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What is a Unit Linked Insurance Plan?
Finding the right insurance plan for a better tomorrow can be an overwhelming task. But what if we tell you that you can seek the benefits of investment as well as insurance – both under a single policy? That’s right! ULIPs or Unit Linked Insurance Plans offer you the potential to grow your wealth along with the security of a life cover and helps you yield good returns. You may have financial goals such as – investing for the future or saving for your child’s education or even planning your own retirement. A Unit Linked Insurance Plan helps you achieve such long-term financial goals in a smart way.
How Do ULIPs Work?
ULIP plan provides you with dual benefits – wherein a portion of your premium is paid towards life insurance while the remaining is used for investing in funds of your choice.
You can choose to invest in equity-oriented funds, debt funds, or a combination of the two (depending on your risk appetite). People with a high-risk appetite can invest in equity-oriented funds; whereas those with a low-risk appetite can invest in debt funds. Know that you can always switch from debt to equity and vice versa, depending on the market movement.
Child Plans
As a parent, you know that child investment plans are a necessity. With a rise in education-related costs, ensuring that your child can pursue their dreams is important. Here's where the best ULIP plans at Bajaj Finserv Direct are of help. You can choose the funds to invest in, can switch between funds, and secure your child's future.
where the best ULIP plans at Bajaj Finserv Direct are of help. You can choose the funds to invest in, can switch between funds, and secure your child's future.
Retirement Plans
Enjoy post-employment life knowing your future is secured with retirement plans. With a surge in living costs, having funds at your disposal gives you financial freedom, without depending on your provident fund. Go with Bajaj Finserv Direct and enjoy tax-free investments, free life cover and other such ULIP benefits.
freedom, without depending on your provident fund. Go with Bajaj Finserv Direct and enjoy tax-free investments, free life cover and other such ULIP benefits.
Investment Plans
Small investments go a long way! Be it saving money to enable your child to pursue their dream or dealing with post-retirement requirements, investments made today will make a big difference tomorrow. With ULIPs at Bajaj Finserv Direct, enjoy investment benefits like free life cover, flexibility in fund allocation and zero allocation charges.
big difference tomorrow. With ULIPs at Bajaj Finserv Direct, enjoy investment benefits like free life cover, flexibility in fund allocation and zero allocation charges.
Why Should You Invest in Unit Linked Insurance Plans?
ULIP is one of the most reliable wealth creation instruments available in the market. With this product, you can reap multiple benefits that it has in store. Let us tell you why to invest in ULIP plan.
- Helps You Build Your Wealth Over Time – With the liberty to invest in equity and debt funds along with a minimum lock-in period of five years, ULIP are the best investment instruments for accomplishing long-term goals.
- Dual Benefits – ULIP offers dual benefits – to make investments of your choice as well as avail an insurance coverage – all under a single plan.
- Flexibility – You get the flexibility to choose the type of funds you want to invest in. Moreover, you can also switch these funds based on the market movements.
- High Returns – Since you have the flexibility to switch funds based on the market movements, you can obtain higher returns on the invested amount.
- Tax Benefits – Under the Income Tax Act of 1961, ULIP is tax-free. Under section 80C, you can claim deductions equivalent to the premium amount paid for ULIPs as life insurance or under 80CCC as pension up to a permissible limit. This limit is currently set at Rs 1.5 Lakh. You can enjoy ULIP tax benefits through deduction on the premium amount. You can avail up to 10% of the sum assured with a ceiling of Rs. 1.5 Lakh. You can also claim all the charges collected by the insurer such as service charge as a deduction. Moreover, the amount you receive as partial withdrawal/at maturity of the ULIPs is tax-free under section 10(10D) of the Income Tax Act, 1961. The death benefit payout upon death of the policyholder is also exempt from tax.
- Protection to Self and Family – With the life insurance coverage, you will be able to protect yourself as well as your loved ones, even in your absence.
