Policy opening date – 28th August 2010
This is a unit-linked insurance policy (ULIP) where the premium amount is invested in the markets (debt, equity and cash market instruments). The value of investments may go up or down, hence the risk in ULIPS is borne by the policy holder and not by the insurance company.
Death Benefit – In case of death of the policy holder, the nominee gets Basic Sum Assured + Fund Value + Enhanced Sum Assured (if opted). Death benefit shall never be less than 105% of total basic premiums paid to date minus any previous partial withdrawals.
Maturity Benefit - If the policy holder survives the policy term, then he/she gets the higher of Fund Value + Guaranteed Savings Fund at maturity.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amounts you receive from this plan are exempt from tax under section 10(10D)
Sum Assured (in Rs.)
The higher of 10 or the number of years to maturity divided by 2, for entry ages below 45 and
The higher of 7 or the number of years to maturity divided by 4, for entry ages 45 and above
Policy Term (in years)
Premium Payment Term (in years)
Same as Policy term
Entry Age of Policyholder
Age at Maturity
Annual- Rs 12000
Half-Yearly- Rs 15000
Quarterly- Rs 20000
Monthly- Rs 24000
Yearly, Half-Yearly, Quarterly and Monthly (ECS)
Riders – Some additional benefits can be taken in the form of riders by paying extra premium
Type of Rider
Available with Policy
Accidental death benefit
Permanent disability benefit
Waiver of premium benefit
Critical illness (or dread diseases) benefit
Increased death benefit / Term rider
(called as Enhanced Sum Assured)
Hospital cash benefit
Surgical Care benefit
Investment Fund Options– Under this plan the policy holder gets the following fund options:
Top-up - There is no top-up facility under this policy.
Switching - Since this policy has only one choice of investment fund, there is no switching facility.
Partial Withdrawal - The policy holder is allowed to make partial withdrawals in this policy after completing 5 policy years or when the Life Insured is 18 years of age, whichever is later. The minimum amount of partial withdrawal should be Rs. 5000. There is no maximum limit, but a minimum Fund Value of Rs. 25,000 needs to be maintained.
Premium Allocation Charge
3rd Year onwards
Policy Administration Charge
Year 1 to Year 5
Rs 20 p.m.
Year 6 onwards
Rs 25 p.m. inflating at 5% p.a. subject to a maximum of Rs 6000
Year of Discontinuation
Annual Premium < = Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Service Tax would be applicable on the charges depending on the applicable rates.
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will be discontinued and the accumulated fund value till that time minus discontinuance charge will be transferred to the Discontinued Policy Fund. The proceeds from this Discontinued Policy Fund will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
You stop paying the premium after 5 years – If the policyholder stops paying the premium after 5 years, then the insurance cover will be discontinued and the fund value shall be paid immediately and the policy would stand terminated.
You want to surrender the policy – The policy can be surrendered from the 6th (sixth) policy year. The surrender value will be equal to the fund value.
You want a loan against your policy – There is a loan facility under this policy.The minimum loan amount is Rs. 5,000 and the maximum loan amount is 40% of the fund value net of any discontinuance charge.