Fund Options

Options could be exercised as under:

Investment Objective

Secured Fund: The investment objective of this fund is to provide accumulation of income through investment in high quality fixed income securities.

Balanced Fund
The investment objective is to provide risk-adjusted returns for long term capital appreciation by availing opportunities in debt and equity markets providing a good balance between risk and return.
Smart Fund: The investment objective is to provide superior risk-adjusted returns for long term capital appreciation by availing opportunities in debt and equity markets providing a good balance between risk and return.
Growth Fund: The primary investment objective of the scheme is to achieve long-term growth of capital by investing in equity and equity related securities through a research-based investment approach.

Instruments used under various asset classes

• Equity: Investments in Indian equity and equity related instruments in sound companies with a large-cap bias and building a portfolio having a diversified allocation across sectors based on research and analysis of the same.
• Debt: Debt Instruments would include government securities, State Development Loans, Oil Bonds, PSU bonds and Corporate Bonds, Certificate of Deposit, Commercial Paper & Non-Convertible Debenture with good ratings. The Duration of the instruments would vary from time to time depending upon the requirements.
• Cash: The Cash component will comprise of all the Money Market Instruments like Treasury Bills, Term Deposit, Mutual Fund liquid Schemes and cash in bank

Benchmark Construction of Investment

• CRISIL, ST BOND INDEX - Debt.
• S&PCNX NIFTY - Equity

Switching Option - The policy holder has the option of switching his investments from one fund to another of his choice at any time during the life of the policy. Two free switches are allowed every policy year. Additional switches are allowed subject to at the rate of Rs 100/- per switch. The switching charges would be recovered by cancellation of units.

Top-up Premiums
Top-up Premiums may be paid under the plan. The allocable amount of top-up premium will be credited to the existing fund.
The maximum top-up amount that can be paid is 25% of total premiums paid under the base plan up to that date. Minimum Top-up Premium is Rs 2,500 subject to the total top up amount paid including earlier payments not exceeding 25% of total due premiums paid till date.

Benefits under the policy

• On maturity - Fund Value
• On death-

Under Single Premium
Maximum of sum assured reduced by partial withdrawals pertaining to base fund within two years immediately preceding the death of the life assured or the basic policy fund value plus top-up fund value on the date of receipt of intimation in writing in an office of Sahara India Life Insurance Co. Ltd.

Under Regular Premium -

1. If all due premiums are paid i.e. policy is in-force.
   Maximum of sum assured reduced by partial withdrawals pertaining to base fund within two years immediately preceding the death of the life assured or the basic policy fund value plus top-up fund value on the date of receipt of intimation of death in writing in the office of Sahara India Life Insurance Co. Ltd;
2. If all due premiums are not paid but the period from the date of first unpaid premium to the date of death is less than two years ( revival period):
   1. If at least 3 years premiums have been paid-
      Maximum of sum assured reduced by partial withdrawals pertaining to base fund within two years immediately preceding the death of the life assured or the basic policy fund value plus top-up fund value on the date of receipt of intimation of death in writing in the office of Sahara India Life Insurance Co. Ltd;
   2. If premium for less than 3 years have been paid - Fund Value
      
3. If all due premiums are not paid and the period elapsed from the date of first unpaid premium to he date of death is more than two years and policyholder had opted for continuation of the risk (If the policyholder had not opted for continuation of the risk, the surrender value, as per rules was payable):
   

Maximum of sum assured reduced by partial withdrawals pertaining to base fund within two years immediately preceding the death of the life assured or the basic policy fund value plus top-up fund value on the date of receipt of intimation of death in writing in the office of Sahara India Life Insurance Co. Ltd

Surrender Value

Single Premium

Regular Premium
The policy would acquire surrender value if one full year premium is paid. However surrender value would be payable after at least three years from the commencement of the policy.

Partial Withdrawal is allowed subject to the following conditions

1. Partial Withdrawal is allowed after three years from the date of commencement subject to the life assured having attained majority i.e. on or after attainment of age of 18 years.
2. Maximum partial withdrawal is 50% of fund value including top up fund for which a lock in period of 3 years shall apply from the date of payment of top-up premiums (this condition will not apply if the top-up premiums are paid during the last 3 years of contract) subject to the condition that minimum balance in the fund after partial withdrawal should be 150% of annualized premium under regular premium policy & Rs 20,000 under Single Premium.
3. Minimum partial withdrawal amount is Rs. 2,500.
4. Minimum period elapsed between two partial withdrawals should be one year.
5. The policy should be in-force for full sum assured.
6. For the purpose of charging of risk premium and settlement of death benefit the partial withdrawal would be first adjusted against the top-up fund and the balance amount, if any, towards the base fund. The death benefit /sum at risk would be reduced by partial withdrawals pertaining to base fund.
   

Loan: Loan is not allowed under the plan.

Grace period for non-forfeiture provisions

Grace period of 30 days irrespective of any calendar month will be allowed for payment of Yearly, Half-Yearly and Quarterly premiums and 15 days in Monthly mode of premiums. In case premium installment is not paid within the grace period and death occurs within this period, the policy will be still valid and the sum assured reduced by partial withdrawals pertaining to base fund within two years immediately preceding the date of death or fund value whichever is higher plus top-up fund subject to recovery of mortality charge shall be paid to the claimant.

