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.

Life Insurance: Beginner’s Guide

In simplest terms, life insurance is a financial product which provides risk cover to human life. That is, on demise of the individual within the policy term, a lump sum amount is made available to the family members of the individual for their future financial needs.  Over the years, life insurance has evolved into a much broader product with investment options and riders to increase financial security.

Life Insurance is a mutual agreement between two parties- insurer and the insured. Insurer is the financial company which is providing the risk cover and insured is the individual whose life is covered. The insured pays a stipulated premium amount for the life cover provided to the insurer. On payment of premium, insurer issues a life insurance policy. The contract is legally binding though there are some clauses (suicide exclusion etc) which limit insurer’s liability.

In India, life insurance falls into many categories which are listed below:

Protection Plan: Better known as term plans, the objective of these life insurance policies is to provide life cover only. They are of two types- pure term plan and return of premium term plan. The difference being that the latter returns the base premium paid on maturity of the policy if life insured survives the policy term. These plans are cheapest among life insurance plans. Many insurers have launched online term plans which can be bought online directly by the customer and are very cheap because of fewer costs involved. The only limitation is that online term plans are available in few cities only.

Savings and Investment Plan: These life insurance policies include unit linked insurance plan and traditional endowment plan.

Both of these plans provide life cover and investment options.

Unit linked insurance plans (ULIP’s) invest the premium in equity, debt etc. ULIP are flexible, transparent and usually provide good returns over long term but are risky. The investment risk is borne by the policyholder.

Traditional endowment plans provide guaranteed returns on maturity. The downside is that returns are low. Traditional endowment plans come in following broad options:

- Pure endowment: These are traditional plans with limited policy term and provide guaranteed returns on maturity.

- Whole Life Insurance: These are traditional plans which continue for entire life. The individual gets life cover usually till the age of 100.

- Money Back Insurance: These are traditional plans which provide periodic payouts and also lump sum maturity amount.

Traditional endowment life insurance policies are usually “with profits” which implies that bonuses are declared which are added to the policy amount. However there are few “without profits” endowment policies as well.

Pension Plans: Also known as retirement plans, these life insurance policies help you build corpus amount over the years. After the policy term, the amount can be partially withdrawn for immediate needs and the rest is used to buy annuity. The annuity provides regular pension over the years. There are two types of pension plans- with life cover and without life cover. The current regulations dictate that insurer should specify the guaranteed maturity amount on inception of policy to the policyholder. Also, on maturity of pension plan, you can withdraw one-third in lump sum and rest of amount will be used to pay you periodic pension amount.

Health Plans: These life insurance policies provide with medical expenses incurred during hospitalization. Many health plans also pay lump sum amount regardless of actual hospitalization expenses. New health plans provide with a combination of health cover and investment options.

Which life insurance to choose?

The most essential life insurance policy is term plan. Term plans will make sure that your loved ones get a lump sum amount so that the amount covers your liabilities and they do not have to make financial compromises in the future. Term plan provides you peace of mind.

Term plan provides relatively large Sum Assured as compared to premium. A 30 year old person can get a cover of INR 50 lacs for merely 5k bucks through online term plan.

The other life insurance policies are more aligned towards investment and less towards life cover. If looking for high but risky returns, you can go for ULIP’s. Among ULIP’s, you can go for wealth plans, child plans, pension plans etc.

Traditional plans provide guaranteed returns but the growth on traditional plans is very low.

Riders: Additional financial security

Riders are add-ons that can be added to base life insurance policy to provide additional financial security for the insured and family members. Major riders are:

Accidental Death and Disability: This rider pays additional lump sum amount if the life insured suffers from death due to accident or sustains permanent and total disability like loss of limbs etc.

Critical Illness: If the life insured is diagnosed with critical illness, lump sum amount is provided to manage the financial difficulties. This amount is paid regardless of actual hospitalization expenses.

Waiver of Premium: In certain situations like disability, waiver of premium implies that there is no need to pay future premiums and the policy will still continue.

Family Income Benefit: This is usually an additional monthly benefit which will be paid to the family members on the death of life insured.

Tax Benefits in Life Insurance

Life insurance plans also provide tax benefits. The premium amount paid towards life insurance is deductible from taxable income subject to maximum of INR 100,000. This tax deduction is as per Section 80C of the Income Tax Act, 1961.

The maturity proceeds or death benefit amount is completely tax free under section 10 (10D) of the Income Tax Act, 1961.

Premium Payment

You can pay life insurance premiums through online by different payment modes like internet banking, credit or debit cards. You can also make the premium payment through cheque or cash. For premium amount above INR 50,000, PAN card is mandatory requirement.

The mode of premium payment in most life insurance policies is- annual, semi-annual, quarterly or monthly. Quarterly or monthly payments are usually done through ECS. Direct salary deduction option is also available with few insurers.

Many life insurance policies have single premium payment also where you pay lump sum amount once and there is no need for further payment.

LIC or Private Insurers

It is clearly the biggest concern among Indian customers. LIC is the oldest and well known established insurance company. LIC is also the market leader in life insurance. There is lack of trust among people for private insurers.

