Edelweiss Tokio Life Wealth Accumulation Plan (Accelerated Cover)

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Introduction/Overview

Edelweiss Tokio Life Wealth Accumulation (Accelerated Cover) is a Unit Linked Insurance Plan which provides growth potential through participation in capital markets and also life insurance cover.

Key Features

  • It is a unit linked plan with Limited and Regular Pay option of premium payment
  • Guaranteed Additions are added from the 8th policy year if PPT is greater than 5 years or from the 10th policy year for PPT lower than 5 years, where PPT is Premium Paying Tenure
  • The following 6 funds are available for investment
  1. Equity Large Cap Fund
  2. Equity Top 250 Fund
  3. Bond Fund
  4. Money Market Fund
  5. Managed Fund
  6. Price Earning based Fund

Benefits

  • Guaranteed Additions are expressed as a % of annual Premium and depend on the PPT and premium amount
  • The insured will get the total Fund Value on Maturity including Top-up Fund Value
  • The maturity benefit can be taken in instalments over a period of 2, 3, 4 or 5 years through the Settlement Option
  • On death of the policyholder, higher of the Sum Assured net of partial withdrawals made in the last 2 years if the age attained was less than 60 years or Fund Value subject to a minimum of 105% of all premiums paid till death is payable
  • If age attained was more than 60 years, higher of the Sum Assured less withdrawals made after age 58 or the Fund Value subject to a minimum of 105% of all premiums paid is payable
  • The Sum Assured and Fund Value under both the cases will include top-up Sum Assured and top-up Fund Value
  • Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

5 years

 65 years

Maturity Age (Last Birthday)

18 years

75 years

Policy Term (PT) in years

10

30

Premium Paying Term (PPT) in years

5 / 7 / 10 Pay or equal to policy term

Premium paying Frequency

Annual, half-yearly, quarterly, monthly

Yearly Premium

25,000

No limit

Sum Assured

Higher of 10*annual premium or 0.5*term*annual premium for ages<45 years and higher of 7*annual premium or 0.25*term*annual premium for ages>=45 years

25*annual premium for ages<45 years or 20*annual premium for ages>=45 years

 

Policy Details

Grace Period: 15 days grace period is allowed for monthly mode and 30 days for other modes of premium payment after which policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 5 completed years. If surrendered before 5 years, the fund value net of discontinuation charge will be credited to the Discontinued Policy Fund where it will earn a minimum of 4% p.a. growth. After completion of 5 years, the fund value in the Discontinued Policy fund as on that date will be paid to the policyholder. If surrendered after 5 completed policy years, the entire Fund value on the date of surrender is paid without any charges

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

  • 2 free Partial withdrawals are allowed every year after 5 completed policy years with a minimum value of Rs.5,000
  • 4 free Switches are allowed every year for switching between funds
  • 2 free Premium Redirection is allowed to redirect future premiums

Additional Features or Riders

  • Top-ups increase the Sum Assured where the Top-up SA is 1.25*top-up premium for ages <45 yrs. and 1.10*top-up premium for ages>=45 years
  • The PPT can be changed subject to certain terms and conditions
  • Sum Assured levels can also be increased or decreased as per applicable conditions

Exclusions

The benefit paid in case of suicide within 12 months of policy inception or revival is the fund value as on that date.

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history and submit KYC documents.