Listen to this article
Is the Edelweiss Life Flexi Dream Plan truly the smart path to long-term financial comfort, or does it simply look attractive on the surface?
Can the Edelweiss Life Flexi Dream Plan really deliver the flexibility and returns you expect, or are there more efficient options waiting outside?
Does the Edelweiss Life Flexi Dream Plan genuinely help you build a secure future, or is it overpromising compared to other guaranteed plans?
This article breaks down the Edelweiss Life Flexi Dream plan’s features, pros, and cons, and guides you on structuring your portfolio to generate steady long-term income.
Table of Contents
What is the Edelweiss Life Flexi Dream Plan?
What are the features of the Edelweiss Life Flexi Dream Plan?
Who is eligible for the Edelweiss Life Flexi Dream Plan?
What are the benefits of the Edelweiss Life Flexi Dream Plan?
Grace Period, Discontinuance and Revival of the Edelweiss Life Flexi Dream Plan
Free Look Period for the Edelweiss Life Flexi Dream Plan
Surrendering the Edelweiss Life Flexi Dream Plan
What are the advantages of the Edelweiss Life Flexi Dream Plan?
What are the disadvantages of the Edelweiss Life Flexi Dream Plan?
Research Methodology of Edelweiss Life Flexi Dream Plan
Benefit Illustration – IRR Analysis of Edelweiss Life Flexi Dream Plan
Edelweiss Life Flexi Dream Plan Vs. Other Investments
Edelweiss Life Flexi Dream Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on Edelweiss Life Flexi Dream
What is the Edelweiss Life Flexi Dream Plan?
Edelweiss Life Flexi Dream Plan is An Individual, Non-Linked, Participating, Savings, Life Insurance Plan. It is a life insurance plan designed to provide protection to your family from any financial loss in case of an untimely death, and also provide a regular income and a lump sum to you and your family.
It has various options to help you customise the Edelweiss Life Flexi Dream plan as per your requirements.
What are the features of the Edelweiss Life Flexi Dream Plan?
- Protect your family’s financial future with a comprehensive life insurance cover.
- Choose from versatile benefit structures under two plan options — the Milestone Option and the Live Long Option.
- Achieve your future goals with regular income and flexible, customised payouts through the Accrual of Survival Benefits feature.
- You can also extend protection to two lives with the convenient Two-gether Option.
Who is eligible for the Edelweiss Life Flexi Dream Plan?
What are the benefits of the Edelweiss Life Flexi Dream Plan?
Death benefit
If the Two-gether option is not chosen (Single Life):
The death benefit payable on the death of the Life Insured, under all plan options, is:
- Sum Assured on Death (SAD), plus
- Terminal Bonus, if declared, plus
- Applicable Guaranteed Income and Cash Bonus, if declared in the policy year of death, will be payable on a pro-rata basis, considering the number of months elapsed in the policy year
Death Benefit Option 1:
Sum Assured on Death (SAD), at the inception of the policy, is equal to 7 times the Annualised Premium.
The Sum Assured on Death (SAD) increases every policy year starting from the 2nd policy year by an absolute amount equal to Max {[Sum Assured on Maturity plus Maturity Booster] less 7 times the Annualised Premium,0}/ (Policy Term – 1).
The minimum death benefit shall be at least 105% of Total Premiums Paid up to date of death. In addition, the death benefit at any point shall be at least 10 times the Annual Premium
Death Benefit Option 2:
Sum Assured on Death (SAD), at the inception of the policy,
- if the age at entry of the Life Insured is less than 50 years – 7 times the Annualised Premium
- if the age at entry of Life Insured is greater than or equal to 50 years – 5 times the Annualised Premium
The Sum Assured on Death (SAD) increases every policy year starting from the 2nd policy year by an absolute amount equal to Max {(Sum Assured on Maturity plus Maturity Booster) less ‘X’ times the Annualised Premium,0}/ (Policy Term – 1).
Where ‘X’ equals:
- if the age at entry of the Life Insured is less than 50 years – 7
- if the age at entry of Life Insured is greater than or equal to 50 years – 5
If the Two-gether option is chosen (Joint-Life):
First Death:
In case the Primary Life Insured dies first: The Death Benefit equal to the Sum Assured on Death for the Primary Life Insured will be payable in a lump sum, and coverage will start for the Secondary Life Insured.
In addition, no future premiums are required to be paid, and the policy will continue as an in-force policy. Survival Benefit and maturity benefit will be payable till the death of Secondary Life Insured or maturity, whichever is earlier.
