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Zindagi Gulzar Hai – Life is a Garden! 


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


Edelweiss Tokio Life Insurance offers a solution in the form of Savings and Investment Plans. These plans offer protection – to life as well as money – so that you can rest assured and pause to smell the flowers! 

 

What Is A Savings And Investment Insurance Plan?

 

Savings Plans or Saving and Investment Plans in India are financial products that provide the opportunity to create wealth for the future. Every individual has dreams and goals that go beyond the bare necessities of life. To fulfil these, one often needs savings that have been accumulated over a period of time. Savings and investment plans help you to save your income in a systematic manner to fulfil various goals. 

 

A savings plan is an insurance plan that combines a savings and a life cover under a single plan. The premium payments are divided into two where one portion is used to build a savings corpus, while the other portion is used for providing life cover to the policyholder and their family. People choose savings plans because they offer guaranteed returns as a death benefit or on maturity.  

 

An investment plan is a Unit-Linked Insurance Plan or ULIP that combines the benefits of investments and a life cover under a single plan. A part of the premiums paid towards the plan is invested in market-linked investment instruments, while the other part is used to provide life cover to the policyholder and their family. Though ULIPs are moderate to high-risk plans, they are mainly chosen for their potential for offering higher returns. 

 

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

 

 

Detailed Guide to how Savings and Investments Plans Works

Life Insurance Savings Plans

The policyholder pays a premium towards securing a Guaranteed Savings Plan. The premium can be paid as a single, lumpsum pay or for a limited period or for the entire policy tenure.
The premium is used by the insurance company for two aspects – offer life cover and invest in no-risk, non-market-linked avenues for guaranteed returns.
The life cover continues till the entire term of the policy. If the policyholder dies during the policy term, this is the sum assured that the authorised beneficiary will receive.
The money invested accrues interest as per pre-determined rate of interest and the guaranteed amount is paid out at specified intervals and on maturity.
The insurance company also pays certain bonuses, such as Accrual Bonus. Loyalty Bonus, Booster Bonus and Maturity Bonus to the policyholder.
The policyholder pays a premium towards securing a Guaranteed Savings Plan. The premium can be paid as a single, lumpsum pay or for a limited period or for the entire policy tenure.
The premium is used by the insurance company for two aspects – offer life cover and invest in no-risk, non-market-linked avenues for guaranteed returns.
The life cover continues till the entire term of the policy. If the policyholder dies during the policy term, this is the sum assured that the authorised beneficiary will receive.
The money invested accrues interest as per pre-determined rate of interest and the guaranteed amount is paid out at specified intervals and on maturity.
The insurance company also pays certain bonuses, such as Accrual Bonus. Loyalty Bonus, Booster Bonus and Maturity Bonus to the policyholder.

Unit Linked Insurance Plans – ULIPs

The policyholder pays 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.
The policyholder gets to choose the type of funds they wish to invest in based on their 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 policyholder’s demise.
The invested money grows based on market forces and the accumulated amount is paid to the policyholder on maturity.
If the policyholder dies, either the life cover 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 beneficiary.
The policyholder pays 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.
The policyholder gets to choose the type of funds they wish to invest in based on their 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 policyholder’s demise.
The invested money grows based on market forces and the accumulated amount is paid to the policyholder on maturity.
If the policyholder dies, either the life cover 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 beneficiary.

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 Money Invested:

The winning feature of Savings and Investment Plans is that, contrary to pure insurance plans, these plans offer extensive returns on the invested premium.

Maturity Benefits:

The policyholder receives maturity/survival payouts if they survive the entire policy term.

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. The policyholder can choose to self-manage he funds, but they can also choose to leave it to the expertise of the insurance provider.

High liquidity:

You can get loans against your policy or apply for partial withdrawals for a quick and hassle-free influx of money during emergencies.

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

Easy switching of funds in ULIPs:

Edelweiss Tokio Life ULIPs allow you to switch funds unlimited times, at zero costs, to match your financial needs and life stage.

Multiple additions and boosters:

Many Savings Plans offer a range of payouts during the course of the policy term to reward long-term investors. With ULIPs, these additions are in the form of additional or survival units.

