Edelweiss Tokio Life Investment Plans
A joint venture between Tokio Marine Holdings and Edelweiss financial services, Edelweiss Tokio was established in the year 2011. Being a leading service provider for customers offering a host of products and services, the insurer offers numerous traditional Edelweiss Tokio life investment plans.
Also named as Conventional Insurance Policies, the specialty of these insurance policies is that money is invested as per the guidelines laid out by the insurance act.
The way the premiums are invested is not known to the insured. However, the insured is promised a sum assured on the maturity of the policy, death, or money back. These investment plans have some basic features. They are as follows:
- These plans are long-term investment vehicles, and money cannot be drawn from these plans.
- To make a plan paid-up, the plan has to receive 3 years of premium payment. After this, the premium can be stopped. The sum assured is lessened but the sum assured is guaranteed. The insured has the option to either surrender the plan or operate the plan at reducing coverage.
- The Edelweiss Tokio life investment plans can be offered as participating plans or non-participating plans. The former type of plan participates in the organization’s profits, and can potentially earn bonuses. In the latter type of plan, there is no participation in the company’s profits.
- The investment plans can be offered as money-back policies or endowment policies.
Edelweiss Tokio Investment Plans are as Follows:
Cashflow Protection Plus
This plan can be availed by a broad set of people because it accommodates an entry age of 91 days to an upper age limit of 55 years. The maturity of this plan is at 100 years of age of the insured. The minimum premium payable is Rs. 9835, which gives an assured sum of Rs. 2 lakhs. Guaranteed income is available under this plan up to the age of 100. Money-back reversionary bonuses are also guaranteed. The plan also provides loan facilities and in the case of high sum assured, discounts on premiums are available too. Guaranteed money back is available, and even non-guaranteed cash bonus availability exists under this plan.
Parameters Min Max Age 91 days 55 years Maturity 100 years Premium payment term 10, 15, 20, 25 years Premium Paying Mode Annual, bi-annual, monthly Min premium amount Rs. 9835 Min Sum assured Rs. 200000 Policy term 100 years minus the entry age of the insured
Single Pay Endowment Assurance Plan
This is not a unit-linked insurance plan. It offers life cover. Investment can be made in flexible fund options. Loyalty additions are guaranteed after,f the maturity period. This is a single pay plan. It is a ten-year plan. Along with risk protection, wealth creation is also possible with Edelweiss Tokio’s life investment plans. The plan can be used to avail loans. The plan has a low allocation charge. After one year of completion of the policy, multiple withdrawals are allowed. This makes this plan an ideal one for those who also want to plan for financial emergencies.
Parameters Min Max Age 8 years 50 years Maturity age 60 years Premium payment term Single pay Premium paying mode Once Premium amount Rs. 40000 No limit and is subject to underwriting Sum assured Rs. 40000 No limit and is subject to underwriting
Guaranteed Income Plan
This is an endowment plan. It offers maturity benefits on completion of the maturity period. Additional benefits are also added to the plan. These additional benefits are in the range of 200% of all premium paid amount value. Benefits are given as a lump sum. Loan facilities are available to cover financial emergencies. There are riders to provide enhanced protection. The policy is of a term of 15 years. The plan offers guaranteed income for the 15 years after the plan, that is, after the policy period completion. The minimum entry age is 3 years and maximum is 50 years.
Parameters Min Max Entry age 3 years 50 years Maturity age 18 years 65 years Premium payment term 15 years Premium paying mode Annual Premium amount For age range 3 to 35, Rs. 30,000
For age range 36 to 40, Rs. 40,000
For age range 41 to 45, Rs 50,000For age range 46 to 50, Rs. 60,000
Sum Assured Rs. 48363 No limit and subject to underwriting Policy term 15 years Payout period From the plan issue date, payout period starts from 16th year to 30th year
Save n Prosper
This is a profit-producing endowment plan similar to several other Edelweiss Tokio life investment plans. It provides tax benefits for the buyer. The profits are similar to sum assured and bonuses. Up to 90%of the surplus in the form of additional discounts and bonuses can also be given. The plan has flexible premium payment terms and policy terms. Riders are available and can be taken to provide enhanced protection. Loan facilities are available to cover financial emergencies. The minimum entry age is 3 years and maximum is 50 years.The policy term ranges from 15 to 35 years.
