Pramerica Life ULIP Plans

The company is committed to serving the Indian Armed Forces, CAPF, and Paramilitary by providing life insurance and support to soldiers, veterans, and their families. Pramerica Life Insurance is backed by two powerful conglomerates, Piramal Capital and Housing Finance Limited and Prudential International Insurance Holdings Ltd., which have a proven track record of business excellence.

What are ULIPs?

Unit Linked Insurance Plans (ULIPs) are plans developed by insurance companies on the basis of the features of a mutual fund where the premiums paid by the policyholder are invested in a corpus, which is then invested in stocks and shares of different companies functioning in the capital market. The total value of the corpus in accordance with market valuation divided by the total number of securities purchased depicts the Net Asset Value (NAV), which is the price of one unit. The premium that the policyholder pays is invested in the chosen fund at the fund’s prevailing NAV, which changes daily. ULIPs promise good returns and insurance coverage, making them a package plan. The common features of every ULIP are as follows:

• The company has different available funds, and the premiums paid will be invested in one or a combination of available funds. The choice of investment depends on the policyholder and his risk appetite.

• Premiums paid are then subject to charges like administrative charges, fund management charges, mortality charges, etc.

• The extent of coverage depends on the amount of premium paid by the policyholder.

• There is a 5-year lock-in period during which the fund value cannot be withdrawn. Post the lock-in period, the policyholder can make partial withdrawals from the fund value

• The policyholder can also switch between the available funds if he wants to change his investment strategy.

Types of Pramerica Life ULIP Plans

Pramerica Life Insurance Company sells ULIP Plans to its customers, providing dual benefits of market-linked returns and life insurance protection under the same plan. Let us see the different types of plans offered by the company and the features and benefits of each plan in detail.

• Pramerica Life Smart Wealth+ Plan

• Pramerica Life Wealth+ Ace Plan

1. Pramerica Life Smart Wealth+ 

   A unit linked insurance plan where the premiums paid are invested in the market for linked returns. The plan’s features and benefits are:

   • Regular Pay or Limited Pay option of premium payment is available.

   • The policyholder can put the net premium into any of the five available funds, including Debt Fund, Balance Fund, Growth Fund, Large Cap Equity Fund, and Liquid Fund.

   • There is an option called Fund Conservation at Maturity, under which the Fund Value is partially credited to the Debt Fund every 6 months in the last 3 years of the policy tenure. This is done to protect the fund value from market volatility in the last few years of policy maturity.

   • Persistency Units are added in the 10th, 15th, and 20th year @1% of the average Fund Value over the last 36 months prior to the addition.

   • The Fund Value is payable on maturity, which can be either taken in a lump sum or in installments within 5 years post maturity under the Settlement Option.

   • When the insured dies, the higher of the Sum Assured net of any partial withdrawals made or the Fund Value is paid with a minimum of 105% of all premiums paid till the date of death.

   • One free partial withdrawal is allowed annually with a minimum value of Rs.10, 000 after the completion of 5 policy years

   • Four free switches are allowed annually to switch between funds, and a premium redirection facility is also available to redirect subsequent premiums to a different fund.

   • Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

   Eligibility Details

   	Minimum	Maximum
   Entry Age	8 years	55 years
   Maturity Age	28 years	75 years
   Policy Term	20 years
   Premium amount	Rs.30, 000	No limit
   Sum Assured	5 Pay – 10 or 7 times the annual premium, depending on age 10, 15, or 20 Pay – 10 times the annual premium	No limit
   Premium Payment Term	5, 10, 15, or 20 years
   Premium Paying Frequency	Yearly, Half-Yearly, Quarterly, or Monthly

2. Pramerica Life Wealth+ Ace 

   A unit linked insurance plan under which the premium is paid only at plan commencement in one lump sum. The plan has the following features:

   • The premium is paid only at the commencement of the plan under the Single Pay option

   • The premium net of charges can be invested under the Systematic Transfer Option or can be invested by the policyholder himself from a choice of 5 available funds.

   • Under the Systematic Transfer Option, the net premium is first invested in the Liquid Fund, which has low risk. From there, the units are gradually moved to a fund chosen by the policyholder. This feature allows the policyholder to use the benefit of rupee-cost averaging.

   • The policyholder may otherwise choose to invest the net premium in any fund from the available funds, which are Debt Fund, Balance Fund, Growth Fund, Large Cap Equity Fund, and Liquid Fund.

   • The plan provides the addition of Persistency Units in the 10thyear and subsequently every 5 years @1.5% or 2% of the average Fund Value over the last 36 months prior to the addition depending on the premium

   • Fund Value is payable on maturity, which can be either availed in a lump sum or within 5 years post maturity in installments under the Settlement Option.

   • When the insured dies, higher of the Sum Assured net of any partial withdrawals made or the Fund Value is paid to the nominee subject to a minimum of 105% of all premiums paid till the date of death.

   • Withdrawals of a portion of the policy can be made after 5 years from the start date (Lock-in Period). There is a limit of 5 withdrawals that can be made during the entire duration of the policy. The minimum amount that can be withdrawn is 10,000.

   • Four free switches are allowed annually to switch between available funds.

   Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

   Eligibility Details

   	Minimum	Maximum
   Entry Age	8 years for Policy Term 10 Years 3 years for Policy Term 15 Year  90 Days for Policy Term 20 or 25 Years	65 years
   Maturity Age	-	75 years
   Policy Term	10 years	25 years
   Premium amount	Rs.65, 000	Depends on Maximum Sum Assured, subject to underwriting
   Sum Assured	1.25 of single premium	Rs.10 crores
   Premium Payment Term	Single Pay
   Premium Paying Frequency	Yearly, Half-Yearly, Quarterly, or Monthly

Applying For ULIPs through PolicyBazaar

• On the PolicyBazaar homepage, click on ULIPs under the Personal tab.

• Click New Quotes to compare and choose from top insurance providers.

• Fill in your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. Based on your payout amount, you will get an estimate of your premium. Next, click Continue.

• Fill in your name, email address, city, country code, and mobile number. Click Continue.

• You will be taken to the Life Insurance quotes page, where you will see life insurance quotes from more than 10 insurers. Next, choose the plan as per the payment schedule – One Time Payout and Monthly Payout Plans.

• After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.

• You will see a pop-up on the screen that will give you an overview of the chosen plan, like premium, plan features, exclusions, additional riders, etc. Click Proceed.

• This will take you to the insurer’s website. You will have to fill in the necessary details to buy the plan.