Star Union Dai-ichi Wealth Builder Plan

*Please note that the quotes shown will be from our partners

Introduction/Overview

Star Union Dai-ichi Wealth Builder Insurance policy is a Unit Linked Insurance Plan that combines life insurance cover along with a choice of four funds as investment options. Policyholders earn market returns on their investments and provide financial security for their loved ones for when they are not around.

Key Features

  • This policy is a ULIP that has the convenience of a single premium payment.
  • The policyholder has a variety of options for building his investment portfolio; four funds are available for investment with this policy.
  • The policyholders can control their investments by switching between funds.
  • By using the Top-up option available with this policy, policyholders can invest windfall gains and time the markets as they choose.

Benefits

  • On survival of the Life Assured until the end of the policy term, the policyholder will receive Maturity Benefit. The Maturity Benefit for this policy is equal to the Fund Value under the base plan and the Fund Value under Top-up Sum Assured.
  • 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 of the base plan and Top Up Sum Assured (if any), or 
    (2) The Fund Value under the base plan and Fund Value under the Top-up Sum Assured as on the date of death, or 
    (3) 105% of the total premiums including Top-up premiums, if any, paid.

The Sum Assured under the base plan would be reduced by any partial withdrawals that were made.

  • Based on the customer’s propensity to take risks, there are four Unit Linked Funds for investment.
  • Tax benefits are available under this policy as per the Income Tax Act under sections 80 (C) and 10(10D).
  • Partial withdrawals are permitted after five years from the commencement of the policy. After five years, partial withdrawals can be made, subject to the condition that the withdrawal amount is a minimum of Rs. 5000.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday) for Life Insured

8 years

60 years

Maturity Age (Last Birthday)

-

70 years

Policy Term (PT) in years

5 years

30 years

Premium Paying Term (PPT) in years

Single

Premium Paying Frequency

Single

Yearly Premium

Rs. 1 lakh

Rs. 1 crore

Sum Assured Multiple

Entry age

Below 45 then 1.25 x Single Premium

45 to 60 then 1.10 x Single Premium

Entry age

8 to 30 then 4.0

31 to 35 then 3.0

36 to 45 then 2.0

46 to 50 then 1.75

51 to 55 then 1.50

56 to 60 then 1.20

Policy Details

Grace Period: As the premium is paid only once on the purchase of the policy there is no Grace Period for this Policy.

Policy Termination or Surrender Benefit: The policy may be surrendered after completing five years. The Surrender Value will be paid to the customer, and the policy will end. If the policy is surrendered within the first five years from the start of the plan, then the fund value is transferred to what is called as the Discontinued Policies Fund. The fund value is payable after completion of the fifth policy year, and then the policy is terminated. The policy automatically gets terminated on the earliest of the following – the date of death of the Life Assured, the date on which the Surrender Value is paid and on the maturity of the policy.

Free Look Period: Cancellation of the policy is possible within 15 days of receiving the policy document.

Additional Features or Riders

  • The Top-up premium is permitted any time during the policy term on the condition that the base plan is in force. The minimum Top-up premium amount is Rs. 5000.
  • 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. Policy Administration Charge is deducted at the start of each month
  3. Fund Management Charges are deducted annually and varies according to the funds chosen by the policyholder.
  4. At the beginning of each month, Mortality Charges are deducted by cancellation of units from the fund value.
  5. Switching Charge – There is a limit of one free switch allowed in a single policy year. Subsequently each switch is charged at Rs. 100.
  6. Partial Withdrawal Charge – This policy allows one partial withdrawal free of cost in a policy year. For subsequent withdrawals, there is a charge Rs. 100 per withdrawal.
  7. Medical examination – Cost of any medical examination expenses have to be borne by the policyholder.

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 revival of the policy. The company will refund only the Fund Value as on the date of death of the life assured, to the nominee.

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 medical examination.