Sahara Utkarsh Plan
Sahara Utkarsh Plan is a Unit Linked Insurance Plan with both regular and single premium paying facility. Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
Key Features
There is 1 Additional Rider in this plan but available only under Regular Premium Scheme:
Accident Benefit & Accidental Total & Permanent Disability Benefit Rider
In this plan, there are 5 funds for Investment:
- Secured Fund
- Balanced Fund
- Smart Fund
- Growth Fund
- Prima Fund
This is not allowed in this plan.
Switching is allowed after the Life Insured is at least 18 years old. There are 2 free switches in every policy year post which there is a charge of Rs 100 per switch. The switching charges would be recovered by cancellation of units.
Partial withdrawals are allowed only after completion of 5 policy years or after completion of 18 years of the Life Insured. The minimum partial withdrawal is Rs 2,500 subject to a maximum of 50% of Fund Value subject to the condition that minimum balance in the fund after partial withdrawal should be one annualized premium under regular premium policy and Rs 50,000 under Single Premium. There is no charge for Partial Withdrawal.
Benefits
In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of Sum Assured, net of partial withdrawals in the last 2 policy years and Fund Value as Death Benefit, subject to a minimum of 105% of the total premiums paid.
When the policy matures, the Fund Value is paid as Maturity Benefit to the policyholder and the policy terminates.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
How it works
In this plan, premium can be paid single or till the end of the policy tenure. There are 5 funds available for investment in this plan, where the premium, net of charges is invested according to the risk appetite and choice of the policyholder.
In this plan, the Fund Value is paid as Maturity Benefit to the policyholder and the policy terminates. However, if the Life Insured dies within the policy tenure, the higher of Sum Assured and Fund Value, subject to a minimum of 105% of the total premiums paid, net of partial withdrawals in the last 2 policy years is paid to the nominee as Death Benefit and the policy terminates.
There is 1 additional rider for Regular Premium Plan.
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
Policy Year | Premium Allocation Charge |
1st year in Regular Premium | 7.5% of Annualized Premium |
2nd to 5th year in Regular Premium | 5% of Annualized Premium |
6th year onwards in Regular Premium | 4% of Annualized Premium |
Single Premium | 4.5% of Single Premium |
Policy Administration Charge — This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.
Policy Year | Policy Administration Charge |
Admin Fee | Rs 30 per month |
Increases by | 5% per annum compounding on every policy anniversary |
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
Type | Charge |
Secured Fund | 0.65%p.a. of the Fund Value subject to maximum of 0.90% p.a. |
Balanced Fund | 0.75% p.a. of the Fund Value subject to maximum of 1.00% p.a. |
Smart Fund | 1% p.a. of the Fund Value subject to maximum of 1.25% p.a. |
Growth Fund | 1% p.a. of the Fund Value subject to maximum of 1.25% p.a. |
Prima Fund | 1% p.a. of the Fund Value subject to maximum of 1.25% p.a. |
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure under Regular Premium
Year of Discontinuation | Annual Premium <= Rs 25,000 p.a. | Annual Premium > Rs 25,000 p.a. |
1st | 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 |
2nd | 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 |
3rd | 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 |
4th | 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 |
5th onwards | NIL |
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
Service Tax would be applicable on the charges depending on the applicable rates.
Eligibility
Minimum | Maximum | |
Sum Assured (in Rs.) |
Upto Age 45, 125% of Single Premium
Age 45 and more, 110% of Single Premium
Regular premium- 10 times Annualized Premium for age <=45
7 times Annualized Premium for age >46
|
|
Policy Term (in years) | 8 | 20 |
Premium Payment Term (in years) | Single | Equal to Policy Term |
Entry Age of Life Insured (in years) | 12 | 55 |
Age at Maturity (in years) | - | 70 |
Premium (in Rs.) | 50,000 for Single 20,000 in Yearly Mode 15,000 in Half-Yearly Mode |
No Limit |
Payment modes | Single, Yearly and Half-Yearly |
FAQs
- Single Premium- No requirement of further premium payment
- Regular Premium- If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate of 3.5% and the proceeds from this 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.
- Single Premium- No requirement of further premium payment
- Regular Premium- If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
- Single Premium-
- Within 5 Years from the date of commencement-If the policy is surrendered within five years from the date of commencement, the fund as on the date of surrender will be transferred to Discontinued Policy Fund which will earn a rate of interest of 3.5% p.a. compounding yearly up to the end of 5 policy years. The accumulated fund will then be payable to the policyholder at the end of 5th policy year. There is no Discontinuation Charge.
- After five years from commencement - Fund Value as on date of surrender. There is no Discontinuation Charge.
- Regular Premium-
- Within 5 Years from the date of commencement - If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate of 3.5% and the proceeds from this 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.
- After five years from commencement - Fund Value as on date of surrender. There is no Discontinuation Charge.
There is no loan available under this plan.