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Edelweiss Tokio Wealth Ultima

Edelweiss Tokio Wealth Ultima is a unit linked insurance plan by Edelweiss Tokio Life Insurance. The policy comes with a unique combination of i) systematic monthly plan - to help with wealth accumulation and protection from market volatility, ii) systematic transfer plan - to help with wealth preservation and money transfer from one asset class to another in a timely fashion and iii) systematic withdrawal plan - to help with proper wealth utilization. These, with many other features, make the Wealth Ultima plan an ideal choice among ULIPs.

About Edelweiss Tokio Life Insurance - Established in 2011, Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Japan-based Tokio Marine Holdings. The company offers a range of insurance products, from pure term plans, retirement plans, savings cum insurance plans to critical illness plans. For the year 2017-2018, the company's claim settlement ratio stood at 95.24%.

(Note - All the information contained in this page has been sourced from the official website of Edelweiss Tokio Life Insurance.)

Features - Edelweiss Tokio Wealth Ultima

The features of Edelweiss Tokio Life – Wealth Ultima are as under:

  • It is a unique combination of Systematic Monthly Plan, Systematic Transfer Plan and Systematic Withdrawal Plan.
  • There are various additions in the policy.
  • Wealth Ultima provides life cover, which pays out a lump sum amount to the beneficiary in case of the life assured’s death.
  • Under the optional Little Champ Benefit feature, if the policyholder passes away during the policy term, the plan shall continue and the child will receive the policy benefits as planned.
  • There is a choice of Policy Term and Premium Paying Term. The Policy Term ranges from 10 years to ‘till age 100’, while Premium Paying Term ranges from 5 years to ‘till the end of the policy term’.

Benefits - Edelweiss Tokio Wealth Ultima

Death benefit

In the event of death of life assured while the policy is in-force, the below benefit will be paid: i. For policies where entry age of the life insured is below 1 year: In case of death of life assured in the first 12 months from the date of policy commencement, the death benefit payable is the sum of: Higher of: a) Fund value; or b) 105% of total premiums received by the insurer AND Higher of: a) Top-up fund value; or b) 105% of total top-up premiums received by the insurer In the event of death of the life assured after the first 12 months from the date of policy commencement, the death benefit shall be the same as that payable for policies with entry age of the life assured of 1 year and above. ii. For policies where the entry age of the life assured is 1 year or more:

Death benefit payable is the sum of:

Highest of: a) Fund value; or b) Sum assured less relevant partial withdrawals; or c) 105% of total premiums paid AND Highest of: a) Top-up fund value; or b) Top-up sum assured; or c) 105% of total top-up premiums paid.

Maturity Benefit

If the life assured outlives the policy term, the fund value will be paid as maturity benefit. The individual shall be given the option to collect the maturity proceeds in instalments. This is referred to as the Settlement Option.

Eligibility Criteria

This plan has 2 options: Option 1: Policies wherein Age of the life assured at maturity is 70 years or less Option 2: Policies wherein Age of the life assured at maturity is 100 years

Minimum / Maximum Policy Term

Minimum Policy Term

10 years

Maximum Policy Term

5-6 PPT: 70 minus age at entry (Only Option 1 is available)

7 PPT and above: 100 minus age at entry (Both Option 1 & Option 2 are available)

Policy Term is subject to minimum / maximum maturity age.

Source: Edelweiss Tokio Life Insurance website

For Option 1 & 2: Entry Age (Age last birthday)

