Unit Gain Plus Gold

Strictly Confidential – For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold

Product Development Product Circular

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S

Product Circular

Bajaj Allianz UnitGain Plus Gold

Unit Linked Regular Premium Endowment Plan

UIN: 116L051V01

FOR INTERNAL CIRCULATION ONLY

Department: Product Development & Actuarial Launch Date: 20th September 2007 Version: 3.0



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TABLE OF CONTENTS

1. PURPOSE AND SCOPE .........................................................................................4

2. PRODUCT TYPE ....................................................................................................4

3. LAUNCH DATE ......................................................................................................5

4.PRODUCT DESCRIPTION AND FEATURE ...................................................5

5. POLICY CONTRACT AND PREMIUM ...........................................................5

6.ISSUE AGE...............................................................................................................5

7. JOINT LIFE AVAILABILITY ..............................................................................5

8. ELIGIBILITY AND LIMITS.................................................................................6

9. MINIMUM AND MAXIMUM SUM ASSURED FOR BASE POLICY .......7

10. OPTION TO PAY TOP UP.................................................................................7

11.INCREASE/ DECREASE IN REGULAR PREMIUMS ..................................8

12.DEATH BENEFIT: ................................................................................................9

13.MATURITY BENEFIT........................................................................................10

14.SURRENDER VALUE........................................................................................10

15.SURRENDER CHARGE....................................................................................10

16.ADDITIONAL RIDER BENEFITS..................................................................10

17. PREMIUM ALLOCATION RATE.................................................................14

19. PARTIAL WITHDRAWAL OF UNITS .........................................................15

20. POLICY LAPSE/ NON PAYMENT OF REGULAR PREMIUM AND.....16

21. REVIVAL OF POLICY ......................................................................................17

22. TERMINATION OF POLICY..........................................................................17

23. SETTLEMENT OPTION ..................................................................................18

24. NON DISCLOSURE (SECTION 45) ..............................................................18

25. ASSIGNMENT ...................................................................................................19

26. NOMINATION ...............................ERROR! BOOKMARK NOT DEFINED.

27. SUICIDE CLAIM PROVISION ......................................................................19

28. FUNDS /INVESTMENT OBJECTIVES/RISK PROFILES.........................19

29. FUND VALUATION.........................................................................................20

30. CHARGES UNDER THE PLAN .....................................................................21



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31. RECOVERY OF CHARGES .............................................................................22

32. REVISION OF CHARGES ...............................................................................22

33. LOANS .................................................................................................................22

34. BACK – DATING ..............................................................................................22

35. FREE LOOK PERIOD ......................................................................................22

36. DISTRIBUTION CHANNELS…………………………………………………23

ANNEXURE A ..........................................................................................................24

ANNEXURE B ...........................................................................................................25



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PLEASE NOTE THAT THE SALES ILLUSTRATION SHOULD NECESSARILY BE SUBMITTED ALONG WITH THE PROPOSAL FORM DULY SIGNED BY THE

CUSTOMER

1. PURPOSE AND SCOPE Bajaj Allianz UnitGain Plus Gold aims to meet investment needs of individuals by clubbing life insurance with market-linked investments 2. PRODUCT TYPE

Bajaj Allianz UnitGain Plus Gold is a Regular Premium non-participating Individual Unit

Linked Endowment Plan.

• Guaranteed life cover, with a flexibility to choose insurance cover is provided to the

policyholder.

• Presenting a unique investment ‘Asset Allocation Fund’ wherein the policyholder does

not have worry to switch Funds in case of a change in market condition.

• The policyholder has the choice of 6 other investment Funds with complete flexibility to

switch money from one fund to other to manage their investments better.

• Policy continues to participate in investment performance of the Fund(s) even if the

policyholder is not able to pay 3 full years’ premium.

• Flexibility of Partial Withdrawals at any time after three years from commencement of

the policy provided 3 full years’ premiums are paid.

• On Maturity the Maturity Benefit is equal to the Fund Value at maturity date or in

periodic installments spread over a maximum period of five years.

• The policyholder has the option to choose additional benefits like UL Accidental Death

Benefit, UL Accidental Permanent Total/Partial Disability Benefit, UL Critical Illness

Benefit, UL Hospital Cash Benefit, UL Waiver of Premium Benefit and UL Family Income

Benefit.



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3. LAUNCH DATE 20th September 2007

4. PRODUCT DESCRIPTION AND FEATURE

a) Bajaj Allianz UnitGain Plus Gold is a regular premium endowment plan with twin

benefits of Investment and Insurance with a low minimum premium and customer

selectable term. The plan comes with unlimited Top Up facility to opt for a multiplier in

the range of (1.25 to 5) to arrive at the Top Up Sum Assured. On the Policy

Commencement Date, the Company shall open a Unit Account. The Regular Premium

and the Top Up Premium paid by the Policyholder will be used to allocate units in the

Unit Account after applying the premium allocation rate in one or more Funds as

specified by the Policyholder in the Proposal Form or as subsequently informed through

a written application, whichever is latest.

b) The premium allocation rate depends on the amount of Regular Premium payable as

well as the policy year in which it is payable provided all due regular premiums are paid

and whether the premium is a Regular Premium or a Top– Up Premium

5. POLICY CONTRACT AND PREMIUM

a) Policy Contract – The basis of the contract will be the Proposal Form filled by the

Proposer. The policy document will be the evidence of the contract.

b) Premium - The Cost of Insurance will be as per the age wise mortality rates given in

Annexure A.

