|
Features of plan: Money plus unit limited endowment
plan which offers investment-cum-insurance during the
term of the policy. The policyholder can choose the
level of cover within the limits, which will depend
on the term chosen. Mode and amount of premium he desires
to pay. The allocated premium will be utilized to purchase
units as per the selected fund type. Units will be allotted
and cancelled basic on the net asset value (NAV) of
the respective fund applicable to the date of allotment/cancellation.
No bid-offer spread (both the bid price and offer price
of units will be equal to the NAV)
The NAV will be computed on daily basic and will be
based on the investment performance, fund management
charge (FMC) and whether fund is expanding or contracting
under each fund type. Other details of this plan are
as follows
The premium allocated to purchase units will be invested
according to the investment pattern prescribed for different
fund types.
- * Min. S.A for regular premium: higher of 5 time
the annualized premium of half of the policy term
times the single premium
- ** Max S.A. for regular premium: 20 time the annualized
premium if age upto 65 years. Up to 55 yr. & 10
time of annualized premium if age at entry if 56 yrs
& above max. S.A for S.P: if critical illness
benefit rider is opted for
5 times the single premium if age at maturity is up
to 55 years.
3 times the single premium if age at maturity is 56
to 60 years.
If critical illness benefit is not opted for:
5 times the single premium if age at maturity is upto
65 years.
3 times the single premium if age at maturity is 66
to 7c years .
2.5 times the single premium if age if at maturity
is 71 years and above
Options:
- Accident benefit rider option: accident
benefit (AB) can be available of as an optional rider
benefit by paying an additional premium of Rs.0.50
for every Rs.1,000/- of the accident benefit sum assured
per policy year by cancellation of appropriate number
of units out of the policyholder's fund every month.
On accidental death of the policyholder during the
term of the policy, a sum equal to the accident benefit
sum assured will become payable, provided the accident
benefit cover is opted for and is in force. Future,
it will be available as well as group schemes taken
from life insurance Corporation of India and other
insurance companies and accident benefit rider sum
assured under the new proposal into consideration.
If the age at entry the life assured is less then
18 years, then accident benefit rider can be opted
for from the policy anniversary coinciding with or
immediately following the completion of 18 or more
years of age. This benefit will be available only
till policy anniversary on which the age nearer birthday
of the policyholder is 70 years. No charges shall
be deducted from the policy anniversary at benefit
ceases.
- Critical illness benefit option: an amount
equal to the critical illness rider sum assured will
be paying in case of diagnosis of defined category
of critical illness subject to certain terms and conditions,
provided the critical illness benefit cover is opted
for and is in force. The maximum cover for this rider
will be Rs.5lakh under all policy of the life assured
with the corporation taken together including the
new proposal under consideration. The critical illness
rider sum assured shall also not exceed the sum assured
under the basic plan. If age at entry of the life
assured is less then 18 years, then critical illness
benefit rider can be opted for from the policy anniversary
coinciding with or immediately following the completion
of 18 years of age. This benefit will be available
only till the policy anniversary on which the age
nearer birthday of the policyholder is 60 years. No
charges for this benefit shall be deducted from the
policy anniversary at which the benefit ceases. Future,
this benefit will be available only once during the
term of the policy (i.e. till a critical illness claim,
as per the conditions defined, arises under the policy).
Once a claim under this rider has been admitted. No
subsequent charge towards critical illness benefit
rider shall be deducted charges toward life cover
and accident benefit cover, if any, shall however
continue to be deducted on a monthly basic, as usual.
- Premium waiver benefit (PWB): no PWB will
be allowed under this plan.
- Settlement option: when the policy comes
for maturity, the policyholder may exercise "settlement
option" one month prior to the date of maturity.
In case this option is exercised, the maturity claim
under the policy shall not be paid in lump sum. the
policyholder, in that case, shall encash the units
held in policyholder's fund in regular (half-yearly
/ yearly installments) or irregular installments spread
over a period of five years from the date of maturity.
He/ she shall be required inform how he / she shall
receive the maturity proceeds. In case of regular
installments, the installment shall be the total number
of units as on the date of maturity divided by total
number of installment (i.e. 5 and 10 for yearly and
half-yearly installment in 5 year period respectively).
The number of units arrived at in respect of each
installment will be multiplied by the NAV as on the
date of installment payment. The first payment will
be made on date of maturity and there after based
on the mode opted by the policyholder i.e. every six
months from the date of maturity or every year from
date of maturity. In case policyholder wants maturity
proceeds of the policy to be paid at irregular installment,
then he/she wants to encash. In case of irregular
encashment, the units outstanding in policyholder's
account at the end of 5 years from the date of maturity
shall be encashed compulsory.
Settlement option shall not be allowed under a lapsed
policy. During the settlement option period no charges
other then the fund management charge shall be deducted.
There shall not be any life cover during this period.
The value of installment payable on the date specified
shall be subject to investment risk i.e. the NAV may
go up or down depending upon the performance of the
fund.
