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Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term The minimum and maximum Sum Assured is then calculated using the age of the insured and the plan term. The policyholder can choose any Sum Assured from the minimum and maximum range.
Step 2 – the policyholder also chooses the investment strategy. There are 2 strategies which are as follows:
Step 3 – the policyholder can make partial withdrawals or switch his investments if Investor Selectable Portfolio Strategy is chosen.
Step 4 – top-ups can be done to increase the investment in a chosen fund.
Step 5- in case of death during the plan term, the death benefit is paid.
Step 6 – if the insured survives the plan tenure, the maturity benefit is paid.
Arvind, aged 30 years, buys Future Gain Plan and pays a premium of Rs.1 lakh. The term selected is 10 years and premiums are paid for 5 years annually. The Sum Assured is a minimum of Rs.10 lakhs and a maximum of Rs.15 lakhs. Arvind selects Rs.10 lakhs as Sum Assured.
Option 1 – He opts for Investor Selectable Portfolio Strategy and allocates 100% of the premiums in Equity Growth Fund II. In case of death during the tenure, the death benefit would be paid to the nominee which would be higher of the Sum Assured or Fund Value. On maturity, the Fund Value is paid.
Option 2 – He opts for Wheel of Life Portfolio Strategy. The allocated premium is invested in Bluechip Equity Fund, Equity Growth Fund II and Bond Fund in the ratio 40:30:30. Every year the allocation rate changes. It moves from equity-oriented funds to Bond Fund. On death, higher of Sum Assured or Fund Value is paid. On maturity, the Fund Value is paid.
Arvind can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure.
Provided that the death benefit is at least 105% of the total premiums paid till death
If the life insured dies before reaching 60 years of age, the Sum Assured would be deducted for any partial withdrawals made during two years prior to death
If the life insured dies after attaining 60 years, any partial withdrawals made after crossing 58 years of age would be deducted from the Sum Assured.
|Age at entry (in completed years)||1 year||60 years|
|Age at maturity (in completed years)||18 years||70 years|
|Term of the plan||10 years||For premium paying term 5 or 6 years – 10,15 or 20 years
For other premium paying terms – 10,15,30 years
|Premium paying options||Regular pay|
|Premium Paying term||5 years||30 years|
|Annual premium amount||Rs.25,000||Rs.12 lakhs|
|Sum Assured||If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above - higher of 7 times the annual premium or 0.25*term*annual premium
|If age is up to 35 years – 15 times the annual premium
If age is 36-40 years and term is 21-25 years – 12.5 times the annual premium
If age is 36-40 years and term is 10-20 years – 15 times the annual premium
If age is 41-44 years and term is up to 20 years – 10 times the annual premium
If age is 45-50 years and term is 10 or 15 years – 10 times the annual premium
For any other age and term combination, the minimum Sum Assured would also be the maximum
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.