6. ISSUE AGE

The issue age of the policyholder is calculated as age attained (i.e., age last birthday) as

on the date of commencement of the related benefit.

7. JOINT LIFE AVAILABILITY

This product will be available for Single life only.



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8. ELIGIBILITY AND LIMITS

S.No Condition Eligibility

1 Minimum Age at Entry 0 years

2 Maximum Age at Entry 60 years/ [50 years in case of Additional Rider

Benefits, except UL WOP, 65 years(Age of UL

WOP LA) in case of UL WOP]

3 Minimum Maturity Age 18 years

4 Maximum Maturity Age 70 years

5 Additional Rider Benefit

Ceasing Age

65 years for all riders except UL WOP.

70 years(Age of UL WOP LA) in case of UL

WOP

6 Minimum Sum Assured 0.5 * Policy Term * Annualised Premium

7 Minimum Regular Premium

Rs 12,000 per yearly installment,

Rs 6,000 per half-yearly installment,

Rs. 3,000 per quarterly installment

Rs 1,000 per monthly mode

(Monthly mode is available through ECS and Salary

Saving Scheme only)

8 Maximum Regular Premium No limit

9 Minimum Term

Maximum Term

10 years. In case of minor life minimum policy

term is age18 less age at entry of the minor life.

Customer selectable term subject to max

maturity age of 70

10 Riders 6 Riders Available

11 Age Proof Standard and the Non-Standard Age proofs are

accepted.

12 Date of issuance/ Policy

Commencement Date

It is same as the date on which the policy is

issued to the customer.

13 Proposal Form Short proposal for non medical cases Complete

/full proposal form for medical cases

14 Date of Expiry of Risk On Maturity /Death/Start of Settlement Option

Period / Surrender/ Lapse

15 Premium Payment mode Annual, Half yearly, Quarterly and

Monthly (Available through ECS mode)

16 Minimum Top Up Premium

Maximum Top Up Premium

Rs.5000/-

Unlimited



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9. MINIMUM AND MAXIMUM SUM ASSURED FOR BASE POLICY

Minimum Sum Assured is 0.5 * (Policy Term) * (Annualised Premium) Maximum Sum Assured

is “y” times Regular Premium where y will be as per the following table

Age Group 0– 30 31 – 35 36 – 40 41 – 45 46 – 55 56 – 60

“y” for base cover or base

cover with UL ADB, UL

APTPDB or UL WOP or

combination of these riders

100 85 70 50 30 20

“y” for base cover withUL CI,

UL HCB or combination of

these

( 0.5 * Policy Term)

Age Group 0– 30 31 – 35 36 – 40 41 – 45 46 – 55 56 – 60

If age of FIB life

assured +

policy term is

less than or

equal to 60

50 or base cover multiplier, which ever is lower

“y” for base

cover with UL

FIB, provided

UL CI &/or UL

HCB rider has

not been opted

for. If age of FIB life

assured +

policy term is

greater than 60

0.5 times policy term

Minimum & Maximum Top Up Sum Assured

Minimum Multiplier – 1.25 Maximum Multiplier – 5

However, the Policyholder has the option to take Sum Assured equal to the Top Up Premium

paid, provided the total Top Up Premium paid or intended to be paid is less than or equal to

25 % of the total Regular Premium paid under the base policy as on date of receipt of the Top

Up Premium.

10. OPTION TO PAY TOP UP

a) The Policyholder shall have the option to pay unlimited Top Up Premium at any

time provided all due Regular Premiums have been paid.



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b) The multiplier range is (1.25 to 5) and Top Up Sum Assured is Multiplier * Top

Up Premium (by default 1.25 is taken).

c) If the total amount of Top Up Premiums paid or intended to be paid does not

exceed 25% of the Regular Premium paid till date, then Top Up Sum Assured

may be equal to Top Up premium.

11. INCREASE/ DECREASE IN REGULAR PREMIUMS

From the commencement of the fourth Policy Year, provided all due Regular Premiums are

paid in full, the Policyholder can opt to increase or decrease the Regular Premium .The

premium allocation rate will depend on the revised regular premium.

The revised (increased/decreased) Regular Premium will be allocated at the Premium

Allocation Rates applicable to the revised Regular Premium.

The increase in Regular Premium shall not result in an increase in Sum Assured.

The maximum increase in Regular Premium permitted shall be limited such that the Sum

Assured shall be at least equal to the higher of:

a. Five times of the proposed Annual Premium and

b. Half of the Policy Term multiplied by the proposed Annual Premium.

Eg: RP=Rs.20,000; Multiplier=20 then SA=Rs4,00,000, Policy Term =20,

Min multiplier = 10

If the policyholder wants to increase the premium then, note that SA cannot be increased

with increase in Regular Premium.

So SA kept constant, and minimum multiplier being 10 (i.e half the Policy Term) , the RP

can be increased from Rs.20,000 to max of Rs. 40,000 only.

The decrease in Regular Premium shall lead to a proportionate decrease in Sum Assured

The decrease in Regular Premium would lead to proportionate decrease in Sum Assured,

provided always that this does not fall below the minimum Regular Premium payable

under the Policy and the relationship between Regular Premium and Sum Assured as at

the Policy Commencement Date is maintained.



