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Edelweiss Tokio Life Wealth Builder Plan Reveiw

Edelweiss Tokio Life – Wealth Builder

Edelweiss Tokio Life – Wealth Builder is a non participating, non-linked life insurance plan which offers a combination of savings and protection. The returns under this plan is fully guaranteed.

Type of plan         : Endowment Non participating

Returns                  : Fully Guaranteed

Tenure                   : Long term (up-to 30 years)

Premium mode : Regular premium (5,7,10 and 12 years)

  • Minimum Entry Age (Last birthday)91 Days
    Maximum Entry Age (Last birthday)55 Years
    Minimum Maturity Age (Last birthday)18 years
    Maximum Maturity Age (Last birthday)70 years
    Policy Term (PT)10, 15, 20, 25 and 30 Years
    Premium Paying Term (PPT) 5, 7, 10 and 12 years
    Premium Payment FrequencyAnnual, Semi-annual, Monthly
    Minimum Premium*Annual            : Rs 15,000
    Semi-Annual  : Rs 8,000
    Monthly          : Rs 1,500
    Sum Assured on Death(SA)PPT       Sum Assured on Death
    5 Pay    10 times of Annualized Premium**
    7 Pay    10 times of Annualized Premium
    10 Pay  11 times of Annualized Premium
    12 Pay  13 times of Annualized Premium
    Sum Assured on MaturityCumulative Annualized Premium**

    Note:For policy term 10 years, only 5 pay and 7 pay (PPT) are allowed
    *As per Service Tax law, service tax and education cess will be separately levied on the premium.
    **Annualized premium is the premium payable in a year chosen by the policy holder, excluding the underwriting extra premiums and loadings for model premiums, if any.

  • Maturity Benefit = Sum of Total Premiums Paid + Accrued Loyalty Additions

    Accrued Loyalty Additions is calculated at a percentage of total premiums paid. For the percentage claculations please click the below link.

    ACCRUED LOYALTY ADDITIONS PERCENTAGE CALCUALTION

    1. Flexibility to choose between Four PPT (Premium payment) options
    2. Lesser Premium payment commitment
    3. Need not worry about the market
    4. Guaranteed Returns
    5. Best return for longer term option
    6. The returns are guaranteed for the next 30 years( Maximum policy Term)
    7. Better returns than other endowment plans in the market
    8. Premium paid is Eligible for exemption under section 80c
    9. Maturity and the Returns are exempted under section 10(10d)
    10. The policy gives you paid up benefit if 2 years premium paid
    11. Loan against policy benefits available

    1. Lesser Returns than other savings options
    2. Less liquidity before maturity
    3. Surrender charges are High
    4. Returns very less compared to Fixed deposit
    5. In 10 Year policy term returns is very less
    6. Lesser Guaranteed Additions for premium lesser than 75000 is low

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Edelweiss Tokio Life – Wealth Builder Plan Reveiw

Edelweiss Tokio Life – Wealth Builder Plan ensures a guaranteed maturity benefit at maturity. This is an Traditional Endowment Non participating plan. All the returns printed in the policy document is completely guaranteed. So you will know what exactly you get on maturity. Since this is a guaranteed product, we need to wait till the maturity of the plan to enjoy full benefits and every benefit under this plan is exempted from income tax. This is one among the best endowment product in terms of investment net returns. The policy gives the best return in 15 year policy term and 5 year PPT.


What You Pay and What You get

Example  : Arun is 36 year old. He buys Edelweiss Tokio Life – Wealth Builder Plan with a regular premium of  Rs.100000(Tax extra) with premium paying term 5 years and policy term as 15 years. His policy benefits are:

                            1. Guaranteed Maturity Benefit of 11.03 Lakh at the end of 15th policy year.

                           2. Guaranteed Death Benefit of Rs.1000000+Guaranteed Loyalty Additions (if any) during the policy term.

TOTAL PREMIUM PAID : Rs. 500000*

TOTAL BENEFIT RECEIVABLE : Rs.1103000

(*Excluding taxes)


Bonus History

Since this is an Non participating policy there is no Bonus payable for this plans.


What happens if you discontinue your premiums?

5 Pay and 7 Pay On premium discontinuance before one year’s full premium is received, the policy will be lapsed and no surrender value or paid-up value will be payable. On premium discontinuance after first policy year’s full premium is received, the policy will acquire paid-up value.

10 Pay and 12 Pay On premium discontinuance before two years’ full premiums are received, the policy will be lapsed and no surrender value or paid-up value will be payable. On premium discontinuance after first two policy years’ full premiums are received, the policy will acquire paid-up value


Liquidity 

Loans : Loan will be available after the Policy acquires Surrender Value. Up to 80% of the Surrender Value can be taken as loan.  

Partial Withdrawal : Not possible

You cannot have withdrawals before maturity in this plan. If you want funds before maturity you have to take loan or surrender the policy.


If You want to surrender the policy 

You have to fulfill the following conditions to surrender your policy.

The surrender value is calculated on a percentage of the premiums paid. The surrender charges are as follows

 5 Pay and 7 Pay The Policy acquires surrender value from second policy year provided all the premiums have been paid in full for at least first policy year.

10 Pay and 12 Pay The Policy acquires surrender value if all the premiums have been paid in full for at least first two policy years.

  Edelweiss Tokio Life – Wealth Builder Plan  is a traditional plan, the surrender benefits of this plan will be mostly lesser than the premium paid.Waytoinsurance.com suggests not to surrender this plan in-between to avoid loss.


For more details on this plan please go through the Product brochure

Premium Calculator For Edelweiss Tokio Life – Wealth Builder Plan – CLICK HERE


**Disclaimer:

This post on Edelweiss Tokio Life – Wealth Builder Plan is just a review of what the plan offers to the customers. We aim at educating ins and outs of this plan. We are trying to simplify the product and make it easy to understand. The Returns provided in this post are for Illustrative purpose only.  The waytoinsurance score is given by our own metrics of calculation and are no way related to the performance of this plan. All these details are derived from the below link. We are aiming at providing financial literacy for the common man. We are just educating the people about this plan. The final decision to buy this plan is in your hands. We are not responsible for any individual decisions on this plan.We are not in support or against any insurance company or its products. Our main vision is to educate customers in deciding the best option available in the market.

Source :http://www.edelweisstokio.in/Products/22/Edelweiss_Tokio_Life_%E2%80%93_Wealth_Builder.aspx

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