wealth plus analysis by neeta doshi
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NEETA BANKIM DOSHI
PresentsAn Analysis Of
L.I.C.’s first ever ULIP Plan with a GUARANTEE
WEALTH PLUS AT-A-GLANCE
It is a close-ended Guaranteed Returns Unit Linked Plan
Available for eligible persons 10 to 65 years of age
Fixed term of 8 years Option to pay single premium or regular
premium for 3 years – Yly, Hly, Qly & Mly (ECS only)
Minimum Premium: 40,000 for Single 20,000 for Regular
Maximum Premium: No Limit
SUM ASSURED OPTIONS
Regular Premium 5 to 10 times of Annual Premium – Upto Age
50 5 times of Annual Premium – Age above 50Single Premium 1.25 to 5 times of SP – Upto Age 40 1.25 to 2.5 times of SP – Age 41 to 50 1.25 of SP – Age above 50Sum Assured will be in multiples of Rs.5000
ADDITIONAL FEATURES & RIDERS
Accident Benefit Rider for 18 to 62 years aged persons @ Rs.0.50 per 1000 SA
Surrender Facility and Partial Withdrawal option after completion of 3 years policy term
No exit Loads All premiums received during the period of
sale of the product shall be invested in Money Market Instruments
MEGA BENEFIT
Maturity Benefit with Guaranteed NAV
At the end of the policy term, fund value based on the Highest NAV over the first seven years or the NAV applicable at the end of the policy term, whichever is higher is payable
ILLUSTRATION WITH BIMA PLUS EXPERIENCE
If a 40 year old person has invested Rs. 50000 under Risk
Fund in Bima Plus at an NAV of Rs.10 at the time of launch of
Bima Plus i.e on 1-2-2001
His Fund Value after 8 years i.e on 1-2-2009 at an NAV of
Rs.32.05 is Rs.1,42,737/-
His Fund Value at the highest NAV (Rs.50.35) recorded
during the first Seven Years of the Policy i.e on 4-1-2008 is
Rs.2,24,261/-
Under the provisions of Guaranteed NAV as under Wealth
Plus the policyholder stands to gain Rs.81,524/- (i.e 57%
more than that of Bima Plus Plan Provisions)
DEATH BENEFIT
Death of the policy holder during the Policy Term when the cover is in full force:
Both Sum Assured and the fund value shall be paid to the nominee
EXTENDED BENEFIT
Even after the completion of Policy Term and the payment of Maturity value to the policyholders, Insurance coverage for the Basic Sum Assured is continued for another 2 years on the life of Policyholder i.e Basic SA is paid again on the happening of risk during the 2 years
CHARGES
Allocation Charge - 3 Years PPT:
Premium Band Charge
Upto 4,00,000 5.00 %
Above 4,00,000 4.50 %
Premium Band 1st Year 2nd/3rd
20,000 to 2,00,000
12.00 %
2.50 %
2,00,001 to 4,00,000
11.75 %
2.50 %
4,00,001 to 7,00,000
11.50 %
2.50 %
Above 7,00,000 11.25 %
2.50 %
Allocation Charge - Single Premium:
Other Charges1. Level Mortality
Charge as per age at entry
2. FMC @ 1%
3. Policy Admin – @ 60 pm in year 1@ 25 pm in year 2 & 3 with 3 % increase each year thereafter
4. Guarantee Charge – 0.35 % of Fund value
OTHER PLAYERS WITH SIMILAR PRODUCT
Tata-AIG – Life InvestAssure Apex Plus ICICI Prudential Pinnacle SBI Life – Smart ULIP Bajaj Allianz – Max Gain Aegon Religare Wealth Protect Reliance Life Money Guarantee Term 10 Kotak Safe Investment Plan II
TATA-AIG – LIFE INVESTASSURE APEX PLUS 10 years ULIP with 3 years PPT Guaranteed Maturity Unit Price (GMUP) - highest Unit
