|Investment cum Insurance Plan||Entry Age||Minimum Premium||Minimum Basic Sum Assured||Premium Allocation Charges||Free Switches on offer||Policy Term||Premium Payment Term (PPT)|
|SBI Life Smart Wealth Assure||8-65 years for base plan||Rs. 50,000||Age below 45: 1.25 x Single Premium Age above 45: 1.10 x Single Premium||3% of Single Premium||2 free switches in one year||10-30 years||Single premium policy|
|PNB Metlife Smart Platinum||7-70 years||Rs 30,000 for Annual mode Rs 60,000 for other modes||--||1% to 1.25% as per fund option||4||--||5 pay/ 10pay/ entire term of the policy|
|Bajaj Allianz Future Gain||1-60 years||Yearly: Rs. 25,000 Half yearly: Rs. 12,500||Less than 45 years: 10 times Annualized Premium or 0.5 * Policy term * Annualized Premium Greater than or equal to 45 years: 7 times Annualized Premium or 0.25 * Policy term * Annualized Premium||0-1.5 %||unlimited||10 years||5-30 years|
|Aegon Life iMaximise Secure Plan||Benefit option 1: 7-55 years Benefit option 2: 18-50 years||Option 1: For Premium Payment Term: 5 / 7 years: Rs. 36,000 For other Premium Payment Terms: Rs. 24,000 Option 2: Rs: 24,000 (Entry Age < 45 years) Rs: 36,000 (Entry Age >= 45 years)||For entry age below 45 years Higher of the Following:
• 10 times the Annualized Premium
• 0.5 x Policy Term x Annualized Premium For entry age equal to or above 45 years Higher of the Following:
• 7 times the Annualized Premium
• 0.25 x Policy Term x Annualized Premium
|Nil||4||15,20, 25 years||Option 1: 5,7,10, 15, equal to policy term Option 2: 10,15, equal to policy term|
|ICICI Pru Life Time Classic||0-65 years||Single Pay: 50,000 Limited Pay and Regular Pay:30,000||0 - 38 Years: 1.25 X Single Premium 39 Years and above: 1.25 X Single Premium||3-4%||4||5 years, 10 years, single pay||--|
|SBI Life e-Wealth Plan||18-50 years||Yearly: Rs. 10,000 Monthly: Rs. 1000||10 times Annualized Premium||Nil||--||10-20 years||Regular|
|HDFC Life Pro Growth Plus||14-65 years||Annual: Rs. 24,000 Half Yearly: Rs. 10,000 Monthly: Rs. 2500||Age less than 45 years: Higher of 10 x annualized premium Age more than 45 years: Higher of 7 x annualized premium||2.5% of annual premium||Unlimited||10-30 years||10-30 years|
|Tata AIA Wealth Maxima||0-60 years||Single Pay: Rs. 5,00,000 per annum Limited Pay: Rs. 2,50,000 per annum||For Single Pay: 1.25 times the Single Premium For Limited Pay: Higher of (10 * AP) OR (0.5*Policy Term* AP )||3%||12||100 minus Issue age||7/8/9/10/15 and 20 years|
|Max Life Fast Track Growth Fund||18-60 years||Single Pay: Rs. 1,00,000 5 Pay: Rs. 50,000 Regular Pay: Rs. 25,000||Single Pay: Rs. 125,000 5 Pay: Rs. 500,000 Regular Pay: Rs. 250,000||0-4%||12||10 years for Single Pay/5 Pay and 20 years for Regular Pay||Single Pay/ 5 years (5 Pay) / 20 years (Regular Pay)|
|Kotak Platinum Plan||0 to 65 years||Minimum: Annual: 99,000, Half-yearly: 49,500, Quarterly: 24,750, Monthly: 8,250||Less than 45 years: Higher of 10 times AP or 0.5* Policy Term * AP 45-60 years: Higher of 7 times AP or 0.25* Policy Term * AP 61 years and above: 7 times AP||1.5% to 5%||12||10 to 30 years||Regular: Equal to the policy term. Limited: 5-year payment with policy term of 10 years | 10-year payment with policy term of 15 to 30 years|
A: Unit linked plans or ULIPs are insurance plans that offer a dual benefit of insurance and investment for the policyholder. Part of the premium paid is used as a life cover protection while the other part is used for due investments in various market linked instruments. ULIPs invest in both equity and debt funds allowing for market linked returns for all kinds of investors from high risk ones to those seeking investments with medium to low risk.
A: Unit Linked Plans are largely classified as per the death benefits offered by the plan. As per the death benefits on offer ULIPs are either Type 1 or Type 2. Type 1 ULIPs offer death benefits to the nominee or the policyholder, which is equal or higher of the Sum Assured or the fund value of the plan.
For example, if Mr. A has Type 1 ULIP plan with a sum assured of Rs. 50 Lakhs and has paid the premium for 10 years. If his assimilated fund Value of Rs. 35 Lakhs, the nominee of Mr. A will get the higher of Sum Assured (Rs. 50 Lakhs in this case) or fund value (Rs. 35 Lakhs) as death benefits if Mr.A expires during the policy tenure.
In Type2 UIP plans, the nominee is paid out a death benefit of Sum Assured along with the fund value of the fund on the day. So for the above example Mr. A’s nominee will get an accumulated sum of Rs. 85 Lakhs (Rs. 50 Lakhs +Rs. 35 Lakhs)
A: ULIP plans are an important insurance cum investment tool offering good returns on account of investments in the equity market. The plans allow policyholders to switch between various funds as per their risk taking capacity to ensure the investment is personalized for each policyholder. The funds are managed by an experienced fund manger allowing for a professional insight into investments. A policyholder can also keep a track on the investments and net asset value of the insurance knowing details of returns accumulated till date. ULIPs also allow for a partial withdrawal facility after five years of investment in the plan. ULIP investments are eligible for tax deduction under Section 80C provided the premium paid is less than 10% of the sum assured. Death benefits paid under ULIPs are also tax free.
A: The common charges associated with ULIP plans are as follows:
Premium allocation charge: ULIP insurers charge a premium allocation charge from the policyholders. The charges are taken as a small percent of the premium paid. The funds from premium allocation charges are used to cover the initial charges of the insurer like distributor fee, underwriting cost etc. So if you invest Rs 5,000 each month in a ULIP plan with 2% premium allocation charge, Rs. 100 would be deducted upfront from the premium by the insurer.
Policy administration charge: Policy administration charges can be either charged per month or as a flat rate for the policy term. These are the charges insurer seeks to offer the life insurance policy.
Fund management charge: Fund management charges are levied to cover the expenses of fund management by the insurer. IRDAI guidelines have fixed a maximum upper limit of 1.35% per annum on fund management charges.
Surrender charges: surrender charges are applicable if a policyholder plans to premature, partial or full encashment ULIP invested units Mortality charges: Mortality charges are the cost one needs to bear for getting an insurance cover. Age and Sum Assured are used to calculate the final mortality charges for a ULIP plan.
Fund switching charge: ULIPs allow switching between funds from equity to debt components. While some switches are offered free for the year, additional switches call for fund switching charges. The amount can vary as per the plan and insurer involved.
A: With the equity investment component, there is a general perception that ULIPs are high risk investment options. The fact is that ULIPs allow for a switch between equity to debt components making it ideal for all investors including high risk and medium to low risk ones.
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