The financial markets in the country today are at a very exciting stage with the Indian Economy poised to grow rapidly in the next several years. We at Sahara India Life Insurance Company felt that our policyholders must be part of this excitement and derive direct benefit from the great potential provided by these markets.
The Unit Linked Pension Plan being offered is a unique blend of risk coverage and market linked returns to cater the needs of old age. All the objectives of buying a pension plan are taken care of with a potential of earning higher returns over the term of the policy. The unit linked plan enhances the value of the savings over a period of time and offers choices to the customers to choose the investment plan according to their risk profile and investment horizon at various points during the life of the policy.
Plan Details:
| Minimum Issue Age |
18 Years (Last birthday) |
| Maximum Issue Age |
60Years (Nearest birthday) |
| Premium Paying Term |
Same as policy term |
| Minimum coverage Age |
50 Years (Nearest birthday) |
| Maximum Coverage Age |
70 Years (Nearest birthday) |
| Term of the policy |
10 - 42 yrs |
| Minimum Premium |
Annual Mode |
Rs.10000 |
| |
Half Yearly Mode |
Rs. 5000 |
| |
Quarterly Mode |
Rs. 2500 |
| |
Monthly Mode |
Rs. 1000 |
| Sum Assured |
Sum Assured = 0.5 * Term * Annualised premium |
Funds Option:
The fund options available under this plan and the asset allocation limits under each fund are as follows :
| Fund Investment option |
Shares (equity) |
Debt |
Cash |
Risk Profile |
| Secured Fund |
Nil |
Min 80% |
Min 20% |
Low |
| Balanced Fund |
Max 40% |
Max 40% |
Min 20% |
Medium |
| Smart Fund |
Max 40% |
Min 20% |
Max 40% |
High |
| Growth Fund |
Min 80% |
Min 20% |
Min 20% |
High |
Option could be exercised as under:
Initial Premium - Choice of any one fund
Subsequent Premiums - Units will be allocated to the existing fund at that time
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 and subsequent switches in a policy year are charged at the rate of Rs.100 per policy switch. No switch is allowed in the first policy year.
Modes available for premium payment:
- Yearly, Half-Yearly, Quarterly, 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.
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 or fund value whichever is higher subject to recovery of mortality charge shall be paid to the claimant.
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 are paid for 3 years but less than 5 years, the risk under the policy continues for 2 yrs (revival period) subject to the condition that when the fund value reaches an amount equivalent 106% of one full year's premium, the contract shall be terminated by paying the surrender value. However if premiums are paid for 5 years or more, the risk under the policy continues for 2 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.
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:
- If at least 3 years premiums have been paid-
Maximum of sum assured immediately preceding the death of the life assured or the fund value on the date of receipt of intimation of death in writing in the office of Sahara India Life Insurance Co. Ltd;
- If premium for less than 3 years have been paid-
Fund Value :
If the nominee is the spouse and is less than 40 years nearer birthday on the date of death of life assured, the death benefit in lump sum will be payable. If nominee is spouse and age is 40 years nearer birthday or more on the date of death of life assured, the nominee will have an option to avail the death benefit in a lump sum or purchase immediate annuity from Sahara India Life Insurance Co. Ltd. or any other insurer in which case 1/3rd of the death benefit may be commuted if so desired. If nominee is other than the spouse the death benefit will be payable in lump sum to the nominee.
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 4:15 p.m., 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 4:15 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.
| Year |
Term 10-15 |
Term 16-42 |
| Year 1 |
82% |
87% |
| Year 2 |
95% |
95% |
| Year 3 |
95% |
95% |
| Year 4+ |
98% |
98% |
Charges under the Plan:
-
Unallocated portion of the Premium -The difference between the total premium and the allocated premium.
-
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.
-
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 |
Growth |
Fund
Management Charge |
Fund 0.65% p.a. of the Fund Value subject to charge maximum 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. depending on the experience and subject to approval of IRDA. |
1% p.a. of the Value subject to p.a. maximum of 1.25% p.a. depending on the experience and subject to approval of IRDA. |
-
Mortality Charge - The risk premium i.e. mortality charge is recovered by cancellation of appropriate number of units on monthly basis at the begining of the each month and depend on the amount of risk being the difference between the Sum Assured 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)
| Age |
Mortality Charge |
Age |
Mortality Charge |
Age |
Mortality Charge |
| 18 |
0.001011 |
36 |
0.001630 |
54 |
0.008623 |
| 19 |
0.001057 |
37 |
0.001752 |
55 |
0.009472 |
| 20 |
0.001099 |
38 |
0.001893 |
56 |
0.010376 |
| 21 |
0.001136 |
39 |
0.002052 |
57 |
0.011323 |
| 22 |
0.001169 |
40 |
0.002258 |
58 |
0.012128 |
| 23 |
0.001199 |
41 |
0.002472 |
59 |
0.013146 |
| 24 |
0.001224 |
42 |
0.002660 |
60 |
0.014380 |
| 25 |
0.001245 |
43 |
0.002862 |
61 |
0.015830 |
| 26 |
0.001262 |
44 |
0.003115 |
62 |
0.017494 |
| 27 |
0.001275 |
45 |
0.003421 |
63 |
0.019373 |
| 28 |
0.001283 |
46 |
0.003782 |
64 |
0.021468 |
| 29 |
0.001287 |
47 |
0.004198 |
65 |
0.023777 |
| 30 |
0.001287 |
48 |
0.004667 |
66 |
0.024996 |
| 31 |
0.001288 |
49 |
0.005191 |
67 |
0.028179 |
| 32 |
0.001321 |
50 |
0.005768 |
68 |
0.031705 |
| 33 |
0.001371 |
51 |
0.006401 |
69 |
0.035609 |
| 34 |
0.001439 |
52 |
0.007087 |
70 |
0.039923 |
| 35 |
0.001526 |
53 |
0.007828 |
|
|
Rider available under the plan
- Accident Benefit & Accidental Total & Permanent Disability Benefit Rider
The details are available in the sales literature of the rider available for unit linked product.
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