Edelweiss Tokio Life launches new Flexi Savings Plan

https://www.livemint.com/money/personal-finance/edelweiss-tokio-life-launches-new-flexi-savings-plan-know-details-11660798484540.html

NEW DELHI: Edelweiss Tokio Life Insurance on Thursday announced its foray into the personalisation space, with Flexi Savings Plan which offers accrual of survival benefit. This feature gives customer the freedom to change the timing of benefit payout as many times necessary to match their requirements.

The product has three base plan options – Flexi-Income, Flexi-Income Pro, and Large Sum. The Accrual of Survival Benefit feature can be opted along with Flexi-Income and Flexi-Income Pro base plans, the insurer said.

Subhrajit Mukhopadhyay, executive director, Edelweiss Tokio Life Insurance, said, “Different customers have different needs. These needs do not stay constant, and undergo an evolution throughout a customer’s life, which in turn makes long-term planning considerably challenging. We realized that customers want flexibility to choose when to avail the benefits offered by their life insurance plan. This insight guided our product design process, wherein we explored how we can offer a solution that is curated for each person’s individual and evolving needs."

Flexi-Income and Flexi-Income Pro plan options allow policyholders to choose an Income Start Year – 2nd Policy Year, 5th Policy Year or 1st year after end of premium paying term. The product offers a cash bonus starting the selected income start year, and a revisionary bonus, for those opting to start their income either from the 5th Policy Year or 1st year after end of premium paying term.

The key difference between both these options lies in the guaranteed income payout. Under Flexi-Income, the guaranteed income starts from the first year after premium paying term ends. Under Flexi-Income Pro, the guaranteed income is paid out as a lump sum at an interval of five years after the premium paying term ends up to 30th policy year. Thereafter, a regular annual guaranteed income payout begins. Large Sum Plan, which is the third base plan option, offers a total maturity benefit at the end of the tenure.

Among additional optional benefits is the innovative Accrual of Survival Benefit, which allows a customer to either accumulate or cash out survival benefits as per their requirements during the tenure of the policy. A customer can opt in and out of this benefit multiple times at any point during the tenure of the policy.

Another optional benefit is Life Cover Continuation Benefit, which allows the customer to extend life cover equal to 10 times of annualised premium for a fixed period. This period depends on the attained age of the policyholder at policy maturity.

“This product will change the dynamic between a customer and their life insurer by restoring the control into the hands of the customer. In today’s world, customers want their preferred life insurer to offer a personalized experience tailored to their specific needs. They truly want a Meri Marzi Ka Plan and that’s what Flexi Savings Plan is," added Mukhopadhyay.

While the product offers a unique proposition to the customer, the life insurer’s consistent 10-year track record of bonus payout works as an added advantage.