Edelweiss Life Guaranteed Income Star
Is the Edelweiss Life Guaranteed Income STAR Plan truly a dependable source of regular income — or just another conservative product wrapped in fancy branding?
Is the Edelweiss Life Guaranteed Income STAR Plan better than low-risk alternatives like fixed deposits or pension instruments — or does it underperform once you factor in taxes and inflation?
Does the Edelweiss Life Guaranteed Income STAR Plan protect your financial future — or just give peace of mind without real growth potential?
This review examines the plan in detail, outlining its key features along with its advantages and limitations.
What is the Edelweiss Life Guaranteed Income Star?
What are the features of the Edelweiss Life Guaranteed Income Star?
Who is eligible for the Edelweiss Life Guaranteed Income Star?
What are the benefits of the Edelweiss Life Guaranteed Income Star?
Grace Period, Discontinuance and Revival of the Edelweiss Life Guaranteed Income Star
Free Look Period of the Edelweiss Life Guaranteed Income Star
Surrendering the Edelweiss Life Guaranteed Income Star
What are the advantages of the Edelweiss Life Guaranteed Income Star?
What are the disadvantages of the Edelweiss Life Guaranteed Income Star?
Research Methodology of Edelweiss Life Guaranteed Income Star
Benefit Illustration – IRR Analysis of Edelweiss Life Guaranteed Income Star
Edelweiss Life Guaranteed Income Star Vs. Other Investments
Edelweiss Life Guaranteed Income Star Vs. Pure-term + Equity Mutual Fund
Final Verdict on the Edelweiss Life Guaranteed Income Star
Edelweiss Life Guaranteed Income Star is an Individual, Non-Linked, Non-Participating, Savings, Life Insurance Plan. It is a plan that offers stable, assured returns with flexible income options.
The plan also secures your family’s financial future by offering Income Benefit Pay-outs even if you are no longer around to care for them or diagnosed with any of the covered Critical illnesses.
This product provides two Plan Options to choose from. These options help you customise the Edelweiss Life Guaranteed Income Star Plan according to your individual needs. Your benefits will vary depending on the following option chosen:
Option 1: Flexible Income
A regular stream of income called ‘Income Benefit Pay-out’ starting from the chosen policy year called ‘Income Start Point’ will be payable in arrears at the chosen Income Benefit Payout frequency till maturity or death of the Life Insured, whichever is earlier, while the Edelweiss Life Guaranteed Income Star Plan policy is in force.
In case ‘Income Start Point’ is after Premium Paying Term (PPT), then the level ‘Income Benefit Pay-out’ will be paid
In case ‘Income Start Point’ is before the Premium Paying Term (PPT), the amount of ‘Income Benefit Pay-out’ paid after PPT will be two times of the amount of ‘Income Benefit Pay-out’ paid prior to completion of PPT.
The Income Duration options available in the plan option are 10 years, 15 years, 20 years, 25 years, 30 years and 35 years
Plan Option 2: Large Income
Under this plan option, income will be payable at predetermined policy years during the Edelweiss Life Guaranteed Income Star Plan policy term.
A level/increasing guaranteed income called ‘Income Benefit Pay-out’ will be payable in arrears till maturity or death of the Life Insured, whichever is earlier, while the policy is in force. The income will be payable at the end of the year in the policy years:
| PPT (in years) | 5,8,10 | 12 |
| Policy Year | 10,15,20,25,30,35,40 | 15,20,25,30,35,40 |
(For both options)
On the death of the Life Insured during the policy term while the Edelweiss Life Guaranteed Income Star Plan policy is in force, the Death Benefit equal to the Sum Assured on Death is payable, and the policy will terminate.
The Sum Assured on Death at any point of time, provided the policy is in force, is the highest of:
(For both options)
You have the option to add a lump sum benefit under this plan option in addition to the Income Benefit Pay-out.
If the Lump Sum benefit is opted for, Sum Assured on Maturity, which is equal to ‘Maximum of (10, PPT) times the Annualised Premium’, will be payable on the maturity of the policy if the Life Insured survives till the end of the Edelweiss Life Guaranteed Income Star Plan policy term.
The amount of Income Benefit Pay-out will depend on whether you have opted for the Lump Sum benefit or not.
You have the option to choose ‘Family Income Benefits’ at the inception of the policy only. Once chosen, one of the ‘Family Income Benefit’ cannot be opted out/changed during the Edelweiss Life Guaranteed Income Star Plan policy term.
Family Income Benefit on Death (FIB on Death):
In case of the Life Insured’s death while the policy is in force, the Death Benefit is payable. In addition, no future Premiums are required to be paid, and the Edelweiss Life Guaranteed Income Star Plan policy will continue as inforce policy.
The Income Benefit Pay-out will continue, and in addition, on the date of maturity, Sum Assured on Maturity, if applicable, will be paid, and the policy will terminate without any further benefit.
Family Income Benefit on Critical Illness and Death (FIB on CI and Death):
In case of the Life Insured’s death while the policy is in force, the Death Benefit is payable. In addition, no future premiums are required to be paid, and the Edelweiss Life Guaranteed Income Star Plan policy will continue as an in-force policy.
