Term Plan Insurance: Reliance Term Plan vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Term Plan is the term insurance plan of Reliance Life.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

For Reliance Term Life, person aged between 21 years to 60 years can buy the term insurance plan. Reliance Term Life plan maximum maturity age is 65 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with Reliance Term Life is Rs 2.5 lacs and for Bajaj Allianz New Risk Care II, minimum cover is Rs 2 lacs. The maximum cover in Reliance Term Life and Bajaj Allianz New Risk Care II is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for Reliance Term Life is from 5 years to 30 years. The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

Reliance Term Life has Accidental death benefit and total and permanent disablement rider.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium payment frequency available with Bajaj Allianz New Risk Care II is single premium only. Single premium payment frequency is not available with Reliance term life and as such premium comparison is not possible.

Reinstatement:

On policy lapse, Reliance term life can be reinstated within 3 years and Bajaj Allianz New Risk Care II plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio of Reliance Life is 63% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

Reliance term life is a good term plan which has good comprehensive life cover available. You can also add the valuable accidental death and disability rider by paying additional premium to increase financial security. Bajaj Allianz New Risk Care II is a good term insurance plans which is suitable for individuals looking for particular Sum Assured. Riders can be added with Bajaj Allianz New Risk Care II plans by paying additional premium to increase financial security. However you can opt for single premium payment option only with New Risk Care II.

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Term Plan Insurance: SBI Life Smart Shield Plan vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Smart Shield term plan is the term insurance plan of SBI Life.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

For SBI Life Smart Shield, person aged between 18 years to 65 years can buy the term insurance plan. Smart Shield term plan maximum maturity age is 70 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with SBI Life Smart Shield is Rs 25 lacs and for Bajaj Allianz New Risk Care II, minimum cover is Rs 2 lacs. The maximum cover in SBI Life Smart Shield and Bajaj Allianz New Risk Care II is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for SBI Smart Shield term plan is 5 years to 30 years.  The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

SBI Smart Shield term plan has Accidental death benefit, Accidental total and permanent disability rider and accelerated critical illness rider.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium comparison for few samples is given below:

*kindly verify the premium for any changes. The premium for females is bit lower.

Reinstatement:

On policy lapse, SBI Smart Shield can be reinstated within 3 years and Bajaj Allianz New Risk Care II plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio for SBI Life is 84% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

SBI Life Smart Shield is flexible term plan, it has 4 options which you can choose from- level term assurance, increasing term assurance, decreasing term assurance (loan) and decreasing term assurance (family income protection). Bajaj Allianz New Risk Care II is a good term insurance plans which is suitable for individuals looking for particular Sum Assured. Riders can be added with Bajaj Allianz New Risk Care II plans by paying additional premium to increase financial security. However you can opt for single premium payment option only with New Risk Care II.

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Term Plan Insurance: LIC Amulya Jeevan vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Amulya Jeevan is the term insurance plan of Life Insurance Corporation of India.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

For LIC Amulya Jeevan, person aged between 18 years to 60 years can buy the term insurance plan. Amulya Jeevan plan maximum maturity age is 70 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with LIC Amulya Jeevan is Rs 25 lacs and for Bajaj Allianz New Risk Care II, minimum cover is Rs 2 lacs. The maximum cover in LIC Amulya Jeevan and Bajaj Allianz New Risk Care II is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for Amulya Jeevan is from 5 years to 35 years. The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

There are no riders available with LIC Amulya Jeevan.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium payment frequency available with Bajaj Allianz New Risk Care II is single premium only. Single premium payment frequency is not available with LIC Amulya Jeevan and as such premium comparison is not possible.

Reinstatement:

On policy lapse, LIC Amulya Jeevan can be reinstated within 5 years and Bajaj Allianz New Risk Care II plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio of Life Insurance Corporation of India is 77% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

LIC Amulya Jeevan is a good plan which has minimum life cover of Rs 25 lacs and has long policy terms available. Bajaj Allianz New Risk Care II is a good term insurance plans which is suitable for individuals looking for particular Sum Assured. Riders can be added with Bajaj Allianz New Risk Care II plans by paying additional premium to increase financial security. However you can opt for single premium payment option only with New Risk Care II.

