Edelweiss Tokio Life’s Wealth Accumulation (Accelerated Cover) is a Unit Linked Insurance Plan which provides enhanced life insurance coverage along with market-linked returns. The plan allows flexibility of investing additional premium through top-ups and also allows liquidity through partial withdrawals.
Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term. The minimum and maximum Sum Assured is then calculated using the age of the insured and the plan term. The policyholder can choose any Sum Assured from the minimum and maximum range depending on his coverage needs.
Step 2 – the policyholder then chooses the funds in which he wants the premium to be invested. The available funds are Equity Large Cap Fund, Equity Top 250 Fund, Bond Fund, Money Market Fund, Managed Fund, Price/Earning Based Fund.
Step 3 – the policyholder can make partial withdrawals or switch his investments from one fund to another.
Step 4 – top-ups can be done to increase the investment in a chosen fund.
Step 5- in case of death during the plan term, the death benefit is paid.
Step 6 – if the insured survives the plan tenure, the maturity benefit is paid.
Reema buys the plan by paying a premium of Rs.50,000. She is aged 35 years and chooses a Sum Assured of Rs.5 lakhs. The fund she chooses is Equity Large Cap Fund.
Option 1 – if Reema survives the plan term she gets the Fund Value. She can take the Fund Value in lump sum or in instalments over 5 years after maturity.
Option 2 – If Reema dies during the plan term, higher of the Fund Value or Sum Assured is paid subject to a minimum of 105% of all premiums paid under the plan.
Reema can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure. She can choose to redirect future premiums to another fund different from Equity Large Cap Fund.
Provided that the death benefit is at least 105% of the total premiums paid till death
If the life insured dies before reaching 60 years of age, the Sum Assured would be deducted for any partial withdrawals made during two years prior to death
If the life insured dies after attaining 60 years, any partial withdrawals made after crossing 58 years of age would be deducted from the Sum Assured.
|Policy year end||Premium below Rs.1.5 lakhs||Premium Rs.1.5 lakhs to Rs.9.99 lakhs||Premium Rs.10 lakhs and above|
|Premium paying term 5 years||Premium paying term more than 5 years||Premium paying term 5 years||Premium paying term more than 5 years||Premium paying term 5 years||Premium paying term more than 5 years|
|Age at entry (in completed years)||5 years||65 years|
|Age at maturity (in completed years)||18 years||75 years|
|Term of the plan||10 years||30 years|
|Premium paying options||Regular pay or Limited Pay|
|Premium Paying term||5,7 or 10 years or equal to plan term|
|Annual premium amount||Annually - Rs.25,000
Half-yearly – Rs.18,000
Quarterly – Rs.9000
Monthly – Rs.3500
|Sum Assured||If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above - higher of 7 times the annual premium or 0.25*term*annual premium
|If age is up to 45 years – 25 times the annual premium
If age is 45 years and above 20 times the annual premium
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.
The minimum additional Sum Assured for top-ups is 1.25 times the top-up if age is below 45 years. if age is 45 years and above the minimum Sum Assured is 1.10 times the top-up. The maximum increase in Sum Assured due to top-up at all ages is 5 times the top-up premium.
Premiums can be paid annually, half-yearly, quarterly or monthly.
The Sum Assured can be increased or decreased from the 6th policy year onwards. While increase is allowed if the insured is below 50 years of age, decrease in Sum Assured is allowed at any age.
No, once the Sum Assured is decreased once it cannot be increased further.
Yes, top-up premiums have a lock-in period of 5 years from the date they are paid.