Wealth Ultima - Unit Linked Life Insurance Plan

Wealth Ultima - Unit Linked Life Insurance Plan

The first birthday of little Rohan was a happy moment for his father Laxman and his mother Rani. The Rohan's birthday party was celebrated at their residence in New Delhi. There were about 50 people present on the occasion including close friends and relatives. It was a wonderful birthday party. After the party, they (Laxman and Rani) were discussing the party, suddenly Rani changed the topic and started asking Mohan to start a recurring account for Rohan to save some money for his future needs. But Laxman wanted to buy a life insurance instead of starting an RD account in order to provide financial security to his family.

Though Laxman was not a financially savvy, but as a father, he wanted to do the best for his son Rohan. So next day, he discussed the whole matter with his colleague Mr. Sharma and asked him to suggest a good life insurance or some other options of investment. Mr. Sharma was well aware of Laxman's financial position and at the same time, he was very good in financial planning. Keeping in view, Laxman's steady income, needs and risk appetite, he suggested him not to go for a conventional life insurance plan rather buy a multifaceted insurance cum investment plan with some additional benefits. So he suggested him Edelweiss Tokio Life – Wealth Ultima (Unit Linked Life Insurance Plan).

Let's look at the key features and benefits of the plan, and then understand the reason why Mr. Sharma suggested him Wealth Ultima (Unit Linked Life Insurance Plan)

What is ULIP Plan

A ULIP (Unit Linked Insurance Plan) is a financial instrument offered by insurance companies that give investors best of both the insurance and the investment world. The two fold advantage of life cover along with options to choose investment avenue makes ULIP a popular financial instrument among investors. Almost all life insurance companies in India have ULIP plans in their bouquet of policies at competitive rates.

Edelweiss Tokio Life – Wealth Ultima

Edelweiss Tokio Life – Wealth Ultima is one among the new age ULIP plans that are available in the market. As per Edelweiss Tokio Life, this is a ULIP plan that is designed for accumulating your wealth by having an option to pay systematically through monthly or other modes, growing your wealth by capitalizing on multiple choices of STPs and/or funds and utilizing your wealth by opting for SWP. Edelweiss Tokio Life wins the Fintelekt Insurance Awards 2017 for the Best Product Innovation in Life Insurance.

                                                                              

The Power of Three

Edelweiss Tokio Life – Wealth Ultima has three pillars such as Systematic Monthly Investment Plan, Systematic Transfer Plan and Systematic Withdrawal Plan which are good options for the people who can invest on their own without any help.

1. Systematic Monthly Investment Plan: It works on the principle of regular investment similar to a SIP or recurring deposit which is easy to pay than a lump sum amount at once. Under SMP, you pay your premium commitment on a monthly basis. This helps in safeguarding from erratic market movements and it is easier to pay a small amount monthly than a large amount annually.

2. Systematic Transfer Plan: It offers several options to manage your assets as per your needs and risk appetite.

3. Systematic Withdrawal Plan: It is also ideal for retirement planning and can act as a regular source of income after your retirement.

Edelweiss Tokio Life – Wealth Ultima – Key Features

Life Cover

Edelweiss Tokio Life – Wealth Ultima provides life cover which gives a lump sum amount to the beneficiary in case of unfortunate demise of the Life Insured.

Little Champ Benefit

Edelweiss Tokio Life – Wealth Ultima also has "Little Champ" option to secure your child's future. The little champ benefit takes care of your child future in case an unfortunate event occurs. On the death of the policy holder, during the premium paying term, an additional death benefit is credited immediately to the fund value. All future premiums waived off and policy continues till maturity.

Investment options under the plan

You can choose one of the following options based on your profile and risk appetite

1. Systematic Transfer Plan – STP

STP is one of the investment strategies wherein investor's money is managed according to the pre-defined structure without any active involvement of the investor.

There are two options to help manage your asset allocation as per your needs:

a. Life Stage & duration based STP

b. Profit target based STP

2. Self-Managed Strategy

In this, your money will be allocated to your choice of fund(s)

Life Insurance benefit in ULIP despite having lower cost of investment as compared to mutual funds.

Enhance your fund value

This ULIP plan has 3 types of additions in the fund which enhance your fund value and reduce your total cost

a. Loyalty Additions: Rewards for continuously paying your premiums

b. Guaranteed Additions: Rewards for staying invested

c. Booster Additions: Ensures effective growth of your fund value

Longer the policy term, higher will be the additions to the fund.

Moreover, these additions reduce the fund management charges in long run and enhance the fund value.

Maturity Benefit

The fund value is payable on survival of life insured till the end of policy term. Policyholder also has the option to receive the maturity proceeds in a lump sum or in installments through Settlement Option.

Wealth Ultima is a comprehensive plan which offers, life insurance cover along with an investment option for family's security and financial growth. It gives a lot of flexibility to plan a solution according to one's requirements and manage the investments during the period of the policy. Moreover, it also offers tax benefits on the premium paid and the benefits received.

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