The Income Benefit Pay-out will continue, and in addition, on the date of maturity, Sum Assured on Maturity, if applicable, will be paid, and the policy will terminate without any further benefit.
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.
If all the Premiums for at least the first Policy Year have not been paid in full within the Grace Period, the Policy shall immediately and automatically lapse, and no benefits shall be payable by us under the Policy, unless the Policy is revived within the revival period.
After completion of the first policy year, provided one full year’s Premium has been paid and if subsequent Premiums are not paid within the Grace Period, the Policy will acquire Reduced Paid-up status and benefits will continue as per the Reduced Paid-up provision.
Any lapsed policy may be revived within five years from the due date of the first unpaid premium.
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, and you have not made any claims, you may return this Policy for cancellation.
After completion of the first policy year, provided one full year’s Premium has been paid, your policy will acquire a Surrender Value.
On receipt of a written request for Surrender from you, the Surrender Value, if any, will be immediately paid, the Policy will be terminated, and all the benefits under the Edelweiss Life Guaranteed Income Star Plan Policy shall cease to apply.
The surrender value payable is the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
From a liquidity standpoint, the Edelweiss Life Guaranteed Income Star Plan provides guaranteed survival benefits for a predetermined period.
To assess its effectiveness, it is important to evaluate the returns in percentage terms. Accordingly, this analysis examines the Internal Rate of Return (IRR) based on the figures disclosed in the Edelweiss Life Guaranteed Income Star Plan policy brochure.
Consider a 47-year-old male investing ₹1,00,000 per year in the Edelweiss Life Guaranteed Income Star Plan. He chooses a premium payment term of 10 years and a benefit payout period of 25 years under the Flexi Income option.
The income benefits are taken annually, with no lump sum at maturity and without opting for the Family Income Benefit. The base sum assured is ₹10 lakh (death benefit ₹ 10.50 Lakhs).
| Male | 47 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 37 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
The survival benefit of ₹99,800 per annum begins at the end of the 13th policy year.
Since the lump sum maturity benefit is not selected, only the annual income benefit is received for the subsequent 25 years. Based on these cash flows, the IRR works out to approximately 4.80% as per the Edelweiss Life Guaranteed Income Star Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 47 | 1 | -1,00,000 | 10,50,000 |
| 48 | 2 | -1,00,000 | 10,50,000 |
| 49 | 3 | -1,00,000 | 10,50,000 |
| 50 | 4 | -1,00,000 | 10,50,000 |
| 51 | 5 | -1,00,000 | 10,50,000 |
| 52 | 6 | -1,00,000 | 10,50,000 |
| 53 | 7 | -1,00,000 | 10,50,000 |
| 54 | 8 | -1,00,000 | 10,50,000 |
| 55 | 9 | -1,00,000 | 10,50,000 |
| 56 | 10 | -1,00,000 | 10,50,000 |
| 57 | 11 | 0 | 10,50,000 |
| 58 | 12 | 0 | 10,50,000 |
| 59 | 13 | 0 | 10,50,000 |
| 60 | 14 | 99,800 | 10,50,000 |
| 61 | 15 | 99,800 | 10,50,000 |
| 62 | 16 | 99,800 | 10,50,000 |
| 63 | 17 | 99,800 | 10,50,000 |
| 64 | 18 | 99,800 | 10,50,000 |
| 65 | 19 | 99,800 | 10,50,000 |
| 66 | 20 | 99,800 | 10,50,000 |
| 67 | 21 | 99,800 | 10,50,000 |
| 68 | 22 | 99,800 | 10,50,000 |
| 69 | 23 | 99,800 | 10,50,000 |
| 70 | 24 | 99,800 | 10,50,000 |
| 71 | 25 | 99,800 | 10,50,000 |
| 72 | 26 | 99,800 | 10,50,000 |
| 73 | 27 | 99,800 | 10,50,000 |
| 74 | 28 | 99,800 | 10,50,000 |
| 75 | 29 | 99,800 | 10,50,000 |
| 76 | 30 | 99,800 | 10,50,000 |
| 77 | 31 | 99,800 | 10,50,000 |
| 78 | 32 | 99,800 | 10,50,000 |
| 79 | 33 | 99,800 | 10,50,000 |
| 80 | 34 | 99,800 | 10,50,000 |
| 81 | 35 | 99,800 | 10,50,000 |
| 82 | 36 | 99,800 | 10,50,000 |
| 83 | 37 | 99,800 | 10,50,000 |
| 38 | 99,800 | ||
| IRR | 4.80% |
A return of this magnitude over an extended investment horizon of 37 years is not attractive for a long-term investor.
Moreover, annual survival benefits that are not inflation-adjusted are unlikely to support meaningful financial goals.
Consequently, from both a return and suitability perspective, investing in the Edelweiss Life Guaranteed Income Star Plan does not appear advantageous at any stage.
The returns offered by the Edelweiss Life Guaranteed Income Star Plan are unlikely to outpace inflation over the long term.
