savings and investment plan enables you to save or invest over a long period of time, which will, in turn, help you increase your financial corpus.

Below are the following ways in which buying a savings and investment plan early can help you.

 

1. Power of compounding :


“Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” 

Albert Einstein

 

What he meant was that if you invest smartly for the long term, you will reap the benefits of compounding.

 

Compounding simply means investing your money in order to grow it further. Your wealth accumulation depends upon how long you stay invested.

 

 

Here is how you can calculate compounding:

Interest: ₹0

Total plus interest: ₹0

2. Risk Appetite

The younger you are, the fewer responsibilities or liabilities you have. Historically, it has been shown that equities perform better than other assets even though they do come with a fair bit of risk. Investors can switch from one fund option to another as per the market movements and outlook. Most ULIPs let you make unlimited switches between funds.

 

3. Patience and Discipline Pays

If you simply save your money in a bank, the tendency to withdraw the money is higher, and this does not lead to any growth. But if you remain patient and invest your money, systematically for a long time, it will give you good returns.

Getting into the habit of saving systematically early on helps in easing the stress of financial liabilities when you become older. Being able to start saving early for your future goals gives a very big financial advantage to young professionals these days.

 

4. Fight Inflation

A financial instrument like ULIP offers you flexibility to invest in a portfolio of stocks, which minimizes risks. You can also choose the funds you want to invest in as per your risk appetite. Regular investments over a long period enable you to give time to your money in market, helping you build a larger corpus to achieve your life goals and stabilize your funds against market inflation.

 

 

Who Should buy Savings and Investment Plans?

 

Every individual, young or old, married or unmarried, must save for a rainy day. Having a corpus to fall back upon assures a stress-free life and helps you plan your finances efficiently. There are multiple savings options in India to choose from. While the choice depends completely on your financial goals, savings and investment plans offer a range that suits everyone.

 

Following people should buy a Savings and Investment Plan:

 

  • Those who wish to build a corpus of fund for future use

  • Wish to grow money and secure family’s future

  • To have an assured and regular stream of income to supplement primary income

  • Wish to bring discipline in savings effort

  • To enjoy the dual benefits of protection and wealth accumulation/savings in a single plan

Factors that Affect the Savings and Investment Plan Premium

Age

With age, the chances of falling ill or developing a serious medical condition go up. As a result, as you age, the risk of insuring you also goes up, thereby increasing the premium. Therefore, it is advisable to buy savings and investment plans at a younger age.

Gender

Women have a longer life expectancy than men. So, women enjoy a lower premium rate than men.

Medical history of the policyholder

Your medical history, the chances of contracting a condition or any pre-existing condition, pushes up the cost of insuring you, which, in turn, increases your premium.

Sum Assured selected

This one is logical; the higher the sum assured, the higher the premium you pay for it.

Tenure of the policy

Again, the longer the policy period, the higher the total premium outflow will be. However, you get discounts on the yearly premiums if you buy a policy for a very long tenure.

Mode of premium payment

The total premium paid for single pay and limited pay policies is lower than regular pay options.

Premium payment frequency

If you choose annual payment options or even half-yearly options, you can save on the total premium paid for the policy of your choice.

Choice of Riders⁹

The Edelweiss Tokio Life guaranteed¹ income plans can be further enhanced with a range of riders, such as Critical Illness Rider, Income Benefit Rider, Waiver of Premium Rider, Payor Waiver Benefit, Accidental Death Benefit and Accidental Disability Riders.

Advantages and Disadvantages of Savings and Investment  Plans

 

Advantages

  • Assured financial security for the family’s future

  • Growth of money to fulfil long-term financial goals

  • Attractive market-linked returns with ULIPs

  • Guaranteed1 payouts with Savings Plans

  • Enjoy the power of compounding

  • Instil the discipline of regular savings and investment

  • Effective protection against inflation

  • Tax benefits3 in accordance with current regulations
 
 

Disadvantages

  • The premiums for life insurance plans with returns are slightly higher than those for pure term plans. However, the premiums are cost-efficient as you get the benefit of wealth generation along with life cover with these plans.

  • People just starting with life insurance might find savings and investment plans complex to understand. The different plans, the investment components, multiple fund options, varied payouts and bonuses4, etc. can get confusing for a new buyer. However, Edelweiss Tokio Life Insurance offers detailed policy information through policy brochures. Additionally, you can get in touch with our customer executives to understand any policy in depth.

 

Reasons to buy Edelweiss Tokio Life Insurance Savings and Investment Plans 

 

Edelweiss Tokio Life Insurance Company Limited was established in 2011 and has, ever since, developed a wide range of insurance solutions for education, impaired health, wealth accumulation, wealth enhancement, income substitution, and retirement funding.

