Fund Value is the total value of your premiums that are invested in various funds of your choice.
It can be calculated by using the formula,
Fund Value = Total Number of units under a policy x Net Asset Value
For example, if you have 1000 units of a fund for which the NAV is ₹ 100, the fund value will be ₹ 1,00,000.
You should verify:
*If you do not pay your policy premium before the end of the grace period, all benefits provided under your policy will stop. This process is called policy lapsation . Grace Period is the extra time given after the premium due date to pay your premium. Please refer your policy document or product brochure to know more.
The money paid incase of an unfortunate event depends on the type of the policy. If you have a One Pay policy* your loved ones will receive the Death Benefit, equal to higher of A or B or C.**
If you have a Limited Pay* or Regular Pay* policy:
A = A fixed amount called the Sum Assured including Top-ups, if any and reduced by any partial withdrawals+
B = Fund Value including Top-up Fund Value, if any
C = Minimum Death Benefit#
These choices are:
#Here, the minimum death benefit will be 105% of all premiums paid.
*Some of the ULIPs offer you choice of premium payment duration.
+Partial withdrawals are allowed after the completion of five policy years provided monies are not in DP Fund. You can make unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year. The partial withdrawals are free of cost. DP Funds refer to Discontinued Policy fund and consist of money from lapsed policies.
Switch is an option to move your money between equity and debt funds. You can use the switch option only if you have opted for the Fixed Portfolio Strategy^ in your Unit Linked Insurance Policy. It is applicable only on the money that you have already invested in the existing funds. To move your new premiums into a different fund, you can use the premium redirection service.
^Fixed Portfolio Strategy is an option using which you can manage your money by investing in the equity and debt funds of your choice.
The date on which your Life Cover begins is the date of commencement of your policy. This will be the date shown in your policy certificate. On the same date, the age of the life assured* and term of the policy are calculated.
*Life Assured is the person whose life is covered in the insurance contract.
In a Regular Premium Policy* or a Limited Premium Policy* the monthly premium due date is the date on which your premium payment is due. For example, if your policy’s date of commencement is January 4, then your monthly premium due dates will be February 4, March 4, and so on.
However, if the date of commencement is January 31, then the next monthly premium due date will be the last date of every calendar month, such as February 28/29, and so on.
*Some of the ULIPs offer you choice of premium payment duration. These are: