This is an individual life unit-linked, limited premium, whole of life plan. The plan provides the policyholder a platform to invest and participate in the performance of various market linked funds managed by different fund houses through the All-Funds platform and also provides a benefit of 101% of the fund value to the nominees on death of the life assured. The investment risk under this plan is borne by the policyholder.
In the event of unfortunate death of the life assured, 101% of the fund value as on the date of death, shall be paid to the nominee/beneficiary. The policy shall terminate on payment of the death benefit.
As the product is a whole life product, there is no maturity benefit payable on any fixed policy term. However the policy holder can withdraw 100% of fund value at any point of time, subject to the surrender charges and applicable charges if any.
The policyholder has the option to make partial withdrawals anytime during the policy term, subject to the minimum Fund Value after withdrawal being USD 5,000. At any time, the minimum amount for partial withdrawals will be USD 5,000. The partial withdrawal amount payable to the policyholder shall be net of surrender charges, if any. Following a partial withdrawal, the policy continues to be inforce.
During the policy term, the policy holder has an option to switch their funds from one fund to another fund. There is no limit in the number of switches in a policy year. No charge will be deducted for switches.
If the fund house withdraws any funds under their management, then the policy holder will be informed well in advance about the withdrawal of funds. Then the policy holder will be given following two options.
(i) Switch the funds from the withdrawn funds to another fund either from the same fund house or another fund house.
(ii) Full withdrawal of fund value from the withdrawn funds.
The policy holder can choose any of the above two options. No charges will be deducted to implement the change. In case of full withdrawal of fund value, no surrender charge will deducted and full value of the units shall be payable to the policyholder.
Monthly – USD 500
Quarterly – USD 1,500
Half-Yearly – USD 2,500
Yearly – USD 5,000
The modes of premium payment allowable under this plan will be Yearly, Half Yearly, Quarterly and Monthly. The premium shall be allocated to the unit-fund/s in the proportion selected by the policyholder after deduction of relevant charges.
Top up single premium shall be allowed at any point during premium paying term, subject to relevant charges. The premium shall be allocated to the unit-fund after deduction of relevant charges and all benefits as payable under the unit-fund shall apply subsequently.
Not applicable as this is a single premium plan.
Where the policy has been taken for the benefit of Life Assured who is a minor, the policy shall automatically vest unto the Life Assured on his/her attaining majority.
Upon expiry of the grace period, in case of discontinuance of policy due to non-payment of premium, the policy shall be converted to a reduced paid-up policy. All charges as per terms and conditions of the policy shall continue to be deducted.
The policy shall terminate when the Fund Value is not sufficient to meet the charges.
The policy shall acquire a surrender value on completion of three full policy years. The surrender value shall be the Fund Value after deducting the relevant surrender charge, if any.
The policy shall terminate on payment of surrender value.
In case the policyholder opts to revive the policy, the premiums collected after charges will be used to purchase the units of the fund as per the NAV as on date of revival.
Loan shall not be available under this plan.
In case of death resulting directly or indirectly due to suicide (whether sane or insane at that time) before the expiry of 12 months of the risk commencement date, only Fund Value shall be payable as the death benefit after deducting the applicable charges.
If the life assured dies as a result of a violent act of the beneficiary / nominee, the latter shall lose his/her rights to the Death Benefit, which shall nevertheless remain payable to the other legal heirs.
The Company shall not be liable to pay any claim if the claim arises directly or indirectly as a result of the life insured’s active involvement in:
The plan provides for a period of 30 days as a “free look period”. The Free Look Period starts on the date of policy issuance, the date when coverage commences, or the date when the policy documents are signed by the client, whichever is earlier. During the free look period, the policyholder may review the terms and conditions of the policy and where he/she disagrees to any of those terms and conditions, he/she has the option to return the policy. The policyholder shall be entitled to the value of units allocated on the date of receipt of request plus any unallocated premium plus charges levied by cancellation of units. The Company may deduct reasonable medical underwriting costs that have been incurred, for which a receipt and report must be provided to the policyholder.
No assignment will be allowed under this plan.
All the charges under the plan are guaranteed and fixed throughout the policy term. However, it can be revised based on the experience and subject to the regulatory approval.
Establishment Charge of 5.9% p.a. of the annual premium shall be deducted. The charge will be deducted by deduction of units as soon as premium is received.
Establishment Charge of 2.5% of the top-up premium if any, will be deducted immediately from the top-up premium before allocation to the unit-linked funds.
Policy Management Charge is 1.5% p.a. of the Fund Value. 1/12th of this charge shall be deducted at the end of every month from the fund value by deduction of units. This can be deducted after the declaration of NAV.
A fixed Policy Administration Charge of USD 17 per month shall be deducted at the start of each month until completion of premium payment term. The charge will be deducted monthly by deduction of units.
The ongoing fund charges is deducted from each fund by the fund manager, prior to calculating the unit price. This includes charges levied by fund managers to cover other fees and costs incurred in the running of the funds.
The Mortality charge for this product is zero.
The Surrender Charge as a percentage of total premiums paid till the date of surrender will be as follows:
Surrender charge will be applied as a percentage of the total premiums paid till the time of request for surrender or partial withdrawal. The Charge will be deducted by cancellation of units.
There is no charge for switching between the funds by the policyholder.
We offer a collection of funds that covers a range of investment styles, risk levels and asset types. When you invest money into the fund you will buy units in your chosen funds.
The value of units will vary depending on the investment performance of the funds. The value of the policy, at any time, will be the current value of the units in the funds you have chosen. Your surrender value will be the current value less outstanding surrender charge.
Your financial professional can help you decide the funds that suit your risk profile. Further information on funds available with Systematic Wealth Creation, including the fund prices, charges, fund performance and historical data is available on our website www.licinternational.com.
