How does this Plan work?
This is a non profit unit linked endowment plan where the life insured is the child with premium waiver banefit on death of the proposer (father or mother).
The premium contributed by you net of Premium Allocation Charges and Miscellaneous charges is invested in fund option of your choice for a specified period of time as selected by you and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that you hold in the fund/funds. The policy has a minimum guaranteed fund value which is equal to 95% of total Premiums paid under the basic plan less extra or additional premiums if any provided no partial withdrawals were made from any of the funds except redemption of points from e-Account for availing of services of web based community and that the Equity fund was never selected up to the date of death. The sum assured under the policy is fixed on the basis of the selected annual Premium and policy term.
The allocation charges and miscellaneous charges are deducted from the Premiums before allocation of units. The mortality charges (along with the service tax on mortality), charges for total and permanent disability due to accident and policy administration charges are deducted through cancellation of units whereas the fund management charge is priced in the unit value. The Premiums for riders, if selected, are payable over and above the Premium for the basic policy.
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