6. U L I P WHAT IS A UNIT FUND? THE ALLOCATED (INVESTED) PORTIONS OF THE PREMIUMS AFTER DEDUCTING FOR ALL THE CHARGES AND PREMIUM FOR RISK COVER UNDER ALL POLICIES IN A PARTICULAR FUND AS CHOSEN BY THE POLICY HOLDERS ARE POOLED TOGETHER TO FORM A UNIT FUND. WHAT IS A UNIT? IT IS A COMPONENT OF THE FUND IN A UNIT LINKED POLICY.
7. THE COMMON TYPES OF FUNDS AVAILABLE ALONG WITH AN INDICATION OF THEIR RISK CHARACTERISTICS GENERAL DESCRIPTION NATURE OF INVESTMENTS RISK CATEGORY EQUITY FUNDS PRIMARILY INVESTED IN COMPANY STOCKS WITH THE GENERAL AIM OF CAPITAL APPRECIATION MEDIUM TO HIGH INCOME, FIXED INTEREST AND BOND FUNDS INVESTED IN CORPORATE BONDS, GOVT SECURITIES AND OTHER FIXED INCOME INSTRUMENTS MEDIUM CASH FUNDS SOMETIMES KNOWN AS MONEY MARKET FUNDS — INVESTED IN CASH, BANK DEPOSITS AND MONEY MARKET INSTRUMENTS LOW BALANCED FUNDS COMBINING EQUITY INVESTMENT WITH FIXED INTEREST INSTRUMENTS MEDIUM
8. U L I P THERE ARE SEVERAL OPTIONS WITHIN A ULIP. YOU CAN SELECT THE OPTION THAT BEST FITS IN WITH YOUR RISK PROFILE AND HELPS YOU ACHIEVE YOUR INVESTMENT OBJECTIVE. IF YOU ARE AN AGGRESSIVE INVESTOR YOU CAN GO FOR A ULIP WITH THE MAXIMUM EQUITY ALLOCATION - THIS VARIES FROM INSURER TO INSURER BUT IS USUALLY IN THE RANGE OF 70 PER CENT-100 PER CENT OF ASSETS. IF YOU ARE A CONSERVATIVE INVESTOR THEN YOU CAN OPT FOR A ULIP OPTION THAT HAS A SMALLER EQUITY ALLOCATION OF ABOUT 20 PER CENT.
10. THE INVESTMENT IS DENOTED AS UNITS AND IS REPRESENTED BY THE VALUE THAT IT HAS ATTAINED AT THAT POINT OF TIME .THIS IS KNOWN AS NET ASSET VALUE (NAV). FOR EXAMPLE : AN INVESTOR HAD INVESTED RS.10,000/- IN A UNIT LINKED PLAN AND THE NAV AT THE TIME OF INVESTMENT WAS RS.10/- THEN THE NUMBER OF UNITS HELD BY THE INVESTOR WILL BE = 10,000/10 =1000 UNITS NAV (NET ASSET VALUE)
11. THE BASIS USED FOR CALCULATION OF NAV WOULD BE THE APPROPRIATION PRICE AND EXPROPRIATION PRICE. THE APPROPRIATION PRICE SHALL APPLY IN A SITUATION WHEN THE COMPANY IS REQUIRED TO PURCHASE THE ASSETS TO ALLOCATE THE UNITS AT THE VALUATION DATE THE EXPROPRIATION PRICE SHALL APPLY IN A SITUATION WHEN THE COMPANY IS REQUIRED TO SELL ASSETS TO REDEEM THE UNITS AT THE VALUATION DATE. NAV (NET ASSET VALUE)
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14. BIRLA SUN LIFE INSURANCE GOLD-PLUS II In this policy the investment risk in investment portfolio is borne by the policyholder. Highlights Seven Fund Options including a 100% equity option - Maximiser: A wide range of investment funds to choose from depending on your risk appetite. Also, a golden opportunity to higher your return on investments by investing in 100% equity option - Maximiser. Manage your investment fund portfolio: Free unlimited switches and premium redirection - The plan allows you to monitor your investment fund performance and change its portfolio according to your preferences at different stages through free unlimited switches and premium redirection. Short pay option-3 pay: Convenient short pay option that allows you to pay your premiums for 3 years only thus avoiding the hassle of paying regular premiums. Premium Flexibility: The plan offers the flexibility to reduce your premiums from the 2nd year depending upon your financial situation. Liquidity: The plan offers good liquidity through Partial withdrawals and Surrender. After three years there is no penalty on surrender of policy. Free unlimited partial withdrawals after 3 policy years allowed subject to a minimum withdrawal amount of Rs. 5000.
16. Partial Withdrawals You are allowed to make unlimited partial withdrawals after 3 policy years, free of cost. The minimum withdrawal amount is INR 5,000. The maximum partial withdrawal you can make is the excess, if any, of the fund value over the higher of: Policy Surrender The policy can be surrendered any time during the tenure of the policy subject to a surrender charge. The surrender charges will be zero from the 4th policy year. In case of surrender in the first 3 policy years the benefits will be paid out only after the 3rd policy year. The surrender value as of the date of your surrender remains constant till paid to you. Policy Loans We do not offer this facility on this plan. BIRLA SUN LIFE INSURANCE GOLD-PLUS II INR 30,000; or Top-up premiums paid by you during the three years preceding the partial withdrawal date.
17. ARE INVESTMENT RETURNS GUARANTEED IN A ULIP? INVESTMENT RETURNS FROM ULIP MAY NOT BE GUARANTEED.” IN UNIT LINKED PRODUCTS, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER”. DEPENDING UPON THE PERFORMANCE OF THE UNIT LINKED FUND(S) CHOSEN; THE POLICY HOLDER MAY ACHIEVE GAINS OR LOSSES. IT SHOULD ALSO BE NOTED THAT THE PAST RETURNS OF A FUND ARE NOT NECESSARILY INDICATIVE OF THE FUTURE PERFORMANCE OF THE FUND.
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