Download - Unit Plus Child Plan I
SBI Life Unit Plus II Child Plan
(UIN: 111L062V01)
Costs of education in India is showing an increasing trend
Getting your child married is now an expensive affair
It’s a race out there, and you want your child to succeed
As parents, we need to secure the child’s future, NO
MATTER WHAT
Few Facts Every Parent Has To Face:
Each Dream has a value:
Year Cost of education Cost of marriage
1990 Rs. 1 Lac Rs. 1 Lac
2000 Rs. 3.2 Lacs Rs 5 Lacs
2020 Rs. 21.5 Lacs Rs 20 Lacs
Every parents have a dream and each dream has a value:
The only way to fulfill these Dreams is to
save regularly!!
Source: Rediff News
There is a route that ensures:
Comfort of achievement of Dream
Cost that you can Afford
Scope to speed up should you decide
Additional Benefits on the way
Tax saving all the way
Trustworthy right till the end
Unit Plus II Child Plan helps you to
achieve this dream
Let Us Understand More About Unit Plus Child Plan II
The Need To Launch SBI Life Unit Plus II Child Plan:
Regulator’s directive to Banks & Insurance Companies
For policies of more than 10 years term:
Difference between gross and net yield not to be more than
2.25%
FMC capped at 1.35%
For policies of less than equal to 10 years term:
Difference between gross and net yield not to be more than
3%
FMC capped at 1.35% irrespective of the policy term(Ref: 055/IRDA/Actl/ULIP/2009-10)
Circular No: 20/IRDA/Actl/ULIP/2009-10
Circular No: 29/IRDA/Actl/ULIP/2009-10
Need for transparency in the interest of customers
investing money, banks should disclose to the customers,
details of all commissions / other fees received from
financial companies(Ref: RBI/2009-10/224; DBOD.No.FSD.BC.60/24.01.001/2009-10)
What It Meant For The….
The Insurers
1. For a term <= 10 yrs, IRR @ 6%
& 10% returns should not be less
than 3% & 7% respectively
2. For a term > 10 yrs, IRR @ 6%
& 10% returns should not be less
than 3.75% & 7.75% respectively
3. Reduce fund management
charges.
4. Reduce allocation charges
5. Modify plan features to
accordingly
The Customers
1. Pay lower charges for his / her
insurance investment
2. Accumulate more out of his
investments
3. Reach target fund values earlier
4. Save in the most cost effective
way
5. Be aware of all aspects of the
investments
Product Features:
Entry AgeMin: Proposer: 18 years Child: 0 years
Max: Proposer: 57 years Child: 17 years
Maturity Age 65 years subject to age of child should not exceed 25 years
Premium
PPT 3 – 7 years: PPT >=8 years:
Rs 50,000 (Yearly) Rs. 18,000 (Yearly)
Premium modes : Yearly, HY, Quarterly & Monthly
Policy Term
Min: 8 years subject to that the maturity age of child should be 18 years
or more
Max: 25 years less child’s age at entry
Premium Paying
TermAny term from 3 years to 18 years limited to a maximum of policy term
Sum Assured
Min Sum
Assured:
5 X AP
Max Sum Assured:
PPT 3 – 5 years: 10 X AP
PPT 6 – 18 years: Proposer’s Age 18 – 45: 20 X AP
Proposer’s Age 46 – 57: 10 X AP
Top Up
Minimum: Rs 2000 ( X 100 )
Maximum: Cumulative Top Up’s cannot exceed 25% of total basic
premiums paid as on top-up date
Inbuilt Benefits Premium Payor Waiver Benefit and Accidental Death & TPD
How does this Plan works?