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Term Plan Insurance:  Aegon Religare Level Term Plan vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Level term plan is the term insurance plan of AEGON Religare.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

For AEGON Religare level term insurance, person aged between 18 years to 55 years can buy the term insurance plan. Level term plan maximum maturity age is 75 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with AEGON Religare level term is Rs 5 lacs and for Bajaj Allianz New Risk Care II, the minimum cover is Rs 2 lacs.  The maximum cover in AEGON Religare level term insurance and Bajaj Allianz New Risk Care II plan insurance is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for Level term plan is from 10 years to 30 years. The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

AEGON Religare level term plan has accidental death, dismemberment and disability rider, critical illness rider.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium comparison for few samples is given below:

*kindly verify the premium for any changes.

Reinstatement:

On policy lapse, both AEGON Religare level term plan and Bajaj Allianz New Risk Care II can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio for AEGON Religare is 46% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

Aegon Religare level term plan is a regular term life insurance plan which pays lump sum amount on death of life insured. Riders are also available with it. Bajaj Allianz is also a very good term insurance plan which provides you the option of adding any of the 3 riders available with it by paying additional premium.

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Term Plan Insurance:  Bharti AXA Elite Secure vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Elite Secure is the term insurance plan of Bharti AXA.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

For Bharti AXA Elite Secure, person aged between 18 years to 65 years can buy the term insurance plan. Elite Secure plan maximum maturity age is 75 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with Bharti AXA Elite Secure is Rs 25 lacs and for Bajaj Allianz New Risk Care II, minimum life cover is Rs 2 lacs. The maximum cover in Bharti AXA Elite Secure and Bajaj Allianz New Risk Care II term plan is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for Elite Secure is from 5 years to 25 years. “Till Age 75” policy term is also available.

The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

Bharti AXA Elite Secure has Accidental death and disability benefit rider and critical illness rider.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium payment frequency available with Bajaj Allianz New Risk Care II is single premium only. Single premium payment frequency is not available with Bharti AXA Elite Secure and as such premium comparison is not possible.

Reinstatement:

On policy lapse, both Bharti AXA Elite Secure and Bajaj Allianz New Risk Care II plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period H1, 2011, the claim settlement ratio Bharti AXA is 71% whereas for Bajaj Allianz, claim settlement ratio is 74% (Q2, 2011).

End Note:

Bharti AXA has two important riders which can be added to base policy by paying additional premium amount.

Bajaj Allianz is also a very good term insurance plan which provides you the option of adding any of the 3 riders available with it by paying additional premium.

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Term Plan Insurance:  Aviva LifeShield Platinum vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

LifeShield Platinum is the term insurance product of Aviva Life Insurance.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

Anyone aged between 18 years to 60 years can apply for Aviva LifeShield Platinum. The maximum age at maturity should not exceed 70 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with Aviva LifeShield Platinum is Rs 50 lacs and Bajaj Allianz New Risk Care II, minimum cover is Rs 2 lacs. The maximum cover in Aviva LifeShield Platinum and Bajaj Allianz New Risk Care II is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

You can choose policy term from 10 years to 52 years with Aviva LifeShield Platinum.

The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

Aviva LifeShield Platinum has two riders available which can be opted by paying additional premium- Accidental death benefit and Dread disease rider.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium payment frequency available with Bajaj Allianz New Risk Care II is single premium only. Single premium payment frequency is not available with Aviva LifeShield Platinum and as such premium comparison is not possible.

