Future Generali Pramukh Nivesh ULIP Plan

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Introduction/Overview

The Future Generali Pramukh Nivesh ULIP is a non-traditional insurance plan that does not have bonus facility. As it is a single premium payment policy with no upper limit on the premium, policyholders can make a onetime investment and enjoy long-term benefits and protection without the hassle of paying premiums repeatedly.

Key Features

  • With a zero Premium Allocation Charge, the investment potential of policyholders is maximized.
  • According to the risk appetite of the policyholders, they have a choice of six funds to choose to allocate their investments.
  • Through features such as switching or Systematic Transfer of Funds, policyholders can control and maintain their investment portfolios independently.
  • The policy offer liquidity through the partial withdrawals feature.

Benefits

  • When the policy matures, the policyholder receives the Fund Value as on the date of maturity, as Maturity Benefit.
  • In the unfortunate event of the demise of the person insured, the nominee receives the Death Benefit. The Death Benefits is the sum of:
  1. The Sum Assured under the policy and
  2. The Fund Value as on the date of intimation of death.
  • The policy offers six Unit Linked Funds for investment.
  • The policyholder has the flexibility to customize and control his or her investments through switching between funds.
  • This plan offers the systematic transfer of funds that allows policyholders to switch their money in their existing funds to alternate funds.
  • 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 commencement of the policy, the policyholder can make partial withdrawals, subject to the condition that the minimum withdrawal amount is Rs. 5000 and the Fund Value after a partial withdrawal should be equal to at least Rs. 10000.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured(Last Birthday)

7 years

70 years

Maturity Age (Last Birthday) of the Life Assured

18 years

75 years

Policy Term (PT) in years

5 years

20 years

Premium Paying Term (PPT) in years

Single Premium

Premium Paying Frequency

Single Premium

Annual Premium

Rs. 50,000

No limit

Sum Assured – Sum Assured as a multiple of Single Premium

 1.25 across all age brackets

          Entry Age – Multiple Factor

7-  49 years -    5      

50 - 54 years -   3     

55 - 70 years  - 1.25

       

 

Details About Premium

 

Guaranteed Benefits

Policy Term / year

Age

Premium paid

Premium Allocation

Amount available for investment

Policy administration charge

Death Benefit

1

30

300000

0

300000

3000

1500000

2

31

0

0

0

2250

1500000

3

32

0

0

0

2250

1500000

4

33

0

0

0

2250

1500000

5

34

0

0

0

2250

1500000

6

35

0

0

0

0

1500000

7

36

0

0

0

0

1500000

8

37

0

0

0

0

1500000

9

38

0

0

0

0

1500000

10

39

0

0

0

0

1500000

11

40

0

0

0

0

1500000

12

41

0

0

0

0

1500000

13

42

0

0

0

0

1500000

14

43

0

0

0

0

1500000

15

44

0

0

0

0

1500000

 

 

Guaranteed Benefits

Policy Term / year

Age

Premium paid

Premium Allocation

Amount available for investment

Policy administration charge

Death Benefit

1

60

50000

0

50000

500

62500

2

61

0

0

0

375

62500

3

62

0

0

0

375

62500

4

63

0

0

0

375

62500

5

64

0

0

0

375

62500

 

Policy Details

Grace period: The Grace Period is not applicable as it is a single premium payment plan.

Policy termination or Surrender Benefit: The policy may be surrendered any time during the policy period. The Surrender Value is the fund value at the prevailing NAV. If the policy is surrendered before the completion of five policy years then the insurance cover ceases and the Surrender Value 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.

Free look period: Policyholders have a limited free look period of 15 days from the date of receiving policy documents to review the policy. If the policyholder does not wish to continue with the policy, then he or she has to return the policy stating their objections. The Fund Value as on the cancellation date and the non-allocated premium that was paid will be refunded 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

  • With the Settlement option, the policyholder can opt to receive the maturity benefit in periodical payments after the date of maturity rather than as a lump sum.

Additional features or riders

  • Various charges apply to this policy. They are as follows:
  1. A Policy Administration Charge is deducted from the unit account at the beginning of each month.
  2. Fund Management Charges are deducted on a daily basis and is charged by adjusted the NAV of the units on a daily basis.
  3. At the beginning of each month, Mortality Charges are deducted, based on the mortality rates, which are specified for all ages and the amount of cover, provided.
  4. Switching Charge – Twelve free switches are allowed in a single policy year. Each subsequent switch is charged at Rs. 100.
  5. 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.
  6. Mortality Charges are deducted monthly by the cancellation of units.
  7. Miscellaneous Charges are levied for alterations made to the policy contract, for example, a reduction in the sum assured. The amount is Rs. 250 per alteration.

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.