Parameters Min Max Min entry age 3 years 50 years Maturity age 18 years 65 years Premium payment term 10, 15, or regular payment Premium paying mode Annual, quarterly, monthly, or half-yearly Premium amount Min premium amounts:
For annual premium, it is Rs. 5824
Semi-annual premium, it is Rs. 30000
For Quarterly premium, it is Rs. 1750
For monthly premium, it is Rs. 600
Sum assured Rs. 200,000 Policy term 15 years to 35 years Premium modal factor Annual is 100%
Semi-annual - 51.2%
Quarterly - 26%
Monthly - 8.8%
Safe n Sure
This is an endowment plan. It ensures guaranteed benefits after the maturity period. Loan facility is available on the policy just like the other Edelweiss Tokio life investment plans. The loan policy is helpful in case of financial emergencies. Discounts are available on the premiums. Minimum age criteria is 5 to 55 years. Policy premium terms are 5, 15, 25, and 25 years respectively. The premium pay term is 15 years.
Parameters Min Max Entry age 5 55 Maturity 80 Premium payment term 15 years Premium paying mode Annual, bi-annual, monthly, quarterly Min premium amount Yearly premium - Rs. 7326
Semi-annual premium - Rs. 4000
Quarterly premium - Rs. 2500
Monthly premium - Rs. 1000
Minimum Sum Assured Rs. 20,00,000 No limit Policy term 15, 20, 35
This is a non-linked insurance plan. It offers money-back benefits. Money-back benefits are received at specific intervals. The intervals are predetermined by the purchaser. Guaranteed benefits the feature of the plan, by way of large payouts. At the end of the maturity period, additional bonuses are added to the plan as well. Riders allow for enhancing the plan. Riders can be purchased in addition to the plan. Discounts are also available in the premium paid depending on the sum assured. Minimum entry age is 12 years, and the maximum entry age is 44 years.
Policy term 16 year 20 year 25 year 30 year Minimum age 14 years 14 years 13 years 12 years Maximum age 44 years 40 years 35 years 30 years Maximum maturity age 60 years 60 years 60 years 60 years Premium payment term 12 years 16 years 20 years 24 years Minimum sum assured Rs. 2500000 Maximum sum assured No limit Premium payment modes Annual, bi-annual, monthly
This is a non-linked insurance plan. It offers protection as well as savings. The policyholder can cover dependents in this plan too. This means death benefits are receivable for dependents. Guaranteed benefits are available in the plan and are given upfront. Policy and premium payment terms are flexible. In the case of financial emergencies, loan facilities are available. Discounts on premiums are available too.
Parameters Minimum Maximum Age 91 days 55 years Maturity age 18 years 70 years Premium payment term 5, 7, 10, 12 Premium paying mode Annual, half-yearly, monthly Premium amount Yearly premiums - Rs. 15000
Semi-annual premiums - Rs. 8000
Monthly premiums - Rs. 1500
Sum assured Accumulated annualized premium Sum assured on death Based on the premium payment term Policy term 10, 15, 20, 25, 30
Maturity benefits, as well as death benefits, are the dual benefits in this non-linked insurance plan. Guaranteed accrued additions are added to the maturity benefit. Guaranteed additions are calculated and given upfront. Premium payment terms and policy term is flexible. In the case of financial emergencies, the loan facility is available. In the case of death, computed death benefit is higher of either the sum assured or 11 times of the annual premium (for 5, 7 and 10 pay) or 13 times of the annual premium (for 12 pay). Death benefits include guaranteed additions. 105 percent of the total premium paid amount till the date of demise.
