Future Generali Bima Gain Plan

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Introduction/Overview

The Future Generali Bima Gain plan is a non-participating Unit Linked Insurance Plan that offers high returns on investment; the policyholders can opt for a sum assured that is up to ten times of the premium paid by them. This plan provides both high insurance cover as well as an excellent investment opportunity for its customers.

Key Features

  • This is a single premium payment policy.
  • Six varied fund options are on offer to suit the policyholders varying risk appetites.
  • With such features as switching between funds and partial withdrawals, policyholders can actively control their investment portfolios.
  • Policyholders can choose to receive the Maturity Benefit as a lump sum or over a period of five years after the maturity date, as under the settlement option.

Benefits

  • The Fund Value as on the date of maturity is paid to the policyholder as Maturity Benefit.
  • In the unfortunate event of the demise of the person insured, the nominee receives the Death Benefit. The Death Benefits payable is higher of the following:
  1. The Sum Assured minus partial withdrawals (if any), or 
  2. The Fund Value under policy, or 
  3. 105% of the total premiums paid, minus any partial withdrawals.
  • There are six Unit Linked Funds for investment in this policy.
  • The policyholder can customize and manage investments through switching between the six unit linked funds. The minimum amount that can be switched is Rs. 5000.
  • Tax benefits are available on the premium paid and Death and Maturity Benefits as per sections 80(C) and 10 (10D) of the Income Tax Act.
  • After five years from the start of the policy, partial withdrawals can be made, subject to the condition that the minimum withdrawal amount is Rs. 5000.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured(Last Birthday)

 

8 years

 

65 years

Maturity Age (Last Birthday) of the Life Assured

18 years

75 years

Policy Term (PT) in years

10 years

Premium Paying Term (PPT) in years

Single

Premium Paying Frequency

Single

Annual Premium

Rs. 50,000

Rs. 2000000

Sum Assured

1.25 times Single Premium

Depending on age of policyholder

8 to 47 yrs = 10 times Single Premium

48 to 65 yrs = 1.25 times Single Premium

Details About Premium

Illustrative maturity benefit with projected annual investment return of 4% pa:  Rs. 54,373.00

Guaranteed Benefits

Policy Term / year

Age

Premium paid

Premium Allocation

Amount available for investment

Policy administration charge

Death Benefit

1

20

55000

1100

53900

1375

550000

2

21

0

0

0

924

550000

3

22

0

0

0

924

550000

4

23

0

0

0

924

550000

5

24

0

0

0

924

550000

6

25

0

0

0

0

550000

7

26

0

0

0

0

550000

8

27

0

0

0

0

550000

9

28

0

0

0

0

550000

10

29

0

0

0

0

550000

Policy Details

Grace Period: The Grace Period is not applicable as it is a single premium policy.

Policy Termination or Surrender Benefit: The policy may be surrendered any time during the policy period. The Surrender Value is the Fund Value minus the Discontinuance Charge, if any. If the policy is surrendered before the completion of five policy years then the insurance cover ceases and the Surrender Value equal to Fund Value minus Discontinuation Charge will be kept in the Discontinued Fund of the policy. If surrender of the policy happens after completing five policy years, the insurance cover ceases, the Surrender Value is paid immediately and the policy is terminated. Termination occurs on payment of the Death Benefit or Maturity Benefit.

Free Look Period: Policyholders have a limited free look period of 15 days from the date of receiving policy documents to review the policy. This timeframe is extended to thirty days if the policy was sold via distance marketing. The customer will receive the fund value as on the date of cancellation plus non-allocated premium plus charges levied by cancellation of units minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • The policyholder has an option to receive the maturity benefit in periodical payments for five years after the date of maturity rather than as a lump sum, with the Settlement option.

Additional Features or Riders

  • Various charges apply to this policy. They are as follows:
  1. Premium Allocation Charge, which is deducted from the Premium paid by the customer. The balance is invested in the investments chosen by the policyholder
  2. A Policy Administration Charge that is deducted monthly by cancellation of units up to a maximum of Rs. 6000 per annum.
  3. Fund Management Charges are deducted on a daily basis and is deducted by adjusting the NAV.
  4. There is a Discontinuance Charge for discontinuing the policy within the first four policy years.
  5. At the beginning of each month, Mortality Charges are deducted, based on the sum at risk.
  6. Switching Charge – Twelve free switches are allowed in a single policy year. Each subsequent switch is charged at Rs. 100.
  7. Partial Withdrawal Charge – This policy allows four partial withdrawals free of cost in a policy year. For subsequent withdrawals, there is a charge Rs. 200 per withdrawal.

Exclusions

  • The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover or reinstatement. The company will refund only the Fund Value, as Death Benefit.

Documents Required

The policyholder has to fill up an ‘Application form’ with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof and a medical examination.