Tuesday, 10 March 2015

Unit Linked Insurance Policies

ULIPS abbreviated as Unit Linked Insurance Plans are long-term Investment cum Protection plans purely depend on Market risks. The first ULIP was launched in India in 1971 by Unit Trust of India (UTI). Major guidelines for ULIP issued by Insurance Regulatory and Development Authority (IRDA) in 2005.

1) I would like to invest in ULIPS. Do you guarantee the fixed return interest along with money i invested in funds ?
There is no guarantee fixed returns in all other ULIP funds except in SBI Bond Fund. We assure 10% growth without considering Capital Markets.
Note: The Premium paid in Unit Linked Insurance Policies are subject to investment risks associated with capital markets and NAVs of the units may go Up or Down based on the performance of the fund and factors influencing the capital markets. Policy Holder is responsible for his/her decisions.

2) what are funds available to invest in ULIPS ?
There are 9 Funds :
a) Index fund;  b) Equity fund;  c) SBI Bond fund;  d) Top 300 fund;  d) Money Market fund;  e) Growth fund;  f) Balanced fund;  g) Equity Optimizer fund and  h) P/E Managed fund.

3) What are Premium modes and Minimum Investment in ULIPS ?
Premium Frequency : Single/Yearly;  Minimum Investment is Rs. 24000 in case of Child Education Plan while Rs. 50,000 in case of all other ulip plans.

4) I need security of income for my Child future studies. Do you have any such Plans ?
Yes, we have Child Education Policy also known as Smart Scholar only available in SBI Life.
Entry Age: Child = 0 to 17 Yrs;  Proposer (Father) = 18 to 57 Yrs;  Max Maturity Age = 65 Yrs; Policy Term = 8 to 25 Yrs less child's age at entry; Premium Paying Term (PPT) = Policy Term
For E.g: If Father Age = 35 yrs;  Child Age = 5 yrs; Policy term = 25-5 = 20 yrs;  Premium = Rs. 24000;  then Investment Returns = 10%;  Maturity Benefit = Rs. 1212900; Sum Assured = 240000 (10 times the premium paid)
Advantage: In case of Proposer dies in the middle of the term, SBI Life will pay rest of the Premiums till the end to support Child Education.

No comments:

Post a Comment