Benefits of Choosing ULIPs – The Ideal Financial Tool
ULIPs vs Mutual Funds vs FD
Already investing in Mutual Funds or saving money in Fixed Deposits? That’s ok. You should still consider investing in a Unit Linked Insurance Plan. The difference between ULIPs, Mutual Funds, and FD can be summarised with the following table –
|
ULIPs |
Mutual Funds |
Bank Fixed Deposits |
Nature of Product |
Combination of life insurance and investment facility. |
Pure investment option. |
Fixed investment option. |
Coverage |
Provides life cover that is a minimum ten times the premium amount. |
It does not offer a life cover. |
It does not offer a life cover. |
Tenure Of Investment |
Long-term |
Either be short, medium, or long-term |
Short-term |
Tax Benefits |
The premiums paid up to INR 1.5 lakh are exempted from tax under Section 80C of the Income Tax Act, 1961. The maturity amount is tax-free under Section 10(10)D. |
Only the Equity Linked Savings Schemes (ELSS) investments are exempted from tax under Section 80C of the Income Tax Act, 1961. |
The invested amount of up to INR 1.5 lakh is tax exempted under Section 80C of the Income Tax Act, 1961. The maturity interest amount is taxable. |
Flexibility |
Flexibility of choice when switching between funds. |
No such flexibility offered. |
No such flexibility offered. |
Returns |
ULIP returns depend on the type of funds you choose to invest, depending on the market performance. |
Mutual fund returns depend on fund allocation in conjunction with the market performance |
Fixed returns |
Buyer |
Female; 32 years old; child of 5 years old |
Amount To Be Invested |
INR 10,000 every month |
Policy Term |
20 Years |
Premium Paying Term |
7 Years |
Expected Maturity Return |
INR 35.05 Lakhs |
Types of Unit Linked Insurance Plans
You can choose from the following types of ULIPs available on our platform -
Retirement Plan – Invest in a pension plan to prepare yourself for a secured life post-retirement. Under this plan, an individual pays the premium during the tenure of his/her employment. This premium is divided into two parts – one part goes towards your life insurance cover and the other part is invested in an instrument of your choice. This small amount that you periodically invest builds a corpus which you can use after retirement.
Child Plan – With a child plan, you take a step towards securing your child’s future. Whether it’s your child’s education, marriage or any other important event, this plan helps you to stay financially secure. A child plan also offers life insurance cover for your child. This way, you can protect your child against any unforeseen situations and ensure they realize all their dreams.
Investment Plan – Your earnings today might not be adequate tomorrow. Moreover, high inflation rates and constantly rising prices of commodities can eat away your savings. Therefore, it is necessary to invest today to secure your future! An investment plan can help you achieve your goals of long-term wealth creation and security for your family. What’s more? Your investment in ULIPs, as well as returns on maturity, are tax-free!
Which ULIP Suits You The Best?
We at Finserv MARKETS offer three types of ULIP plans –
- Child Plan
- Retirement Plan
- Investment Plan
Depending on your financial needs, you can choose to invest in one of the options available. But before you make any decisions, let us first understand each plan based on the examples below.
1. Child Plan
If you are a mother wanting to save for your child’s future monetary needs –
Buyer |
Female; 32 years old; child of 5 years old |
Amount To Be Invested |
INR 10,000 every month |
Policy Term |
20 Years |
Premium Paying Term |
7 Years |
Expected Maturity Return |
INR 35.05 Lakhs |
2. Retirement Plan
If you are working towards saving for your retirement –
Buyer |
Male; 30 years; for retirement purpose |
Amount To Be Invested |
INR 1 Lakh annually |
Policy Term |
20 Years |
Premium Paying Term |
15 Years |
Expected Maturity Return |
INR 50.17 Lakhs |
3. Investment Plan
If you are a young professional wanting to invest in the market to grow a steady corpus –
Buyer |
Female; 24 years; for investment purpose |
Amount To Be Invested |
INR 10,000 every month |
Policy Term |
20 Years |
Premium Paying Term |
15 Years |
Expected Maturity Return |
INR 57.95 Lakhs |
Dealing in the stock market comes at a price. When you make ULIP investments, it is essential to understand the risk involved. Hence, before you choose a ULIP plan, make sure that you have calculated the risk in advance.
Like we mentioned earlier, you can either invest in high-risk equity funds or low-risk debt funds. With ULIP, you also get an option to invest in funds that are a combination of the two. The risk involved for you as an investor can be calculated with the help of our ULIP risk calculator.
Key things to consider when choosing a ULIP
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What are the best funds/plans to invest in?
The best ULIP plans allow you the choice of investing in equity, debt or a mix of both. Though volatile, equity funds come with long-term high growth potential whereas debt funds are a safer choice. In addition to this, there's always the choice of investing in balanced funds (a mix of equity and debt). Based on your risk appetite, you can choose to invest in either of the three options.
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Are you getting maximum leverage from the tax-free nature of ULIPs offered by your insurer?
Under the Income Tax Act of 1916, you can save money by investing in a ULIP. In doing so, you must know that there are tax advantages at various stages of your life insurance policy which should be offered by the insurance provider you choose to go with. The advantages of the best ULIP plans in the markets include tax exemption at the time of investment (under sections 80C, 80CCC and 80D), tax exemption when the money invested grows, tax exemption during fund switches, and finally, exemption during maturity benefit.
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What are the charges you pay when investing in ULIPs?