Parameters Minimum Maximum Age 91 days 55 years Maturity age 18 years 70 years Premium payment term 5, 7, 10, 12 Premium paying mode Annual, half yearly, quarterly, monthly Premium amount Annual premiums - Rs. 15000
Semi-annual premiums - Rs. 8000
Quarterly premiums - Rs. 4000
Monthly premiums - Rs. 1500
Sum assured Cumulative annualized premium Sum assured on death Rs. 165000 No limit Policy term 10, 15, 20, 25, and 30 years
This is a dual benefit non-participating insurance plan from Edelweiss Tokio life investment plans. It offers maturity as well as death benefits. Limited premium payment facility is available in the plan. From the 13th year onwards, guaranteed additions are available and added to the plan. Loan facilities are available in case of financial emergencies. Riders are available to provide enhanced protection. Policy terms and premium payment terms are flexible. Death benefits are offered as the higher of the sum assured or 10 times the annual premium. Guaranteed additions are added to the death benefit. These additions are 105% of all premiums paid up to the date of demise.
Parameters Minimum Maximum Age 91 days 55 years Maturity age 18 years 70 years Premium payment term 7, 10, 12 years Premium amount Yearly premium - Rs. 7500 for 7 year pay period. Rs. 5000 for 10 or 12 year pay period.Semi-annual premium - Rs. 4000 for 7 year pay period, Rs. 3000 for 10 or 12 year pay period.Quarterly premium - Rs. 2000 for 7 year pay period. Rs. 1500 for 10 or 12 year pay period.Monthly premium - Rs. 1000 for 7 year pay period, and also for 10 or 12 year pay period Sum assured On maturity annualized premium * premium payment term plus added benefits if any form the amount Sum assured on death Rs. 55000 No limit Policy term 15, 20, 25, 30 years
Dhan Nivesh Bima Yojana
Enhanced returns can be availed on the maturity of this endowment plan. The plan is issued as a single premium plan. The premium period is 10 years. 100% lump sum is paid out in case of accidental death.
Parameters Minimum Maximum Age 18 years 45 years Maturity age 28 years 55 years Premium payment term Single pay Premium paying mode Once Premium amount Rs. 1000 Rs. 5000 (Option A)
Rs. 2500 (Option B)
Sum assured Rs. 50000 Rs. 25000 Policy term 10 years
Edu Save Plan
This is an insurance plan for children from Edelweiss Tokio life investment plans. It is designed to secure a child’s future. The fund provides financial assistance in times of needs. Even after the unfortunate death of the policy buyer, the plan continues to have benefits. Future premiums are waived off as well. The plan offers a yearly payout option and also has additional bonus payout. Additional riders can be purchased to enhance the plan. The loan facility is available on the plan. This is useful in case of financial emergencies.
Parameters Minimum Maximum Age 18 years 45 years Maturity age Nil 60 years Premium payment mode Single pay Premium amount Rs. 6968 Rs. 6968 Minimum sum assured Rs. 225000 No limit
Loan Against Insurance - Important Things to Know
The main function of an insurance cover is to provide coverage against unforeseen circumstances. However, nowadays, insurance is a versatile investment option. It gives policyholders several benefits. One such benefit is availing loan against the insurance policy. Not only is this facility a security measure, but helps policyholder’s tide over a financial crisis.
Edelweiss Tokio Life investment plans offer loan facilities. They are becoming a popular choice for policy buyers. This is because of the lower rate of interest that is charged. Compared to the interest charged on a personal loan, taking a loan against insurance is feasible. Another important benefit of loan against insurance is that the value of the policy is constant. This is unlike gold or shares, where policy value fluctuates and also affects the loan EMI.
There are multiple factors to bear in mind before availing of this facility.
Eligibility of the Policy
First and foremost, it needs to be checked if the insurance plan has a loan feature. Not all insurance policies from Edelweiss Tokio life investment plans have this feature. Term insurance policies don’t have this feature, because term plans do not accumulate any cash value, and expire at the end of the term. A loan can be taken against the surrender value of whole life insurance or permanent insurance.
A loan against non-term plans can be taken if the premium has been paid for 3 years on time. It has to be noted that a policyholder borrowing money from a loan against insurance is essentially borrowing from oneself. Therefore, no explanation is required to borrow the money, nor any intense scrutiny is applied on the borrower, nor is there a stringent process for approval. The rights to deliver the loan are vested with the insurer who checks the creditworthiness of the policyholder.