Top-up facility:

You can buy additional units in most ULIPs or invest additional money with Savings Plans with extra payment over your base premium. 

Affordable investment options:

The monthly amount for investment are affordable to make Savings and Investment Plans accessible for all income groups.

Special rates for certain groups:

Women and non-smokers can avail of discounts on the premiums paid.

Tax benefits:

The premiums paid, and the maturity benefits, bonuses and death benefits paid are eligible for tax benefits as per the prevailing tax norms.

 

Why Should You Opt for Savings and Investment Plans?


Whether you wish to send your child abroad for higher education or go for 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 that 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 could 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, one can ensure guaranteed returns at the end of the plan’s tenure to fulfil their financial goals and ensure a steady flow of income, while an investment plan can offer high returns that can help an individual grow their wealth and also fulfil their financial requirements. 


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

 

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

Saving for Future Goals
When it comes to fulfilling future goals such as buying a new home, child’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
ULIP is a life insurance plus investment plan that offers a life cover to the policyholder. In case of an unfortunate death, the dependant family of the policyholder 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 funds from your account when you are in need of urgent funds.
Systematic Savings
ULIPs give you the benefit of putting aside a chunk of your income and save it for future use.
Wealth Accumulation
ULIPs not only let you save your earnings, but also help in growing wealth by allocating it to market-linked funds.
Tax Benefit under Section 80C
Premiums paid for Savings and Investment Plans are deductible from taxable income under Section 80C. The maturity amount received is also tax-free subject to conditions under Section 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, child’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
ULIP is a life insurance plus investment plan that offers a life cover to the policyholder. In case of an unfortunate death, the dependant family of the policyholder 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 funds from your account when you are in need of urgent funds.
Systematic Savings
ULIPs give you the benefit of putting aside a chunk of your income and save it for future use.
Wealth Accumulation
ULIPs not only let you save your earnings, but also help in growing wealth by allocating it to market-linked funds.
Tax Benefit under Section 80C
Premiums paid for Savings and Investment Plans are deductible from taxable income under Section 80C. The maturity amount received is also tax-free subject to conditions under Section 10(10D) of the Income Tax Act, 1961.

 

What Are The Different Types Of Savings & Investment Insurance Plans?

 

Guaranteed¹ Return Plans

 

As the name suggests, a guaranteed returns plan gives you assured returns on 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 return plan?

Less Risk
Although certain short-term investments may give higher returns, a guaranteed¹ returns plan is comparatively less risky than them. It wouldn’t be wise to trade off returns with liquidity in investment avenues like equity and related instruments. While other investments to market risks, a guaranteed¹ returns plan is subject to no such conditions. Hence, this is a much safer investment for a family.
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: not only would they help you save tax³ but would also provide the long-term benefits in terms of savings or protection, in line with your financial plans.
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. This allows for every individual buy a plan which is most convenient to him and falls within his financial goals.
Less Risk
Although certain short-term investments may give higher returns, a guaranteed¹ returns plan is comparatively less risky than them. It wouldn’t be wise to trade off returns with liquidity in investment avenues like equity and related instruments. While other investments to market risks, a guaranteed¹ returns plan is subject to no such conditions. Hence, this is a much safer investment for a family.
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: not only would they help you save tax³ but would also provide the long-term benefits in terms of savings or protection, in line with your financial plans.
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. 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 of time which would help you in getting a lump sum amount on surviving the policy term. 

 