The minimum death benefit shall be at least 105% of Total Premiums Paid up to date of death. In addition, the death benefit at any point shall be at least 10 times the Annual Premium
In case Secondary Life Insured dies first: On the death of the Secondary Life Insured, while the policy is in force, there will be no Death Benefit payable. The cover will continue for the Primary Life Insured, provided the future premiums are paid as and when due.
Second Death:
In case the Primary Life Insured dies after the death of the Secondary Life Insured: the Death Benefit equal to Sum Assured on Death for the Primary Life Insured plus Terminal Bonus, if declared, will be payable.
In addition, applicable Guaranteed Income and Cash Bonus, if declared due in the policy year of death, will be payable on a pro-rata basis considering the number of months elapsed in the policy year.
The minimum death benefit payable on death of Primary Life Insured shall be at least 105% of Total Premiums Paid up to date of death or 10 times Annual Premium, whichever is higher.
In case the Secondary Life Insured dies after the death of the Primary Life Insured: the Death Benefit equal to Sum Assured on Death for Secondary Life Insured plus Terminal Bonus, if declared, will be payable.
In addition, applicable Guaranteed Income and Cash Bonus, if declared due in the policy year of death, will be payable on a pro-rata basis, considering the number of months elapsed in the policy year.
The minimum death benefit payable on the death of Secondary Life Insured shall be at least 10 times the Annual Premium
Survival Benefit
For both Options:
Under this Plan Option, regular income is payable every policy year annually in arrears, starting from the second policy year till maturity or death, whichever is earlier, while the policy is in force. The regular income comprises
- Guaranteed Income
- Cash Bonus, if declared
Guaranteed Income is expressed as % of the total Annualised Premium and payable every policy year annually in arrears, starting from the sixth policy year till maturity or death, whichever is earlier.
Cash bonus is expressed as ‘per 1,000 of Sum Assured on Maturity and is a non-guaranteed benefit, payable every policy year annually in arrears, starting from the second policy year till maturity or death, whichever is earlier.
Maturity Benefit
Mile Stone Option
Maturity Benefit is equal to
- Sum Assured on Maturity (SAM) plus
- Maturity Booster plus
- Terminal Bonus, if declared
It will be ensured that the Total Survival Benefits and Total Maturity benefit will be at least equal to Total Premiums Paid. The Maturity Booster is expressed as % of the total Annualised Premium paid.
Live Long Option
Maturity Benefit is equal to
- Sum Assured on Maturity (SAM) plus
- Terminal Bonus, if declared.
Maturity Booster is not applicable to the Live Long plan option. It will be ensured that the Total Survival Benefits and Total Maturity benefit will be at least equal to Total Premiums Paid.
Grace Period, Discontinuance and Revival of the Edelweiss Life Flexi Dream Plan
Grace Period
The company will allow a Grace Period of 15 days, where the Policyholder pays the Premium on a monthly basis, and 30 days in all other cases, during which you must pay the Premium due in full.
Discontinuance
If all the premiums have not been paid in full for at least the first policy year within the Grace Period, then on Premium Discontinuance, the Policy will be lapsed, and no Surrender Value or paid-up value will be payable.
If all Premiums for at least the first Policy Year have not been paid in full, then the paid-up value is nil.
After completion of the first Policy Year, provided one full year’s Premium has been paid, then on Premium Discontinuance, the Policy will continue as a ‘Reduced Paid-up’ policy, and all the benefits shall be reduced proportionately
Revival
The policy may be revived within the Revival Period. Revival Period means the period of five consecutive complete years from the date of the first unpaid premium.
Free Look Period for the Edelweiss Life Flexi Dream Plan
You have a Free Look period of thirty (30) days beginning from the date of receipt of the Policy Document, whether received electronically or otherwise, to review the terms and conditions of this Policy. If you disagree with any of the terms or conditions, or otherwise.
Surrendering the Edelweiss Life Flexi Dream Plan
After completion of the first Policy Year, provided one full year’s Premium has been paid, your policy will acquire a Surrender Value.
The Surrender Value, if any, will be payable after completion of the first Policy Year. The Policy will be terminated, and all the benefits under the Policy shall cease to apply. The Surrender Value payable is the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
What are the advantages of the Edelweiss Life Flexi Dream Plan?
- You can choose to accumulate a portion—or even the full 100%—of your Survival Benefits instead of taking them as cash payouts.
- There is also an option to receive the Survival Benefit in advance.
- Protection can be further enhanced by adding riders.
- Additionally, you can avail a loan of up to 60% of the policy’s surrender value.
