Payout on maturity/death

On maturity, one would receive the unitised fund value. One can commute a portion of this amount as a lumpsum and buy an annuity with the remaining amount.

Should the policyholder meet with death prior to the policy's maturity, the beneficiary would receive the unitised fund value plus a sum of Rs 1,000.

Surrender value/Top-ups

The policy can be made paid-up after three years' premiums have been paid and the unit value across various fund holdings is higher than Rs 15,000.

If one stops paying premiums before premiums for three years have been paid, the policy will stand cancelled and the policyholder would receive the unit value less cancellation charges.

If the policyholder has additional funds at his disposal, they can be funnelled into this policy in the form of single premium top-ups.

Charges

As is the case with unit-linked plans, this plan, too, imposes charges, on both the funds invested by the policyholder and by cancellation of units.

These charges vary depending on the kind of premium payment option chosen (single or regular).

Other charges include a fund management charge of 0.80 per cent of the fund value per annum, apart from a flat fee of Rs 15 per month deducted by cancellation of units.

(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.)

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