Two of the most important financial needs of life are met when one invests in a ULIP - protecting and savings. Transparency is important and hence it is important that your insurance provider clearly mentions the following charges before you purchase – 1. Premium Allocation charge, 2. Policy Administration charge, 3. Mortality charge and 4. Fund Management charge.
Features of Unit Linked Insurance Plans
Before you decide to invest in ULIPs, make sure that you well-versed with its features.
ULIP Charges
Here’s a list of ULIP charges that you should know –
- Premium allocation charges
- Administration charges
- Surrender charges
- Mortality charges
- Fund management charges
- Fund switching charges
- Discontinuing charges
- Partial withdrawal charges
ULIP Lock-In Period
The lock-in period for ULIPs is five years. This means that for the first 5 years, the money that you invest in ULIPs gets locked. After this period is over, you are allowed to withdraw funds from your ULIP plan, however, this is not recommended. The longer you stay invested in a ULIP plan, better are the chances of earning good returns.
Type 1 and Type 2 ULIPs
Type 1 ULIPs |
|
Type 2 ULIPs |
|
Why Choose Bajaj Allianz Life’s ULIP Plans?
In the long run, each investment makes a significant difference to your portfolio, further taking you closer to your financial goals. Hence, for each financial purpose in your life, there is a ULIP plan available in the market. Bajaj Allianz Life’s ULIP Plans are a reliable mode of investment for accomplishing your dual needs – insurance as well as building your wealth alongside.
That’s not it!
With Bajaj Allianz Life’s ULIP plans available on Finserv MARKETS, you can benefit from facilities such as partial withdrawal of funds, alter premium payment frequency, rider options, and more. Some plans also offer features like the return of mortality charges, return enhancers, loyalty additions, fund boosters, and more.
Just browse the range of online plans and choose a policy that best suits your financial needs to get high ULIP returns.
ULIPs - Myths and Truths
Lack of adequate knowledge and misinformation has led to a lot of myths hovering around investments in ULIPs. Let’s break them!
Myth #1: ULIPs carry high risk as they invest only in equity.
ULIPs give you an option to invest in market instruments that can either be debt only, equity only or a mixture of debt and equity. You can choose funds that best suit your need, risk appetite, and long-term objectives. With Bajaj Allianz ULIPs, you also get the facility to switch between funds at any given point in time depending on your personal preference and risk appetite.
Myth #2: You cannot add to your existing funds.
You can! ULIPs allow you to invest your surplus funds. You can pay a top-up premium at any given point in time during the tenure of the ULIP and enjoy the same benefits and tax deductions.
Myth #3: The insurance cover gets affected due to market conditions
Market volatility has no effect on your insurance cover. Your insurance policy remains intact irrespective of the rise or fall in the market. In case the insured dies during the tenure of the policy, he / she gets the full amount of the life cover as stated in the policy.
Myth #4: ULIPs do not provide good returns
ULIPs are long term investment products, where returns are dependent on the performance of the funds that one has invested in. With a good selection of funds and efficient switching between funds at the right time, Bajaj Allianz ULIPs can give good returns over a long-term period along with an insurance cover.
Myth #5: ULIPs have high charges
It is still unknown to people that charges of investing in ULIPs have reduced significantly. The charges that are typically levied on your premium amount are – premium allocation charges, policy admin charges, fund management charges and mortality charges. Insurance Regulation Development Authority of India (IRDAI) has capped these annual charges to a good extent. If the lock-in period of your ULIP plan is 10 years or less, these charges may be a little higher as compared to ULIP plans with a 10 year+ lock-in period. Therefore, it makes sense to invest in ULIPs for long durations.
Claim Process for ULIPs
Filing claims was never so simple. Just follow these steps and you’re done!
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1
Register your claim online
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2
Upload documents online
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3
Claim Assessment
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4
Claim Decision
Latest ULIP News
Have a look at our exclusive Bajaj Allianz Life’s ULIP plans available on Finserv MARKETS designed to help you achieve your financial goals.
Learn more about Unit Linked Insurance Plans. Read in detail about the terminology used in these plans, the investment options, the top myths about ULIPs, current trends and much more. Have a look at the top articles on ULIPs before you explore Bajaj Allianz Life's exclusive ULIP plans available on Finserv MARKETS.
- ULIP Tax Benefits
- ULIP Fund Performance
- What is ULIP?
