A single premium Unit Linked Plan. The investment objective of this fund is to provide capital appreciation by investing in a mix of debt and debt related securities.

Premium:

Minimum premium is Rs 5,000 and in multiples of Rs 5,000.

Term Of The Policy:

The tenure of the policy is 10 years and you are allowed to make partial withdrawals after five years, limited to 1/3rd of the single premium.

Maturity Benefit:

Higher of the guaranteed maturity value of all the guaranteed maturity certificates' held at maturity or the fund value as on maturity date. The plan guarantees 200% returns on maturity — that means your money doubles in 10 year (CAGR of 7.18%).

Death Benefit:

It is calculated as higher of the prevailing sum assured reduced by the value of the units withdrawn through partial withdrawals from the fund value in two years prior to the death, or fund value as on date of receipt of intimation of death.
The sum assured under the plan is five times the single premium in the first policy year and will, for subsequent years, reduce to 1.25 times of the single premium for those who enter the policy before they are 45, and 1.10 times of the single premium for those entering after 45.

Eligibility:

The minimum age at entry in the plan is eight years and the maximum is 60 years

Charges:

There is no premium allocation charge. But the policy administration charges are 1.85% per annum of the total single premium in the first five years of the policy, subject to a maximum of . 6,000 and 0.70% per annum of the total single premium subject to a maximum of Rs 6,000 per annum.

Policy administration charges and mortality charges are deducted monthly through cancellation of units. Fund management charge is 1% per annum adjusted in the unit price.

The Good:

It is a simple plan to understand and offers minimum guaranteed return on maturity

The Bad:

The policy offers reduced life cover from the first anniversary of the policy. Hence, it doesn't serve the purpose of insurance. Also guaranteed returns under the policy are less than the current 10- year Gsec yield or interest rate offered by most banks, without taking tax benefits into account.