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Eg: RP = Rs.20,000; Multiplier =10 then SA= Rs2,00,000

If the policyholder wants to reduce the premium then note that premium cannot be below

Rs12,000 ( min annual premium under the policy).When the Regular Premium is decreased

to Rs.12,000 then the SA also decreases accordingly, so SA= 10 * 12,000 = Rs.1,20,000

The premium in this case can be reduced from Rs20,000 to any amount subject to a floor of

Rs12,000/- and accordingly the Sum Assured would reduce as the multiplier is kept

constant

12. DEATH BENEFIT:

• If the Life Assured dies before attaining Age 7: The Regular Premium Fund

Value and the Top Up Premium Fund Value, if any, applicable on the date of

receipt of intimation of death at the Company’s office will be paid.

• If the Life Assured dies on or after the attaining Age 7 years and before

attaining Age 60 years : The Company shall be liable to pay the higher of the

Sum Assured (less the value of the Regular Premium units withdrawn by partial

withdrawals in the 24 months immediately prior to the date of death) and the

Regular Premium Fund Value as on the date of receipt of intimation of death at

the Company’s office. If any Top Up Premium has been paid by the Policyholder,

the Company shall also be liable to pay the higher of the Top Up Sum Assured

(less the value of the Top Up Premium units withdrawn by partial withdrawals

in the 24 months immediately prior to the date of death) and the Top Premium

Fund Value as at the date of receipt of intimation of death at the Company’s

office

• If the Life Assured dies on or after attaining Age 60 years; The Company shall

be liable to pay the higher of the Sum Assured (less all partial withdrawals of

Regular Premium units made within 24 months immediately prior to attaining

Age 60 years and all partial withdrawals of Regular Premium units made after

attaining Age 60 years) and the Regular Premium Fund Value as at the date of

receipt of intimation of death at the Company’s office. If the Policyholder has

paid any Top Up Premium, the Company shall also be liable to pay the higher of

the Top Up Sum Assured (less all partial withdrawals of Top Up Premium units

made within 24 months immediately prior to attaining Age 60 years and all

partial withdrawals of Top Up Premium units made after attaining Age 60 years)

and the Top Up Premium Fund Value as at the date of receipt of intimation of

death at the Company’s office

• If at least three full years Regular Premiums have not been paid, the policy will

lapse for insurance cover but shall continue to participate in the investment

performance of the underlying Funds, subject to deduction of all Charges except

Mortality Charge and Rider Premium Charges, if any.



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• In case death occurs during the first three policy years and if any due regular

premium has not been paid within the period of grace, then death benefit payable

to the nominee will be the Regular Premium Fund Value plus Top Up Premium

Fund Value, if any, as on date of receipt of intimation of death at the Company’s

office

13. MATURITY BENEFIT

If the Life Assured is alive on the Maturity Date, provided the Policy has not been

terminated, the Regular Premium Fund Value and the Top Premium Fund Value is payable

by the Company to the Policyholder as the maturity benefit, unless the Company has

received a written notice from the Policyholder at least 90 days prior to the Maturity Date

conveying the Policyholder’s intention to opt for the Settlement Option.

14. SURRENDER VALUE

i) The Surrender Value, if any, is payable only after first three Policy years provided all

Regular Premiums due during the first three Policy Years have been paid.

ii) If Regular Premiums due during first three Policy years have not been paid in full,

Surrender Value if any, is payable only after the expiry of the revival period or at the

end of the third policy year, whichever is later.

iii) The Surrender Value payable will be equal to the Regular Premium Fund Value less

the Surrender Charge (Annexure B) plus Top Up Premium Fund Value, if any. Upon

payment of Surrender Value, the policy shall be terminated.

15. SURRENDER CHARGE

i) If any due Regular Premium is not paid within the grace period in the first three

policy years, the Surrender Charge would be 60% of the first years’ Annualized

Premium

ii) If first three years Regular Premiums have been paid in full, the Surrender Charge

(Annexure B) would be as follows: [1 – (1/1.10)^N ] * First Years’ Annualized

Premium where, N is 10 years less the elapsed policy duration in years and fraction

thereof.

iii) No Surrender Charge will be applied on units in respect of Top Up Premium.

16. ADDITIONAL RIDER BENEFITS

The policyholder has the option to choose the following additional benefits:

UL Accidental Death Benefit Rider, UL Accidental Permanent Total / Partial Disability

Benefit Rider, UL Critical Illness Benefit Rider, UL Hospital Cash Benefit Rider, UL Waiver of

Premium Rider and UL Family Income Benefit Rider.

The rider benefits should be read in conjunction with the Rider Circular



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UL Accidental Death Benefit (UL ADB) The policyholder can choose Accidental Death Benefit. The minimum age at entry is 18, and

maximum age at entry is 50. Coverage is provided until the age being 65 or termination of

the policy, whichever happens earlier. The additional amount payable in the event of

Accidental Death will be the lower of:

• The basic Sum Assured, or

• Rs 50,00,000/- under all the BJAZ policies of the policyholder taken together.

UL Accidental Permanent Total / Partial Disability Benefit (UL APTPD)

The policyholder can choose Accidental Permanent Total/Partial Disability Benefit. The

minimum age at entry is 18, and maximum age at entry is 50. This benefit includes coverage

for both, Accidental Permanent Partial and Accidental Permanent Total Disability. Coverage

is provided until the age being 65 or termination of the policy, whichever happens earlier.

