Financial Daily from THE HINDU group of publications
Sunday, Oct 12, 2003
Financial Daily from THE HINDU group of publications Sunday, Oct 12, 2003 |
|
|
|
|
|
Investment World
-
Life Insurance Money & Banking - Life Insurance Aviva Young Scholar Child Endowment Plan Sowmya Sundar
Risk cover
For a given regular premium you can choose the SA or risk cover and rest would be the savings component Higher the cover, lower the savings component. If you choose a higher cover, the SAwould be the annual premium multiplied by the term of the policy. In case of lower cover, the SA would be 6/8/10 times the annual premium for the terms 8-10 years, 11-15 years and 16-21 years respectively.
Choice of funds
You can choose from two funds — Unit Linked Fund (ULF) and With Profits Fund (WPF) depending on the risk appetite. The policy value will not depreciate in the former and the latter follows a relatively aggressive investment style.
Benefits
On maturity, the policy value - the total number of units held in the unit account multiplied by the selling price of the units - can be withdrawn. The account can also be retained for five years after the maturity date and earn returns On death of the insured, the SAis paid to the nominee. The amount can be reinvested in the fund and withdrawn on maturity.
Other features
Additional lumpsum single premiums subject to a minimum of Rs 10,000 can be made to a separate account. This will increase the savings value but not the risk cover. A final bonus may also be payable along with regular bonuses on the with- profit fund. Increase in the sum insured at any policy anniversary can be done up to five years before the expiry of the policy term. Partial withdrawals can be made from four years before the date of maturity.
Surrender penalty
A surrender penalty is levied. For additional premiums paid, the charge would be 5 per cent, 3 per cent and 1 per cent in the first, second and third year from the date of lumpsum investment.
(Pieces under this column seek to examine insurance products in detail. Readers are requested to compare products featured under this column with similar products offered by other players before arriving at an investment decision.)
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|