Private life insurer Edelweiss Tokio on Monday has announced the launch of two endowment policies – Save n Grow and MultiGain. Both are participating, or with-profits, policies, with Multigain also offering a ‘Money-back’ feature.
Policy tenures under Save n Grow range from 15 to 30 years, while the premium paying term could be 10 or 15 years. The policyholder also has a choice of paying premiums throughout the policy tenure. Fifth year onwards, the sum assured under the policy will increase by 15% every year.
In case of Multigain, the policyholder will receive 20% of the sum assured at an interval of every one-fifth of policy term. In other words, if you choose a policy term of 20 years, you will receive the sum on fourth, eighth, twelfth and sixteenth policy anniversary. You can select a policy term of 20, 25 and 30 years.Both policies also offer rider benefits.
Under participating policies, the maturity proceeds comprise the basic sum assured and the annual bonuses declared by the company during the policy term. In case the policyholder dies during the period, the accumulated benefits are handed over to the nominee.
Upside: If you are looking for a secure, debt-heavy investment avenue and do not mind compromising on the return front, you could consider these products Downside: On the other hand, if your objective is to create a corpus to fund a long-term goal like your child’s higher education, debt-oriented products may not work as their return-yielding capacity is limited. Financial planners usually recommend diversified equity mutual funds for such goals.