The amount payable in the event of Accidental Permanent Partial Disability will be the lower

one of:

• 50% of the basic Sum Assured

• Rs 25,00,000 under all the BJAZ policies of the policyholder taken together

The amount payable in the event of Accidental Permanent Total Disability will be the lower

one of:

• the basic Sum Assured

• Rs 50,00,000 under all the BJAZ policies of the policyholder taken together

If the policyholder did receive a benefit for Accidental Permanent Partial Disability before

and the time passed from the occurrence of the Partial Disability is less than one year, the

amount payable in the event of Accidental Permanent Total Disability will be the lower one

of:

• 50% of the basic Sum Assured

• Rs 25,00,000 under all the BJAZ polices of the policyholder taken together

If the policyholder did receive a benefit for Accidental Permanent Partial Disability before

and the time passed from the occurrence of the Partial Disability is at least one year, the

amount payable in the event of Accidental Permanent Total Disability will be the lower one

of:

• the basic Sum Assured

• Rs 50,00,000 under all the BJAZ polices of the policyholder taken together

The policyholder can receive an Accidental Permanent Total Disability Benefit only once

under all the policies of the policyholder. .

UL Critical Illness Benefit (UL CI)

The policyholder may select Critical Illness coverage. The Critical Illness coverage can only be

chosen if the issue age of the Life Assured is not less than 18 and not more than 50 years. In case

of the Life Assured being minor, the policyholder will have a one-time option to include this



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benefit when the Life Assured reaches age 18. If selected, the policyholder has the option to

remove or reduce this benefit at each policy anniversary. However, once reduced or removed,

this benefit cannot be increased or included at any later date. The charges for Critical Illness are

not guaranteed and are reviewable every 5 years.

The minimum coverage is Rs. 50,000/- and the maximum coverage is equal to Rs.50 lacs. In case

if it exceeds Rs. 50 lacs, Reinsurer’s approval is required. Coverage is provided until the age

being 65 or termination of the policy, whichever happens earlier.

There is a waiting period of 6 months, i.e. the Critical Illness Benefit can only be claimed if the

illness is diagnosed at least 6 months after the date of commencement of risk or reinstatement of

risk..

UL Hospital Cash Benefit (UL HCB)

The policyholder may select Hospital Cash coverage with a daily hospital cash amount @ Rs.4

per Rs.1000 sum assured subject to a minimum Hospital Cash Sum Assured of Rs. 50,000 and

maximum of Rs. 2,50,000 or the basic Sum Assured, whichever is lower. For Example, if the basic

Sum Assured chosen is Rs. 5,00,000/-, the policyholder can choose the Sum Assured for Hospital

Cash between Rs. 50,000 and Rs. 2,50,000/-.

The hospital cash benefit can only be chosen if the issue age of the life assured is not less than 18

and not more than 50 years. Coverage is provided until the age being 65 or termination of the

policy, whichever happens earlier. In case of the Life Assured being minor, the policyholder will

have a one-time option to include this benefit when the Life Assured reaches age 18. The

policyholder has the option to remove or reduce this benefit at each policy anniversary.

However, once reduced or removed, this benefit cannot be increased or included at any later

date.

There is a waiting period of 60 day from the commencement and reinstatement of the Policy. If

the insured person has to stay for more than 72 hours in hospital as a result of injury, sickness or

disease, the company reimburses for each full day the stay in hospital exceeding 3 days up to a

total limit of 60 days in a policy year an amount which is the lower one of:

• 75% of the room charge in hospital

• The daily Hospital Cash amount

The amount is reimbursed as a lump sum at the end of the stay in hospital. The charges are not

guaranteed and are yearly reviewable. If the Hospital Cash Benefit is selected, the policyholder

has the option to renew the hospital cash benefit every year at the published rates available at the

time of renewal. For the renewal coverage there is no waiting period. If the policyholder does not



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select the option once or if his attained age at the time of renewal is 65, he loses the right to renew

the Hospital Cash Benefit in later years.

UL Waiver Of Premium (UL WOP)

The policyholder has an option to choose the UL WOP rider for the benefit of the minor Life

Assured. The aim of this additional rider benefit is to ensure continuation of the base policy in

case of Death or Accidental Total Permanent Disability of the WOP Life Assured. Minimum Age

at Entry for the Proposer (WOP Life Assured) is 18 years, and maximum age at entry for

Proposer (WOP Life Assured) is 65 years. The minimum age at entry for Life Assured is 0 years

and the maximum age at entry is 17years. The minimum policy term is 5 yrs and coverage

continues till Life Assured attains age 25 or the Proposer attains age 70 or the end of the base

policy term, whichever happens earlier.

In case of Death or Accidental Permanent Total Disability of the Proposer, the payment of future

Regular Premium(s) by the Proposer shall be waived during the Benefit Payment Period and all

the future Regular Premium(s) falling due during the Benefit Payment Period shall be allocated

by the Company to the Unit Account of the Policy on the Premium Due Dates and at the

Allocation Rate as specified in the Policy or Schedule. The allocation to different Funds will be in

Premium Allocation percentage as existing on the date of Death or date of Accidental Permanent

Total Disability Benefit.

Benefit Payment Period is from the date of death or from the date of Accidental Total Permanent

Disability of the Life Assured (WOP) , which ever happens first, till the earliest of the following:

a) End of the WOP Benefit Term

b) Policy Anniversary, at which the Life Assured attains Age of 25 years. UL Waiver of Premium Benefit shall automatically terminate on the earlier occurrence of either of

the following:

a) On Policy Anniversary at which the Life Assured attains Age of 25 years

b) On Policy Anniversary at which the Life Assured (WOP) attains Age 70 years

c) On termination of the base Policy

d) On non-payment of Regular Premium within 30 days of it becomes due, under the base

Policy

e) On exclusion of this Rider Benefit by the Policyholder. UL WOP can be included at any policy anniversary subject to underwriting of the Proposer.

