• Term Life
  • Investment

Edelweiss Tokio Life Income Replacement Plan

The income replacement plan from Edelweiss Tokio Life is a pure term life insurance plan. This term life insurance plan aims to provide your family with financial protection in case of unfortunate demise of the life insured. It is a non-linked, non-participating term plan with regular, limited and single premium options. The death benefit is paid in the form of monthly instalments for the entire policy term or five years, whichever is later.

This term plan aims to substitute regular income for dependents in case of death of the breadwinner of the family. At the time of purchasing the policy, the life insured has to decide the monthly income that would be required for his/her family. The benefit amount increases by five per cent every year to match the rising inflation. Apart from a regular and single premium payment option, the company also allows you to pay the premium for a limited term and enjoy the insurance cover throughout the policy term.

Features of Life income replacement plan

Free look period: In case you are not satisfied with the policy terms and conditions, you may choose to cancel the plan within 15 days (30 days for Web and Telemarketing Channel) from the policy receipt date. Upon such cancellation, you will be paid back the premium. However, the stamp duty, medical costs and other expenses will be deducted from the premium.

Grace period: The company provides a grace period of 30 days to pay yearly premium from the due date. The grace period is the extra days provided to make the payment.

Policy lapse: Your policy will lapse if you fail to make the premium payment within the grace period.

Policy revival: A lapsed policy can be revived within two years from the date of first unpaid premium. You need to pay all outstanding premiums and undergoing underwriting requirements, if any.

Nomination and assignment: The Company obtains the nominee details at the time of purchasing the policy. The policyholder is allowed to change the nominee by contacting the nearest branch of the company. Assignment and nomination are permitted under Section 38 and 39 of the Insurance Act, 1938.

Benefits of Life income replacement plan

Death benefit: In the event of unfortunate death of the life insured during the policy term, the nominee would receive a monthly benefit as chosen till the end of the policy term or five years, whichever is early. The amount increases every year by 5%. Maturity benefit: Being a pure protection plan, Edelweiss Tokio Life income replacement policy does not provide any maturity or survival benefits.

Policy termination or surrender benefit: The plan offers a surrender or policy termination value only in case of single and limited payment options. The policy can be surrendered from the second year in case of a single premium option, and after the completion of premium paying term in case of limited pay option.

Surrender value for single pay option:b Single premium x 70% x (number of remaining policy months / total policy term in months) Surrender value for limited pay option: Total premiums paid x 70% x (number of remaining policy months / total policy term in months)

Eligibility Criteria

The customers need to meet the following criteria in order to purchase the Edelweiss Tokio Life income replacement plan.

ParameterMinimumMaximum
Monthly Benefit15,000No limit
Policy term10 years30 years
Premium payment termSinge: 5,10,15 yearsEqual to policy term
Entry age18 years60 years
Age at maturity18 years70 years
Payment ModesAnnual-

Other details of the Life income replacement plan

Income tax benefit: Premiums paid up to Rs. 1,50,000 towards the policy, are allowed as a deduction from the taxable income every year under Section 80C of the Income Tax Act, 1961. Additionally, the death benefits received under this plan are tax free under Section 10(10D) of the Income Tax Act, 1961.

Riders: There are 4 riders available under this plan.

  • Edelweiss Tokio Life - Accidental Total and Permanent Disability Rider (147B001V02)
  • Edelweiss Tokio Life - Accidental Death Benefit Rider (147B002V02)
  • Edelweiss Tokio Life - Waiver of Premium Rider (147B003V02)
  • Edelweiss Tokio Life - Critical Illness Rider (147B005V02)

Rebate on the large sum assured: The company provides a rebate on the premium amount on the large sum assured. Discount for non-smokers and female policyholders: The company provides discounted premium rates for non-tobacco users and female policyholders.

Product details

Edelweiss Tokio Life income replacement plan at a glance.

ParameterMinimumMaximum
Entry age18 years60 years
Age at maturity28 years70 years
Policy term10 years30 years
Premium paying termSingle pay, 5 pay, 10 pay, 15 pay, regular pay
Premium paying frequencyAnnual
Yearly premiumDepends on age, sum assured, policy term and premium paying term
Minimum monthly benefit15,000No limit
Monthly benefit amount x 12 x policy termMonthly benefit amount x 12 x policy term

Premium details

Annual premium illustration for a non-smoker, 25-year old individual with a monthly benefit of Rs. 25,000.

Age/Premium payment termSingle pay5 pay10 pay15 payRegular pay
30 yearsRs. 79,885Rs. 18,510Rs. 10,743Rs. 8180Rs. 6618
35 yearsRs. 105,585Rs. 24,275Rs. 10,743Rs. 10,560Rs. 8310
40 yearsRs. 147,945Rs. 33,913Rs. 19,463Rs. 14,688Rs. 11,595

Documents required

The following documents are required to process Edelweiss Tokio Life income replacement plan.

