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Could Edelweiss Tokio Life Wealth Secure+ help you achieve your financial goals?
Is Edelweiss Tokio Life Wealth Secure+ the right option to grow your savings?
Should Edelweiss Tokio Life Wealth Secure+ be part of your investment plan for a secure future?
This ULIP review will help you understand the features of Edelweiss Tokio Life Wealth Secure +, enabling you to make an informed decision.
Let’s delve into the analysis by dissecting the advantages, disadvantages, and IRR calculation of Edelweiss Tokio Life Wealth Secure + Plan.
Table of Contents:
What is the Edelweiss Tokio Life Wealth Secure + Plan?
What are the Features of Edelweiss Tokio Life Wealth Secure + Plan?
What are the Plan variants of Edelweiss Tokio Life Wealth Secure + Plan?
Who is Eligible for the Edelweiss Tokio Life Wealth Secure + Plan?
What are the Benefits of Edelweiss Tokio Life Wealth Secure + Plan?
Investment Strategies & Fund options of Edelweiss Tokio Life Wealth Secure + Plan
I. Life Stage & Duration-based Strategy of Edelweiss Tokio Life Wealth Secure + Plan
II. Self-Managed Strategy of Edelweiss Tokio Life Wealth Secure + Plan
What are the charges under the Edelweiss Tokio Life Wealth Secure + Plan?
Grace period, Discontinued policy & Revival in Edelweiss Tokio Life Wealth Secure + Plan
Free Look Period in Edelweiss Tokio Life Wealth Secure + Plan
Surrendering Edelweiss Tokio Life Wealth Secure + Plan?
What are the Advantages of Edelweiss Tokio Life Wealth Secure + Plan?
What are the Disadvantages of Edelweiss Tokio Life Wealth Secure + Plan?
Research Methodology of Edelweiss Tokio Life Wealth Secure + Plan Review
Benefit Illustration – IRR analysis of Edelweiss Tokio Life Wealth Secure + Plan
Edelweiss Tokio Life Wealth Secure + Plan Vs Other Investment Schemes
Edelweiss Tokio Life Wealth Secure + Plan Vs. Pure Term + ELSS
Final Verdict on Edelweiss Tokio Life Wealth Secure + Plan
What is the Edelweiss Tokio Life Wealth Secure + Plan?
Edelweiss Tokio Life Wealth Secure + is a unit-linked, Non-participating, Individual Life Insurance Plan. Edelweiss Tokio Life Wealth Secure + Plan provides life cover which will be useful to your family in case of the unfortunate demise of the Life insured.
What are the Features of Edelweiss Tokio Life Wealth Secure + Plan?
- Ensures financial protection for your family in case of your unfortunate demise
- Joint Life Cover option to cover you and your spouse in the same policy
- The plan offers enhanced protection for your child by the continuation of policy on your unfortunate demise
- Option to start your savings even with Rs. 1,000 per month
- Option to choose from a bouquet of 7 funds with unlimited switches if opted for Self-Managed Strategy.
What are the Plan variants of Edelweiss Tokio Life Wealth Secure + Plan?
A.) Base:
In this variant, the life cover is available on individual life.
B.) Life Partner:
In this variant, the life cover is available on a joint life basis.
C.) Child:
In this variant, the life cover can be opted either on individual Life (child) or on Joint Life (covering both policyholder and his/her spouse) basis.
Who is Eligible for the Edelweiss Tokio Life Wealth Secure + Plan?
| Eligibility Conditions | Base | Life Partner | Child |
| Entry Age (last birthday) (with PPT < 10 years) | 0 – 50 years | 18 – 45 years | 18 – 40 years1 |
| Entry Age (last birthday) (with PPT >1= 10 years) | 0 – 60 years | 18 – 50 years | |
| Maturity Age (last birthday) (with PPT < 10 years) | 18 – 70 years | 23 – 55 years | |
| Maturity Age (last birthday) (with PPT >1= 10 years) | Option 1: 18 – 70 years | 23 – 60 years | |
| Option 2 2: 100 years | |||
| Policy Term | Option 1: 5 – 25 years | 5 – 25 years | |
| Option 22: 100 minus entry age | |||
| Premium Paying Term (PPT) | Regular Pay: Same as Policy term, | ||
| Limited Pay: 5 years – (Policy term minus 1) years | |||
| Minimum Sum Assured | 7 x Annualized Premium | ||
| Maximum Sum Assured | 10 x Annualized Premium | ||
| Top-up Sum Assured (based on attained age) | 1.25 x Top-up Premium | ||
| Annualized Premium (with PPT < 10 years) | Rs. 24,000 – No Limit | Rs.48,000 – No Limit | |
| Annualized Premium (with PPT >1= 10 years) | Rs.12,000 – No Limit | Rs.24,000 – No Limit | |
| Top up Premium | Rs. 5,000 – No Limit | ||
| Premium payment mode | Monthly, Quarterly, Semi-Annually & Annually | ||
What are the Benefits of Edelweiss Tokio Life Wealth Secure + Plan?
