Edelweiss Tokio Life Wealth Plus recently launched a new insurance product, a one of its kind unit-linked life insurance plan.
Let’s discuss the various benefits that it offers to us as a consumer and whether it is worth considering or not:
1. Nil Allocation And Administration Charges
The entire premium paid is directly invested in the funds as per one’s chosen investment plan. A major advantage that it provides is that there are absolutely no premium allocation and policy administration charges levied through the course of the policy term.
2. Additional Allocations
As mentioned in the live Twitter session, every year, additional allocations will be added to the fund on every premium paid by one during the premium paying term. These allocations initially start at 1% and go on to increase every 5 years to 3%, 5%, and 7% which accelerates one’s wealth accumulation substantially. It is quite logical that the longer one pays, the higher will be the additional allocation.
3. Investment Strategy
It is equally important to note that one has an option to choose one out of the two investment strategies based on one’s profile and risk appetite:
- Life Stage and Duration Based strategy – The plan will manage one’s asset allocation based on the age and remaining years to the policy maturity period.
- Self-Managed Strategy – Out here, the money will be allocated to one’s choice of fund(s).
4. Rising Star Benefit
If one wants to ensure that the child’s future financial needs are taken care of even in one’s absence, then one should definitely opt for Rising Star Benefit. As soon as the death of the parent takes place, a lump sum amount is paid immediately to the child.
Its marquee feature is that all future premiums would be waived off and without any delay, credited to one’s fund value by the Company, and on top of that, all the applicable additional allocation will be added to the policy as and when due. The child will continue to enjoy the policy benefits.
It is succinctly clear by now how this insurance plan is suitable for investors who are flexible enough to change. As already mentioned, these are some of the characteristics that render the concerned plan quite flexible-
- Change in Premium Paying Term (PPT)
- Unlimited free switches between funds
- Unlimited Opt-in and Opt-out option between Investment Strategies
- Unlimited Premium Redirection
- Partial Withdrawals
- Top-up premiums
A lot of us have this notion that Mutual funds are a safer bet but one must take into account that over a long period of time, it is the ULIP which usually outperforms the mutual funds.
As a customer, there are no two ways about the fact that this insurance plan attracts my interest and I definitely give it a big thumbs up.
Image Credits- Google