Finance goals, Bajaj Allianz

Investment is always a hassle – which policy to choose, whether to make short or long-term investments and more importantly, which service provider to rely on – there are just so many questions! There are so many options, and with the present economic uncertainty, it gets all the more confusing.

In a recent turn of events, this problem just got an exciting new solution. Edelweiss, the youngest Life Insurance organization in India, recently launched the Wealth Plus Plan  With a dense network of real-time offices across India, and a partnership with names like Tokio Marine, a Japanese multinational insurance holding company and Policy Bazaar, an Indian online life insurance and general insurance comparison portal; Edelweiss has developed a strong digital vertical to ace the branchless banking game. The prominent credit ratings company Morning Star has given them a rating of 4/5.

As more and more people shift online, it becomes essential to cater to the new needs that emerge from this changed environment. For the Wealth Plus Plan, Policy Bazaar helped build on the insights from online consumer behavior, which helped tailor the plan for a digital savvy consumer.

To this, one might ask many questions. Why is this policy relevant? Why is it important? What could be the long and short term impact? Subhrajit, the chief actuary of Edelweiss, explains the idea as a means to understand digital behavior and create that digital nudge in the investment space.

edelweiss tokio wealth plus plan

The idea is simple. You agree to pay a fixed premium for a minimum of 5 years. You begin to earn an interest of Re. 1 on every 100 rupees you agree to invest. Every year, a compounded interest of 1 % would be added for a period of 5 years. Henceforth, the same pattern is repeated, with increasing interest rates every 5 years for as long as you pay. So the pattern is-

  • 1% for the first 5 years
  • 3% for the next 5 years
  • 5% for the following 5 years
  • And 7% thereon in the last 5 years

Another unbelievable thing about the policy is that this additional allocation comes at no additional cost. Moreover, there is no separate categorization for smokers and non-smokers.

Speaking on the nature of investment in life insurance in India, Deepak, the CEO of Edelweiss Tokio Life, commented how there is a dominant tendency among Indians to view life insurance as a long-term investment tool. He believes it is time that there was a policy that also served as a contingency plan. We tend to be more comfortable with investing on a monthly basis, perhaps due to our conditioning for SIPs.

Essentially, ULIP is a fund of fund. In the case of the Wealth Plus policy, you are in absolute control of asset allocation at all times. Apart from investing Re.1/ in every Rs.100 you invest, the Wealth Plus Plan gives you absolute control of your investment at all times.

Not just beneficial for investors, this is also a considerable advantage for ULIP as an investment category altogether. It is directly competing against direct mutual funds and definitely winning by a significant margin in terms of other comparable income options. The USPs of this fund includes additional allocation i.e company contributes in your premium every time you pay the premium. Also you can switch between the funds in different category at absolutely zero charges. And with all such benefits, returns in long term are better than mutual funds. And Yes, you get a life cover as per your policy as well. All these benefits makes this fund stand out in the cluttered market of invest products & makes it better than other comparable income options.


The interesting thing about this particular investment tool is that it accounts for the estimated growth in the human mortality in years to come. Let me explain. If you buy insurance at 30, by the time you reach 60, life expectancy would have increased to 80. What then? Would you get an additional policy for the next 20-40 years (number may vary person to person). You could, but this means you start from the lowest interest rates all over again. However, if you went with the Wealth Plus Plan, your policy cushion would have been readjusted at its current position, in order to maximize gains

To say in simple terms, if my Wealth Plus Plan matures when I am 60, I can either choose to withdraw a lumpsum amount or simply fix installments. The amount that I do not withdraw continues to grow. Now isn’t that #Unyakeenable?!

One of the greatest investment advices by one of the greatest business investors of all times – Warren Buffet, is this:

Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.

The Wealth Plus Plan is something like that. So what are you waiting for? Go ahead, start smart by starting early.  For any doubts or better understanding the Wealth Plus Plan, click, click here.


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