However, once excluded, it cannot be included again. If the rider is taken after the

commencement of the base policy, the medical cost, if any, has to be borne by the Proposer.

UL Family Income Benefit (UL FIB)

The aim of this additional rider benefit is to ensure steady cash flow in case of death or

Accidental Total Permanent Disability of the Life Assured (UL FIB) . Life Assured (UL FIB) is the

person whose life is insured under this UL Family Income Benefit, whose name appears in the



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Schedule and who is either the Proposer of the base Policy issued on the life of a minor or the Life

Assured himself. Herein is referred to as UL FIB LA.

The minimum age at entry of UL FIB LA is 18years and maximum age at entry of UL FIB LA is

50yrs.

In case of Death of the UL FIB LA, provided the Policy is in-force at the time of Death, a monthly

income benefit of 1% of the Sum Assured is payable to the Nominee over the term of Benefit

Payout Period. The Benefit Payout Period for UL FIB rider is at the end of the Policy Term or for a

period of 10 years whichever is higher

In case of Accidental Total Permanent Disability of the UL FIB LA, provided the Policy is in-force

at the time of Accidental Total Permanent Disability, a monthly income benefit of 1% of the Sum

Assured is payable to the UL FIB LA or nominee over the term of the Benefit Payout Period

If the UL FIB LA dies after the commencement of monthly income benefit but before the expiry of

the Benefit Payout Period, the monthly income benefit would be payable to the Nominee for the

rest of the Benefit Payout Period.

UL FIB Rider can be chosen at policy inception and at any subsequent policy anniversary subject

to meeting minimum Policy Term of the rider and subject to meeting underwriting requirements

of the Company. UL FIB Rider can be excluded at any policy anniversary. Once excluded, the UL

FIB rider cannot be included again

Rider can be chosen by minor Life Assured on his/her life, after attainment of age 18 provided

the Proposer of the policy has not taken UL FIB rider

17. Premium Allocation Rate

Premium Payment due in Annual Premium

size Policy Year

1

Policy Year 2 to Policy Year

5

Policy Year 6 and

onwards

12,000 – 14,999 75% 94% 98%

15,000 – 99,999 76% 94% 98%

100,000 – 249,999 80% 94% 98%

250,000 and above 85% 94% 98%

Top ups are allocated at 98%



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18. STAFF ALLOCATION (Allocation to employees of Bajaj Allianz Life, Bajaj

Allianz General, Allianz Group & Bajaj Auto)

The staff premium allocation rate for regular premium is 85% in policy year 1 and 100% from

policy year 2 and onwards

All top up premiums will have 100% allocation across all policy years.

No commission would be payable under staff policies.

19. SWITCHING CLAUSE

The Company offers the Policyholder the option to switch between Funds at such price

and subject to such terms and conditions as may be imposed by the Company at that

time. The Policyholder may transfer or “switch” any of the Units in any Fund, to another

existing Fund or new fund established by the Company provided:

• The Company has received from the Policyholder a written notice setting out the

proposed amount of the switch, the Fund to be switched-from and the Funds to be

switched.

• The minimum switching amount is Rs.5,000 or the value of units held by the Policyholder

in the Fund to be switched from, whichever is lower.

• The Company shall affect the switch by redeeming Units from the Fund to be switched

from and allocating new Units in the Fund being switched to at their respective Unit

Price.

• The Policyholder may exercise three free switches during each Policy Year. For

subsequent switches during any Policy Year, the Company will charge a switching fee as

specified in Section 30 below.

20. PARTIAL WITHDRAWAL OF UNITS

Anytime after three years from the date of commencement of the policy provided regular

premiums for three full years’ have been paid, the policyholder has the option to partially

withdraw units from his/her fund subject to following conditions:

1) The minimum amount of withdrawal is Rs.5000.

2) Maximum partial withdrawal allowed shall be equal to fund value minus two annual

premiums which means a minimum fund value of two annual premiums needs to be

maintained at any given time.

3) All partial withdrawals will be first made from eligible Top Up premium units, if any.

Once the Top Up premium units are exhausted, further Partial Withdrawals will be made

from regular premiums units.

4) For the purpose of Partial Withdrawals, each payment of Top Up premium shall have a

lock-in period of three years, unless the payment of Top Up premium is made in the last 3

policy years.



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5) In case of minor life, partial withdrawal is allowed after attaining age 18 years.

6) No charge is applicable on partial withdrawals either from Top Up premium units or from

Regular Premium units

7) The Company reserves the right at any time and from time to time to vary the minimum

value of units at NAV to be withdrawn and/or the minimum balance of value of units to be

maintained after such partial withdrawals by giving written notice of three months in

advance, subject to prior approval from IRDA.

21. POLICY LAPSE/ NON PAYMENT OF REGULAR PREMIUM AND

FORFEITURE

• If the Policyholder has failed to make a payment of Regular Premium due by the due

date, he/she is given a grace period of 30 days (15 days, if the frequency of payment

is monthly). If death occurs during the grace period, the full death benefit is payable.

