Compare Edelweiss Tokio Life Wealth Builder Plan

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Edelweiss Tokio Life Wealth Builder Plan

Edelweiss Tokio Life Wealth Builder Plan is a traditional endowment plan which promises guaranteed returns on death or maturity of the plan. The plan accrues Guaranteed Additions which enhance the benefits payable. The maturity and death benefit of the plan depends on the premium amount and the policyholder is free to choose any premium amount depending on his requirements and affordability.

Key features of the plan

  • Premiums are payable only for a limited tenure.
  • An additional benefit is paid on maturity for choosing a higher level of premium amount.
  • Guaranteed Loyalty Additions are paid during the plan tenure which increases the benefits paid under the plan.
  • Loans are available under the plan for financial emergencies.
  • Seven additional riders can be availed under the plan for enhanced coverage option.

How does the plan work?

Step 1 – the policyholder chooses the premium amount, the plan term, premium paying term and frequency. Based on the above factors, the Sum Assured on maturity and death benefit is calculated.

Step 2 – the policyholder can also opt for additional riders to increase the scope of coverage.

Step 3 - if the insured survives the plan tenure, the maturity benefit is paid.

Step 4 – if the insured dies during the plan tenure, the death benefit is paid.

Example

Mr. Sharma buys the plan for a term of 20 years and pays premiums of Rs.50, 000 for 10 years annually.

Option 1 – Guaranteed Loyalty Additions are paid under the plan from the 16th policy anniversary to the 20th year. The amount of additions would depend on the policy term, premium paying term, age of the insured and the premium amount.

Option 2 – if Mr. Sharma survives the plan term, the maturity benefit is paid which is the total premium is paid during the plan tenure, i.e. Rs.5 lakhs. Accrued Guaranteed Loyalty Additions are also paid on maturity. Since premium does not exceed by Rs.20, 000 over Rs.40, 000, no large premium benefit is paid.

Option 3 – in case of Mr. Sharma’s death during the plan term, higher of the Sum Assured on Maturity, 105% of premiums paid till death, 10 times the annual premium or absolute amount assured payable on death is paid to the nominee.

Plan benefits

  • Death benefit – if the life insured dies during the term of the plan, and all premiums have been paid, the death benefit is paid which depends on the entry age of the life insured. If the life insured’s entry age is above 5 years the Sum Assured on Death and accrued Guaranteed Loyalty Additions are paid. The Sum Assured on Death is higher of 10 times the annual premium, Sum Assured on Maturity, 105% of premiums paid till death or absolute amount assured payable on death.
  • If the insured is below 5 years when buying the plan, the risk cover starts one month before the completion of the second policy year. If death happens in the first 1 year 11 months of the plan, 105% of the premiums paid are returned as death benefit. After risk commences, the death benefit would be equal to the benefit payable for ages 5 years and above.

  • Maturity Benefit – when the chosen tenure of the plan comes to an end, and all premiums have been paid, the Sum Assured on Maturity and accrued Guaranteed Loyalty Additions are paid. The Sum Assured on Maturity is computed as aggregate of all premiums paid during the term.
  • Guaranteed Loyalty Additions – Guaranteed Loyalty Additions are added later in the policy years and are calculated as a percentage of the total annual premiums paid up to the last policy year. The duration of the additions depends on the policy term and is as follows:
  • Term of the Plan Duration of Guaranteed Loyalty Additions
    10 years From the 9th policy year to 10th policy year
    15 years From the 11th policy year to the 15th policy year
    20 years From the 16th policy year to the 20th policy year
    25 years From the 16th policy year to the 25th policy year
    30 years From the 16th policy year to the 30th policy year
  • Large premium benefit – an additional cash benefit is paid on maturity if the premium amount paid by the policyholder is more than Rs.40, 000. The benefit is available for every Rs.20, 000 exceeding Rs.40, 000 and the amount depends on the policy tenure. The benefit amounts are as follows:
  • Term of the plan Additional benefit payable on maturity for choosing a higher premium amount
    10 years Rs.5000
    15 years Rs.10,000
    20 years Rs.20,000
    25 years Rs.20,000
    30 years Rs.20,000
  • Loan – the policyholder can take up to 90% of the acquired Surrender Value as policy loan.

Eligibility

  Minimum Maximum
Age at entry (in completed years) 91 days 55 years
Age at maturity (in completed years) 18 years 70 years
Term of the plan 10,15,20,25,30 years
Premium paying options Limited pay
Premium Paying term 5,7,10,12 years
Premium amount Annually – Rs.18,000
Half-yearly – Rs.8000
Monthly – Rs.1500
 
Absolute Amount Assured payable on death Premium paying term 5 or 7 years – 10 times the annual premium
Premium paying term 10 years – 11 times the annual premium
Premium paying term 12 years – 13 times the annual premium
Sum Assured on Maturity Aggregate Annual Premium paid

What is not covered in the policy?

  • In case of suicide committed within 12 months of inception, 80% of the premiums paid are refunded.
  • If suicide is committed within 12 months of revival, higher of 80% of the premiums paid or the surrender value under the plan is paid.

Premium Illustration

Below are the sample rates of Guaranteed Loyalty Additions earned by a non-tobacco user male for a combination of different ages, premium paying term and premium. The premiums are paid annually and the plan term is taken to be 20 years.

Edelweiss-Tokio-Life-Wealth-Builder-Plan

FAQs

>Which riders are available under the plan?

The plan has seven available riders which are as follows:

  • 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 – Payor Waiver Benefit Rider
  • Edelweiss Tokio Life – Income Benefit Rider
  • What are the available premium paying frequencies under the plan?

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

What is the free-look period?

A free-look period of 15 days from the date of policy issuance is allowed under the plan. If the policy is sourced through distant marketing channels, the free-look period increases to 30 days.

What is the grace period allowed for paying premiums?

A period of 30 days is allowed as grace period for all modes of premium paying frequencies.

When does the plan acquire Surrender Value?

For a premium paying term of 5 or 7 years, the plan acquires a surrender value when the first years’ premium has been paid. In case of other premium paying terms, the plan acquires a Surrender Value only after the first 2 years’ premiums have been paid.


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