Unit Linked Insurance Plan (ULIP) Revised Terms:

From September 01, 2010, all ULIP Plans will have the following features:

The minimum term for the ULIP plan would be 10 years.

Locking Period for Top Up:
All Top-up premium lock-in period would be 3 years. Also, Top-up premium not allowed during the last 3 years of maturity.

Compulsory Insurance:
Insurance cover is mandatory including Pension Plan Hence there will be no ULIP without risk cover.

Pension ULIP:
Withdrawals will be not allowed before maturity in the case of the Pension Plan.

Assignments and Loan:
Assignments and loans are not available in ULIP Plan.

Top-Up Premium:
Risk cover is mandatory for top-up premium and will be treated as a single premium for each time you top up.

Surrender before 6 years will attract a penalty.

TermSurrender DurationCharges
Less than 10 yrs1st year12.5%
 2nd year10%
 3rd year7.5%
 4th year5%
 5th year2.5%
 6th yearNil
More than 10 yrs1st year15%
 2nd year12.5%
 3rd year10%
 4th year7.5%
 5th year5%
 6th year2.5%
Also Read  ULIP Insurance How it works?