With Little Champ Benefit

Without Little Champ Benefit

PPTs

Life Insured

Policyholder

Life Insured

Minimum Entry Age

All PPTs

0 Years

18 Years

0 Years

PPT

Life Insured

Policyholder

Life Insured

Maximum Entry Age

5 Pay

17 years

70 years

50 years

6 & 7 Pay

17 years

70 years

55 years

8 Pay

17 years

70 years

60 years

9 – 13 Pay

17 years

65 years

60 years

14 – 27 Pay

17 years

60 years

60 years

28 – 30 Pay

17 years

55 years

60 years

31 & Above Pay

NA

NA

60 years

Source: Edelweiss Tokio Life Insurance website

Minimum / Maximum Age of Life Insured at Maturity

Option / PPT

5 – 6 Pay

7 Pay and above

Minimum

Option 1

18 years

18 years

Option 2

NA

100 years

Maximum

Option 1

70 years

70 years

Option 2

NA

100 years

Source: Edelweiss Tokio Life Insurance website

Premium Details

Premium Paying Term (PPT)

Option

Policy Term

PPT

With Little Champ Benefit

Without Little Champ

Benefit

Option 1

10 - 30 years

Regular Pay

Available when age of the life assured at maturity is less than or equal to 30 years.

Available

Limited Pay

5 Years to Minimum of

• Policy Term – 1 year, or

• 30 years minus age at entry of the Life Insured)

5 years to (Policy Term - 1 year)

31 years and

above

Regular Pay

Not Available

Available

Limited Pay

5 years to (30 years minus age at entry of Life Insured)

5 years to 30 years

Option 2

100 minus age

at entry

Regular Pay

Not Available

Available

Limited Pay

5 years to (30 years minus age at entry of Life Insured)

5 years to 30 years

Premium Type

Age at Entry

Minimum Sum Assured

Maximum Sum Assured

Base Premium

0 - 44 years

Higher of (10, PT/2) * AP

Higher of (10, PT/2) * AP

45 years and above

Higher of (7, PT/4) * AP

10 * AP

Top-Up Premiums

0 - 44 years

1.25 * TP

10 * TP

45 years and above

1.1 * TP

5 * TP

Source: Edelweiss Tokio Life Insurance website

Policy Details

Additions in the Fund: Wealth Ultima has three kinds of additions, namely Guaranteed Additions, Loyalty Additions and Booster Additions. These additions help in enhancing the fund value, thereby bringing down the total cost under the plan.

Tax Benefits: Tax deduction can be claimed under Section 80C of the Income Tax Act, 1961, for the premiums paid toward the plan. The maximum deduction that can be claimed under this section is Rs. 1,50,000. Proceeds from the policy are completely tax-free in the hands of the receiver under Section 10(10D) of the Income Tax Act.

How does Edelweiss Tokio Life - Wealth Ultima Work?

1 - Select Premium, Policy Term, Premium Paying Term, Sum Assured and Premium Mode.

2 - Select Little Champ Benefit (Optional).

3 - Select Systematic Transfer Plan (STP) or Self Managed Strategy and Systematic Withdrawal Plan (SWP) (Optional).

4 - On policy maturity, the individual will receive the maturity benefit. In case of demise during the policy term, death benefit will be payable.

Documents Required

An individual will have to submit certain documents to avail Edelweiss Tokio Life - Wealth Ultima plan. The documents include:

  • Identity Proof - PAN card, Aadhaar card, Passport, etc.
  • Address Proof- Aadhaar card, Passport, Driving license, etc.

Exclusion of edelweiss tokio life wealth Ultima plan

Suicide Claim provisions:

In the event of death due to suicide within 12 months from the date of the policy’s inception or from the revival date of the policy, the policyholder’s nominee or beneficiary shall be entitled to fund value, as available on the date of demise. Any charges recovered subsequent to the date of death of the life assured will be paid back to nominee or beneficiary along with death benefit

Review of edelweiss tokio life wealth Ultima plan

Edelweiss Tokio Life – Wealth Ultima is a combination of Systematic Monthly Plan (wealth accumulation), Systematic Transfer Plan (wealth preservation) and Systematic Withdrawal Plan (wealth utilization). It comes with an optional feature called “Little Champ Benefit”, where the child of the life assured is financially protected in the event that he or she (i.e. the policyholder) passes away. Wealth Ultima is a well-thought-out plan that enables the life assured to create long-term wealth and safeguard self and loved ones against the uncertainties of life.