Net Asset Value (NAV) is the price of units of a fund and is calculated in rupees.

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:

• All the charges deductible under your policy, such as policy allocation charges, fund management charges and other such relevant charges
• Features and benefits of your policy, such as loyalty additions, premium payment options and more such relevant benefits
• Limitations and exclusions under your policy like waiting period, lock-in period, pre-existing illnesses and more such relevant information
• Lapsation* of your policy and its disadvantages
• Other disclosures
• Illustrations showing the benefits payable to you under prescribed scenarios of 4% and 8% returns.

*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 to your policy document or product brochure to know more.

The money paid in case of an unfortunate event depends on the type of policy. If you have a One Pay policy* your loved ones will receive the Death Benefit, equal to A or B or C whichever is highest.**

If you have a Limited Pay* or Regular Pay* policy:

• For entry age less than 50 years, Death Benefit will be either (A+B) or C whichever is higher.
• For entry age greater than or equal to 50 years, Death Benefit is the highest of A or B or C

** Where:

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:

• One Pay Policy: Policies where you have to pay the premium only once
• Limited Pay Policy: Policies where you have to pay premiums for a limited number of years and not for the entire duration.
• Regular Pay Policy: Policies where you have to pay premiums for the entire duration of the policy

^#Here, the minimum death benefit will be 105% of all premiums paid.
*Some of the ULIPs offer you a 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 an 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 the Discontinued Policy Fund and consist of money from lapsed policies.

The '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 applies only to 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 you can use to manage your money by investing in the equity and debt funds of your choice.

With Premium Redirection, you can choose to invest your future premiums in a different fund. The premiums which were earlier invested will remain in the same funds as chosen by you.

The date on which your Life Cover² begins is the date of commencement of your policy. This will be shown in your policy certificate. The age of the life assured* and the term of the policy are calculated on the same date.

*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, 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 a choice of premium payment duration. These are:

• Limited Pay Policy: Policies where you have to pay premiums for a limited number of years and not for the entire duration.
• Regular Pay Policy: Policies where you have to pay premiums for the entire duration of the policy