An endowment policy most often gives you guaranteed returns and hence is good for those who do not wish to take higher investment risks. The policyholder gets his/her sum assured on a fixed date in future as per the policy terms and conditions. However, in case of sudden death of the policyholder, the insurance company will pay the sum assured (plus the bonus, 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 guaranteed returns, and they are not linked to the market’s performance. The guaranteed returns such as guaranteed additions remain fixed and are payable on death or maturity (as applicable).
Bonus
The insurance company usually declares bonuses, depending on how the investments have performed. When an insurance company makes profits from its investments, it distributes a part to its policyholders 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, a portion of the premium amount goes towards the mortality component and the remaining amount of the premium is invested to earn returns. Under this policy, you can avail death or maturity benefit as a lump sum of sum assured plus accrued bonuses and/or guaranteed additions, as applicable under the policy chosen. This policy ensures financial cover for your family plus builds a corpus till the maturity of the policy. It is a 360-degree financial plan that provides you & your family a complete financial cover.
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 guaranteed returns, and they are not linked to the market’s performance. The guaranteed returns such as guaranteed additions remain fixed and are payable on death or maturity (as applicable).
Bonus
The insurance company usually declares bonuses, depending on how the investments have performed. When an insurance company makes profits from its investments, it distributes a part to its policyholders 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, a portion of the premium amount goes towards the mortality component and the remaining amount of the premium is invested to earn returns. Under this policy, you can avail death or maturity benefit as a lump sum of sum assured plus accrued bonuses and/or guaranteed additions, as applicable under the policy chosen. This policy ensures financial cover for your family plus builds a corpus till the maturity of the policy. It is a 360-degree financial plan that provides you & your family a complete financial cover.

UNIT LINKED INSURANCE PLANS (ULIPS)

 
 

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. This means that you get the dual benefit of protecting your family as well as securing your own future. 

 

A ULIP also provides tax benefits as the premium or amount invested into the ULIP is exempted from tax under Section 80C. The amount received on maturity of this investment plan, is also tax exempted under Section 10(10D) of the Income Tax Act, 1961 subject to certain conditions. 

 

If the total annual premiums paid for ULIP investments are below ₹2.5 lakhs in a given financial year, the maturity benefits earned are completely exempted from taxation under Section 10(10D). However, if the total annual premium exceeds ₹2.5 lakhs, then the maturity benefits will be treated as Long Term Capital Gains (LTCG) and taxed accordingly. This taxation is applicable for policies bought on or after 1st February 2021. 

 

For all policies purchased before 1st February 2021, the maturity benefits are exempted from taxation. 

 

Why should you buy an ULIP Plan?

Market-linked investments
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 an 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 withdrawals 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 investments
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 an 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 withdrawals 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 one should start at an early age. When you begin earning an income, investing in a savings and investment plan enables you save or invest over a long period of time that 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 a long term, you reap the benefits of compounding. 

 

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

 

 

Interest: ₹0

Total plus interest: ₹0

2. Risk Appetite

 

The younger you are the lesser responsibilities or liabilities you have. Historically, it has been recorded that equities perform better than other assets even though they do come with a fair bit of risk. Investors can switch from one particular 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

 

Investment instrument like a ULIP offers you flexibility to invest in a portfolio of stock 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 also stabilizing 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 to 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 suit everyone. 

 

Following people should buy a Savings and Investment Plan: 

 

  • You wish to build a corpus of fund for future use.

  • You wish to grow your money and secure your family’s future.

  • You wish to guarantee a regular stream of income to supplement your primary income source.

  • You wish to bring in discipline in your savings effort.

  • You wish 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 of the policyholder

With age, the chances of falling ill or developing a serious medical condition goes 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 of the policyholder

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 will be the premium you pay for it.

Tenure of the policy

Again, the longer the policy period, the higher will be the total premium outflow. 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 riders

The Edelweiss Tokio Life Guaranteed Savings 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 family’s future

  • Growth of money to fulfil long-term financial goals

  • Attractive market-linked returns with ULIPs

  • Guaranteed payouts with Savings Plans

  • Enjoy the power of compounding

  • Instil the discipline of regular savings and investment

  • Effective protection against inflation

  • Tax benefits ss per prevailing norms 
 
 

Disadvantages

  • The premiums for life insurance plans with returns are slightly higher than pure insurance 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 bonuses, etc. can get confusing for a new policyholder. However, Edelweiss Tokio Life Insurance offers detailed policy details through policy brochures. Additionally, you can get in touch with our Customer Executives to understand any policy in depth.
 

Savings And Investment Plans From Edelweiss Tokio Life Insurance

 
 
 

EDELWEISS TOKIO LIFE SAVINGS PLANS

 
 
 
  • Edelweiss Tokio Life GCAP
    • Endowment Plan
    • Guaranteed Returns + Life Cover
    • Assured Accrual Additions
    • Enhance base cover with 6 attractive riders
    • Affordable premium cost with plans starting from ₹1500/month 
  •  
  • Edelweiss Tokio Life Active Income
    • Income Plan
    • Guaranteed Income + Life Cover up to 99 years of age
    • Option to avail income benefit from 2nd policy year
    • Addition of declared bonuses of participating funds
    • Enhance plan coverage with 6 optional riders 
  •  
  • Edelweiss Tokio Income Builder
    • Income Plan
    • Supplement your income with additional monthly income
    • Life cover + assured regular income (Regular income or lump sum + regular)
    • Protection against critical illnesses with Secured Income
    • Choice of date for credit of monthly income 

 

 

EDELWEISS TOKIO LIFE ULIPs 

 
 
 
  • Edelweiss Tokio Life Wealth Secure+
    • Life Cover + wealth generation from ₹1000/month
    • Get whole life cover up to 100 years of age
    • Lock-in period of 5 years, with option to avail maturity benefits at the end
  •  
  • Edelweiss Tokio Life Wealth Gain+
    • Dual benefit of protection of life and accumulation of wealth
    • Addition to your fund value with 100% return of mortality charges
    • Zero premium allocation charges 
  •  
  • Edelweiss Tokio Wealth Plus
    • Protection with wealth accumulation
    • Enjoy additional fund allocations from first year
    • Get Rising Star Benefit and secure your child’s bright future 
  •  
  • Edelweiss Tokio Wealth Ultima
    • Wealth accumulation and life cover in one plan
    • Little Champ Benefit to secure your child’s dreams
    • Whole life cover up to 100 years of age 

 

 

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. 

 

As 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 because of the following reasons: 

Easy Claim Settlement Process

Our claim settlement process has 3 simple steps: i.e., Intimation of claim, Submission of documents & final step is a decision on the claim.

Winner of Multiple Accolades

Our ULIP Edelweiss Tokio Life – Wealth Plus has won the ‘Best Product Innovation’ award at the Golden Globe Tigers Awards 2018.

List of Riders Available with our Savings and Investment Plans

 
The following six riders are available with Edelweiss Tokio Life Savings Plans:
  • Edelweiss Tokio Life GCAP 

  • Edelweiss Tokio Life Active Income 

  • Edelweiss Tokio Life Income Builder 

  • 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.


 

Advantages and Disadvantages of Savings and Investment  Plans

 

INCLUSIONS OF SAVINGS AND INVESTMENT PLANS

  • Natural Death

  • Accidental Death (subject to certain conditions)

  • Suicide – after 12 months of policy issuance

  • Death due to complications of declared pre-existing conditions

  • COVID-related deaths are now covered in all Edelweiss Tokio Savings and Insurance plans.
 


EXCLUSIONS OF SAVINGS AND INVESTMENT PLANS

  • The plan excludes death caused by –
    • War

    • Alcohol or drug consumption

    • Criminal activities

    • Hazardous activities like racing

    • Undeclared pre-existing conditions

    • Pregnancy/childbirth complications 

  • If the policyholder does not declare ‘Smoking’ as a habit and dies of excessive smoking 
 
 
*This is a general list. Refer to your policy document for an exhaustive list. 
 

A Detailed Buying Guide for Savings and Investments Plans

 

  • Step 1 :  Choose your plan 
  • Step 2 : Choose your premium and policy term

     

  • Step 3 : Make Payment  : You can opt from monthly, half-yearly or yearly mode of payment and choose from a list of payment options such as:
    • Credit Card

    • Debit Card

    • Netbanking

    • Online Wallets

 

 

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 the policyholder decided 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 the policyholder is liable to pay if they surrender a policy before the maturity date. 

  • Paid-up value: You can reduce a normal life insurance policy into a reduced paid-up policy as per your insurance company’s guidelines. Edelweiss Tokio 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 post 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 in spite of cancellation of future premium payments is a paid-up policy. The benefits and coverage of a paid-up policy is in tune with the reduced paid-up value. 

  • Partial withdrawals: In ULIPs, the policyholder can choose to withdraw a part of their 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 the policyholder. Fund Value = NAV x Number of Units 

  • 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: Policyholders 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 the policyholder 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 the policyholder 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 their 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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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.

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

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

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. 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.