Policyholders also have the option of switching once a year from option I to option II and vice versa after completion of three policy years.

Should the policyholder survive till maturity, he would receive the total value of the units.

Fund options

The premium amount, after the deduction of administrative and mortality charges, can be invested in one of six fund options. At one end is the Multiplier fund, which invests the entire corpus in equities and, hence, would be more suited to those who have a higher appetite for risk; at the other end is the Preserver fund that invests only in government securities and would suit investors with a more conservative outlook. The other fund options fuse equities and fixed income instruments in varying proportion.

Once the fund option is chosen, the entire corpus would be invested into it; the policyholder cannot spread the investment across the various options. However, a switch between options is permitted and the first such switch in a policy year is free of cost; subsequent switches attract a fee.

Other features

Partial withdrawals are possible under this plan. The first two such withdrawals in a year do not attract a fee; subsequent withdrawals come at a cost. In case the policyholder has additional liquidity in any policy year, the same can be invested into this plan as a top up.

Charges

Premium-related charges are levied by deducting the amount from the premium paid; likewise with the face amount-related charge, which is levied only in the first policy year. All other charges are levied by cancellation of units. As always, investors should familiarise themselves with the structure of charges so as to avoid negative surprises at a subsequent date.

Readers are requested to compare products featured under this column with similar ones offered by other players.

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