• If the unpaid Regular Premium was due during the first three Policy Years, and the

Policyholder has failed to make the payment of the complete amount due before the

expiry of the grace period then:

i) The Policy shall automatically and immediately lapse along with all insurance covers

including rider cover. However, the fund will participate in the investment

performance of the underlying Funds, subject to deduction of all Charges except

Mortality Charge and Rider Premium Charges, if any.

ii) The policyholder may revive the policy within a revival period of two years from

the due date of first unpaid Regular Premium subject to recovery of any due but

unrecovered charges except Mortality Charge and Rider Premium charge, if any,

from the due date of first unpaid Premium, failing which the Policy shall be

terminated and the Regular Premium Fund value as on date of termination less

Surrender Charge, plus Top Up Premium Fund Value, if any, as on date of

termination shall be paid at the expiry of the revival period or at the end of the

third policy year, whichever is later.

iii) In case death occurs during the first three policy years and if any due Regular

premium has not been paid within the period of grace, then Death Benefit

payable to the nominee will be the Regular Premium Fund Value plus the Top

Up Premium Fund Value as on date of receipt of intimation of death at the

Company’s office and the Policy will terminate immediately.

c) If all the due Regular Premiums have been paid for at least first three consecutive years

and the Policyholder has failed to make the payment of of the complete amount due

before the expiry of the aforesaid grace period:



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i) Provided that the Policyholder has paid all Regular Premium due for the first three

Policy Years, the Policyholder will be given an opportunity to revive the Policy,

within two years from the date of first unpaid Regular Premium. During this limited

period of revival, the Policy shall continue with full Sum Assured and Additional

Rider Benefits if any, (except UL Waiver of Premium Rider benefit)levying all

appropriate charges by cancellation of units at the prevailing unit price till the

Regular Premium Fund Value less Surrender Charge, if any, does not fall to an

amount equivalent to one annual premium (NAV) across all the funds.

ii) If the Policyholder has failed to revive the Policy within the revival period of two

years the Policy shall continue at the option of the Policyholder with full Sum

Assured and Additional Rider benefits being in force (except UL Waiver of Premium

Rider benefit), if any, levying all appropriate charges by cancellation of units at the

prevailing unit price till the Regular Premium Fund Value less Surrender Charge, if

any, does not fall to an amount equivalent to one annual premium (NAV) across all

the funds and upon which:

(a) The Policy shall terminate and

(b) All units shall be redeemed and the Surrender Value is payable to the

Policyholder.

(iii) If the Policyholder has failed to revive the Policy within the revival period of two

years and does not opt to continue the Policy after the expiry of revival period, the Policy

shall be terminated and the below mentioned amount shall be payable to the

Policyholder:

• If the Maturity Date arrives during the revival period, the Regular Premium Fund Value

plus the Top Up Premium Fund Value, if any, else

• Upon expiry of revival period the Surrender Value as on date of termination

22. REVIVAL OF POLICY

Revival of the Policy is subject to the Policyholder paying all unpaid Regular Premiums

within two years from the due date of first unpaid Regular Premium and subject to other

information and documentation as may be requested by the Company. The Company

reserves the right to disallow the revival of the Policy on original Terms and Conditions.

23. TERMINATION OF POLICY

This Policy shall automatically terminate on the earlier occurrence of either of the following

events:

i) The units in the Policy are fully surrendered;

ii) The Regular Premium Fund Value less Surrender Charge falls be to an amount

equivalent to one Annual Premium provided Regular Premiums have been paid for 3

full years;

iii) Upon the Life Assured’s death;



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iv) Upon the Policy remaining lapsed for two years or remaining lapsed upto third

Policy Anniversary whichever is later.

v) On the Maturity Date, unless the Policyholder has opted for the Settlement Option or

vi) The expiry of the period for the Settlement Option.

24. SETTLEMENT OPTION

a) Provided the Company has received a written application duly signed by the

Policyholder at least 90 days prior to the Maturity Date exercising the

Settlement Option and the Company has accepted the request, the Maturity

Benefit as specified in Section 13 above is payable by the Company to the

Policyholder in installments (yearly, half yearly, quarterly or monthly, at the

Policyholder’s option) spread over a maximum period of 5 years.

b) The amount paid out to the Policyholder in each installment will be the

outstanding Regular Premium Fund Value and Top Up Premium Fund

Value if any at that date divided by the number of outstanding installments.

c) Installment payments will be made by redeeming units from the Funds at

the Unit Price applicable on that date. The redemption of units will be

effected in the same proportion as the value of Units held in each Fund on

the installment date. If the value of Units in any Fund falls to the extent that

this is insufficient to support the monthly Charges, then the same shall be

deducted proportionately from other Funds.

d) All Charges except the Mortality Charge and Rider Premium Charge, if any,

shall be deducted through the redemption of units from the Funds during

the period of the Settlement Option as selected by the Policyholder and

endorsed by the Company.

e) No Death Benefit or Additional Rider will be available during the period of

the Settlement Option.

f) The Settlement Option can only be exercised by the Policyholder.

g) No Partial withdrawals or Switches are allowed during the subsistence of the

period of the Settlement Option.

25. NON DISCLOSURE (SECTION 45) No Policy of life insurance effected after the coming into force of this Act shall, after the expiry of

two years from the date on which it was effected, be called in question by an insurer on the

ground that a statement made in the proposal for insurance or in any report of a medical officer,

or referee, or friend of the insured, or in any other document leading to the issue of the policy,

was inaccurate or false, unless the insurer shows that such statement was on a material matter or

suppressed facts which it was material to disclose and that it was fraudulently made by the

policy-holder and that the policy holder knew at the time of making it that the statement was

false or that it suppressed facts which it was material to disclose.



