Edelweiss Tokio Life Insurance has launched Flexi Savings Plan, which offers an innovative optional feature called Accrual of Survival Benefit. In a statement, the insurance company said that this feature gives customer the freedom to change timing of benefit payout as many times as necessary to match their individual requirements.
Flexi Savings Plan has 3 base plan options – Flexi-Income, Flexi-Income Pro, and Large Sum. The Accrual of Survival Benefit feature can be opted along with Flexi-Income and Flexi-Income Pro base plan options, the statement said.
“Different customers have different needs. These needs do not stay constant and undergo an evolution throughout a customer’s life, which in turn makes long-term planning considerably challenging. We realized that customers want the flexibility to choose when to avail the benefits offered by their life insurance plan. This insight guided our product design process, wherein we explored how we can offer a solution that is curated for each person’s individual and evolving needs,” Subhrajit Mukhopadhyay, Executive Director, Edelweiss Tokio Life Insurance said.
“This product will change the dynamic between a customer and their life insurer by restoring control into the hands of the customer. In today’s world, customers want their preferred life insurer to offer a personalized experience tailored to their specific needs. They truly want a Meri Marzi Ka Plan and that’s what Flexi Savings Plan is,” added Mukhopadhyay.
As per the statement, both Flexi-Income and Flexi-Income Pro plan options, let the policyholder choose an Income Start Year – 2nd Policy Year, 5th Policy Year or 1st year after end of Premium Paying Term. The product also offers a Cash Bonus starting the selected Income Start Year, and a Revisionary Bonus, for those opting to start their income either from the 5th Policy Year or 1st year after the end of the Premium Paying Term.
Flexi-Income vs Flexi-Income Pro plan: Difference
Guaranteed Income payout is the key differentiator between both these options.
Under Flexi-Income, the Guaranteed Income starts from the first year after Premium Paying Term ends. Under Flexi-Income Pro, the Guaranteed Income is paid out as a lump sum at an interval of 5 years after the premium paying term ends up to 30th policy year. Thereafter, a regular annual Guaranteed Income payout begins.
What is Accrual of Survival Benefit?
The Accrual of Survival Benefit allows the customer to either accumulate or cash out their survival benefits as per their requirements during the tenure of the policy. A customer can opt-in and out of this benefit multiple times at any point during the tenure of the policy.
Large Sum Plan, which is the third base plan option, offers a total maturity benefit at the end of the tenure.
Another optional benefit is the Life Cover Continuation Benefit, which allows the customer to extend life cover equal to 10 times of Annualized Premium for a fixed period. This period depends on the attained age of the policyholder at policy maturity.