The policyholder needs to check the amount of loan they are eligible for from Edelweiss Tokio life investment plans. This can be done by directly contacting the insurance company. The loan is a percentage of the surrender value. This percentage varies by plan. This detail is part of the plan’s documentation. Against traditional insurance plans with guaranteed returns, loans up to 85-90 percent can be taken. Note that not all unit-linked plans provide loan options. But if they are provided, the loan amount depends on the prevailing value of the corpus and the fund type. The loan taken against insurance is not classified as income and hence not taxed by income tax authorities.
The interest rate charged for a loan against
an insurance policy is dependent on factors such as a premium that has already been paid. If the number of premiums paid and the premium amount is more, the rate of interest charged will be lower.
In most instances, banks connect the rate of interest with their base rate. Loans of this nature are considered by banks like an overdraft facility by pledging the insurance policy. Therefore, this can turn out to be more expensive than the loan facility provided by insurance companies. This is because the rate of interest of banks is in the range of 10% to 14% based on the loan tenure and insurance type.
Documentation Needed for the Loan
The policyholder needs to contact the insurance company and enquire about the documentation needed. A form needs to be filled, and the original insurance policy details need to be submitted. The insured would need to sign an assignment deed to give consent that the benefits of the policy will be assigned to the loan lender during the policy tenure. The policy will function as collateral until the repayment of the loan is made.
After taking a loan against insurance, the policyholder continues to pay premiums. In case the policyholder does not do this, the insurers might terminate the policy.
During the term of the policy, the loan repayment has to be made. The policyholder can either repay the principal along with accumulated interest or repay only the interest amount. If only interest is paid, the principal amount is subtracted from the claim amount at settlement time.
Furthermore, if the policyholder only pays back the interest, in the event of their unfortunate demise during the loan term, the pending loan amount is deducted from the final claim amount. What remains as a balance is paid to the nominee. In case of unfortunate death, the dependents of the policy will not be the sole beneficiaries of the death benefits. Therefore care has to be taken when using the loan against insurance facility from Edelweiss Tokio life investment plans as it can deprive dependents of benefits.
It is wise to repay the loan, because if the interest keeps getting accumulated, then there is a risk of the outstanding loan amount exceeding the policy’s final cash value. This can cause the policy to lapse. In such situations, taxes may need to be paid on the cash value of the policy. In case the loan is not repaid, the loan outstanding is debited from the accumulated surrender value, and the policy is terminated.
Different Types of Savings and Investment Plans
Guaranteed Return Plans
A guaranteed return plan gives assured returns on surviving the policy term at policy maturity time. Cash flows are predictable and assured. This makes long-term financial planning easier. There is a sense of security because funds are available when they are needed.
Benefits of purchasing a guaranteed return plan from Edelweiss Tokio
- Low risk - Compared to short-term investment plans, guaranteed return plans may not give higher returns, but still, they are comparatively less risky. Other investment options are exposed to market risks; guaranteed returns plans are not exposed to such risks.
- Tax benefits - Along with providing safety and security, this type of plan provides tax benefits. This is a unique type of plan amongst Edelweiss Tokio life investment plans that provides not only long-term protection but also tax benefits.
- Flexible premiums - A guaranteed plan has flexible premiums. The policyholder can choose the premium amount and mode of premium payment, based on their income levels.
- Flexible time period - The policyholder can choose the maturity period of guaranteed Edelweiss Tokio life investment plans. The policyholder can choose how long to pay the premium as well. This facility allows for buying a plan that suits individual premium paying capacities.
An endowment plan provides future savings and life cover, which makes them a dual benefit plan. Endowment Edelweiss Tokio life investment plans allow for systematic savings. A lump sum amount can be generated over a period of time. On maturity of the policy, and on surviving the term, the policyholder gets this lumpsum amount.
Sinceendowment plans give guaranteed returns, it is suited for those who don’t want to take investment risks. In case of unfortunate death of the policyholder, the sum assured is paid to the policyholder’s dependents, provided all premiums are paid up to the date of death. Death benefits accumulate bonuses and may accumulate loyalty additions depending on the type of policy.