- Surrender value and surrender charge: the
surrender value, if any, is payable only after the
completion of the third policy anniversary both under
single and regular premium contract. The surrender
value will be the value of units held in the policyholder's
fund at the date of surrender. There will be no surrender
charge.
If a policyholder applies for surrender of the policy
within 3 years from the date of commencement of policy,
then the fund value of units shall be converted into
of monetary terms. No charges shall be made thereafter
and this monetary amount shall be paid on completion
of 3 years from the date of commencement of policy.
The conversion in monetary shall be made as under:
The NAV on the date of application for surrender or
the date when revival period is over (in case of compulsory
surrender), as the case may be multiplied by the number
of units in the policyholder's fund as on that date.
Future this monetary amount shall be transferred to
non-unit fund and the payment of surrender value when
due shall be from this fund only
In case of single premium policy or regular premium
policy where premiums are paid for less then there
years, if the balance in the policyholder's fund value,
at any time is not sufficient to recover the relevant
charges, the policy shall compulsorily be terminated
and the balance amount in the policyholder's fund
will be refunded to the policyholder. In case of regular
premium policy where premium are paid for at least
three years, the balance in the policyholder's fund'
at all times shall be subject to a minimum balance
of one annualized Premium. In case the policyholder's
fund value falls below this limit, the policy shall
compulsory be terminated with a notice to the policyholder
and the balance amount in the policyholder's fund
shall be refunded to the policyholder. Once a policy
is surrender it cannot be reinstated.
- Commencement of risk under the policy: "date
of commencement of risk" is the date from which
life assurance cover accident benefit and critical
Illness, if any, shall be available under the policy.
If the age of the life to be assured is 12 years or
more, both the date of commencement of risk date of
commencement of policy shall be the date of completion
of proposal.
If the age of the life to be assured is less then
12 years, the date of commencement of policy will
be date of completion of the proposal. The date of
commencement of risk shall be per the following rules.
Risk will commence either after 2 years from, the
date of commencement of policy or from the policy
anniversary coinciding with or immediately following
the completion of 7 years of age whichever is later
in case the age at entry of the life assured is less
than or equal to 10 years. Where the age at entry
is more then 10 years but less then 12 years, the
risk shall commence from the policy anniversary coinciding
with or next following 12th birthday of the life assured.
In case of minors aged 12 years or more risk will
commence immediately.
Benefits
Death benefit: in case of death of the policyholder
when the cover is in full force, the nominee shall be
eligible to get the sum assured under the basic plan
or the value of units held in the policyholder' fund
as at the date of booking the liability the liability
shall be booked after receipt of intimation along with
death certificate. Future, if partial withdrawal has
been made during the last two years from the date of
death the sum assured under the basic plan be reduced
to the extent of the amount of partial withdrawals made.
If the policy is in lapsed condition then the value
of units held in the policyholder's fund shall become
payable to the nominee.
In case of death of the life assured aged less then
12 years before commencement of risk, only value of
the units held in the policyholder's fund shall payable.
The risk in case of minors aged less then or equal to
10 years commences from the policy anniversary coinciding
with or immediately following the completion of 7 years
of age or 2 years after the date of commencement of
the policy, whichever is later. In case age at entry
is above 10 years but below 12 years, the risk commences
from the policy anniversary coinciding with or next
following the date on which life assured completes the
age 12 years. In case of minors aged 12 years or more,
risk will commence immediately.
Benefit on maturity: on the policyholder surviving
the date of maturity an amount equal to the value of
the units haled in the policyholder's fund is payable.
Charges and frequency of charges:
Premium allocation charges: this is the percentage of
the premium appropriated towards charges from the premium
received. The balance known as allocation rate constitutes
that part of the premium which is utilized to purchase
(investment) units for the policy.
Mortality charge: this is the cost of life insurance
cover. Mortality charge will be taken every month by
canceling appropriate number of units out of the policyholder's
fund value as per the rate prevalent at the time of
policy issue.
Mortality charge, during a policy year, will be based
on the age nearer birthday of the policyholder as at
the policy Anniversary Coinciding with or immediately
preceding the due date of cancellation of units and
hence may increase every year on each policy anniversary.
The mortality charge shall depend upon the difference
between the sum assured under the basic plan and fund
value of units as on the date of deduction of charge,
after deduction of all other and shall be deducted only
if, the basic sum assured is more then the fund value
of the units on the date of deduction. Future, the charges
will also depend on the underwriting decision at entry
or subsequent revival of the policy.
The mortality charge per Rs.1000/- sum at risk (i.e.
sum assured under basic plan minus fund value) per annum
for standard lives, are given in annexure 1.
Charges from optional rider ride covers:
Critical Illness benefit charge: charges for critical
Illness benefits rider, if any will be taken every month
by canceling appropriate number of units out of the
policyholder's fund value as per the rate prevalent
at the time of policy issue. Critical Illness benefit
charges, during a policy year, will be based on the
age nearer birthday of the policyholder as at the policy
anniversary coinciding with or immediately preceding
the due date of cancellation of units and hence may
increase every year on each policy anniversary. Charges
for critical Illness rider shall be deducted only if
this rider has been opted for.