Reinstatement:

On policy lapse, both Aviva LifeShield Platinum and Bajaj Allianz New Risk Care II can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio for Aviva life insurance is 91% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

Aviva LifeShield Platinum has 3 variants – life protection, income replacement, loan protection. Life protection is regular term plan which pays out lump sum benefit on death of life insured; income replacement pays out regular income in form of monthly installments and also increases monthly benefit by 5% every year; loan protection is for covering your loan obligations and Sum Assured keeps decreasing uniformly. The riders are available only with life protection variant.

Bajaj Allianz New Risk Care II Sum Assured begins from just Rs 2 lacs as compared to Rs 50 lacs of Aviva LifeShield Platinum. There are 3 excellent riders available with New Risk Care II.

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Term Plan Insurance:  Aviva LifeShield Plus vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

LifeShield Plus is the term insurance product of Aviva Life Insurance.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

Anyone aged between 18 years to 55 years can apply for Aviva LifeShield Plus. The maximum age at maturity should not exceed 65 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with Aviva LifeShield Plus is Rs 10 lacs and for Bajaj Allianz New Risk Care II, minimum cover is Rs 2 lacs. The maximum cover in Aviva LifeShield Plus and Bajaj Allianz New Risk Care II is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

You can choose policy term from 10 years to 30 years with Aviva LifeShield Plus. The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

Aviva LifeShield Plus has two riders available which can be opted by paying additional premium- Accidental death benefit and Dread disease rider.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium comparison for few samples is given below:

*kindly verify the premium for any changes. 

Reinstatement:

On policy lapse, both Aviva LifeShield Plus and Bajaj Allianz New Risk Care II plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio for Aviva life insurance is 91% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

Both Aviva LifeShield Plus and Bajaj Allianz New Risk Care II are good term insurance plans which are suitable for individuals looking for particular Sum Assured. Riders can be added with both plans by paying additional premium to increase financial security.

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Term Plan Insurance:  Aviva LifeShield vis-à-vis Bajaj Allianz New Risk Care II Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

LifeShield is the term insurance product of Aviva Life Insurance.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

Anyone aged between 18 years to 55 years can apply for Aviva LifeShield. The maximum age at maturity should not exceed 65 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with Aviva LifeShield is Rs 5 lacs and for Bajaj Allianz New Risk Care II, minimum life cover is Rs 2 lacs. The maximum cover in Aviva LifeShield is Rs 50 lacs and in Bajaj Allianz New Risk Care II, the maximum cover is unlimited as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

You can choose policy term from 5 years to 40 years with both Aviva LifeShield and Bajaj Allianz New Risk Care II.

Riders:

There are no riders available with Aviva LifeShield.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium payment frequency available with Bajaj Allianz New Risk Care II is single premium only. Single premium payment frequency is not available with Aviva LifeShield and as such premium comparison is not possible.

Reinstatement:

On policy lapse, both Aviva LifeShield and Bajaj Allianz New Risk Care II can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio for Aviva life insurance is 91% whereas for Bajaj Aliianz, claim settlement ratio is 74%.

End Note:

Unlike Aviva LifeShield, Bajaj Allianz New Risk Care II has no upper limit on Sum Assured. Also Bajaj Allianz New Risk Care II offers riders which are available by paying bit more of premium.

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Insurer: Bajaj Allianz Life Insurance 

Category: Single Premium Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Option to decrease Sum Assured

Unlimited free switches

Optional Riders

Maximum Entry Age: 65 Years

Minimum Age at Maturity: 18 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10/15/20/25 Years

Premium Paying Term: Single

Minimum Premium: Rs 50,000

In case of death of the life insured, higher of Sum Assured or fund value shall be payable.

Maturity Benefit:

The fund value as on maturity date is paid to the policyholder.

Guaranteed Addition:

A certain % of single premium will be added as follows:

Decrease Sum Assured:

You can decrease Sum Assured if required subject to the minimum cover allowed in the plan.

