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Sahara Utkarsh Plan

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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.
 
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.
 
 
Key Features of Sahara Utkarsh Insurance Plan
 
  • It is a Unit Linked Insurance plan
  • The Fund Value is paid as Maturity Benefit
  • Policy tenure can be chosen from 8 to 20 years
  • In this plan, there is a facility of Regular and Single Premium payment
  • Death Benefit is higher of Sum Assured and Fund Value, subject to a minimum of 105% of the total premiums paid
  • There are 5 funds for investment
  • There is 1 additional rider for Regular Premium Plan

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 
 
Benefits you get from Sahara Utkarsh Insurance Policy
 
Death Benefit – 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.
 
Maturity Benefit – When the policy matures, the Fund Value is paid as Maturity Benefit to the policyholder and the policy terminates.
 
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 and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 
 
Eligibility conditions & other restrictions in Sahara Utkarsh Policy                   
 

 

 
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
 
 
Sample Illustration of Returns of Sahara Utkarsh Plan
 

The below illustration is for a healthy Male of age 35 years (non-tobacco user) opting for a Regular Premium Plan of Annual Premium = Rs 26000, Sum Assured = Rs 2,60,000 and Policy Term= 15 years

Sahara Utkarsh Insurance Plan Sample Returns

 

Additional Features and Benefits of Sahara Utkarsh Plan
 
Riders – There is 1 Additional Rider in this plan but available only under Regular Premium Scheme:
  1. Accident Benefit & Accidental Total & Permanent Disability Benefit Rider
 
Investment Fund Options
In this plan, there are 5 funds for Investment:
  1. Secured Fund
  2. Balanced Fund
  3. Smart Fund
  4. Growth Fund
  5. Prima Fund
 
Top-up – is not allowed in this plan.
 
Switching – 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 Withdrawal - 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.
 
 
Charges in Sahara Utkarsh 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.
 
 
What happens if?
 
You stop paying the premium before 5 years –
  • 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.
 
You stop paying the premium after 5 years –
  • 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.
 
You want to surrender the policy –
  • 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.
 
You want a loan against your policy - There is no loan available under this plan.

 
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