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Is the Edelweiss Life Wealth Premier Plan truly a premier choice for long-term ULIP wealth creation — or just another ULIP with average performance?
Is the Edelweiss Life Wealth Premier Plan suited for disciplined long-term investors — or too unpredictable for those seeking steady performance?
Does the Edelweiss Life Wealth Premier Plan truly reward long-term patience — or does market volatility make the outcome uncertain and stressful?
This review examines the Edelweiss Life Wealth Premier, a ULIP offering. We analyse its structure, key features, advantages, and limitations to assess how the plan works and whether it aligns with long-term financial goals.
Table of Contents:
What is the Edelweiss Life Wealth Premier?
What are the features of the Edelweiss Life Wealth Premier?
Who is eligible for the Edelweiss Life Wealth Premier?
What are the benefits of the Edelweiss Life Wealth Premier?
What are the investment strategies and fund options in the Edelweiss Life Wealth Premier?
What are the charges of the Edelweiss Life Wealth Premier?
Free Look Period for the Edelweiss Life Wealth Premier
Surrendering the Edelweiss Life Wealth Premier
What are the advantages of the Edelweiss Life Wealth Premier?
What are the disadvantages of the Edelweiss Life Wealth Premier?
Research Methodology of Edelweiss Life Wealth Premier
Benefit Illustration – IRR Analysis of Edelweiss Life Wealth Premier
Edelweiss Life Wealth Premier Vs. Other Investments
Edelweiss Life Wealth Premier Vs. Pure-term + Equity Mutual Fund
Final Verdict on Edelweiss Life Wealth Premier
What is the Edelweiss Life Wealth Premier?
Edelweiss Life Wealth Premier is a Unit Linked, Non-Participating, Individual, Single Premium, Savings Life Insurance Product. It ensures financial protection for your family in case of your unfortunate demise. It also provides an opportunity to invest in the market.
What are the features of the Edelweiss Life Wealth Premier?
- Life Cover – Offers financial security to your family in the event of an untimely demise.
- Single Life and Joint Life Cover – Allows you to choose between Single Life and Joint Life coverage based on your needs.
- Single Premium Option – Provides life insurance coverage for 10 years through a one-time premium payment.
- Loyalty Additions – Enhances savings by offering additional allocations at the end of the 6th, 8th, and 10th policy years.
- Multiple Fund Options – Enables investment across a selection of 9 funds, with the flexibility of unlimited fund switches.
Who is eligible for the Edelweiss Life Wealth Premier?
| Eligibility Conditions | Variants | |
| Single Life | Joint Life | |
| Entry Age (last birthday) | 8 – 65 years | 18 – 65 years |
| Maturity Age (last birthday) | 18 – 75 years | 28 – 75 years |
| Policy Term | 10 years | |
| Premium Paying Term (PPT) | Single Pay | |
| Minimum Sum Assured | 1.25 x Single Premium | 10 x Single Premium |
| Maximum Sum Assured | 10 x Single Premium | |
| Minimum Premium | Rs. 10,00,000 | |
| Maximum Premium | No Limit (as per the Board Approved Underwriting Policy) | |
What are the benefits of the Edelweiss Life Wealth Premier?
1. Death benefit
Single Life
The Death Benefit will be as per given below: Higher of:
- Sum Assured less relevant partial withdrawals
- Balance in the unit fund
- 105% of Single Premium.
On the death of the life insured, the Death Benefit will be payable, and the Edelweiss Life Wealth Premier Plan policy will terminate.
Joint Life
On the first death of the two lives insured, the fund value will be enhanced and will be higher of 1.25 times of Single Premium less relevant partial withdrawals or the balance in the unit fund, subject to the admissibility of the claim.
On the Second Death, the death Benefit will be as per given below: Higher of:
- Sum Assured less relevant partial withdrawals
- Balance in the unit fund
- 105% of Single Premium
On the second death of the two lives insured, the Death Benefit will be payable, and the Edelweiss Life Wealth Premier Plan policy will terminate.
2. Maturity benefit
The Maturity Benefit will be the Fund Value calculated at the prevailing NAV on the maturity date and will be payable as a lump sum.
3. Loyalty Additions
Loyalty Additions, which are expressed as a percentage of the Fund Value, will be added to the Fund Value on the last day of the 6th, 8th and 10th Policy Year.
What are the investment strategies and fund options in the Edelweiss Life Wealth Premier?