However all insurers are tightly regulated by Insurance Regulatory and Development Authority (IRDA) - the government body regulating insurance industry.

A genuine claim will never be rejected by the insurer.

Life Insurance Policy Comparison

Product innovation and strong competitive marketing has made choosing a life insurance policy very difficult. Instead of being carried away by products features, one should always do a “need analysis”. Choose a life insurance policy based on your requirements. There are many website portals (insurance aggregators) where you can make comparison of life insurance policy. Be sure to check comparison of products as you can end up saving quite a good amount of money.

Buying Life Insurance Online

Many life insurance policies are available online. There are very cheap term plans which can be bought online and less costly than regular term plans. Many insurers have also launched wealth plans online as well. By making life insurance policy online, it benefits both customer and insurer since distribution costs reduce by selling life insurance policy online. As such, insurer forwards the same benefit to the insured.

Life Insurance Terminology

Life Insured: The person whose life is covered by the insurance company

Insurer: Any one of the 24 insurance companies who provide life insurance

Fund Value: The accumulated amount in the life insurance policy

Sum Assured: The lump sum amount for which insured is covered for

Premium: The amount paid by the insured for the life insurance policy

Policy Term: The total number of years for which life insurance policy continues

Insurer: Sahara Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 55 Years

Maximum Age at Maturity: 70 Years

Policy Term: 10, 15, 20 Years

Premium Paying Term: Policy Term, Single Premium

Minimum Premium: Rs 15,000 (Annual Mode), Rs 45,000 (Single Premium)

Premium Payment Frequency: Yearly, Half Yearly

Returns in Sahara Shikhar

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.

Sahara has 5 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 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.

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 varies from 7.5% to 5% of annual premium over the policy term.

Fund Management Charge: Charge ranging from 0.65% to 1.00% is deducted from the units for fund management.

Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The monthly policy administration charge is Rs 30 per month and increases at 5% per annum thereafter.

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 years partial withdrawal can be made and the minimum partial withdrawal amount is Rs 2,500. There is no charge for partial withdrawal.

Grace period: Shikhar can be renewed within 30 days from the premium due date.

What to do?

To Cancel Policy: Shikhar 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.

Insurer: Shriram Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10 Years, 15 Years to 25 Years

Premium Paying Term: 5/10/15/20 Years, Policy Term

Minimum Premium: Rs 12,000

Premium Payment Frequency: Yearly, Half Yearly, Quarterly, Monthly

Returns in Shriram Wealth Plus

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.

Shriram Wealth Plus has six 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 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.

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 charges depend upon the premium amount and vary from 3.5% to 7.5% over the policy term.

Fund Management Charge: The annual fund management charge is 1.25% for Preserver and Defender fund while it is 1.35% for rest of the funds.

Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The administration charge is Rs 10 per month for first 5 years and Rs 20 thereafter increasing by 4% thereafter.

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.

Switch: You can choose to switch the fund value from one fund to another as per your preference. There are 2 free switches in a policy year.

Partial Withdrawal: If policyholder is above 18 years, he can make partial withdrawal subject to minimum withdrawal amount of Rs 10,000. Foe every partial withdrawal made, Rs 100 will be charged.

Grace period: Wealth Plus can be renewed within 30 days from the premium due date.

What to do?

To Cancel Policy: Wealth Plus 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.

Insurer: Shriram Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10/15/20 Years

Premium Paying Term: Single Premium

Minimum Premium: Rs 25,000

Returns in Shriram Fortune Builder

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.

Shriram Fortune Builder has six 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 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.

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 5% of the single premium amount.

Fund Management Charge: The annual fund management charge is 1.25% for Preserver and Defender fund while it is 1.35% for rest of the funds.

Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The annual administration charge is 1.25% of the single premium for the first 5 policy years and none thereafter.

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.

Switch: You can choose to switch the fund value from one fund to another as per your preference. There are 2 free switches in a policy year.

Partial Withdrawal: If policyholder is above 18 years, he can make partial withdrawal subject to minimum withdrawal amount of Rs 10,000. Foe every partial withdrawal made, Rs 100 will be charged.

Grace period: Fortune Builder can be renewed within 30 days from the premium due date.

What to do?

To Cancel Policy: Fortune Builder 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.

Insurer: Shriram Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10 Years

Premium Paying Term: Single Premium

Minimum Premium: Rs 35,000

Returns in Shriram Ujjwal Life

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.

Shriram Ujjwal Life has six 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 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.

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 5% of the single premium amount.

Fund Management Charge: The annual fund management charge is 1.25% for Preserver and Defender fund while it is 1.35% for rest of the funds.

Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The administration charge is Rs 30 per month for the first 3 policy years and increases by 6% per annum thereafter.

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.

Switch: You can choose to switch the fund value from one fund to another as per your preference. There are 2 free switches in a policy year.

Partial Withdrawal: If policyholder is above 18 years, he can make partial withdrawal subject to minimum withdrawal amount of Rs 10,000. Foe every partial withdrawal made, Rs 100 will be charged.