 

For a joint venture between Edelweiss, a leading Indian financial services company, and Tokio Marine, a Japanese life insurance company, Edelweiss Tokio Life Insurance is the ideal choice for the following reasons:

Asia's Best Insurance Company

Asia's Best Insurance Company Award for CSR Activity & Digital Sales Channel^¹

Life Insurance Company of the Year

BFSI Excellence - Life Insurance Company of the Year 2021^²

Best Customer Experience

Best Customer Experience & Contact Center Management - Life Insurance 2021^³

List of Riders Available with our Savings and Investment Plans

 
The following six riders⁹ are available with Edelweiss Tokio Life Savings Plans:

  • Critical Illness Rider

    100% Rider Sum Assured payout over and above the base policy sum assured if diagnosed with 1 of the 12 listed critical illnesses.


  • Income Benefit Rider

    Assured regular income to the family after the policyholder’s demise to secure their financial future.


  • Waiver of Premium Benefit

    All future premium payments are waived off and benefits are continued to be paid in case of listed critical illness diagnosis or accidental total disability or death.


  • Payor Waiver Benefit Rider

    Available for policies where the policyholder and insured are separate individuals, this optional rider waives off all premium payments in case of the policyholder’s death.


  • Accidental Death Benefit Rider

    Additional life cover payout to the authorised beneficiary, over and above the base sum assured, if the policyholder dies due to an accident.


  • Accidental Total and Permanent Disability Rider

    Payment of additional lump sum amount to manage the added expenses if the policyholder meets with an accident which cases total and permanent disability.


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Glossary - Important Terms Related to Savings and Investment Plans

 
  • Endowment Policy: A type of life insurance savings plan with a pre-determined maturity date. If the life assured dies during the policy tenure, a fixed sum assured is paid to the nominee. However, if the life assured survives the policy tenure, the maturity benefits are paid to them.

  • Money Back Policy: A type of life insurance savings plan where a specific percentage of the sum assured is regularly paid to the life assured, at pre-decided intervals, as survival benefit. The percentage left from the sum assured is paid upon maturity. The amount of survival benefits paid have no bearing on the death benefits that will be paid to the nominee if the life assured passes away. 

  • Surrender value: If you decide to surrender the policy before the maturity date, then in ULIPs, they will be paid a surrender value. This is generally the value of the fund minus the surrender charges of the policy.

  • Surrender Charges: These are the charges that you are liable to pay if you surrender the policy before the maturity date.

  • Paid-up value: You can reduce the value of a normal life insurance policy into a reduced paid-up policy as per your insurance company’s guidelines. Edelweiss Tokio Life allows you to change your policy to a reduced paid-up one after three years of regular and timely premium payments. If you are unable to pay premiums after that, the policy will not be cancelled. Rather, it will continue with a reduced sum assured, in proportion to the premiums paid, along with applicable changes in other benefits.

  • Paid-up Policy: A life insurance policy that continues to pay out the benefits despite the cancellation of future premium payments. The benefits and coverage of a paid-up policy is in tune with the reduced paid-up value.

  • Partial withdrawals: In ULIPs, you can choose to withdraw a part of your Fund Value. This is called “partial withdrawal” and it can only be availed of after five years from the start of the policy.

  • Unit: A single part or component of any fund in ULIPs.

  • Net Asset Value (NAV): Every fund in a ULIP has a specific value allotted to it, which is the market value of the company fund’s investment minus the value of the liabilities and provisions. NAV is, thus, the value of each unit of a fund in a ULIP.

  • Fund Value: The total value of the units held by you (the policyholder). NAV x Number of Units = Fund Value

  • Redirection of Premium: In a ULIP, you can change the proportion of allocation of future premiums and top-up premiums. This is called redirection of premium, which changes the percentage of premium allocation in a specific units/funds. You simply need to give a written application to your insurance provider before the specified due date. 

  • Settlement Option: You can choose to receive the maturity benefits as a structured payout (monthly or any specified frequency) for a set number of years. This is called the Settlement Option and has to be conveyed to the insurer well in advance.

  • Fund Management Charges: These are the charges levied on you for the day-to-day management of the fund by the insurer. Fund management charges are a proportion of the total fund value and are determined before finalising the NAV.

  • Policy Administration Charges: These charges are deducted by the insurer from you for daily maintenance of the insurance policy.

  • Switching of Funds: Switching of fund involves moving some of the money invested in one fund to one or more other funds based on the unit price of that day. Edelweiss Tokio Life offers free unlimited fund switching with its ULIP plans.

  • Top-up: Available with ULIPs, top-up allows you to invest additional money over and above your premium to make the most of a good market condition.

Fire Away Queries

Like teachers say, there are no silly questions

What affects the growth percentage of my funds in an investment plan?

As the funds in an investment plan like a ULIP are linked with the share market, their performance is directly affected by the very market. The performance of any ULIP is hence market driven.