D
Life Assured pays the
premium
Year 0 Year 20Year 12Year 5
SA is paid immediately
Future premiums are paid
by SBIL on behalf of the
Life Assured
On Maturity, Fund
Value is payable
either in lump sum
or as per the
settlement option
Year 10
Maturity Benefit
Death Benefit
On Maturity, Fund
Value is payable to
the child either in
lump sum or as per
the settlement option
Life Assured Dies
Settlement Option
Life Assured/Beneficiary may choose to opt for payments in
installments after maturity
2 months prior notice is to be given to the company
Term of
Settlement
Option
Proportion of FV available at the time of each
payment
Year 1 Year 2 Year 3 Year 4 Year 5
2 years ½ 1 - - -
3 years 1/3 ½ 1 - -
4 years ¼ 1/3 ½ 1 -
5 years 1/5 ¼ 1/3 ½ 1
Accidental Death & TPD
In case of Death due to an accident
Death Benefit as mentioned earlier
PLUS
Amount equal to the basic sum assured, subject to a
maximum of Rs. 50 lacs
This is an inbuilt benefit with Unit Plus Child II
In case of TPD due to an accident
10 annual installments will be paid to the life insured
Each installment amounts to 10% of the basic Sum
Assured (subject to a maximum of Rs.50 lacs)
The first payment is due after 6 months of the claim
being accepted by SBIL
In case the LI dies during this period, the remaining
installments will be paid to the beneficiary.
Loyalty Unit Addition
Loyalty Unit Addition is given for in force policies
Loyalty Units will be paid twice during the term of the
policy:
On 10th policy anniversary
At the maturity of the policy
For Policy Term<= 10 years:
Loyalty Addition will occur only at maturity
Policies < 10 years Policies <= 10 years Policies > 10 years
On Maturity
Loyalty Units
= 0.20% x [Avg. FV
during the last 24
policy months] x
[Policy Term]
On Maturity
Loyalty Units
=0.35% x [Avg. FV
during the last 24 policy
months] x [Policy Term]
On 10th Policy Anniversary
Loyalty Units
=0.15% x [Avg. FV during
the last 24 policy months] x
[10]
On Maturity
Loyalty Units
=0.20% x [Avg. FV during
the last 24 policy months]x
[Policy Term]
Loyalty Unit Calculation
Fund Options
FundEquity and Equity
related instrument
Debt and Money
Market Instrument
Risk
Profile
Index Fund Min: 90% Max:100% Min: 0% Max: 10% High
Equity Fund Min: 80% Max:100% Min: NIL Max: 20% High
Equity Optimiser Fund Min: 60% Max: 100% Min: NIL Max: 40% High
Top 300 fund Min: 60% Max:100% Min: 0% Max: 40%High
Growth Fund Min: 40% Max: 90% Min: 10% Max: 60%Medium to
High
Balanced Fund Min: 40% Max: 60% Min: 40% Max: 60% Medium
Bond Fund
Debt:
Min: 60% Max: 100%
Money Market:
Min: Nil Max: 40%
Low to
Medium
Money Market Fund
Debt:
Min: 0% Max: 20%
Money Market:
Min: 80% Max: 100%
Flexibility
Fund Switching
Available at any point of time
Two free switches in a policy year are
allowed.
Additional charged at Rs 100.
Minimum switch amount is Rs 5000
Premium Redirection
Allowed twice in a policy year.
Additional charged at Rs 100/- per
re-direction request
Top Up
Available when there are no unpaid
premiums
Minimum: Rs 2000 (X 100)
Maximum: Cumulative Top Up cannot
exceed 25% of Total basic premium paid as
on Top Up date
Top Ups have a lock in period of 36 months:
Not applicable in last 3 policy years
Partial Withdrawal
Allowed from 6th policy year onwards
Two partial withdrawal allowed in a policy year.
One Free. Additional will be charged at Rs 100
Minimum partial withdrawal: Rs 5000
(multiples of 1000)
Maximum partial withdrawal: 20% of Fund
Value as on withdrawal request date
Maximum of 5 partial withdrawals are allowed in
entire Policy Term
Option 1: Option 2:
Increase / Decrease SAMF to
increase /decrease SA , however
basic premium remains constant.
