Investment Plans 483 views July 9, 2021

Edelweiss Tokio Life – GCAP

Edelweiss Tokio Life – GCAP is a non-linked non-participating plan that helps you build a corpus for your future financial needs. Under this plan, you’ll get a fully guaranteed maturity benefit and death benefit. But to get a complete impression of this policy, you need to read in detail the benefits explained in this post.

Edelweiss Tokio Life – GCAP Benefits

Under Edelweiss Tokio Life – GCAP, you’ll be entitled to the following benefits:

Guaranteed Accrual Additions (GAA)

Edelweiss Tokio Life – GCAP offers your GAA, which will depend on your annualized premium, entry age, policy term and premium paying term. The GAA will accrue every year, starting from the 9th policy year till the date of maturity. The cumulative GAA shall be payable either on death or maturity, whichever is earlier.

GAA rate for female lives is as follows:

  1. Up to Age 3: Same as Male Rate of age 0
  2. Age 4 & above: Same rate as 3 years younger Male

Death Benefit

In case of death during the policy term, the insurer shall pay the following benefits to the nominee:

For Policyholder with Entry Age Five Years & Above

On the death of the life assured during and after the premium payment term, the insurer shall pay the Sum Assured on Death plus cumulative GAA, if any. The Sum Assured on Death is higher of the following:

  1. 11X the Annualized Premium (for premium payment term – 5, 7 & 10 years) and 13X the Annualized Premium (for premium payment term – 12 years)
  2. Sum Assured on Maturity
  3. 105% of the total paid premiums (excluding any underwriting extras, rider premiums, service tax and cess)

For Policyholders with Entry Age Below 5 Years 

In the case of minor lives, where the entry age is below 5 years, the risk cover will start one month before the second policy anniversary. And in case of death anytime during the 1 year and 11 months from the date of commencement of the policy, the insurer will pay 105% of the total paid premiums (excluding any underwriting extras, rider premiums, service tax and cess) as on the date of death. Once the risk cover starts, the death benefit would be the same as offered for the entry age of 5 years and above.

Important Note

Death Benefit payable shall be reduced by the following:

  1. The outstanding loan amount, accumulated interest and due premiums with interest, if any
  2. Unpaid premiums in the policy year when the death occurs, provided you have chosen the premium frequency other than annual

Maturity Benefit

On maturity, the insurer will pay the Sum Assured on Maturity plus Cumulative GAA.

Sum Assured on Maturity = Premium Paying Term x Annualized Premium

The Sum Assured on Maturity is payable to you in five equal annual installments from the date of maturity. GAA shall be payable to you in a lump sum along with the first installment on the date of maturity. You may take the remaining future installments in a lump sum, discounted at the rate of 6.0% per annum.

Edelweiss Tokio Life – GCAP Eligibility Criteria

You can purchase Edelweiss Tokio Life – GCAP plan if you meet the following age criteria:

  1. Minimum Entry Age – 91 Days
  2. Maximum Entry Age – 55 Years
  3. Minimum Maturity Age – 18 Years
  4. Maximum Maturity Age – 70 Years

Edelweiss Tokio Life – GCAP Premium Payment Options

Edelweiss Tokio Life – GCAP policy term is as follows:

  1. 10 years
  2. 15 years
  3. 20 years
  4. 25 years
  5. 30 years

You can choose your premium paying term from the following options:

  1. 5 years
  2. 7 years
  3. 10 years
  4. 12 years

Note: For a policy term of 10 years, only 5 pay and 7 pay are allowed.

Pay your premium as per your preferred premium payment frequency:

  1. Yearly
  2. Half-Yearly
  3. Quarterly
  4. Monthly

The minimum premium amount as per your chosen premium payment frequency is as follows:

  1. Yearly – INR 15,000
  2. Half-Yearly – INR 8,000
  3. Quarterly – INR 4,000
  4. Monthly – 1,500

Edelweiss Tokio Life – GCAP Riders

Enhance your policy coverage by adding any of the following riders:

  1. Edelweiss Tokio Life – Accidental Death Benefit Rider
  2. Edelweiss Tokio Life – Accidental Total and Permanent Disability Rider
  3. Edelweiss Tokio Life – Term Rider
  4. Edelweiss Tokio Life – Critical Illness Rider
  5. Edelweiss Tokio Life – Waiver of Premium Rider
  6. Edelweiss Tokio Life – Payor Waiver Benefit Rider
  7. Edelweiss Tokio Life – Income Benefit Rider

Note: The rider sum assured should not exceed the base sum assured. Total rider premium cannot exceed 30% of the base policy premium.

Free Look Period

You’ll get a free look period of 15 days from the date of receipt of the policy to review the term and conditions. And if you disagree with the terms and conditions, you can return the policy stating the reason for your cancellation. On such cancellation, the paid premium shall be refunded after a deduction of stamp duty charges and the cost of medical expenses, if any.

Note: A free look period of 30 days will be applicable in case the policy is purchased through distance marketing.

Suicide Clause

If the life insured commits suicide within 12 months from the date of commencement risk, the policy shall be void and 80% of the paid premiums (excluding extra mortality premium) will be payable to the nominee, provided the policy is in force on the date of death. Whereas, if the life assured commits suicide within one year from the date of revival, the policy shall be void and higher of ‘80% of the paid premiums as on the date of death or ‘surrender value’ shall be payable.

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