What are the modes available for payment of premium?

• Single Premium, Yelarly, Half-Yearly, Quarterly and Monthly (direct debit and group billing only).
• Short premiums shall not be accepted. If the premium is received in advance, the same shall be kept in deposit without benefit till adjusted.

What happens if the payment of premiums is discontinued?

• If premiums for three years have not been paid and the installment premium is not paid within the grace period, the policy shall lapse. A lapsed policy can be revived within two years on payment of all arrears of premium and submission of proof of continued insurability to the satisfaction of the Company. However the Company reserves the right to accept or decline the revival of a lapsed policy. The revival of a lapsed policy shall take effect only after its approval is specifically communicated to the policyholder.
• If premiums have already been paid for three years the risk under the policy continues for two years (revival period) subject to the condition that when the fund value reaches an amount equivalent to one full year's premium, the contract shall be terminated by paying the surrender value. If policy is not revived within two years, the policyholder can not revive the policy subsequently and will be offered surrender value as applicable but can opt for continuance of risk which will be allowed till the balance in the fund reaches an amount equivalent to one full year's premium when the contract shall be terminated by paying the surrender value.

What is the revival period and death benefit available during that period?
The revival period is two years from the date of first unpaid premium and death benefit during the period payable is as under:

1. If at least 3 years premiums have been paid-
   Maximum of sum assured reduced by partial withdrawals pertaining to base fund within two years immediately preceding the death of the life assured or the fund value plus topup fund on the date of receipt of intimation of death in writing in the office of Sahara India Life Insurance Co. Ltd.
2. If premium for less than 3 years have been paid - Fund Value

Method of Calculation of Net Asset Value:

The Unit Price (UP) of a fund will be set by dividing the Value of the assets in the fund at the valuation time (at the end of the day) by the number of units. For new business, units will be allocated depending on the price of the units using the closing NAV on the day of collection of cash/local cheque/DD, date of credit to our account in case of direct debit and day of realization in case of outstation cheque or policy issue whichever is later. For subsequent payments of premium if cash / local cheque / DD is received in the office of the company by 3.00 p.m. (which may be revised from time to time by the appropriate statutory Authority), the closing NAV of the day on which premium is received would be applicable. In case premium by local cheque/ DD is received in the company after 3.00 p.m. closing NAV of the next business day shall be applicable. In case of outstation cheque/DD, closing NAV of the day of realization will be applicable. In case of direct debit, closing NAV of the date of credit to our account will be applicable. For group billing the units will be allocated based on the NAV of the day on which premiums are accounted for under the policy.
The Net Asset Value (NAV) of each of the Funds will be computed at the end of the day (on daily basis). The NAV would be calculated on appropriation basis or expropriation basis depending on whether the company is purchasing or selling the assets in order to meet the day to day transactions of Unit allocations and Unit redemptions. The resulting price will be rounded to the nearest Rs 0.0001. NAV (Appropriation/Expropriation) would be calculated as under:

Net Asset Value = (Appropriation price)	Market/Fair value of the fund's investments + Expenses incurred in the purchase of the assets + Value of any current assets + any accrued income net of fund management charge - the value of any current liabilities less provisions
	Number of existing units at the valuation date (before any new units are allocated)
Net Asset Value= (Expropriation price)	Market/Fair value of the fund's investments - Expenses incurred in the sale of the assets + Value of any current assets + any accrued income net of fund management charge - the value of any current liabilities less provisions
	Number of existing units at the valuation date (before any units are redeemed)

Allocation to the Unit Fund:
The allocable amount as per the allocation rates given below will be invested in the policy fund.

Single Premium 96%

Regular Premium

Charges under the Plan

1. Unallocated portion of the Premium -The difference between the total premium and the allocated premium.
2. Administration fee - A monthly Administration Fee of Rs.25/- will be deducted by canceling appropriate number of Units at the beginning of the month at the prevailing unit value. Administration fee may be increased at the discretion of the company subject to maximum of Rs.40/- per month depending on the experience of the company and subject to approval of IRDA.
3. Fund management charge - There will be a charge, as mentioned in the chart below, which will accrue and will be charged to the fund on a daily basis from the Policyholder's Unit Account towards Fund management expenses. Thus, the value of the Units in the Fund would be calculated after taking into account the Fund Management Charge
   
   

   Fund	Secured	Balanced	Smart	Growth
   Fund Management Charge	0.65% of the Fund Value subject to maxi- mum of 0.90% p.a. depending on the experience and subject to approval of IRDA	0.75% p.a. of the Fund Value subject to maximum of 1.00% p.a. depen- ding on the experience and subject to approval of IRDA	1% p.a. of the Fund Value subject to maximum of 1.25% p.a. depending on the experience and subject to approval of IRDA	1% p.a. of the Fund Value subject to maximum of 1.25% p.a. depending on the experience and subject to approval of IRDA

4. Mortality charge – The risk premium i.e. mortality charge is recovered by cancellation of appropriate number of units on monthly basis at the beginning of the each month and depend on the amount of risk being the difference between the Sum Assured reduced by partial withdrawals pertaining to the base fund within two years of the current date and the fund value at that time and the age of the Life Assured. The annual mortality charges are as per the table below: (per unit of Sum at Risk for life cover)