Unit Linked Insurance Plans (ULIPs) are the insurance products that give you the option of investment and insurance at the same time. A part of the premium you pay is invested in insurance, and the rest is invested in the funds you choose.
Why Invest in New Generation ULIP Scheme?
The new generation ULIP scheme is an ideal insurance product. To support this notion, there are several benefits. Some of the benefits of New Generation ULIP are mentioned below:
Switching Option: You’re given an option to switch between the funds chosen by you. The switches are unlimited and free of cost
Higher Returns: You can look forward to 15 to 20 percent of returns if you invest in ULIP for a longer period of time. As per the historical data, equity funds have given return between 16-17% , if you stay invested of 5 years or more.
Insurance Cover: Sum Assured= 10x Annual Premium Paid.
You can also increase this amount while choosing your plan. Different plans have different characteristics. You’re given an option to select the sum assured between 10 and 20 times.
Easy Liquidity: The new generation ULIP gives you an option to surrender your policy after the tenure of 5 years of the lock-in period.
Example of Popular New Age ULIP:
Edelweiss Tokio Life-Wealth Plus:
Edelweiss Tokio Life-Wealth Plus is a ULIP that meets your investment requirements by putting in 100% of the premiums. An additional sum is also allocated to a policy bought by you.
Feature and Benefits:
- Rising Star Benefit
- Additional Allocation
Rising Star Benefit:
The Rising Star Benefit is perfect for parents who want to secure their kid’s future goals. They also get an additional death benefit. In the event of an unforeseen demise of the insured (parent), the following benefits are given:
- A lump sum amount is paid right away
- Life Cover on the Life Insured will remain the same
- The Policy prolongs until the date of maturity or the demise of the Life Insured (whichever is earlier)
Edelweiss Tokio Life-Wealth Plus plan ensures that 100 percent of the premium is allocated to the funds of your preference. Furthermore, this scheme provides an additional allocation on a yearly basis beginning from the inception of Policy Year until the premium payment term ends.