You can decide to invest your money in your choice of fund(s) in any proportion. You can switch money among these funds using the switch option. The funds available are listed below:
| S.no | Fund Name | Asset Allocation | Risk | ||
| Equity | Debt | Money Market instruments | |||
| 1 | Equity Large Cap Fund | 60 – 100% | 0 – 40% | 0 – 40% | High |
| 2 | Equity Top 250 Fund | 60 – 100% | 0 – 40% | 0 – 40% | High |
| 5 | Equity Mid-Cap Fund | 80 – 100% | 0 – 20% | 0 – 20% | High |
| 4 | Managed Fund | 0 – 40% | 60 – 100% | 60 – 100% | Medium |
| 3 | Bond Fund | 0 | 0- 100% | 0 – 100% | Low to Medium |
| 6 | Equity Blue Chip Fund | 60 – 100% | 0 – 40% | 0 – 40% | High |
| 7 | Gilt Fund | 0 | 60 – 100% | 0 – 40% | Low to Medium |
| 8 | Long-Term Bond Fund | 0 | 100% | 100% | Low to Medium |
| 9 | Equity SmallCap Fund | 80 – 100% | 0 – 20% | 0 – 20% | High |
What are the charges of the Edelweiss Life Wealth Premier?
A. Premium Allocation Charges
No allocation charges will be deducted from the Premium
B. Top-Up Allocation Charge
NIL
C. Policy Administration Charges
NIL
D. Fund Management Charges (FMC)
| S.no | Fund | FMC per annum |
| 1 | Equity Large Cap Fund | 1.35% |
| 2 | Equity Top 250 Fund | 1.35% |
| 5 | Bond Fund | 1.25% |
| 4 | Managed Fund | 1.35% |
| 3 | Equity Mid Cap Fund | 1.35% |
| 6 | Equity Blue Chip Fund | 1.35% |
| 7 | Gilt Fund | 1.25% |
| 8 | Long Term Bond Fund | 1.25% |
| 9 | Equity Small-Cap Fund | 1.35% |
| Discontinued Policy Fund | 0.50% |
E. Surrender/ Discontinuance Charges
These charges are recovered by way of cancellation of an appropriate number of units. The date of discontinuance shall be the date of surrender.
F. Switching charges
Nil
G. Premium Redirection charges
Nil
H. Partial Withdrawal Charges
Nil
I. Mortality Charges
Mortality charges are recovered on a monthly basis (on every policy month anniversary) from the date of commencement by way of cancellation of an appropriate number of units.
This charge, if any, shall be levied at the beginning of each policy month from the fund.
Inference from Charges: These charges represent an additional cost burden for investors. As several of them are levied throughout the Edelweiss Life Wealth Premier Plan policy tenure, they steadily dilute returns over time, thereby reducing the overall profitability of the investment.
Free Look Period for the Edelweiss Life Wealth Premier
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 Edelweiss Life Wealth Premier Plan 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
Surrendering the Edelweiss Life Wealth Premier
Surrender of Policy during lock-in period (during first five policy years): Upon receipt of a request for Surrender, the Fund Value, after deducting the applicable discontinuance charges, shall be credited to the Discontinued Policy Fund.
The Edelweiss Life Wealth Premier Plan Policy shall continue to be invested in the Discontinued Policy Fund, and the proceeds of the discontinued policy shall be paid at the end of the lock-in period.
Surrender of Policy after the lock-in period (after the first five policy years): The policyholder has an option to surrender the policy at any time. Upon receipt of a request for surrender, the fund value as on the date of surrender shall be payable, and the policy will terminate.
What are the advantages of the Edelweiss Life Wealth Premier?
- Unlimited free fund switches provide flexibility to rebalance investments across funds.
- Partial withdrawals are permitted without charges from the sixth policy year onwards.
- The one-time premium structure ensures a simple and hassle-free investment experience.
- Loyalty additions contribute to an enhancement in the overall fund value.
What are the disadvantages of the Edelweiss Life Wealth Premier?
- The plan does not offer a policy loan facility.
- Access to funds is restricted during the initial five policy years.
- The sum assured is inadequate to address a family’s essential financial requirements.
- The policy is limited to a single premium payment with a fixed 10-year policy term, offering no flexibility to modify the structure based on individual convenience.
Research Methodology of Edelweiss Life Wealth Premier
A single premium investment may appear convenient; however, the return generated is the key determinant of its suitability.
In this section, we evaluate the Internal Rate of Return (IRR) of the Edelweiss Life Wealth Premier Plan to assess its effectiveness and compare it with other market-linked investment options.
Benefit Illustration – IRR Analysis of Edelweiss Life Wealth Premier
Consider a 35-year-old male who purchases the Edelweiss Life Wealth Premier with a policy term of 10 years and invests a single premium of ₹10,00,000. The sum assured is ₹1 crore, which is 10 times the single premium.
| Male | 35 years |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 10 years |
| Premium Paying Term | Single Pay |
| Single Premium | ₹ 10,00,000 |
At maturity, the Edelweiss Life Wealth Premier Plan policyholder receives the fund value, which depends on the assumed rate of return.