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Are savings and investment plans safe?

Savings and investment plans are safer as they give you guaranteed returns in case you outlive your policy term. In the event of your sad demise before the end of your policy term, your nominee would get the sum assured.

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Are there any tax benefits with investment plans?

There are various plans wherein tax assets can claim benefits for the amount invested in savings and investment plans, such as ULIP. Under the section 80 C and 80 D of Indian Income-tax Act, an individual is entitled to a deduction on the investment done or premium payment made under savings plan.

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What are Investment Plans?

Investment plans offer to help individuals in disciplined and periodic investment into different funds overtime so as to achieve their future financial goals.

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What are the best saving plan options available online?

Savings and Investment plans are customized investments avenues for an individual with the objective to create a disciplined and periodic investment in various funds and finally achieve their future long-term financial goals along with an element of insurance support.
Here are some of the best saving investment plans available in Indian market:
• Participating Endowment Plan
• Unit Linked Investment Plans (ULIP)
• Guaranteed Return Plan
• Money Back Plan
• Monthly Income Plan

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What are the types of funds you offer in your savings plan?

There are two kinds of funds in an investment plan – equity fund and debt fund. An equity fund gives you high returns but also carries high risk. A debt fund is comparatively stable, is less risky and give you moderate but guaranteed returns.

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How can I see the performance of my funds in a savings plan?

Endowment plans are safer than most investment plans as they give you guaranteed returns in case you outlive your policy term. In the event of your sad demise before the end of your policy term, your nominee would get the sum assured.

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When will my money invested in a savings plan start profiting?

A term plan gives your nominee the life cover amount (which is very high) in case of the policyholder’s sad demise. But if the policyholder outlives the policy term, he gets nothing. In a ULIP, which is an investment plan, you get a certain amount of returns based on the funds you’ve invested in, after the investment period. Bu if you expire before your policy term, your nominee would get the fund value up to that point.

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* Tax benefit of ₹ 46,800 is calculated at highest tax slab rate of 30% (in addition to income tax, cess of 4% is also applicable) on life insurance premium u/s 80C of ₹ 1,50,000. As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.

0 - Provided the premium paying term is more than or equal to 10 years.

1 - This is applicable only if all due premiums are paid and the policy is inforce.

2- For more details please read the sales brochure separately.

3 - As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.

4 - If declared, Cash Bonus is a non-guaranteed bonus which may be payable based on the performance of the participating fund of the Company.

9- Riders are Optional and available at extra cost.

 


^¹  - Festival Of Insurance Awards 2020 on Sahara Samay Hindi News Channel on 27th December, 2020 - YouTube. For CSR Activity and Digital Sales Channel (Insurance Alerts Excellence Awards 2020)

^²  - https://cloud-user-recordings-ffmpeg-converted-prod.s3-ap-south-1.amazonaws.com/recordings/ccd117b0-be48-11eb-9782-b590083730e8/3b7e25a3-b9b4-47b0-9f68-70eeb8062d60/ccd117b0-be48-11eb-9782-b590083730e8_0001_474830a2.mp4 (Awarded by Quantic Business Media BFSI Excellence Awards 2021)

^³ -  https://thealdenglobal.com/inflection-conference-awards/


^⁴ Claim statistics are for Financial Year 2020-21 and is computed basis individual claims settled over total individual claims for the financial year. For details, refer to Public Disclosures in our Website.

 

Edelweiss Tokio Life – Premier Guaranteed Income is only the name of an Individual, Non-Linked, Non-Participating, Savings, Life Insurance Product and does not in any way indicate the quality of the plan, its future prospects or returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary. Tax benefits are subject to changes in the tax laws. The tax benefits under this Policy may be available as per the prevailing Income Tax laws in India. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding a sale. UIN: 147N072V01


Edelweiss Tokio Life – Active Income Plan is only the name of the Individual, Non-Linked, Par, Savings, Life Insurance Product and does not in any way indicate the quality of the plan, its future prospects, or returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary. Tax benefits are subject to changes in the tax laws. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding a sale. UIN: 147N065V01

 

The Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year.

 

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. Edelweiss Tokio Life Insurance Company Limited is only the name of the Insurance Company and Edelweiss Tokio Life – Wealth Secure+ is only the name of the unit-linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects, or returns. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary or policy document of the Insurer. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN 147L062V01

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. Edelweiss Tokio Life Insurance is only the name of the Insurance Company and Edelweiss Tokio Life – Wealth Plus is only the name of A Unit Linked, Non-Participating, Individual, Life Insurance Product and does not in any way indicate the quality of the contract, its future prospects, or returns. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. Please know the associated risks and the applicable charges from your Personal Financial Advisor or the Intermediary or policy document of the Insurer. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits are subject to changes in the tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN: 147L055V03