Product highlights
· A ULIP with a term ranging from 10 to 30 years for an individual between 0 to 65 years of age at entry; the maximum age at maturity is 75 years.
· Trigger Portfolio Strategy: Option to choose a unique portfolio strategy to protect gains made in equity markets from any future equity market volatility
· Loyalty Additions: At the end of every five policy years, starting from the 10th policy year, on payment of all premiums
· 100% allocation: At premium payment, in the asset class of your choice
· Additional allocation of units: More than 100% allocation to funds on premium payment from the sixth policy year to the end of the policy term
· Automatic Transfer Strategy: An option that helps you eliminate the need to time your investment
Charges you pay
· Premium allocation charge
No premium allocation charge is deducted from your premium, except for the 1 per cent charge that is levied on the top-up premium.
· Fund management charge (FMC)
FMC varies from 1 per cent to 1.25 per cent per year with a maximum cap of 1.35 per cent
Policy administration charge and mortality charge
Policy administration charges are fixed at RS. 60 per month. Mortality Charges are shown below.
· Surrender and revival charge
Policy revival charge is Rs. 100, which can go up to Rs. 1,000 at the company’s discretion. A surrender charge will be applicable if the policy is returned in the first 3 policy years.
· Other policy charges
Four fund switches in a year, One partial withdrawals every three years are allowed free. Policy alterations charges Rs 250 per alterations.
Incentives
1. Maturity benefit
• Fund value is paid at the time of maturity.
2. Death benefit
The nominee will receive higher of Fund Value or basic sum assured.
3. Loyalty Additions
At the end of every five policy years, starting from the 10th policy year, on payment of all premiums. This will be equal to 2.5% of the average of your policy fund value on the last day eight quarters preceding the allocation.
Amount Invested | Term | Age of Entry | Final Fund value at 10% | Gross Yield | |
Rs 25000 yearly | 30 years | 30yrs | Rs 35,50,568 | 8.94% | |
Rs 25000 yearly | 20 years | 40 yrs | Rs 13,40,795 | 8.87% | |
Recommendations
· For whom – Conservative investors willing to put money for a longer period
· Risk – High Risk; maturity benefits linked to market returns
· Investment horizon – 10-30 years
· Returns –High as charges are low
· Beats inflation – Yes, it will be able to beat inflation at an assumed growth rate of 10 per cent
· Tax bracket – Preferable for all tax brackets
· Alternatives – Term plan with the return of premium option, PPF with term plan
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