Riders:

Riders add more financial security to the base plan. The riders available with Flexi Advantage are:

- Accidental Death Benefit Rider

- Accidental Permanent/Total/Partial Disability Rider

- Critical Illness Rider

- Hospital Cash benefit Rider

- Family Income Benefit Rider

- Term Rider

Bajaj Allianz has seven funds available ranging from conservative to aggressive. If you have higher risk appetite and are for long term you can opt for aggressive fund. On the other hand, if you have limited investment period, you should go for conservative Secure Fund.

In a typical scenario, you will be able to get at least 10% return on investment. The investment risk is borne by the policyholder.

Sanjeev aged 30 invests Rs 1 lacs as a single premium. The policy term is 20 years. He opts for insurance cover of Rs 5 lacs.

Assume fund value after four years is Rs 1.3 lacs.

Death Benefit: If Sanjeev passes away after four years, his wife will get fund value.

Maturity Benefit: He gives in total amount of Rs 100,000 to Bajaj Allianz. At maturity, assuming growth of 10% only, fund value would be approximately Rs 427,869. The maturity amount could be more depending on the money market scenario. Longer terms typically provide good returns.

Under Section 10(10D) death claim is completely tax free.

Premium Allocation Charges: These charges are deducted as percentage of premium. Insurer deducts these charges on account of expenses incurred by the company – medical examination, policy issuance, underwriting bills. Premium allocation charge is 10% of the single premium.

Fund Management Charge: These are the charges levied as a percentage of fund value to manage the funds. The premium paid is allocated into different portfolio of funds. The charges are 1.35% for Equity Growth Fund II, Accelerator Mid-Cap Fund II, Pure Stock Fund; 1.25% for Asset Allocation fund, Equity Index Fund II; 0.95% for Bond Fund and Liquid Fund.

Policy Administration Charge: These are monthly deductions by the insurer for maintaining the policy- paperwork, work force etc.  They are recovered through cancellation of units. Flexi Advantage has no administration charges.

Mortality Charge: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

What else should I know about?

Switch: Switch is made to transfer the fund value from one fund to another. The minimum amount to be switched is Rs 5000. You can make as many switches as you want and are free of cost.

Partial Withdrawal: If policyholder is above 18 years, partial withdrawal can be made subject to minimum of Rs 5,000.

Free Look Period: Flexi Advantage plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Insurer: Bajaj Allianz Life Insurance 

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 50 Years

Maximum Age at Maturity: 60 Years

Policy Term: 10 Years

Minimum Premium: Rs 5,000

Premium Paying Term: Single Premium

Returns in Bajaj Allianz Guaranteed Maturity

Any ULIP’s performance is directly dependent on the performance of the fund which in turn depends upon equity and debt market. If the market is rising, it will automatically reflect on your returns.

Bajaj Allianz Guaranteed Maturity has just one fund- Guarantee bond fund which is of medium risk profile.

In a typical scenario, you will be able to get at least 10% return on investment. The investment risk is borne by the policyholder.

Premium Allocation Charges: There are no premium allocation charges.

Fund Management Charge: The annual fund management charge is 1.00% for guarantee bond

fund.

Guaranteed Charge: 2% of the regular premium paid.

Policy Administration Charge: These are deductions which start from first month and are for maintaining the policy- paperwork, work force etc. For 1^st five policy years, 1.85% per annum of total single premium is deducted. Thereafter, 0.70% per annum of total single premium amount is deducted.

Mortality Charge: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

Under Section 10(10D) death claim is completely tax free.

Partial Withdrawal: If policyholder is above 18 year, you can make partial withdrawals.

Grace period: Guaranteed Maturity can be renewed within 30 days from the premium due date. Additional 30 days are given after notice has been sent to revive or discontinue the policy.

What to do?

To Cancel Policy: Guaranteed Maturity plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

If you want to cancel policy after the initial period of 15 days, you can do it but the amount will be paid only after lock in period years. If you cancel policy within 5 years from inception, the amount will grow at interest rate of 3.5% compounded annually. After five years, if you cancel the policy, there will be no cancellation charges and amount will be paid immediately.