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26. ASSIGNMENT & NOMINATION

a) No assignment shall be effective unless and until the Company receives a written notice

from the Policyholder along with the original or duplicate copy of this Policy Document

and the assignment deed.

b) If the Policyholder and the Life Assured are the same person, the Policyholder may at

any time specify in writing a Nominee, whose details will be specified in the Schedule, to

receive benefits payable upon Life Assured’s death. If the Nominee is a minor, the

Policyholder shall also appoint a person to receive the money during the minority of the

Nominee, as specified in the Schedule. No nomination shall be effective unless and until

evidenced by an endorsement on the Policy

c) If there is no Nominee or if all the Nominees have predeceased the Policyholder, the

benefits payable under this Policy will be paid to the legal heirs of representatives of the

Policyholder

d) An assignment will automatically cancel any existing nomination.

e) The Company assumes no responsibility or liability for the validity or sufficiency of any

assignment or nomination or, if the assignment or nomination is not notified to the

Company in writing, or in recording the assignment or registering the nomination or

change in assignment or nomination.

f) Assignment will not be permitted where the Policy is issued under the Married Women’s

Property Act 1874.

27. SUICIDE CLAIM PROVISION If the Life Assured commits suicide whether sane or insane, within one year from the Date of

Commencement of Risk or date of revival, the Company will not entertain any claim by virtue of

this Policy except to the extent of the Regular Premium Fund Value and Top Up Premium Fund

Value, if any, as at the date of intimation of death of the Life Assured to the Company.

28. FUNDS /INVESTMENT OBJECTIVES/RISK PROFILES

There are seven funds offered under the plan. They are as under:

Asset Class

Funds Investment Objective

Bank

Deposits &

Money

Market

Instruments*

Equities*

G Secs,

Bonds,

Fixed

Deposits*

Risk

Profile

Equity

Growth

Fund

To provide capital appreciation

through investment in selected

equity stocks that has the potential

for capital appreciation.

0% - 40% 60% - 100% - Very High

Accelerator

Mid-Cap To achieve capital appreciation by

investing in a diversified basket of

0% - 40% 60% - 100% - Very High



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Fund investing in a diversified basket of

mid cap stocks and large cap

stocks. Minimum 50% of Equity

Investments would be in Mid Cap

stocks

Asset

Allocation

Fund

To realize a level of total income,

including current income and

capital appreciation, which is

consistent with reasonable

investment risk. The investment

strategy will involve a flexible

policy for allocating assets among

equities, bonds and cash. The fund

strategy will be to adjust the mix

between these asset classes to

capitalize on the changing

financial markets and economic

conditions. The fund will adjust its

weights in equity, debt and cash

depending on the relative

attractiveness of each asset class

0% - 100% 0% - 100% 0% - 100% High

Equity

Index

Fund II

Capital appreciation through

investment in equities forming

part of NSE NIFTY

0%-40% 60%-100% - High

Bond Fund

Provides accumulation of income

through investment in high quality

fixed income securities.

0% - 100% -

0% - 100%

Moderate

Liquid

Fund

Protection of the invested capital

through investments in liquid

money market and short-term

instruments.

0% - 100% - - Low

Pure Stock

Fund

Capital appreciation through

investment in equities but to

specifically exclude companies

dealing in Gambling, Contests,

Liquor, Entertainment (Films, TV

etc.), Hotels, Banks and Financial

Institutions.

0% - 40% 60% - 100% - Very High

*The exposure to money market securities may be increased to 100%, keeping in view market conditions,

market opportunities, and political, economic and other factors, depending on the perception of the

Investment Manager. All changes in the asset allocation will be with the intention of protecting the

interests of the policyholders.

29. FUND VALUATION



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The Fund Value is equal to the number of units under this policy multiplied by the unit price on the relevant valuation date. Computation Of NAV: When Appropriation Price is applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. . This is applicable when the company is required to purchase assets to allocate units at the valuation date.

When Expropriation Price is applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. This is applicable when the company is required to sell assets to redeem units at the valuation date.

30. CHARGES UNDER THE PLAN

S.No Name of the Charge Details

1 Policy Administration

Charge

Rs 661.5 per annum inflating from 1st April of each

year at the rate of 5% per annum deducted

through cancellation of units at each monthly due

date.

Asset Allocation Fund 1.25% p.a.

Equity Index Fund II 1.25% p.a.

Equity Growth Fund 1.75% p.a.

Accelerator Mid-Cap Fund 1.75% p.a.

Pure Stock Fund 1.75% p.a.

Bond Fund 0.95% p.a.

2 Fund Management Charge

Liquid Fund 0.95%p.a.

3 Switching Charge Lower of 5% of switch amount or Rs. 100.

Three free switches available in a policy year.

4 Mortality Charge As given in annexure A

5 Rider Premium Charge As per the rider charges

6 Surrender Charge As given above in section 15 and Annexure B

7 Premium Allocation

Charge

As given above in section 17

8 Miscellaneous charge Rs.100/- per transaction in respect of revival of the



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policy, alteration of the mode of payment of

Regular Premium, increase/decrease in Regular

Premium and for issuance of a copy Policy

Document .

31. RECOVERY OF CHARGES

g) The Fund Management Charge will be deducted from the NAV of the Funds while

calculating the Unit Price.

h) The Policy Administration Charge, the Mortality Charges and the Rider Premium

Charges, if any, will be recovered monthly at Monthly Due Dates by the redemption of

Units at the prevailing Unit Price.

i) In the event that the units are held in more than one Fund, the redemption of units will

be affected in the same proportion as the value of units held in each Fund under the

Policy. If the value of units in any Fund falls to the extent that it is insufficient to support

the proportionate monthly charges, then the same shall be deducted proportionately

from the value of units of the other Funds..

