Edelweiss Tokio Life Insurance launched a single premium endowment plan. The product will offer comprehensive cover equal to sum assured which is 10 times of its single premium. The policy offers guaranteed benefit on maturity and is designed for customers who prefer to invest only once. The product gives insure as well as helps him create wealth over a period of time.
The insured will get tax benefits under Section 80 C and Section 10 (10D) of Income Tax Act, 1961.
The product offers a policy term which is for a maximum of 10 years. During this period, a policy holder can also avail loan against this policy. The product enables a customer to pledge maximum loan amount which is 90% of the surrender value.
The single premium for this product ranges between Rs 40, 000 and Rs 25 lakh and above. For instance, if the policyholder pays a minimum premium of Rs 40,000, he will get a cover or sum assured of Rs 4 lakh. The policy offers 5 premium band according to which the policy holders will have to pay the premium. The maturity benefit payable will be based on the premium band, entry age and gender of the life assured.
In - case of emergency a policyholder can surrender the policy after completing at least first policy year. If the policy is surrendered after the second year, the policyholder will get 50% of maturity benefit and 80 per cent if the policy is surrendered in the fifth year.
Deepak Mittal, CEO, Edelweiss Tokio Life Insurance Company Limited says, “The product will be able to address needs of those set of customers, who are looking for one time investment and avail maximum benefit from a term policy."
