Compare Edelweiss Tokio Life Wealth Accumulation (Accelerated Cover)

Edelweiss Tokio-Life-Insurance-Company

Edelweiss Tokio Life Wealth Accumulation (Accelerated Cover)

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.

Key features of the plan

  • There is a choice of 6 investment funds for investing the allocated premium.
  • Partial withdrawals, switching, premium redirections and top-ups are allowed under the plan.
  • The Sum Assured can be increased or decreased under the plan.

How does the plan work?

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.

Example

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.

Plan benefits

  • Death benefit – if the life insured dies during the plan term and due premiums have been paid, the death benefit would be payable. The death benefit is higher of -
  • Sum Assured including any top-up premium Sum Assured
  • Fund Value including any top-up premium Fund Value
  • 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.

  • Maturity Benefit – when the plan matures, the available Fund Value as well as any top-up premium Fund Value is paid to the policyholder. The policyholder can receive this maturity benefit in lump sum or in instalments over a 5-year period after maturity through Settlement Option feature.
  • Guaranteed Additions – the plan also adds Guaranteed Additions if the policy is in-force, i.e. all due premiums are being paid under the policy. The rate of addition depends on the premium amount and premium paying term. Here are the rates of Guaranteed Additions:
  • 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
    8-9 years NA 2% NA 2% NA 2%
    10-13 years 4% 4% 4% 4% 3% 3%
    14 6% 6% 4% 4% 3% 3%
    15+ 2% 2% 2% 2% 2% 2%
  • Partial withdrawals – the policyholder can make partial withdrawals after the first 5 years. The minimum amount of withdrawal is Rs.5000. Two withdrawals are free of charge.
  • Switching –the policyholder can make switches throughout the plan tenure for changing funds. The minimum switch amount is Rs.5000. First four switches are free of cost.
  • Premium redirection – future premiums can be redirected to be invested into another fund through the facility of premium redirections. Two redirections are allowed free of cost.
  • Top-up Premiums – additional premiums can be paid through top-ups. The minimum amount of top-up is Rs.5000 and top-ups increase the Sum Assured. The top-up Sum Assured is 1.25 times the top-up premium for ages below 45 years and 1.1 times if age is 45 years and above.
  Minimum Maximum
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
Rs.12 lakhs
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

What is not covered in the policy?

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.

FAQs

How do top-ups increase the Sum Assured?

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.

What are the premium paying modes?

Premiums can be paid annually, half-yearly, quarterly or monthly.

What are the conditions for altering the Sum Assured?

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.

Can the Sum Assured be increased after it is decreased?

No, once the Sum Assured is decreased once it cannot be increased further.

Do top-up premiums have a lock-in period?

Yes, top-up premiums have a lock-in period of 5 years from the date they are paid.


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