From September 01, 2010, all ULIP Plans will have the following features:
Term:
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:
Surrender before 6 years will attract a penalty.
| Term | Surrender Duration | Charges |
| Less than 10 yrs | 1st year | 12.5% |
| 2nd year | 10% | |
| 3rd year | 7.5% | |
| 4th year | 5% | |
| 5th year | 2.5% | |
| 6th year | Nil | |
| More than 10 yrs | 1st year | 15% |
| 2nd year | 12.5% | |
| 3rd year | 10% | |
| 4th year | 7.5% | |
| 5th year | 5% | |
| 6th year | 2.5% |
This post was last modified on March 22, 2021
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