Financial Daily from THE HINDU group of publications
Sunday, Oct 03, 2004
Financial Daily from THE HINDU group of publications Sunday, Oct 03, 2004 |
|
|
|
|
|
Investment World
-
Life Insurance Money & Banking - Life Insurance Columns - Insurance Corner Bajaj Allianz LifelongGain Nath Balakrishnan
A product that incorporates the elements of both life cover and savings is LifelongGain of Bajaj Allianz. The product is a whole life unit-linked plan that offers protection with a limited premium-payment term.
How the plan works
Premium payments, after adjusting for expenses in the initial premium paying years, would be deployed in a fund that invests in fixed-income securities; proportionally, units would be allotted to the policyholder. Mortality charges, which are a function of the sum assured chosen, would be deducted on a monthly basis by cancellation of units. Premiums may be paid either over a period of 10 years or 15 years. In the event of the death of the policyholder, the beneficiary would receive the higher of the sum assured (less any partial withdrawals) or the value of the units. In case, the policyholder meets with death if he is either below seven or over seventy, then only the bid value of the units would be paid. The plan also envisages the payout of a guaranteed survival benefit on completion of the premium paying term, amounting to three per cent of the sum assured every year. In case a partial withdrawal has been affected, the payout at the end of each year would be reduced to that extent in the subsequent policy years. Partial withdrawals are possible after the completion of the premium-payment term, subject to a minimum amount of Rs 1,000 and a minimum balance of Rs 10,000 in the fund subsequent to the withdrawal. Anytime after premiums have been paid for three years, units can be redeemed completely at bid value; the plan will terminate thereafter. The plan matures when the policyholder attains the age of 100, at which he would receive the bid value of the units in the fund.
Riders
Four riders can be appended to the basic plan. They are the accidental death benefit, accidental total/partial disability benefit, critical illness benefit and hospital cash benefit. Charges for these riders have to be paid separately.
Termination of policy
The policy will also terminate if the balance in the fund falls to Rs 100 or lower and if there is not enough funds to support the deduction of mortality charges for three consecutive months.
Other features
No loans are available under this plan. Over and above the initial expenses and the mortality charges, fund administration, fund management and transaction charges are also applicable. Prospective investors should familiarise themselves with such charges to avoid any negative surprises at a later stage.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|