What are the disadvantages of the Edelweiss Life Flexi Dream Plan?
- The sum assured may fall short of covering your family’s essential financial needs.
- The returns offered are lower than those available through other investment options.
- The regular income is not adjusted for inflation, which can reduce its real value over time.
Research Methodology of Edelweiss Life Flexi Dream Plan
The Edelweiss Life Flexi Dream Plan promises regular income for a limited period or even for life. While this feature may seem appealing, it should not be the sole basis for choosing the Edelweiss Life Flexi Dream plan.
A sound decision requires evaluating the actual returns. Let’s examine an illustration from the Policy Brochure.
Benefit Illustration – IRR Analysis of Edelweiss Life Flexi Dream Plan
A 40-year-old male chooses the Edelweiss Life Flexi Dream plan with a sum assured of ₹ 10 Lakhs (Maximum – ₹12.60 lakhs). The policy term is 40 years, the premium payment term is 12 years, and the annual premium is ₹1,00,000. He chooses the Milestone option.
| Male | 40 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 12 years |
| Annualised Premium | ₹ 1,00,000 |
Regular income begins from the 2nd policy year, comprising guaranteed income and a cash bonus. The benefit illustration is shown under two assumed investment return scenarios—4% p.a. and 8% p.a.—which are purely indicative and not guaranteed.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 3 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 43 | 4 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 44 | 5 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 45 | 6 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 46 | 7 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 47 | 8 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 48 | 9 | -68,485 | 10,00,000 | -54,430 | 10,00,000 |
| 49 | 10 | -68,485 | 10,50,000 | -54,430 | 10,50,000 |
| 50 | 11 | -68,485 | 11,55,000 | -54,430 | 11,55,000 |
| 51 | 12 | -68,485 | 12,60,000 | -54,430 | 12,60,000 |
| 52 | 13 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 53 | 14 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 54 | 15 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 55 | 16 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 56 | 17 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 57 | 18 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 58 | 19 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 59 | 20 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 60 | 21 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 61 | 22 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 62 | 23 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 63 | 24 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 64 | 25 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 65 | 26 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 66 | 27 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 67 | 28 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 68 | 29 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 69 | 30 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 70 | 31 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 71 | 32 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 72 | 33 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 73 | 34 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 74 | 35 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 75 | 36 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 76 | 37 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 77 | 38 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 78 | 39 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 79 | 40 | 31,515 | 12,60,000 | 45,570 | 12,60,000 |
| 80 | 13,72,415 | 21,27,370 | |||
| 3.40% | 5.66% | ||||
At 4%:
- Annual survival benefit: ₹31,515
- Maturity benefit: ₹13.40 lakhs
- IRR: 3.40% as per the Edelweiss Life Flexi Dream Plan maturity calculator.
At 8%:
- Annual survival benefit: ₹45,570
- Maturity benefit: ₹20.81 lakhs
- IRR: 5.66% as per the Edelweiss Life Flexi Dream Plan maturity calculator.
In both scenarios, during the early policy years, the survival benefit is adjusted against the premiums. After the premium payment term ends, the survival benefit continues until the end of the policy term.
However, once the premium payment term is over, your investment remains locked inside the Edelweiss Life Flexi Dream plan.
The survival benefit cannot be treated as a meaningful source of income because it is non-guaranteed and not inflation-adjusted. It simply cannot keep up with rising household expenses.
The maturity benefit is also accessible only at the end of the 40-year policy term. Taken together, neither the survival benefit nor the maturity benefit provides real value to the policyholder.
As a result, the plan’s key benefits—including Survival Benefits and Maturity Benefits—fail to deliver any substantial advantage to the investor.
Edelweiss Life Flexi Dream Plan Vs. Other Investments
The regular income from the Edelweiss Life Flexi Dream Plan does not account for inflation, causing your purchasing power to decline over time.
A more effective strategy is to separate insurance and investment, ensuring adequate life cover while building a stronger, flexible income stream. The following illustration demonstrates the advantages of this approach.
Edelweiss Life Flexi Dream Plan Vs. Pure-term + Equity Mutual Fund
A pure-term life insurance policy with a ₹10 lakh sum assured costs ₹22,500 annually for a 40-year term. This leaves ₹77,500 each year for investment.