The illustrated returns of 4% and 8% are purely indicative, not guaranteed, and do not represent the upper or lower limits of returns under the policy.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -10,00,000 | 1,00,00,000 | -10,00,000 | 1,00,00,000 |
| 36 | 2 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 37 | 3 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 38 | 4 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 39 | 5 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 40 | 6 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 41 | 7 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 42 | 8 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 43 | 9 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 44 | 10 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 45 | 12,70,816 | 18,78,658 | |||
| IRR | 2.43% | 6.51% | |||
Under the 4% return assumption, the maturity fund value is ₹12.70 lakh, translating into an IRR of 2.43% as per the Edelweiss Life Wealth Premier Plan maturity calculator.
This reflects negligible wealth creation, as the returns barely keep pace with inflation.
Under the 8% return assumption, the fund value increases to ₹18.78 lakh, resulting in an IRR of 6.51% as per the Edelweiss Life Wealth Premier Plan maturity calculator.
Even at this higher assumed rate, the outcome falls short of returns typically offered by conventional debt instruments.
The IRR analysis clearly indicates that the Edelweiss Life Wealth Premier Plan fails to generate meaningful real returns, which can significantly impede long-term wealth creation.
For investors seeking to deploy a lump sum, there are more efficient alternatives available that offer higher return potential along with greater flexibility.
Edelweiss Life Wealth Premier Vs. Other Investments
The IRR analysis clearly demonstrates that the returns generated by the plan are not commensurate with the underlying risk.
To put this into perspective, let us compare the Edelweiss Life Wealth Premier Plan with alternative investment strategies using the same assumptions as those in the benefit illustration. This comparison offers a clearer and more practical assessment.
Edelweiss Life Wealth Premier Vs. Pure-term + Equity Mutual Fund
A pure-term life insurance policy providing ₹1 crore coverage for a 10-year term can be purchased with a single premium of approximately ₹1.01 lakh.
This leaves ₹8.98 lakh available for investment. Based on the investor’s risk appetite, this surplus can be allocated to either debt or equity instruments. For this analysis, an equity mutual fund has been considered.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 10 years |
| Premium Paying Term | Single Pay |
| Single Premium | ₹ 1,01,100 |
| Investment | ₹ 8,98,900 |
Under this approach, the pre-tax maturity value of the investment is ₹27.91 lakh, while the post-tax value (after accounting for capital gains tax) stands at ₹25.70 lakh.
The combined strategy of term insurance and equity mutual fund investment delivers an IRR of 9.90%.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -10,00,000 | 1,00,00,000 |
| 36 | 2 | 0 | 1,00,00,000 |
| 37 | 3 | 0 | 1,00,00,000 |
| 38 | 4 | 0 | 1,00,00,000 |
| 39 | 5 | 0 | 1,00,00,000 |
| 40 | 6 | 0 | 1,00,00,000 |
| 41 | 7 | 0 | 1,00,00,000 |
| 42 | 8 | 0 | 1,00,00,000 |
| 43 | 9 | 0 | 1,00,00,000 |
| 44 | 10 | 0 | 1,00,00,000 |
| 45 | 25,70,854 | ||
| IRR | 9.90% |
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 27,91,847 |
| Purchase price | 8,98,900 |
| Long-Term Capital Gains | 18,92,947 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 17,67,947 |
| Tax paid on LTCG | 2,20,993 |
| Maturity value after tax | 25,70,854 |
This comparison clearly highlights the advantage of separating insurance and investment.
While the Edelweiss Life Wealth Premier Plan confines investors to relatively low returns and limited liquidity, a combination of a pure-term insurance policy and an equity mutual fund offers significantly higher returns along with greater flexibility.
Final Verdict on Edelweiss Life Wealth Premier
The Edelweiss Life Wealth Premier Plan may appear to be a convenient and hassle-free option for investors looking to park surplus funds.
It is positioned as a market-linked investment product; however, high charges and an inadequate sum assured significantly reduce its overall appeal.
Moreover, the returns delivered by the plan are unimpressive and it also has a high agent commission.
The plan fails to adequately address long-term family protection and financial objectives, nor does it meaningfully support wealth creation.
Single premium ULIPs such as this are generally inefficient vehicles for building wealth, despite being branded as “Wealth Premier.”
For protection needs, a pure-term life insurance policy remains the most effective solution—it is cost-efficient, flexible, and capable of providing adequate coverage.
On the investment front, investors are better served by constructing a diversified portfolio across appropriate asset classes rather than committing funds to insurance-linked investment products.
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By selecting suitable investment avenues—and preferably with the guidance of a trusted financial advisor—you can pursue your long-term goals with greater clarity, confidence, and efficiency.
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