Grace period: Ujjwal Life can be renewed within 30 days from the premium due date.

What to do?

To Cancel Policy: Ujjwal Life 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.

Insurer: Shriram Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10 Years

Premium Paying Term: Policy Term

Minimum Premium: Rs 30,000

Premium Payment Frequency: Yearly

Returns in Shriram Ujjwal Life

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.

Shriram Ujjwal Life has six 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 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.

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 charges depend upon the premium amount and vary from 5% to 9% over the policy term.

Fund Management Charge: The annual fund management charge is 1.25% for Preserver and Defender fund while it is 1.35% for rest of the funds.

Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The administration charge is Rs 15 per month for 1^st policy year and Rs 10 till 5^th policy year. Thereafter Rs 60 per month inflating at 6% from 7^th year onwards.

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.

Switch: You can choose to switch the fund value from one fund to another as per your preference. There are 2 free switches in a policy year.

Partial Withdrawal: If policyholder is above 18 years, he can make partial withdrawal subject to minimum withdrawal amount of Rs 10,000. Foe every partial withdrawal made, Rs 100 will be charged.

Grace period: Ujjwal Life can be renewed within 30 days from the premium due date.

What to do?

To Cancel Policy: Ujjwal Life 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.

Insurer: DLF Pramerica Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10, 15, 20, 25 Years

Minimum Premium: Rs 48,000

Premium Payment Frequency: Single Premium

Returns in DLF Pramerica Wealth + Ace 

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.

DLF Pramerica has 5 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 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.

Premium Allocation Charges: The premium allocation charge depends on premium amount and ranges from 2.50% to 5.25% of the single premium amount.

Fund Management Charge: The FMC for debt fund is 1.20% while for other funds, charge is 1.35%. For people who choose STP, liquid fund is available and charge for that fund is 1.20%.

Policy Administration Charges: Policy administration monthly charges range from 0.075% to 0.180%.

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.

Switch: Switch is made to transfer the fund value from one fund to another. 4 switches are free of charge.

Partial Withdrawal: If policyholder is above 18 years, he can withdraw a portion of amount. One free partial withdrawal is allowed in a policy year.

Grace period: Wealth + Ace can be renewed within 30 days from the premium due date.

What to do? 

To Cancel Policy: Wealth + Ace 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 equal to interest rate savings account of State Bank of India. After five years, if you cancel the policy, there will be no cancellation charges and amount will be paid immediately.

Policybazaar representatives will assist you in buying Wealth + Ace.

Insurer: DLF Pramerica 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: 70 Years

Policy Term: 15, 20 Years

Minimum Premium: Rs 25,000 Annual Mode

Premium Payment Frequency: Annual

Returns in DLF Pramerica EZee Wealth +

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.

DLF Pramerica has 4 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 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.

Premium Allocation Charges: The premium allocation charge is 9.5% for the 1^st policy year. No charges from 2^nd year onwards.

Fund Management Charge: The FMC for debt fund is 1.20% while for other funds, charge is 1.35%.

Policy Administration Charges: Policy administration monthly charges range from 0.55% to 0.50%.

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.

Switch: Switch is made to transfer the fund value from one fund to another. 4 switches are free of charge.

Partial Withdrawal: If policyholder is above 18 years, he can withdraw a portion of amount. One free partial withdrawal is allowed in a policy year.

Grace period: EZee Wealth + can be renewed within 30 days from the premium due date.

What to do?

To Cancel Policy: EZee Wealth + 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 equal to interest rate savings account of State Bank of India. After five years, if you cancel the policy, there will be no cancellation charges and amount will be paid immediately.

Insurer: DLF Pramerica Life Insurance

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment

Maximum Entry Age: 60 Years

Maximum Age at Maturity: 75 Years

Policy Term: 15, 20, 25 Years

Premium Paying Term: 5 Years

Minimum Premium: Rs 50,000 Annual Mode

Premium Payment Frequency: Annual, Semi-Annual, Quarterly, Monthly

Returns in DLF Pramerica Wealth+Premier

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.

DLF Pramerica has 4 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 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.

Premium Allocation Charges: There depend on premium amount and vary from 2% to 5% of annual premium over the policy term. There are no premium allocation charges from 6^th year onwards.

Fund Management Charge: The FMC for debt fund is 1.20% while for other funds, charge is 1.35% .

Policy Administration Charges: Policy administration monthly charges range from 0.11% to 0.36%.

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.

Switch: Switch is made to transfer the fund value from one fund to another. 4 switches are free of charge.

Partial Withdrawal: If policyholder is above 18 years, he can withdraw a portion of amount. One free partial withdrawal is allowed in a policy year.

Grace period: Wealth+Premier can be renewed within 30 days from the premium due date. For monthly modes, grace period is 15 days.

What to do?

To Cancel Policy: Wealth+Premier 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 equal to interest rate savings account of State Bank of India. After five years, if you cancel the policy, there will be no cancellation charges and amount will be paid immediately.