i.) Death benefit
For the base plan & Life Partner plan
Higher of:
- Sum assured less relevant partial withdrawals;
- Fund value as on the date of intimation of the claim to the company;
- 105% of total base premiums paid till the time of death.
Plus
Higher of:
- Top-up sum assured;
- Top-up fund value as on the date of intimation of the claim to the company;
- 105% of total top-up premiums paid till the time of death.
Under the base plan of Edelweiss Tokio Life Wealth Secure + Plan, the death benefit is payable on the death of the Life insured. Under the Life Partner Plan death benefit is payable on the death of either of the Joint lives.
For Child plan
Higher of:
- Sum assured less relevant partial withdrawals;
- 105% of total base premiums paid till the time of death.
Plus
Higher of:
- Top-up sum assured;
- 105% of total top-up premiums paid till the time of death.
ii.) Maturity benefit
For all the 3 variants available, the fund value calculated at the prevailing NAV on the maturity date will be payable as lumpsum or as per the settlement option chosen.
iii.) Additions
Edelweiss Tokio Life Wealth Secure + Plan offers regular additions namely, Loyalty Additions (LA), Booster Additions (BA), and Maturity Additions (MA) which are expressed as a percentage of the fund value.
Investment Strategies & Fund options of Edelweiss Tokio Life Wealth Secure + Plan
Edelweiss Tokio Life Wealth Secure + Plan offers two investment strategies.
1. Life Stage & Duration-based Strategy of Edelweiss Tokio Life Wealth Secure + Plan
In order to manage your risk appetite, as your age increases and the remaining policy term reduces, this strategy ensures that your money is moved from an equity-oriented fund (Equity Large Cap Fund) to a debt-oriented fund (Bond Fund).
2. Self-Managed Strategy of Edelweiss Tokio Life Wealth Secure + Plan
Under this strategy, you can decide to invest your money in your choice of fund(s) in any proportion. You can switch monies amongst these funds using the switch option. The funds available are listed below:
| Fund Name | Asset Allocation | Risk | ||
| Equity | Debt | Money Market instruments | ||
| Equity Large Cap Fund | 60 – 100% | 0 – 40% | 0 – 40% | High |
| Equity Top 250 Fund | 60 – 100% | 0 – 40% | 0 – 40% | High |
| Equity Mid-Cap Fund | 80 – 100% | 0 – 20% | 0 – 20% | High |
| Managed Fund | 0 – 40% | 60 – 100% | 60 – 100% | Medium |
| Bond Fund | 0 | 60 – 100% | 0 – 40% | Low to Medium |
| Equity Blue Chip Fund | 60 – 100% | 0 – 40% | 0 – 40% | High |
| Gilt Fund | 0 | 60 – 100% | 0 – 40% | Low to Medium |
The asset allocation differs under each fund option and the risk profile varies based on the asset allocation. Choose the fund that aligns with your risk profile.
What are the charges under the Edelweiss Tokio Life Wealth Secure + Plan?
A. Premium Allocation Charges
NIL
B. Top-Up Allocation Charge
NIL.
C. Policy Administration Charges
During the premium paying term – Rs. 50 per month
After premium paying term – Nil
D. Fund Management Charges (FMC)
| Fund Name | Fund Management Charge |
| Equity Large Cap Fund | 1.35% |
| Equity Top 250 Fund | 1.35% |
| Equity Mid-Cap Fund | 1.35% |
| Managed Fund | 1.35% |
| Bond Fund | 1.25% |
| Equity Blue Chip Fund | 1.35% |
| Gilt Fund | 1.25% |
| Discontinuance Policy Fund | 0.50% |
E. Surrender charge
It depends on the year of surrender and the premium amount.
