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Wednesday, 24 February 2016

Edelweiss Tokio Life: Wealth Accumulation (Accelerated Cover ULIP)



Individuals are often confused when it comes to making an investment or choosing an insurance plan for themselves or their loved ones. Unit Linked Insurance Plans (ULIP) is designed to provide individuals with a combination of Insurance and Investment in a single plan. Thus, individuals have the satisfaction of having an investment as well as insurance cover.


Classical Endowment Plans may provide you with Insurance cover but the Maturity returns are not that great as the investment is mainly in low yield bonds and debt funds. Thus, Unit Linked Insurance Plan (ULIP) was introduced which in a way is hybrid of Insurance Cover and Mutual Fund Investment. ULIP not only provides you with an insurance cover but also ensures that you get the best of return on the investment. The premium paid towards the policy is diversified into Equity and Debt Markets which ensures that your wealth maximizes over a period of time.
I have discussed the Features and Benefits of ULIP Schemes in my previous post and 
would recommend you to go through the same in the link provided below before reading this post:-


In the Insurance Market, You have many Insurers providing various Unit Linked Insurance Schemes and if you look at them in detail you will find that core of the scheme is almost identical with minute tweaks. Thus in this post I will discuss about the ULIP scheme offered by Edelweiss Tokio Life-Wealth Accumulation and also highlight the reasons for which you just might want to consider it. The Wealth Accumulation plan is available online through Edelweiss Tokio Life portal.
All funds have been rated 5 star by Morningstar which lends credibility to the plan.

Features of Wealth Accumulation
  • Wide range of Funds is available for Investment which not only ensures that you get the best return but also ensures that your investment is protected as the risk is mitigated.
  • Equity Top 250, Equity Large Cap and Price Earning based Funds are few notable Investment Fund options which every individual should include in his/her portfolio. Investment in these funds will ensure that you accumulate handsome amount of wealth over a period of time.
  • Guaranteed Additions up and above the Fund performance makes it even more viable scheme for the Individuals.
  • It also offers the option to switch funds while the policy is in force which provides you with the opportunity to maximize your wealth and also protect it from any downturns.
  • Partial Withdrawal of Fund is also available on and after completion of 5 years which will take care of any urgent financial requirement.
  • Option to Top Up Investment and pay limited number of premium but enjoy extended life cover is also available.

Benefits of Investing In Wealth Accumulation

In case of Death:
Higher of-
Fund Value, or
Sum Assured, or
105% of the Total Premium Paid.
Will be paid to the Nominee.
On Maturity:
Fund Value accumulated in the Portfolio along with Guaranteed additions will be paid to the Insured.

Fund Performance

Edelweiss Tokio Life Wealth Accumulation Funds have outperformed the market over the years. The yield in all of their 6 funds is higher than the Industry benchmark making it a very viable Insurance cum Investment option.
It is observed that Funds with minimum amount of risk also fetch you a decent return, while exposure to Equities ensures that you get a handsome return on the Investment.
In my opinion, if an Individual is opting for long term plan then Balanced   Investment in Equities will always help in maximizing the Wealth Accumulation.

Individual ULIP Fund
Investment Philosophy
Asset Allocation
Risk Level
3 year CAGR*
Performance
Benchmark
Money Market Fund
An option to invest in liquid & safe instruments.
100% Debt
Low Risk
9.4%
8.8%
Bond Fund
Safe and fixed investment option through investment in debt instruments.
100% Debt
Low Risk
10.1%
9.2%
Managed Fund
Exposure to a balance between risk and safety.
0-40% Equity 60-100% Debt
Moderate Risk
15.0%
11.0%
PE Based Fund
Allocation between Equity & Debt/Money Market Instruments.
0-100% Equity 0-100% Debt
Moderate Risk
16.6%
12.6%
Equity Large Cap fund
High equity exposure to investors with an aim of higher returns
60-100% Equity 0-40% Debt
High Risk
24.3%
14.9%
Equity Top 250
High equity exposure to investors with higher returns.
60-100% Equity 0-40% Debt
High Risk
26.6%
18.9%

Conclusion

Wealth Accumulation is an attractive ULIP plan which offers you flexible Investment cum Insurance cover. The Funds available for Investment under the Plan actually differentiates it with other ULIP plans. It is a Five Star rated fund which makes it even more credit worthy.
Overall, it is good investment option for Individuals who are looking to Save Tax and with a good Insurance cover which will also maximize their wealth.

Note: This article has been sponsored by the respective Business House.

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