Further, since the premium-paying term is only 10 years—unlike the 12 years in the Edelweiss Life Flexi Dream Plan—you can invest the full ₹1 lakh during the last two years.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 13,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 22,500 |
| Investment | ₹ 77,500 |
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 40 | 1 | -1,00,000 | 13,00,000 |
| 41 | 2 | -1,00,000 | 13,00,000 |
| 42 | 3 | -54,430 | 13,00,000 |
| 43 | 4 | -54,430 | 13,00,000 |
| 44 | 5 | -54,430 | 13,00,000 |
| 45 | 6 | -54,430 | 13,00,000 |
| 46 | 7 | -54,430 | 13,00,000 |
| 47 | 8 | -54,430 | 13,00,000 |
| 48 | 9 | -54,430 | 13,00,000 |
| 49 | 10 | -54,430 | 13,00,000 |
| 50 | 11 | -54,430 | 13,00,000 |
| 51 | 12 | -54,430 | 13,00,000 |
| 52 | 13 | 45,570 | 13,00,000 |
| 53 | 14 | 45,570 | 13,00,000 |
| 54 | 15 | 45,570 | 13,00,000 |
| 55 | 16 | 45,570 | 13,00,000 |
| 56 | 17 | 45,570 | 13,00,000 |
| 57 | 18 | 45,570 | 13,00,000 |
| 58 | 19 | 45,570 | 13,00,000 |
| 59 | 20 | 45,570 | 13,00,000 |
| 60 | 21 | 45,570 | 13,00,000 |
| 61 | 22 | 45,570 | 13,00,000 |
| 62 | 23 | 45,570 | 13,00,000 |
| 63 | 24 | 45,570 | 13,00,000 |
| 64 | 25 | 45,570 | 13,00,000 |
| 65 | 26 | 45,570 | 13,00,000 |
| 66 | 27 | 45,570 | 13,00,000 |
| 67 | 28 | 45,570 | 13,00,000 |
| 68 | 29 | 45,570 | 13,00,000 |
| 69 | 30 | 45,570 | 13,00,000 |
| 70 | 31 | 45,570 | 13,00,000 |
| 71 | 32 | 45,570 | |
| 72 | 33 | 45,570 | |
| 73 | 34 | 45,570 | |
| 74 | 35 | 45,570 | |
| 75 | 36 | 45,570 | |
| 76 | 37 | 45,570 | |
| 77 | 38 | 45,570 | |
| 78 | 39 | 45,570 | |
| 79 | 40 | 45,570 | |
| 80 | 1,15,48,088 | ||
| 9.24% |
During the initial years, the investment can be allocated to equity or debt; here, we assume an Equity Mutual Fund. After the accumulation phase, the corpus is moved to an instrument yielding 7% p.a. to enable regular withdrawals akin to the 8% scenario illustrated in the Edelweiss Life Flexi Dream Plan.
The post-tax accumulated corpus from the Equity Mutual Fund grows to ₹12.33 lakhs. When this corpus earns 7% p.a., it supports annual withdrawals comparable to the plan’s 8% scenario. Eventually, the remaining corpus builds up to ₹1.15 crores, delivering an IRR of 9.24%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 40 years | 12,52,521 |
| Purchase price | 9,75,000 |
| Long-Term Capital Gains | 2,77,521 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,52,521 |
| Tax paid on LTCG | 19,065 |
| Maturity value after tax | 12,33,456 |
Unlike the fixed, non-inflation-adjusted income from the Edelweiss Life Flexi Dream Plan, this approach offers complete flexibility. You can delay withdrawals in the early years to boost compounding, and increase them later to keep pace with rising expenses.
By separating insurance and investment, you secure higher returns, greater control, and a more inflation-resilient strategy—making it a far superior alternative to the Edelweiss Life Flexi Dream Plan.
Final Verdict on Edelweiss Life Flexi Dream
The Edelweiss Life Flexi Dream Plan provides regular income starting from the end of the second policy year, with the added advantage of flexible survival benefit payouts.
While this may appear attractive for those seeking steady cash flow, a closer look shows that the plan does not deliver competitive returns.
Even though the Live Long Option offers whole-life coverage, the sum assured is typically insufficient to meet meaningful financial requirements. In personal finance, it is crucial to have adequate life cover that aligns with your future goals and liabilities—especially during your working years.
The major shortcomings of this plan include low returns, inadequate coverage, and limited ability to cope with inflation or evolving financial needs and it also has a high agent commission.
A better approach is to separate insurance and investment. By investing your savings in suitable financial products, you can accumulate wealth more efficiently and generate a more reliable income stream.
Pairing this with a pure-term life insurance policy gives you substantial coverage at an affordable cost, ensuring strong financial protection.
Select investments based on your risk profile, long-term goals, and time horizon.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
If needed, a certified financial planner can help you build a customised strategy tailored to your needs.
Leave a Reply