Edelweiss Tokio Life Wealth Plus is a unit-linked insurance plan (Ulip) by Edelweiss Tokio Life and offers the option of a child plan. It boasts zero costs, other than those levied for fund management, insurance and premature surrenders. Here is more about this plan.
What do you get?
From an insurance perspective, this is a type-1 Ulip: on death of the policyholder during policy term, insurer pays higher of the fund value or the insurance cover subject to a minimum of 105% of the premiums paid. Sum assured is 10 times the annual premium. But if you choose the Rising Star option, which works like a child plan, the insurance benefits differ.
Here, policyholder is the parent and life insured is the child. If policyholder dies, the child gets a lump sum that is a multiple of the annual premium—decided by the age at which the plan was bought: if between 18 and 40 years, the multiple is 10 times annual premium; till 44, it reduces to 9 times and so on. The idea is to keep mortality costs low while preserving tax efficiency. After the lump sum is paid, insurer invests the remaining premiums on behalf of the policyholder and maturity benefits accrue as planned. The life insurance continues on the child. “In a typical child plan, premiums are invested as and when premiums are due. In this plan, all the premiums are invested upfront, which gives the advantage of compounding,” said Deepak Mittal, MD and CEO, Edelweiss Tokio Life Insurance Co. Ltd.
