The Dhan Labh Plan from Edelweiss Tokio is a non-linked non-participating life insurance plan with guaranteed returns. Policyholders are entitled to a guaranteed amount upon maturity of the plan and get life protection. The product has been designed with a simple structure so as to make it easy to understand for the life insured. There are flexible options available for policy terms and premium payment terms.
For any life insurance plan, the insurance provider sets certain eligibility requirements that the customer must fulfill in order to be able to avail the plan. In order to avail this plan, customers must meet certain criteria set out by Edelweiss Tokio.
|Minimum entry age||91 days|
|Maximum entry age||45 years|
|Minimum age at maturity||18 years|
|Maximum age at maturity||75 years|
*Ages mentioned refer to age last birthday
Given below are the details of the sum assured, premiums and policy terms available with the Edelweiss Tokio Life Dhan Labh Plan.
|Minimum sum assured||Rs.55,000|
|Maximum sum assured||No limit|
|Policy term||15, 20, 25, and 30 years|
|Premium payment terms||7, 10 and 12 years|
|Premium payment frequency||Annual, semi-annual, quarterly and monthly|
|Minimum Premiums||7-pay term
*Premiums vary based on age, location, plan term and other factors
The Edelweiss Tokio Life Dhan Labh Plan has a number of benefits for the life insured and their family. Given below are some of the important benefits associated with this plan.
|Death benefit||Upon the death of the life insured, the nominee will be entitled to claim the following (whichever is higher):
|Maturity benefit||If the life insured survives till the end of the policy term, the following is payable Annualised premium x premium payment term + large premium benefit, if any.|
|Assured Additions||Assured Additions amount depends on the policy term, premium payment term, and the annualised premium. The additions will accrue every year from the 13th policy year. It will be payable upon death or maturity.|
|Tax benefits||Available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.|
In case the life insured’s entry age is below 5 years, the risk cover will commence after 23 policy months. If the life insured dies during the first 23 months, then the death benefit payable will be 105% of the total premiums paid, not including any rider premiums, service tax, and underwriting extras.
Riders increase the level of protection offered to the life insured with the base plan. You can opt for a rider by paying an additional premium. The rider will payout different benefits upon the occurrence of the event it covers. Given below are the rider plans available with the Dhan Labh Plan from Edelweiss Tokio Life.
The rider sum assured cannot exceed the base sum assured. The total rider premium cannot be more than 30% of the base policy’s premium.
Inception of the policy - If the life insured commits suicide within 1 year from the commencement of the policy, whether medically sane or insane, the policy benefits are not payable. Edelweiss Tokio will refund at least 80% of the premiums paid till date (not including extra mortality premium).
Revival of the policy - If the life insured commits suicide within 1 year from the revival date of the policy, whether medically sane or insane, the policy benefits are not payable. Edelweiss Tokio will refund at least 80% of the premiums paid till date or the surrender value available on the date of death, whichever is higher.
Knowing the details mentioned in your life insurance policy document is very important. These details are mentioned in the policy document and you are advised to read it before purchasing it. Given below are some of the important features of the Edelweiss Tokio Life Dhan Labh Plan.
|Free-look Period||The policyholder has 15 days (30 days for policies sold through distance marketing) to review the policy. If they disagree with the terms of the policy, they can return the original policy bond and submit a letter with the reasons for objection. The policy will be cancelled and the premium will be refunded minus medical expense and stamp duty charges.|
|Grace Period||30 days is granted from the premium due date as a grace period. The benefits will continue till the end of the grace period.|
|Policy Loan||Once the policy acquires a surrender value, a loan can be availed against the policy. Interest rate is based on the SBI base rate + 1.75% p.a. or as declared by the company from time to time.|
|Policy Lapse||7-Pay Term If premiums are discontinued within the first two years, the policy will lapse. The company will not be liable to pay any surrender or paid-up value. If premiums are discontinued after paying two full years’ premiums, then the policy will be converted to a paid-up policy. 10 and 12-Pay Term If premiums are discontinued within the first three years, the policy will lapse. The company will not be liable to pay any surrender or paid-up value. If premiums are discontinued after paying three full years’ premiums, then the policy will be converted to a paid-up policy.|
|Reduced Paid-up Policy||Paid up factor = number of premiums paid / number of premiums payable Assured additions on Paid-up policies = annualised premiums x paid-up factor x assured addition rate. Death benefit is the higher of the paid-up sum assured on maturity or 105% of total premiums paid, plus accrued assured additions on paid-up. Maturity benefits is the paid-up factor x (sum assured on maturity + total assured additions).|
|Surrender Value||The higher of the Guaranteed Surrender Value or Special Surrender value will be payable if the policy is eligible for a surrender value. 7-Pay Term The policy will acquire a surrender value if premiums have been paid for at least 2 policy years. 10 and 12-Pay Term The policy will acquire a surrender value if premiums have been paid for at least 3 policy years. The Guaranteed Surrender Value is the surrender value of premiums + surrender value of accrued assured additions. The GSV is a percentage of the premiums paid up to the date of surrender (not including rider premiums and underwriting extras).|
|Reinstatement||From the due date of the first unpaid premium, you can reinstate your policy within 2 years. You need to submit the following:
|Nomination||Nomination is allowed as per the provision of Section 39 of the Insurance Act, 1938.|
|Assignment||Assignment is allowed as per the provision of Section 38 of the Insurance Act, 1938.|
As per the prevailing tax laws in India, you can claim for tax benefits under Section 80C and Section 10(10 D) of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. You are advised to consult a tax advisor to maximise your benefits.
When you choose Edelweiss Tokio as your insurance provider, you can stand to benefit from the following:
Edelweiss Tokio Life Insurance, a new generation insurance company, was set up with a commitment to build a long-term sustainable business. Based on its understanding of the diverse financial needs of Indian customers, the company has a customer-centric approach and develops its products
The Dhan Labh Plan is ideal for those who want to protect their families financially and at the same time, get guaranteed returns upon maturity. The plan offers extra benefits for higher premiums. Among other benefits, accrued additions from the 13th policy year also makes this plan attractive.
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