Financial Daily from THE HINDU group of publications
Sunday, Jul 13, 2003
Financial Daily from THE HINDU group of publications Sunday, Jul 13, 2003 |
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Investment World
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Life Insurance Money & Banking - Life Insurance AMP Sanmar Nithya Shree Nath Balakrishnan
Plan features
One key advantage of such a policy is that the life cover continues even after the premium-paying term ends. To illustrate, consider a 30-year-old person taking such a policy and paying premiums over 30 years. The maturity date will be the policy anniversary immediately after the 85th birthday. However, life cover will continue even after the premium paying term ends and the policy will continue to participate in bonuses.
Payouts
On survival till 85, the policyholder can opt to receive the sum assured along with the bonuses accrued till that date. Alternatively, he can postpone the date on which he wants to take the policy proceeds. If postponed, the life cover will be extended and the policy will continue to participate in profits. Should the policyholder die before 85, the basic sum assured and the bonuses accrued till that date will be paid out to the beneficiary.
Bonuses
Bonuses are declared on the sum assured and are not compounded. Bonuses are not guaranteed and a function of the company's investment performance.
Riders
Two riders can be attached — for Critical Illness and Accident Cover. The critical illness rider cover 10 illnesses and can be bought to the extent of 25 per cent, 50 per cent, 75 per cent and 100 per cent of the basic sum assured.Accident cover can be taken at a nominal cost of Re 1 per thousand sum assured. The maximum cover offered is Rs 50,00,000. per annum will be waived.
Loans and surrender value
The policy acquires surrender value after three years' premiums have been paid. Loans up to 90 per cent of the surrender value can be taken.
Suitability
Those looking at securing the financial security of their dependents can consider a whole-life plan. It will also be better to enter such a plan at an early age to take advantage of the twin benefits of a lower premium and a longer bonus-entitlement period.
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