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) by way of cancellation of an appropriate number of units.
Inference from charges
Although these charges are lower than those of many other ULIPs, they can still significantly impact your potential returns. Over time, this could affect your wealth accumulation journey.
Grace period, Discontinued policy & Revival in Edelweiss Tokio Life Wealth Secure + Plan
Grace period
There is a Grace Period of 30 days for the annual, half-yearly, and quarterly modes and 15 days for the monthly mode from the due date for payment of premium.
Discontinued policy
In case of discontinuance during the first five policy years, funds will be transferred to the Discontinued Policy Fund. The proceeds of the discontinued policy fund shall be paid to the policyholder at the end of the revival period or lock-in period whichever is later.
In case of discontinuance of the Edelweiss Tokio Life Wealth Secure + Plan policy after the lock-in period, the policy shall be converted into a Reduced Paid-Up policy with the Reduced Paid-Up Sum Assured i.e. original Sum Assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy.
Revival
Policyholders can revive the Edelweiss Tokio Life Wealth Secure + Plan policy within a revival period of 3 years.
Free Look Period in Edelweiss Tokio Life Wealth Secure + Plan
The Policyholder is offered 15 15-day free look period (except electronic policies and policies sold through Distance Marketing mode – which will have 30 days), from the date of receipt of this Edelweiss Tokio Life Wealth Secure + Plan policy document.
During this period the Policyholder may choose to reconsider his/her decision to hold this Edelweiss Tokio Life Wealth Secure + Plan policy or may choose to return the same, within the said 15 days /30 days.
Surrendering Edelweiss Tokio Life Wealth Secure + Plan
In case you wish to Surrender within the Lock-in Period: Fund Value (less applicable discontinuance charges) will be moved into the Discontinuance Policy Fund. Proceeds of the discontinued policy shall be refunded only upon completion of the lock-in period.
In case you wish to Surrender after the Lock-in Period: the Fund Value (Main Account + top-up account, if any), as available on the date of surrender of the Edelweiss Tokio Life Wealth Secure + Plan Policy will be paid out immediately and the policy will get terminated.
What are the Advantages of Edelweiss Tokio Life Wealth Secure + Plan?
- You have the option to change (increase or decrease) the PPT
- Unlimited free switches between funds are allowed if opted for a Self-Managed Strategy
- Self-Managed Strategy offers Unlimited Premium Redirection
- Using Systematic Withdrawal, a pre-decided percentage of fund value can be withdrawn from your fund at the end of the chosen pay-out frequency
- You can invest your surplus money as Top-up Premium
- You also have the option to change the variant during the term of the policy (conditions apply)
What are the Disadvantages of Edelweiss Tokio Life Wealth Secure + Plan?
- Loans are not available under this Edelweiss Tokio Life Wealth Secure + Plan.
- Edelweiss Tokio Life Wealth Secure + Plans do not offer any liquidity during the first five years of the policy year.
- Sum assured is too low to cover the basic needs of the family.
Research Methodology of Edelweiss Tokio Life Wealth Secure + Plan Review
Next, let’s move on to the calculation. Estimating the potential return of Edelweiss Tokio Life Wealth Secure + allows you to compare it with other investments.
By doing this, you can make a more informed decision. We’ll now work out the Internal Rate of Return (IRR) using a quote from the company’s portal.
Benefit Illustration – IRR analysis of Edelweiss Tokio Life Wealth Secure + Plan
A 40-year-old male opts for the Edelweiss Tokio Life Wealth Secure + plan with a sum assured of ₹10 Lakhs. The policy and premium payment term is 15 years, with an annual premium of ₹1 Lakh.
| Male | 40 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 1,00,000 |
He will receive the maturity benefit, or the fund value, at the end of the term. The values are based on an assumed investment rate of return of 4% p.a. and 8% p.a.
The values shown are not guaranteed and they are not upper and lower limits of returns, they have been shown for illustrative purposes only.
| 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 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 46 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 47 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 48 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 49 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 50 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 51 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 52 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 53 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 54 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 55 | 19,00,436 | 26,44,098 | |||
| IRR | 2.90% | 6.81% | |||
Assuming investment returns of 4% and 8% per annum, based on the Edelweiss Tokio Life Wealth Secure + Plan Maturity Calculator, the fund values are ₹19 Lakh and ₹26.44 Lakh, with IRRs of 2.90% and 6.81%, respectively.