Benefits of purchasing endowment plans from Edelweiss Tokio
- Guaranteed returns - Even if returns are low compared to investment-linked insurance products, the risk is lower in endowment plans. The dual benefit of savings and death benefits is offered. Upfront guaranteed returns are available, which is not linked to market conditions. Guaranteed additions are fixed and payable at policy maturity or as a death benefit.
- Bonus - Based on how the Edelweiss Tokio life investment plans have fared, the insurance company announces bonuses. If the insurance company makes profits from its investments, a part of the profit is distributed to the policyholder in the form of a bonus. The bonus payout is at the end of every financial year. The insurance company determines its profits and surplus after a valuation of its assets and liabilities and declares the bonus. Simple Reversionary Bonus and Terminal Bonus are the bonuses in the endowment policy that are added and payable as the sum assured. The former type of bonus is declared annually, and the latter type of bonus is paid only on policy maturity. A reversionary bonus is accrued.
- Long-term financial planning - If maintained for the long term, an endowment plan yields higher returns. The benefits of an endowment plan are payable only on death or on completion of the policy term. It is not advisable to surrender the policy, as surrendering the policy only gives meager returns.
- Premiums benefits - A premium amount of Edelweiss Tokio life investment plans has two components. One component goes towards mortality, and the other goes towards investment. The latter component is invested in low-risk government bonds that yield high returns over a long period of time. This type of policy offers financial cover and also builds a corpus of wealth over a period of time.
Unit Linked Insurance Plans
A unit-linked insurance plan is a high-risk, high-return insurance policy. Premium paid towards the policy is invested in capital markets. Tax benefits can be availed on the premium amount paid.
Ans: Edelweiss Tokio Life offers two premium payment modes, online and offline. Through online mode, debit card payment, net banking, and payment through standing instructions or credit card are possible. Through offline mode, IVRS, money order, ECS, or cash/cheque/DD payment can be made. Offline payment mode can be made by visiting the nearest branch in the city and making the payment.
Ans: The policy details of Edelweiss Tokio life investment plans can be checked on the portal by providing the policy number and the policy holder’s date of birth.
Ans: Renewal can be triggered automatically using the auto-debit feature or paid offline at a branch.
Ans: Policy documents have to be submitted, and the filled and signed claims form has to be submitted along. All of these documents can be submitted at any branch offices in the city. Upon receipt and verification of the documents, the time taken to resolve the claims is about 30 days. The claims are usually settled via NEFT mode.
Ans: In case the policyholder is dissatisfied with the policy, a surrender form can be filled and submitted in any of the city’s branch offices. Cancellation charges may apply. Within ten days, the policy will be cancelled. The refund will be initiated based on the Net Asset Value based on the prevailing market price of the policy.
Ans: Share market, the performance of the markets affect the profit earned. Hence, any ULIP is highly risky and at the same time, highly rewarding.
Ans: Savings and Edelweiss Tokio life investment plans are safe options as they give guaranteed returns at policy maturity time. In the event of unfortunate death of the policyholder, the proceeds of death benefits are given to the nominees.
Ans: Tax benefits can be claimed under Section 80 C and Section 80 D of the Income Tax Act.
Ans: Based on disciplined and dedicated investment into different fund options, over a period of time investment plans yield a corpus of wealth. At policy maturity time, this lump sum is paid out to the insurance policyholder.
Ans: Individuals who can commit to a disciplined investment over a period of time can take advantage of the various types of investment insurance policies of Edelweiss Tokio life insurance. The well-known insurance funds are guaranteed return plan, monthly income plan, unit-linked investment plan, participating endowment plan, and money-back plan.
Ans: There are two fund types available - equity and debt fund. The former gives high returns. But it also carries a higher risk. A debt fund, on the other hand, is less risky. Although it gives moderate returns, the risks of it going into negative profits is low. So debt funds from Edelweiss Tokio life investment plans can be chosen for those whose risk appetite is low.