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.
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.
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.
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.
|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|
|Term of the plan||Additional benefit payable on maturity for choosing a higher premium amount|
|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|
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.
The plan has seven available riders which are as follows:
Premiums can be paid annually, half-yearly or monthly.
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.
A period of 30 days is allowed as grace period for all modes of premium paying frequencies.
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.