These returns are lower compared to other market instruments, and the sum assured may be inadequate for basic family needs. These points make Edelweiss Tokio Life Wealth Secure + plan less ideal for life cover and wealth accumulation.
Edelweiss Tokio Life Wealth Secure + Plan Vs Other Investment Schemes
The return analysis indicates that investing in Edelweiss Tokio Life Wealth Secure + may not be favourable. Next, we will calculate the returns for other market-related investments for comparison.
This comparison aims to highlight the potential return differences if you invest directly in the market.
Edelweiss Tokio Life Wealth Secure + Plan Vs. Pure Term + ELSS
For comparison, let’s use the same metrics as the previous illustration. A pure term life insurance policy with a sum assured of ₹10 Lakhs costs ₹6,800 per annum, with a policy term and premium paying term of 15 years.
In contrast, the Edelweiss Tokio Life Wealth Secure + plan requires an annual premium of ₹1 Lakh. The difference in premium can be invested in other market-related instruments separately.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 6,800 |
| Investment | ₹ 93,200 |
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 40 | 1 | -1,00,000 | 10,00,000 |
| 41 | 2 | -1,00,000 | 10,00,000 |
| 42 | 3 | -1,00,000 | 10,00,000 |
| 43 | 4 | -1,00,000 | 10,00,000 |
| 44 | 5 | -1,00,000 | 10,00,000 |
| 45 | 6 | -1,00,000 | 10,00,000 |
| 46 | 7 | -1,00,000 | 10,00,000 |
| 47 | 8 | -1,00,000 | 10,00,000 |
| 48 | 9 | -1,00,000 | 10,00,000 |
| 49 | 10 | -1,00,000 | 10,00,000 |
| 50 | 11 | -1,00,000 | 10,00,000 |
| 51 | 12 | -1,00,000 | 10,00,000 |
| 52 | 13 | -1,00,000 | 10,00,000 |
| 53 | 14 | -1,00,000 | 10,00,000 |
| 54 | 15 | -1,00,000 | 10,00,000 |
| 55 | 36,52,065 | ||
| IRR | 10.50% | ||
You can choose between a market-related instrument like an ELSS fund or a low-risk debt instrument. In this comparison, we’ve selected a market-related instrument, the ELSS fund, similar to the Edelweiss Tokio Life Wealth Secure + plan ULIP.
The ELSS fund value at the end of 15 years is ₹ 36.52 Lakhs (Post-tax). When combined with a pure-term life insurance policy, ELSS investment yields an IRR of 10.50% (post-tax return). Capital gains taxation is given below.
By separating insurance and investment, the yield significantly outperforms the Edelweiss Tokio Life Wealth Secure + plan. These inflation-beating returns can greatly enhance your wealth accumulation journey, a benefit you might miss with the Edelweiss Tokio Life Wealth Secure + plan.
| ELSS Tax Calculation | |
| Maturity value after 15 years | 38,91,406 |
| Purchase price | 13,98,000 |
| Long-Term Capital Gains | 24,93,406 |
| Exemption limit | 1,00,000 |
| Taxable LTCG | 23,93,406 |
| Tax paid on LTCG | 2,39,341 |
| Maturity value after tax | 36,52,065 |
Final Verdict on Edelweiss Tokio Life Wealth Secure + Plan
The Edelweiss Tokio Life Wealth Secure + plan offers various life cover options: child life cover, joint life cover, or individual life cover. Premiums are primarily used for life cover, with the remainder invested in market-related instruments.
After deducting mortality and other charges, the net premium is invested, leading to lower yields. Reasons for lower yields are charges, high agent commission, and poor performance.
Consequently, the Edelweiss Tokio Life Wealth Secure + plan does not effectively support wealth creation or provide adequate life cover.
In contrast, a pure-term life insurance policy offers robust protection and acts as a safety net. For optimal financial planning, it’s advisable to separate insurance and investment. Investing should be aligned with your life goals, time horizon, and risk tolerance.
Isn’t it smarter to make your own investment decisions instead of relying on advice from social media platforms like Facebook, Quora, and Twitter?
If you’re unsure about choosing the right product, consulting a financial advisor can be beneficial. A financial advisor can create a customized plan tailored to your personal preferences and financial objectives.
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