Age proof: The age proof can be any of these – Driving license, School/college certificate, Passport, PAN card, Birth Certificate.

Identity proof: Voter ID, driving license, PAN card or Aadhar card can be used an identity proof.

Address proof: Electricity bill, Bank account statement can be presented as the proof of address.

Income proof: Income tax return or employer certificate can be presented as an income proof at the time of purchasing the policy.

Apart from the list mentioned above, the policyholder has to fill up an application or proposal form and provide self-attested copies of KYC documents.

Exclusions - Life income replacement plan

Below are the circumstances that Edelweiss Tokio Life income plan doesn’t cover.

Suicide: In case the policyholder commits suicide within 12 months from the policy commencement, the policy is subject to lapse, and no benefits shall be payable to the nominee.

In case the policyholder commits suicide within 12 months from the policy revival, the policy is subject to lapse, and no benefits shall be payable to the nominee.

Loan option: There is no provision to obtain a loan against the Edelweiss Tokio Life income replacement plan.

Review of Life income replacement plan

The loss of life cannot be replaced, but insurance protection can help your family in financial difficulties, in case the earning member dies. Edelweiss Tokio Life income replacement plan is a pure term insurance plan that aims to replace regular monthly income in case of unfortunate demise of the policyholder.

The premium payment mode under this policy can be useful for those who are unsure of regular income inflow after a few years, or those who fear faltering premium payment. The premium paying tenure can be chosen to suit your wallet.

The monthly income would increase every year by 5%. The monthly income provided under this policy makes it more apt for families who may not be able to manage or need a lump sum amount at the time of the death of the life insured. The policy offers premium discounts to non-smokers and female policyholders, and high sum assured. The policy provides coverage to senior citizens up to the age of 70 years.

The policy offers 4 riders. Moreover, half-yearly, quarterly and monthly premium payment modes are not available under this plan. The premiums paid towards this policy are exempted from taxable income up to Rs. 1,50,000 per annum.

FAQs on Income Replacement Term Plan

Who can buy the Edelweiss Tokio Life income replacement plan?

Any Indian national between 18 years and 60 years of age can buy this plan.

Why should I buy the Edelweiss Tokio Life income replacement plan?

Edelweiss Tokio Life income replacement plan provides regular income in case of unfortunate demise of the life insured. The death benefit is paid in the form of monthly instalments for the policy term or five years, whichever is earlier.

Apart from this, the policy provides some key features such as free look period, surrender value, a grace period for premium payment, discounted premiums for high sum assured, non-tobacco users and female policyholders. Moreover, the premiums provided towards this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.

How does Edelweiss Tokio Life income replacement plan work?

It is a pure term plan with the regular, limited and single premium payment option. On the death of the policyholder, the chosen monthly benefit is payable to the nominee which increases by 5% every year. This death benefit is paid to the nominee for the remaining policy term or five years, whichever is earlier.

What maturity benefits are available under Edelweiss Tokio Life income replacement plan?

Life income replacement plan is a pure term life insurance policy; no maturity or survival benefits are payable to the policyholder.

What riders are available under Edelweiss Tokio Life income replacement plan?

There are 4 riders are available under this plan.

  • Edelweiss Tokio Life - Accidental Total and Permanent Disability Rider (147B001V02)
  • Edelweiss Tokio Life - Accidental Death Benefit Rider (147B002V02)
  • Edelweiss Tokio Life - Waiver of Premium Rider (147B003V02)
  • Edelweiss Tokio Life - Critical Illness Rider (147B005V02)

Is it possible to revive my Edelweiss Tokio Life income replacement policy? If yes, How?

If a policy has lapsed, it can be revived within two years, starting from the date of first unpaid premium. The policyholder needs to make the payment of all outstanding payments to restore the plan.

What is the company’s process to settle a claim?

The Edelweiss Tokio Life insurance has a seamless process to file and settle the claim. In order to settle the claim, you need to submit the original policy along with the necessary documents and the claim form at any branch office in your city. Once the company verifies the documents, it takes about 30 days to settle the claim. The funds will be transferred to your bank account through NEFT.

How to pay the premium? What payment modes are available?

There are two premium payment modes are available for Edelweiss Tokio Life. Online mode:

  • Debit card
  • Credit card
  • Payment through standing instructions
  • Net banking

**Offline mode:

  • Through ECS facility
  • IVRS
  • Money order
  • Cash/DD/Cheque

You can also pay the premium in cash by visiting the nearest branch in your area.

What is the policy renewal process?

You can renew the policy by using the auto direct debit option, and it can be done online using your login id and password. In case of offline mode, you can approach any branch office or speak with the customer care at 1800 2121 212 (between 8 am to 8 pm) regarding policy renewal.