The Insurance That Keeps You Ahead Of All Is Edelweiss Tokio’s Unit Linked Insurance Plan

ByAmrina Alshaikh

One can define a ULIP or unit-linked insurance plan from Edelweiss Tokio as an insurance plan with an additional benefit of investing money in the market for fulfilling future financial goals. It means that one gets a dual benefit with a unique plan of protecting the family and securing the family’s future. An individual has to select the right plan suitable for their needs to fulfill their financial goals.

Edelweiss Tokio’s life insurance Unit linked insurance plan helps you protect and secure your family with much-needed financial support. Let us understand how ULIP or a unit-linked insurance plan works.

Working of the Edelweiss Tokio Life Unit linked insurance plan.

Many life insurance products are useful as instruments for investment in the financial market as against popular belief. ULIP or a unit-linked insurance plan from Edelweiss Tokio is one such financial instrument and is, therefore, is called a market-linked product. Let’s see how it works –

  • A ULIP provides the policyholder with life coverage while the funds are invested in the open market.
  • The policyholder earns returns on the funds invested, which are again incidental to the market performance of the ULIP product.
  • Such investment helps the policyholder in generating better returns in the long run.
  • The policyholder can also customize the investment of the ULIP funds. They can choose the funds for investment according to their risk capability. Those investors who have a lower risk-bearing capacity may opt for debt funds. Those investors with a higher risk appetite may opt for equity investments. Moreover, the investors have the flexibility to switch between the funds based on the market dynamics so that they do not overlook the funds showing up a better performance.
  • A unit-linked insurance plan from Edelweiss Tokio also provides tax benefits. The premium payable is eligible for a tax exemption under section 80C. Simultaneously, the amount received on maturity of the policy is suitable for a tax exemption under section 10(10D) of our Income Tax Act of 1961.
  • In a ULIP from Edelweiss Tokio, the beneficiary receives the amount as a death benefit in the event of the policyholder’s unfortunate death during the term of the policy.
  • Similarly, the policyholder receives a maturity benefit if they survive the entire term of the unit-linked insurance policy.

Advantages of the Edelweiss Tokio Life Unit linked insurance plan.

Here are some of the advantages of ULIP from Edelweiss Tokio  –

  • ULIPs provide an opportunity for systematic savings as the policyholder can keep aside a substantial amount of income to use for future savings.
  • ULIPs provide the much-needed flexibility of selecting the funds as per your choice. Many units also offer an increase in the premiums during the premium paying term. An individual can opt for a ULIP policy by considering their risk appetite and their financial goals.
  • ULIP offers an advantage of liquidity. It provides a partial or full withdrawal of funds from the account after the initial lock-in period of five years.
  • ULIP helps towards wealth accumulation as it doesn’t allow only saving of the earnings and helps in the growth of wealth by allocating the funds to the market.
  • Premiums that are paid under ULIPs are eligible for tax exemption under section 80C. The maturity benefits are also suitable for tax exemption under section 10(10D) of the Income Tax Act of 1961.

 Opt for ULIP for growth, security, and savings at the same time. Edelweiss Tokio Life Unit linked insurance plan is a must buy a plan for its benefits.