Insurance plans that come with additional wealth benefits is perfect for those who are looking for insurance cover as well as a method to grow their investments. Life is unpredictable and it is important for every individual to ensure that their’s and their family’s financial needs are taken care of in case of unfortunate events. Endowment plans are the perfect method to ensure this. The Single Pay Endowment Assurance Plan by Edelweiss Tokio Life is a non-linked, non-participating plan intended for enhancement of the policyholder’s wealth. This single pay premium plan comes with a number of benefits and features such as comprehensive cover at plan maturity as well as death benefit to the nominee in case of the policyholder’s untimely death. Additionally, policyholders can avail additional cover through riders in order to enhance their policy.
In order to procure this plan, customers will have to first choose their premium by deciding on their wealth enhancement requirement and then find out the maturity benefit. Factors such as gender, age and premium determines the amount of maturity benefit that can be availed.
Policyholders can then opt for a rider to further enhance their cover and select a nominee who will receive the policy proceeds in case of their death. Tax benefits can also be procured on Single Pay Endowment Assurance Plan.
In order to avail this plan, policyholders will have to meet the following eligibility criteria.
|Entry Age of Policyholder (in years)||8 to 50|
|Maximum Age of Maturity (in years)||60|
|Policy Tenure||10 years|
|Premium Payment Tenure||One time Pay|
|Premium Payment Frequency||Single|
All ages are based on the last birthday of the individual.
Sum Assured is dependent on a number of factors such as premium paid, policy tenure, etc.
|Minimum Sum Assured||Rs.4,00,000|
|Maximum Sum Assured||No limit but is subject to underwriting|
The Sum Assured in this case will be equal to 10X the single premium amount that is paid.
The premium amount that is to be paid will be decided based on the wealth enhancement requirement that the policyholder has. Discussions based on Edelweiss Tokio Life’s advisor will help policyholders come to an understanding regarding their premium amount.
|Minimum Premium Amount||Rs.40,000|
|Maximum Premium Amount||No limit but is subject to underwriting|
Customers will have to note that premiums will vary based on location, age and premium payment term among other factors.
|Death Benefit||Upon untimely demise of the policyholder, a Sum Assured amount that is equal to 10X Single Premium will be paid to the nominee.|
|Maturity Benefit||The maturity benefit will be paid based on the age of entry, gender and premium band of the life assured. This benefit is different for male policyholder and female policyholders, as illustrated in the table given below. This benefit is guaranteed for the tenure of the policy.|
|Surrender Benefit||Policy can be surrendered after a period of one year. If the policy has been surrendered after the first year of policy, the following is payable-
The premium bands are:
|Premium Band||Premium Range|
|1||Rs.40,000 to Rs.99,999|
|2||Rs.1,00,000 to Rs.2,49,999|
|3||Rs.2,50,000 to Rs.9,99,999|
|4||Rs.10,00,000 to Rs.24,99,999|
|5||Rs.25,000 and over|
For female policyholders, the following maturity benefit will be paid -
In order to enhance their cover, policyholders can avail any of the following riders -
Customers will have to note that the Rider Sum Assured amount cannot be more than the Base Sum Assured amount. Total premium for Rider cannot be more than 30% of the premium of the base product.
In case the policyholder commits suicide within a period of one year from the date of policy commencement, regardless of whether sane or insane, the policy will cease to exist and 90% of all premiums that have been received will be paid.
|Free Look Period||In case customers are not satisfied with the policy, they can return the same along with stated reasons within a period of 15 days from date of policy receipt. In case the policy has been sold through distance marketing methods, i.e., wherein policy was sold through a method that did not involve face-to-face interaction, the Free Look Period available is 30 days. The premium amount that is paid will be refunded after cost of medical expenses and stamp duty is deducted.|
|Nomination||Nomination is compulsory under this plan and will be done in accordance with all provisions of Section 39 of the Insurance Act of 1938.|
|Assignment||Assignment is accepted on request under this plan and will be done in accordance with all provisions of Section 39 of the Insurance Act of 1938.|
|Service Tax||Service tax will be charged based on the existing rules of Service Tax law.|
|Policy Loan||Once the policy has acquired surrender value, policy loan will be available.|
Tax benefits can be procured under Section 80C as well as Section 10 (10D) of the Income Tax Act of 1961. All premium that has been paid for Critical Illness Rider will qualify for deduction under Section 80D of the Income Tax Act of 1961.
However, tax laws are subject to change from time to time based on prevailing tax laws, hence customers are asked to talk to their tax advisors prior to investing.
In addition to the sheer number of advantages offered by this endowment plan, other benefits are provided by Edelweiss Tokio Life to all its customers. Some of these include:
Insurance plans are highly necessary in today’s circumstances. Edelweiss Tokio Life Insurance is one of the most renowned providers of insurance in the market today with an unblemished reputation. This insurance company stands for cost consciousness, quality along with emphasis on customer care. Edelweiss Tokio Life boasts of a very simple and hassle-free claims process and high claim-settlement ratio. Employing the best in technology and customer care services, Edelweiss Tokio Life is known for its multitude of plans. Edelweiss Tokio Life has won a number of awards such as the Best Life Insurer Award in the year 2016.