Investors seeking better outcomes may benefit from allocating their savings to alternative options. Separating insurance and investment can improve both returns and liquidity. The following illustration explains this alternate approach.
Using the same annual outlay of ₹1 lakh, the amount is split between insurance protection and investment.
A pure term life insurance policy with a sum assured of ₹10.5 lakh requires an annual premium of ₹22,400, with a premium payment term of 10 years and a policy term of 23 years, providing coverage up to age 70. The balance amount of ₹77,600 is invested to generate regular income.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 23 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 22,400 |
| Investment | ₹ 77,600 |
An equity mutual fund is selected for the investment component. At the end of 13 years, the investment grows to ₹21.42 lakh.
After accounting for capital gains tax, the post-tax value stands at ₹19.87 lakh. This corpus is then reinvested in an instrument delivering an annual return of 7%.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 47 | 1 | -1,00,000 | 10,50,000 |
| 48 | 2 | -1,00,000 | 10,50,000 |
| 49 | 3 | -1,00,000 | 10,50,000 |
| 50 | 4 | -1,00,000 | 10,50,000 |
| 51 | 5 | -1,00,000 | 10,50,000 |
| 52 | 6 | -1,00,000 | 10,50,000 |
| 53 | 7 | -1,00,000 | 10,50,000 |
| 54 | 8 | -1,00,000 | 10,50,000 |
| 55 | 9 | -1,00,000 | 10,50,000 |
| 56 | 10 | -1,00,000 | 10,50,000 |
| 57 | 11 | 0 | 10,50,000 |
| 58 | 12 | 0 | 10,50,000 |
| 59 | 13 | 0 | 10,50,000 |
| 60 | 14 | 99,800 | 10,50,000 |
| 61 | 15 | 99,800 | 10,50,000 |
| 62 | 16 | 99,800 | 10,50,000 |
| 63 | 17 | 99,800 | 10,50,000 |
| 64 | 18 | 99,800 | 10,50,000 |
| 65 | 19 | 99,800 | 10,50,000 |
| 66 | 20 | 99,800 | 10,50,000 |
| 67 | 21 | 99,800 | 10,50,000 |
| 68 | 22 | 99,800 | 10,50,000 |
| 69 | 23 | 99,800 | 10,50,000 |
| 70 | 24 | 99,800 | 10,50,000 |
| 71 | 25 | 99,800 | 10,50,000 |
| 72 | 26 | 99,800 | 10,50,000 |
| 73 | 27 | 99,800 | 10,50,000 |
| 74 | 28 | 99,800 | 10,50,000 |
| 75 | 29 | 99,800 | 10,50,000 |
| 76 | 30 | 99,800 | 10,50,000 |
| 77 | 31 | 99,800 | 10,50,000 |
| 78 | 32 | 99,800 | 10,50,000 |
| 79 | 33 | 99,800 | 10,50,000 |
| 80 | 34 | 99,800 | 10,50,000 |
| 81 | 35 | 99,800 | 10,50,000 |
| 82 | 36 | 99,800 | 10,50,000 |
| 83 | 37 | 99,800 | 10,50,000 |
| 38 | 38,69,212 | ||
| IRR | 7.43% |
To mirror the survival benefit under the Edelweiss Life Guaranteed Income Star Plan, an annual withdrawal of ₹99,800 is made for 25 years, after which the remaining balance is fully withdrawn. These cash flows result in an IRR of 7.43%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 13 years | 21,42,790 |
| Purchase price | 7,76,000 |
| Long-Term Capital Gains | 13,66,790 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 12,41,790 |
| Tax paid on LTCG | 1,55,224 |
| Maturity value after tax | 19,87,566 |
If annual withdrawals are deferred, the corpus can grow further, leading to potentially higher overall returns.
This strategy also offers superior liquidity and flexibility, allowing withdrawals based on actual needs rather than being constrained by the rigid payout structure of the Edelweiss Life Guaranteed Income Star Plan.
The Edelweiss Life Guaranteed Income Star Plan provides guaranteed income payouts, with the flexibility to choose between annual income under the Flexi Income option or periodic payouts under the Large Income option.
Investors may also opt for a lump sum benefit at maturity; however, selecting this option reduces the income benefit.
While the payouts are guaranteed, the plan delivers suboptimal returns for long-term wealth creation. There is no provision to defer the income benefit, limiting flexibility. In addition, the sum assured is relatively low and it also has a high agent commission.
Taken together, both the life cover and the income payouts are not favourable for investors, making the Edelweiss Life Guaranteed Income Star Plan an unattractive proposition.
Before beginning an investment journey, it is essential to secure adequate life insurance coverage. Pure-term life insurance policies provide sufficient protection at affordable premiums.
Alongside this, a well-diversified investment portfolio can help in achieving financial goals in a timely and efficient manner.
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For personalised advice on insurance and investment planning, consider consulting a Certified Financial Planner. A professional can design a comprehensive financial plan aligned with your risk appetite, investment horizon, and life objectives.
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