Critical Illness cover charges per Rs.1000/- sum assured
for standard lives at present are also given in annexure
I.
Accident benefit charge: charges for accident benefit
rider, if any will be taken every month by canceling
appropriate number of out of the policyholder's fund
value as per the rate prevalent at the time of policy
issue.
A level charge, at present, is the rate of Rs.0.50 per
thousand accident benefit cover cancellation of appropriate
number of units out policyholder's fund value every
month along with the mortality and critical Illness
benefit charges. Charges for accident benefit rider
shall be deducted only if this rider has been opted
for
Other charges:
Policy administration charges: the policy administration
charges of Rs.60/- per month during the first policy
year and Rs.20 /- per month thereafter, throughout
the term of the policy will be deducted by canceling
appropriate number of units out of policyholder's
fund value.
- Fund management charge: fund management charges
of (FMC) are dependent on type of fund and are deducted
on the date of computation of NAV at the following
rates:
0.75% p.a. of units fund for "bond" fund
1.00% p.a. of units fund for "secured" fund
1.25% p.a. of units fund for "balance" fund
1.50% p.a. of units fund for "growth" fund
The NAV, this declared, will be net of FMC.
- Switching charges: this is a charge levied on switching
of monies from one fund to another. This charge will
be levied at the time of effecting switch at the rate
specified.
- BID/0FFER spread: nil
- Surrender charges: nil
1. Service tax charge: a service tax charge shall
be levied on the charge for mortality, accident benefit
and critical Illness benefit rider. If any and shall
be taken by canceling appropriate number of units
out of the policyholder's fund value on a monthly
basic as and when the corresponding mortality, accident
benefit and critical Illness benefit rider charge
are deducted the level of this charge will be as per
rate of service tax on risk premium as applicable
from time to time. Currently, the rate of service
tax is 12% with an educational cess at the rate of
2% thereon and hence effective rate is 12.24%.
2. Miscellaneous charge: this is a charge
levied for an alteration within the contract, such
as reduction in policy term, charge in premium mode
to higher frequency, grant of accident benefit after
the issue of the policy etc. may be allowed subject
to a charge of Rs.50/- which will be deducted by
canceling appropriate number of units out of the
policyholder's fund value and the deduction shall
be made on the date of alteration in the policy.
The alteration will be effective from the policy
anniversary coincident with or following the alteration.
The corporation reserves the right to accept or
decline an alteration in the policy. The alteration
shall take after from the policy anniversary coincident
with or following the alteration only after the
same is approved by the corporation and is specifically
communicated in writing to the policyholder.
Right to revise charges: the corporation
reserves this the right to revise all or any of
the above charges expect premium allocation charge
and mortality charge. The modification in charges
will be done with prospective effect with the prior
approval of IRDA and after giving the policyholders
a notice of 3 months.
- Additional features:
- Switching: the policyholder can switch between
any fund types during the policy term. On switching
the entire amount is switched to the fund opted for
within a given policy year, 4 switches will be allowed
free charge. Subsequent switches shall be abject to
a switching of Rs.100 per switch.
On receipt of the policyholder's valid application
for a switch from one fund to another, the value of
the units held in the policyholder's fund after deducting
switching charges, if any, shall be transferred to
the new fund opted by to 4.15 p.m. by the servicing
branch the closing NAV of the same day shall be applicable
and in respect of the applications received after
4.15 p.m. by the servicing branch the closing NAV
of the next business day shall be applicable.
- Top-up: no top-up shall be allowed under the plan.
- Increase/ decrease in benefits: no increase or
decrease in benefit will be allowed under the plan.
- Partial withdrawals: a policyholder can partially
withdraw the units at any time after the third policy
anniversary subject to the following:
- In case of minors, partial withdrawals shall
be allowed from the policy anniversary coinciding
with or next following the date on which the life
assured attains majority (i.e. on or after 18th
birthday).
- Partial withdrawals may be in the from of fixed
amount or in the from of fixed.
- For 2 years, period from the date of withdrawal,
the sum assured under the basic plan shall be
reduced to the extent of the amount of partial
withdrawals made.
- Under regular premium policies where less then
3 years, premiums have been paid and further premiums
are not paid, the partial withdrawals shall not
be allowed.
- Under regular premium policies where atleast
3 year's premium have been paid partial withdrawal
will be allowed subject to a minimum balance of
two annualized premiums in the policyholder's
fund value.
- Under single premium policy, the partial withdrawal
will be allowed subject to a minimum balance of
Rs.5000/- in the policyholder's fund value.
-
Days of grace: a grace period of one calendar month
but not less then 30 days will be allowed for payment
of yearly or half-yearly or quarterly premium. If
the death of life assured occurs within the grace
period but before the payment of premium then due,
the policy will be treated as in-force and the date
benefits shall be paid after deduction of all the
relevant charges, if not recovered. If premium are
not paid within the days of grace, the policy lapses.
-
Cooling-off period: if a policyholder is not satisfied
with the "terms and conditions" of the
policy, he/she may return of the policy.
Searching the right agent is only the beginning… Contact
us.
|