Price of the Fund recorded on the 10th day of every month
Guaranteed Maturity Addition of 3% of Regular Premium Fund Value on maturity
Partial Withdrawals facility Age limits – 18 to 65 years Sum Assured Options -5 to 25 times (upto age 50) Riders – Accident & Critical Illness Death Benefit – Higher of Sum Assured or Fund Value
TATA-AIG – LIFE INVESTASSURE APEX PLUS
Allocation Charges – 14% - 1st Year 4 % - 2nd / 3rd Year
FMC – 1.2 % Mly Policy Admin – 0.500% - 1 – 3 years
0.060% - 4 year onwards Surrender Charge – Nil only after 5 years
Charges
ICICI PRUDENTIAL PINNACLE 10 years ULIP with 3 years PPT Guaranteed Highest NAV of 7 years or NAV at maturity
whichever is higher Maturity Addition of 3% of Normal Fund Value Partial Withdrawals facility – 1 per year from 6th year
subject to limit of 20% of fund value Age limits – 8 to 65 years Sum Assured Options -5 to 25 times (upto age 50) Riders – Accident Death Benefit – Higher of Sum Assured or Fund Value
ICICI PRUDENTIAL PINNACLE
Allocation Charges – 14% - 1st Year 4 % - 2nd Year 2 % - 3rd Year
FMC – 1.35 % + 0.1 %for guarantee
Mly Policy Admin – 0.600% - 1 – 3 years only
Surrender Charge – Nil only after 4 years
Charges
BAJAJ ALLIANZ MAX GAIN 10 years ULIP with 7 years PPT Guaranteed Highest NAV of the entire term Guaranteed Maturity Addition: upto 350% of
the total allocation charges levied Partial Withdrawals facility Age limits – 8 to 60 years Sum Assured Options -5 times Riders – Accident Death Benefit – Higher of Sum Assured or
Fund Value
BAJAJ ALLIANZ MAX GAIN
Allocation Charges – 20% - 1st Year 6 % - 2nd & 3rd YearTop-Up - 2 %
FMC – 1.25 % + 0.25 %for guarantee
Policy Admin – 1.26% of the Sum Assured
Surrender Charge – Nil
Charges
KEY FEATURE COMPARISONLIC Wealth Plus Tata AIG Apex
PlusICICI Pinnacle Bajaj Max Gain
Allocation Charge
12% - 1st Year
2.5% - 2nd/3rd Yr
14% - 1st Year
4% - 2nd/3rd Yr
14% - 1st Year
4% - 2nd Year
2% - 3rd Year
20% - 1st Year
6% - 2nd/3rd Yr
FMC 1% of Fund Value
1.2% of Fund Value
1.35% of Fund Value
1.25% of Fund Value
Policy Admin Charges
Rs.60 pm– 1st Yr
Rs.25 pm- 2nd Yr
0.5% of Pr. 1-3 Yr
0.06% - from Yr 4
0.6% of Premium
1.26% of Sum Assured
Maturity After 8 years 10 years 10 years 10 years
Risk Cover after maturity
2 years Nil Nil Nil
Death Cover Sum Assured + Fund value
Higher of S.A.& Fund Value
Higher of S.A.& Fund Value
Higher of S.A.& Fund Value
LIC EDGE IN THE MARKET
Of 169 companies listed in BSE since 2007 only 49 are trading in green and the rest 120 in red whereas all the ULIPs launched by LIC during the period have shown considerable appreciation
LIC being the largest investor in Indian Markets and with an investment spectrum spanning all the BSE-30 companies provides the best expertise to its investors
LIC EDGE IN THE MARKET
Date Sensex Bima Plus Balanced
Jeevan Plus Growth
08/01/2008
20873 32.1201 18.639
04/06/2008
15514 (26%) 28.8518 (10%)
16.0862 (14%)
27/10/2008
8509 (45%) 23.8517 (17%)
12.8542 (20%)
03/03/2009
8427 (1%) 24.733 (4%) 13.4961 (5%)
17/10/2009
17326 (106%) 33.4082 (35%)
19.6482 (46%)
Overall (17%) (4%) (5%)
Showcase LIC ULIP’s stability in volatile markets:
LIC Edge in the Market
FOR MORE DETAILS & A PERSONAL APPOINTMENT CALL ME AT 9821014796
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