Edelweiss Tokio Child Plans
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss financial Services, Mumbai and Tokio Marine Holdings Inc, Japan. It was established in 2011. It is one of the leading financial service providers which caters to the various needs of its customers and offers a host of products designed specifically to meet the needs of its customers.
What are Child Plans?
They are those types of plans which aim to create a secured fund for the child’s future which will not be affected by the death of the earning parent. These plans usually have some common points which are mentioned below:
- Either the child or the parent’s life can be covered under the plan. Usually the parent’s life is covered and the individual needs to have a minor child.
- If the child’s life is insured, the company keeps a deferment period in the form of some initial years where the company does not extend insurance coverage even though the plan starts. If the child dies in this period the only benefit payable is the premiums paid till date.
- Also, a child being a minor cannot enjoy the plan’s ownership which rests with the parent till the child turns 18 years of age after which the plan vests in the child’s name and he becomes the policyholder.
- If the parent is insured, there is an added waiver benefit which is inbuilt within the plan. Under this benefit, in the event of the insured’s death, subsequent premiums are waived off and are paid for by the company and the plan remains intact.
Edelweiss Tokio Life Child Plans
Edelweiss Tokio Life Insurance Company currently offers only one kind of child insurance plan which provides for the financial security of the child even in the absence of the parent. Let us take a detailed look at the child plan offered by the company and its features and benefits
Edelweiss Tokio Life Edu Save Plan
A traditional child insurance plan which has the following features and benefits:
- The plan participates in the profits of the company by way of earning bonuses
- Premiums under the plan can either be paid for the entire tenure of the plan under the Regular Pay option or for a limited tenure under the Limited Pay option of premium payment.
- The maturity benefit can be availed either in lump sum or in money backs under 5 different maturity benefit options.
- Under the Marriage Funding Plan option, 100% of the Sum Assured along with vested bonuses is paid on maturity
- Under the Post-Graduation Plan Option, 52% of the Sum Assured is paid in the second last year and another 52% of the Sum Assured is paid on maturity
- Under the third option called the Graduation Plan, 32% of the Sum Assured is paid in the fourth last year, 24% in the third and the second last year and 32% of the Sum Assured is paid on maturity
- Under the 5-year Integrated Degree Plan Option, 28% of the Sum Assured is paid in the fifth and the fourth last policy years, 20% in the third last and the second last years and on maturity 20% of the Sum Assured is paid
- Under the last option of Dual Degree Plan, 24% of the Sum Assured is paid in the sixth and fifth last year, 18% in the fourth, third and the second last year and 18% is paid on maturity.
- Accrued bonuses will be paid under each option on maturity.
- In case of death of the insured, the Sum Assured which will be higher of 10 times the annual premium or the guaranteed maturity Sum Assured will be paid immediately to the nominee subject to a minimum of 105% of all premiums paid till the date of death. All future premiums will be waived off and the plan will continue to run and accrue bonuses. On maturity, the Sum Assured is paid along with the accrued bonuses.
- The plan can be customized by adding multiple available riders which are:
- Edelweiss Tokio Life Accidental Death Benefit Rider
- Edelweiss Tokio Life Accidental Total and Permanent Disability Rider
- Edelweiss Tokio Life Term Rider
- Edelweiss Tokio Life Critical Illness Rider
- Edelweiss Tokio Life Waiver of Premium Rider
- Edelweiss Tokio Life Hospital Cash Benefit Rider
- Edelweiss Tokio Life Payor Waiver Benefit Rider
- Rebates are given in premium rates for choosing higher levels of Sum Assured
- Female lives are charged lower rates of premiums
- Loan is available under the plan up to a maximum of 90% of the Surrender Value
- Section 80C and 10(10D) excludes the premiums and claims from the purview of taxation.
Premium Payment Term
Equal to plan term or 10 years or Term minus 5 years
Premium Paying Frequency
Yearly, half-yearly, quarterly or monthly
Applying for a Child Plan from the company:
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
Applying For Child Plans through PolicyBazaar
- On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
- Click New Quotes to compare and choose from top insurance providers.
- Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
- Fill in your name, email address, city, country code, and mobile number. Click Continue.
- You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
- After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
- You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
- This will take you to the insurer’s website. Fill in the necessary details to buy the plan.
Importance of a child plan
A child insurance plan is an important financial tool in your financial portfolio if you want to provide for your child in his future years. All other types of investments can give you good returns but a child plan is the only investment which will also give an assured return. The uniqueness of the plan lies in the fact that the plan continues even after your death where most of the investments stop. As in case of other investments, if you are not around to save in such investments, the investments will not grow and will stop. On the contrary, in a child plan, premium payments will continue even after your death which will continue building up the corpus. Such a corpus will be realized only when the plan matures and if you have planned in advance; the maturity date can be set to coincide with the child’s important milestones in future like his graduation or higher studies. Your child is the source of your joy and if you do not plan for him his future will be at risk. Death is uncertain and if you are around for your child it will be the best because you would ensure that he gets the best education but what happens when you are not around? Who will take care of your child? In such a scenario, having a child insurance plan will be the best solution since you will not have to worry about financing your child’s future; the insurance plan will do it.
It is best to buy a child plan when you have a minor child and plan with a longer tenure. If the plan is a traditional one, a longer tenure will be required and even if the plan is a unit linked insurance plan, a longer tenure will ensure a higher corpus. So, buy a plan when the child is young. It has two advantages. One, you will have to save a smaller amount over the years and two, the power of compounding will increase the fund generated after the end of the period. What’s more, you can also save taxes both on the amount you contribute as premiums under the plan and also the fund you receive either on death or maturity. The respective Income Tax Act Sections 80C and 10(10D) make it possible.
Edelweiss Tokio Child Plans - FAQs
1. How to pay premium? What are the modes of payment available?
There are two basic modes for payment of premium for Edelweiss Tokio Life, which have further many options:
- Online Mode
- Debit Card payment
- Payment through standing instructions or credit card
- Net Banking
- Offline Mode
- Through ECS facility
- Money Order
You can pay offline by visiting the nearest branch in your city.
2. How can I check policy status for Edelweiss Tokio child plans?
You can check policy status online by visiting the e-portal, and punching in the policy number and date of birth.
3. What is the policy renewal process for Edelweiss Tokio child plans?
The policy renewal process requires either using auto direct debit options which can be availed online by feeding your login ID and password into the e-portal
4. What is the company’s process to settle claim for Edelweiss Tokio child plans?
In order to settle the claim, you must submit the policy documents and claims form at any of the branch offices in your city. Upon receiving and verification of the documents, it takes about 30 days’ time to settle the claims. The claims are settled via NEFT mode.
5. What is the policy cancellation process for Edelweiss Tokio child plans?
In case if you are dissatisfied with the policy, a surrender form can be filled and submitted in any of the branch office along with the cancellation charges. Within a time frame of 10 days the policy will stand cancelled on record. The refund will be calculated based on NAV of the current market price.
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