Now that we know that ULIPs serve as the investment cum insurance plan. Here is a plan by Edelweiss Tokio Life by the name Edelweiss Tokio Life Wealth Plus that features dual benefits of ULIP and has an option that makes it work just like a child plan.
Features of Edelweiss Tokyo Life Wealth Plus
Solely depending on your investment objectives, the plan offers different benefits. Though basically it is a Type-1 ULIP, investment benefits are changed if the investor subscribes to the child plan.
In the normal course, if the insured dies during the term of the policy, higher of the fund value or cover with an implicit condition of a maximum of 105% of the premiums shall be payable.
Child available under the ULIP is offered as Rising Start Plan
And in this case, parent is the policyholder while the insured is the child. And if the policyholder happens to meet unfortunate death, then the ULIP plan cum child plan provides a lump sum payment equivalent the multiple of the annual premium payment. This value is further determined based on the age at which the plan was opted by the policyholder.
Also, thereafter, liability to make premium payment towards the policy is taken over by the insurance company which then continues the policy as planned.
1% of the premium payment is diverted to different available funds on the basis of the choice of the policyholder. Further, as the age of the policyholder increases, allocation towards the equity class decreases.
Should You Be Buying Edelweiss Tokya Life Wealth Plus?
Cost and other tax consideration do make this plan attractive but mere tax advantage should not be the sole criteria for you selecting the plan. In the current regime, maturity proceeds of the ULIP plan do not attract any taxation liabilities as in case with other equity products that become applicable from April 1.