The past year has changed a lot in India. Demonetization brought in a significant change in the mindset of all Indians. Leaving aside the legit vs. black money debate, it brought about one vital change within all of us – a shift of money from traditional assets to financial assets. It wouldn’t be an exaggeration to say that demonetization was an overnight boon for the entire financial space of India. In a short time, we saw a massive mindset shift in investments. A country which was adamant to invest in gold, property, etc. saw a rush to invest in financial assets – deposits, mutual funds, insurance, bonds, etc. There is nothing wrong in it – financial assets are the most lucrative globally; just that India lacked in it. We still lack in a quantum of investment in financial assets, and I believe it will improve soon.

With traditional assets not being lucrative at this juncture and the fixed deposit interest rates falling, having exposure to equity markets is a must-have for every Indian today. A friend of mine recently buzzed me for guidance since he was a first-time investor in a non-fixed deposit financial asset. His investment horizon was long-term (5+ years), and he was a patient investor. I decided to do an extensive study before guiding him.

In the market today, there are umpteen numbers of financial products. One product that clearly stood out was Edelweiss Tokio Life Insurance – Wealth Plus. The product was so good and attractive that I decided to tell you all about it. I also recommended him the same, and in a few weeks, I too intend to buy it.

Little needs to be told about Edelweiss Tokio Life Insurance Company Limited – it is one of India’s top Life Insurance companies and has a strong parentage. Edelweiss Tokio Life Insurance Company Limited is a joint venture between Edelweiss Financial Services Limited and Tokio Marine Holdings Inc. It was established in 2011 and has 21000+ agents and 90+ branches today.

Since my friend had an investment horizon of 5+ years, it was wise for him to invest in ULIPs rather than mutual funds. Firstly, one can get tax benefits in ULIPs which is a big drawback in mutual funds. Secondly, ULIPs are cheaper than mutual funds. And most importantly, ULIPs are the best for long-term financial planning and give a mix of investment and protection. When one invests in any financial product, especially a market-linked one, it is of prime importance to be confident of the parentage of the company in which one invests. Edelweiss Tokio gives one that comfort and assurance since it is one of India’s top company and a well-trusted brand. Apart from that, one has to focus on product features, and it is here where their Wealth Plus ULIP plan caught my attention. Let me tell you all the details in a simple manner:

• No upfront charges and no policy admin charges- This is a jackpot!!! Most of the investors overlook this while investing and realize this only when they see quarter/annual statements. A hundred percent allocation of premium means your money in invested fully by an expert. So in a way, you are getting an expert to invest your money by paying zero charge!
• Extra allocation- Whenever we invest in ULIPs, there are upfront and policy admin charges but as I mentioned above, this plan has none. Moreover, they have extra allocation which means that Edelweiss Tokio Life will contribute a certain percentage above your premium in the plan. A bonus benefit indeed! Here is how they do it:

When I told my friend the above, he was more than eager to invest! And he did. But I would want you all to read the below to and then consider buying:

• Dual investment strategy– They have two investment strategies:
  • Life stage and duration based: As age of the life insured increases and the remaining policy term reduces, this strategy ensures money is moved automatically from riskier fund to safer fund progressively.
  • Self managed: One can invest the premium in any of the available funds and in the proportion of his/her choice based on the risk appetite. The available funds being Equity Large Cap Fund, Equity Top 250 Fund, Equity Mid Cap Fund, Managed Fund and Bond Fund.
• Above and beyond all this, this plan gives unparalleled flexibility:
  • Change in Premium Paying Term (PPT)– One can decide the total number of years to paythe premium and increase or reduce as per convenience.
  • Unlimited free switches between funds– One can switch between Equity Large Cap Fund, Equity Top 250 Fund, Equity Mid Cap Fund, Managed Fund and Bond Fund.
  • Unlimited Opt-in and Opt-out option between Investment Strategies– There is no restriction on sticking to one particular investment strategy.
  • Unlimited Premium Redirection– The premium may be directed as per policyholders wish.
  • Partial Withdrawals– In case one wants to cash out partially at any point, he/she has the authority to do so after 5 years.
  • Top-up premiums– If one wants to add to his/her portfolio, top-up premiums can be added.

So wishing you all happy investing! If you invest with Edelweiss Tokio Life Insurance Wealth Plus, do let me know your experience and feedback.

Disclaimer- In Unit Linked Insurance Plans(ULIP), the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs. This blog is not an investment advice and you should consult your financial advisor before taking any purchase decision.