Edelweiss Tokio Pension Plan

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Introduction/Overview

Edelweiss Tokio Life Pension Plan is a traditional Pension Plan which takes care of life post-retirement by providing regular inflow of cash.

Key Features

  • It is a participating plan with regular, limited and single pay premium payment option
  • Guaranteed Additions and Compound Reversionary Bonus increase the corpus

Benefits

  • Guaranteed Additions are added in the first 5 policy years @ 5% of the cumulative premiums paid
  • Compound Reversionary Bonuses accrue from the 6th policy year
  • On death of the policyholder, higher of the total premiums paid compounded monthly @ 1% p.a. + accrued Guaranteed Additions + vested bonuses or 105% of all premiums paid is payable
  • The nominee can either withdraw the entire proceeds or use it to buy an annuity form the company
  • On Maturity or Vesting, Sum Assured + accrued Guaranteed Additions + vested bonuses is paid to the policyholder
  • The policyholder may use the Maturity Benefit in the following ways:
  1. Commute 1/3rd of the corpus and purchase a Life Annuity from the company with the remaining 2/3rd amount
  2. Use the entire amount to buy a Single Premium Deferred Pension Plan form the company
  3. Extend the Vesting date if age is below 55 years
  • Income tax benefit on the premium paid as per Section 80CCC and on the commuted part as per Section 10(10A) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

18 years

65 years

Maturity Age (Last Birthday)

45 years

75 years

Policy Term (PT) in years

10

40

Premium Paying Term (PPT) in years

Single Pay, Regular Pay, 10 Pay or 5 Pay

Premium Paying Frequency

Annual, half-yearly, quarterly, monthly or Single Pay

Premium

Regular & Limited Pay – 4898.50

Single Pay – 108,125

No limit

Sum Assured

Single Pay - 125,000

Regular & Limited Pay – 200,000

No limit

 

Policy Details

Grace Period: 30 days’ grace period is allowed for premium payment in all modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy if 2 full years’ premiums have been paid under regular and limited pay plans and if 1 full year’s premium is paid for single pay plans. The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value. The Surrender Value shall be utilized to buy a single pay pension plan or to buy a life annuity plan with the uncommuted part

GSV = GSV % of Premiums paid + GSV% of (vested Bonuses+ accrued Guaranteed Additions)

SSV = Paid-up SA + accrued Guaranteed Additions + vested Bonuses * SSV Factor

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

  • Loan is not available under the plan

Additional Features or Riders

  • Rebates for Large Sum Assured ranges
  • Discount in premium @ 3% for paying in annual mode
  • The following Riders are available for a comprehensive coverage:
  1. Edelweiss Tokio Life Term Rider
  2. Edelweiss Tokio Life Critical Illness Rider

Exclusions

  • In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.