32. REVISION OF CHARGES

After taking due approval from the Insurance Regulatory and Development Authority, the

Company reserves the right to change the following charges:

• Fund Management Charge up to a maximum of 2.75% per annum of the NAV for the

Equity Growth Fund, Pure Stock Fund and Accelerator Mid-Cap Fund, 2.25% p.a. for the

Equity Index Fund II and Asset Allocation Fund, 1.75% p.a. for the Bond Fund and

Liquid Fund.

• Switching charge upto a maximum of Rs.200 per switch or 5% of the switching amount,

whichever is lower.

• Miscellaneous charge upto a maximum of Rs.200/- per transaction

• Rider Premium Charges as per filed to IRDA.

• If the Policyholder/Life Assured does not agree with the charges, he/she will be allowed

to exit the plan at the prevailing price of units after applying surrender charge, if any.

33. LOANS

No loan facility is available under this plan.

34. BACK – DATING This policy cannot be back – dated

35. FREE LOOK PERIOD

Within 15 days from the date of receipt of the policy, the policyholder has the option to review the

terms and conditions and return the policy, if he disagrees to any of the terms & conditions, stating



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the reasons for your objections. The policyholder is entitled to a refund of the premium paid,

subject only to a deduction of a proportionate risk premium for the period on cover and the

expenses incurred on medical examination and stamp duty charges. The refund paid to the

policyholder will also be reduced / increased by an amount of any reduction / increase in fund

value due to fall / rise in the unit price between the date of allocation and redemption of units.

(without reference to any premium allocation rate or charges.)

36. DISTRIBUTION CHANNELS

All Channels



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ANNEXURE A

Standard Mortality Charges

Annual Charge Rates Per 1000 Sum at Risk – For Male Life Assured

Age Mortality Charge Age Mortality Charge

7 1.48 39 2.60

8 1.48 40 2.82

9 1.48 41 3.02

10 1.48 42 3.21

11 1.48 43 3.44

12 1.48 44 3.72

13 1.48 45 4.05

14 1.48 46 4.44

15 1.48 47 4.88

16 1.48 48 5.38

17 1.48 49 5.93

18 1.48 50 6.53

19 1.53 51 7.19

20 1.57 52 7.91

21 1.60 53 8.68

22 1.63 54 9.50

23 1.66 55 10.37

24 1.68 56 11.30

25 1.70 57 12.18

26 1.72 58 13.09

27 1.73 59 14.21

28 1.73 60 15.56

29 1.74 61 17.11

30 1.74 62 18.88

31 1.75 63 20.87

32 1.80 64 23.07

33 1.85 65 24.84

34 1.93 66 27.04

35 2.03 67 30.39

36 2.14 68 34.11

37 2.27 69 38.22

38 2.42 70 42.75

Note:

2) For calculating mortality charges for Female lives, a set back of two years is taken on mortality charges of Male lives

3) Upto age 18, mortality charge of age 18 is taken for both Male and Female lives



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ANNEXURE B SURRENDER CHARGES

Policy Year end

Month End

Surrender Charge as %age of first Years' Annualized Premium

1 1 60%

1 2 60%

1 3 60%

1 4 60%

1 5 60%

1 6 60%

1 7 60%

1 8 60%

1 9 60%

1 10 60%

1 11 60%

1 12 60%

2 13 60%

2 14 60%

2 15 60%

2 16 60%

2 17 60%

2 18 60%

2 19 60%

2 20 60%

2 21 60%

2 22 60%

2 23 60%

2 24 60%

3 25 60%

3 26 60%

3 27 60%

3 28 60%

3 29 60%

3 30 60%

3 31 60%

3 32 60%

3 33 60%

3 34 60%

3 35 60%

3 36 49%

4 37 48%

4 38 48%

4 39 47%

4 40 47%

4 41 47%



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Policy Year end

Month End


4 42 46%

4 43 46%

4 44 45%

4 45 45%

4 46 44%

4 47 44%

4 48 44%

5 49 43%

5 50 43%

5 51 42%

5 52 42%

5 53 41%

5 54 41%

5 55 40%

5 56 40%

5 57 39%

5 58 39%

5 59 38%

5 60 38%

6 61 37%

6 62 37%

6 63 36%

6 64 36%

6 65 35%

6 66 35%

6 67 34%

6 68 34%

6 69 33%

6 70 33%

6 71 32%

6 72 32%

7 73 31%

7 74 31%

7 75 30%

7 76 29%

7 77 29%

7 78 28%

7 79 28%

7 80 27%

7 81 27%

7 82 26%

7 83 25%

7 84 25%

8 85 24%

8 86 24%

8 87 23%



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Policy Year end

Month End


8 88 22%

8 89 22%

8 90 21%

8 91 21%

8 92 20%

8 93 19%

8 94 19%

8 95 18%

8 96 17%

9 97 17%

9 98 16%

9 99 15%

9 100 15%

9 101 14%

9 102 13%

9 103 13%

9 104 12%

9 105 11%

9 106 11%

9 107 10%

9 108 9%

10 109 8%

10 110 8%

10 111 7%

10 112 6%

10 113 5%

10 114 5%

10 115 4%

10 116 3%

10 117 2%

10 118 2%

10 119 1%

10 120 0%

Unit Gain Plus Gold

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