Increase / Decrease basic regular
premium to increase / decrease
SA. The SAMF remains constant
SA – Sum Assured
SAMF – Sum Assured Multiplying Factor
SA Increase and Decrease possible in Unit Plus II Child Plan through 2
Options:
SA Modification conditions:
• Available from 4th policy anniversary
• Option can be exercised only 3 times during the policy life
• SAMF once decreased, cannot be increased in future
• Impact on the Payor Waiver Benefit: the amount of annualized premium
considered for the benefit is equal to the lower of “basic annualized premium
chosen at inception” AND “new annualized premium selected”.
• Request to be sent 2 months prior to the next policy anniversary
Sum Assured Modification
Premium Mode
Min. increase/decrease in Annual
Regular Premium ( Rs )
Yearly Mode Rs 10,000 ( x 100 )
Half Yearly Rs 5,000 ( x 100 )
Quarterly Rs 2,500 ( x 100 )
Monthly Rs 1,000 ( x 100 )
Premium Modification
Option available at each policy anniversary starting from 4th policy year
Option is exercised maximum of 3 times during the policy term
Premium can be increased without any limit
Minimum decrease in annualized premium is same as mentioned above for
minimum increase in annualized premium.
The total decrease in premium (in the entire policy term) is restricted to 50%
of the original premium and / or the minimum limits provided by the product,
whichever is higher
Unpaid Premium (within first 3 years)
Year 1 Year 2 Year 4
Customer pays
first year
premium
Customer does not pay
2nd year premium
If revival not done within
3 years from FUP ,
Surrender Value will be
paid and policy will
terminate
Revival Period – 3 years
Life Cover, PPWB & Accident Cover lapses immediately
Mortality Charges Discontinue while other charges continue
Year 1 Year 2 Year 3 Year 4
Customer pays
first 3 years premium
Year 6
If policy is not revived,
then either policy is
surrendered OR cover
continues till FV
reaches one AP or
maturity whichever is
earlier
Revival Period – 3 years
Policy goes into revival mode
for 3 years from FUP
Customer Does not
Pay 4th Renewal
Life Cover, PPWB & Accident Cover and accidental cover are maintained
automatically till the end of the revival period
All charges continue to get deducted
Unpaid Premium (after first 3 years)
Surrender Benefit:
Policy will acquire a surrender value only after payment of full
premium in the 1st policy year
Surrender request received
within first 3 policy years
Fund Value is disinvested
Fund Value net of relevant
surrender charges is paid on
the 1st working day of 4th
policy anniversary
Surrender request received
after first 3 policy years
Fund Value net of
surrender charges is paid
immediately
Year Surrender penalty as % of fund
value
1 15%
2 10%
3 7.5%
4 5%
5 5%
6 onwards NIL
Surrender Charges
No surrender penalty will apply if surrender is done after completion of
5th policy years irrespective of the number of years of premium paid
Top Up Allocation Charge is 2% of the top up amount
Premium Allocation Charges
Years/PPTPPT from 8 - 18
yearsPPT 3 - 7 years
1 15% 12.5%
2 4% 3.5%
3 4% 3.5%
4 4% 3.5%
5 4% 3.5%
6th onwards Nil Nil
Fund Management Charges:
Other Charges
Policy Administration Charges
Equals to Rs 60/ month
Equity Fund 1.35%
Money Market Fund 0.25%
Bond Fund 1.00%
Growth Fund 1.35%
Balanced Fund 1.25%
Index Fund 1.25%
Top 300 Fund 1.35%
Equity Optimiser Fund 1.35%
Other Charges
Medical Expense in case of revival/increase of SA
Medical Underwriting would be done as per the
prevailing underwriting norms
Expenses, if any, will be borne by the Life
Assured
Maximum expense to be incurred is Rs 3000
Miscellaneous Charges
Additional amount of Rs 100/- per statement is
charged for issuance of duplicate/additional copy of
yearly fund statement
Thank You
For More Details :
K.Prakash
Insurance Advisor
Sai Services
9160003221
N.Hari Krishna
Agency Manager
9989389716