Wealth Builder Plan: Features and Benefits

Posted by amrina alshaikh on October 6th, 2019

The Wealth Builder Plan is basically a ULIP policy. The difference is, wealth builder plan is unit-linked. It serves to the policy holder’s financial needs with one product. The plan provides dual benefits of both insurance and investment. A policyholder can choose from the fund options and can invest in it. The return will be fixed according to prevalent market dynamics and condition.

What are the features of Wealth Builder Plan?

The plan provides up to 125% guaranteed additions. In a regular policy, these additions of the annual premium are available. You can enjoy this benefit for 30 years of policy term. After the first 10 years of the policy, the guaranteed additions start. Different types of premiums or plan types are available like regular premium, single premium and limited premium. A policyholder has the option to choose one from these plans. In the first 5 years of the regular and limited premium paying term, administration charge is not mandatory. The policyholder can increase the fund value in this way. Allocation of fees is not allowed after 11^th year and above. A policyholder can choose from seven different fund options. According to the policy holder’s age, Wealth-Builder Plan offers a minimum amount of sum assured. You can avail the facility of increasing and decreasing the sum assured. When the sixth policy year starts, the policyholder can avail this benefit.

Benefits of Wealth Builder Plan:

Maturity Benefit: The total fund value is provided to the policyholder once the policy term is over.

Death Benefit: At least 105% of the basic premium is payable as the higher sum assured till the intimation date of death in case of demise of the policyholder.

Tax Benefit: Wealth Builder Plan offers tax benefits to the policyholder. If a paid premium goes over 10% of fund value in a financial year, the benefit will also not cross 10% of the sum assured. If the premium does not cross the limit, then the policyholder can avail tax exemption as the policy matures or at the time of surrender.

Eligibility Criteria:

• You can avail a Wealth Builder Plan at the minimum age of 7 years.
• When it comes to regular and limited premium, the maximum entry age is 60 years for this plan.
• For a single premium, the maximum age is 65 years to enter this policy.
• For maturity, 70 years is the maximum for wealth builder plan.
• The term tenure is 5 years to 30 years in case of single premium.