- ULIPs as Investment Options
- Type 1 and Type 2 ULIPs
- ULIP Risk Calculator
- ULIP Plans
- Myth About Investing in ULIP Plan
- Why should you invest in ULIP
- Types of ULIP
- ULIP Vs Mutual Funds
- ELSS Vs ULIP comparative analysis
- Types of fees and charges in ULIPs
- Is Child ULIP Suitable For You
- Parameters before buying ULIPs
- ULIP Pension Plans
- Everything You Need To Know About Endowment Plan
- ULIP - Long Term Capital Tax
- ULIP - Charges You Must Know
- Pension Plan Explained In Detail
- Lock In Period In ULIPs
- ULIP vs PPF
- ULIP vs SIP
- Balanced Funds in ULIPs
- Bond Funds – Investing in ULIPs through Bond Funds
- ULIP Fund Switching Techniques: What is Fund Switching in ULIPs?
- Evolution of ULIPs over the Years
- Six Lucrative ULIP Benefits You Must Know
- ULIP Tax benefits under section 80C
- ULIP Charges You Should Know Before Buying
- Top Advantages Of Investing In ULIPs
- Guide To Make Your Personalized Investment Plan
- Ultimate Guide to ULIPs
- How to Choose the Best ULIP Plan
- How & When to Switch Your ULIP Funds
- Current Trends in Unit Linked Insurance Plans
- Participating VS Non-Participating Policy
- Get Insurance on Finserv MARKETS App
Manage all your ULIP related queries here
-
✔️What do you mean by 'Unit Linked Insurance Plan’?
With a Unit Linked Insurance Plan, money invested as premium is transferred to a pool called ‘Unit Linked Fund'. The insurance company manages this fund by investing the money in debt and equity instruments to provide dual benefits of insurance and investment returns to the policy holder. -
✔️What is meant by 'Unit'?
The individual parts that a unit linked insurance plan is divided into is called a unit. -
✔️What is ‘fund value’ and how do you calculate this?
Fund value refers to the total value of the premiums of the policy holder invested in various funds. Fund value is calculated using the following formula - Total Number of Units under a ULIP policy X Net Asset Value. -
✔️Before submitting my proposal form, what are the sections that I should verify/double-check?
The sections that you need to verify include: 1. Any charges or deductibles mentioned (policy allocation/fund management), 2. Any features and benefits included in the ULIP policy (premium payment options/loyalty additions), 3. Any exclusions/limitations mentioned in the policy (lock-in-period/waiting period/pre-existing illnesses), 4. Policy lapse and disadvantages associated, 5. Any benefits that are payable, and 6. Any other disclosure/s mentioned in the proposal form. -
✔️Are there tax benefits associated with investing in ULIPs?
Yes, there are. You can claim the money invested in ULIPs under the following sections - 80C (life insurance) and/or 80CCC (pension). For this, the maximum amount that can be claimed under these sections is Rs. 1,50,000. Deductions on life insurance can be availed up to 10% of sum assured or the annual premium, whichever is lower subject to a limit/ceiling of Rs. 1,50,000. In addition to this, the overall limit under Sections 80C/80CCC/80CCD (1) is capped at Rs. 1,50,000. You may choose to invest a bigger/higher amount, however, the cap on deductions is Rs. 1,50,000. -
✔️Given the new LTCG tax, how is investing in ULIPs better than investing in Mutual Funds?
ULIPs have always had an edge over Mutual Funds and with the new LTCG tax in place, it is pegged to deliver even more. This edge existed even before long-term gains arising out of stocks and mutual funds were proposed to be taxable. Earlier, for equity mutual funds or balanced schemes that were held for less than a year, a 15% tax was levied on the short-term capital gains. However, when it comes to ULIPs, since it is an insurance product, short-term gains are tax-free under Section 10(10D). With the implementation of the LTCG tax, all gains from balanced and equity schemes are to be taxed at 10% but ULIPs continue to be tax-free. The benefit of ULIPs extends beyond equity funds. It encompasses the fixed income space too. Income made from fixed deposits is taxed at a rather marginal rate while LTCG for debt funds get taxed at 20% post indexation. Gains from ULIP are tax-free, whether short-term or long-term. -
✔️At the end of my ULIP policy term, what is the amount that I will receive?
The benefit that the ULIP policy holder receives at the end of his/her policy term is called the Maturity Benefit. This amount is equal to the value of the fund at that specific time of maturity. -
✔️In my absence, what will my family receive?
In the unfortunate event of the death of the policy holder (in this case, you), the death benefit amount shall be paid to your nominee. This will be a lump sum amount which is higher than the sum assured opted by the policy holder (you) or the value of the fund as on the date of the death of the policy holder. However, for this to come through, the policy must be active and all premiums must be duly paid, till date. -
✔️What are the charges involved when investing in Bajaj Allianz ULIP plans?
There are 5 charges involved when you invest in ULIPs. These charges are deducted from the insurance premium amount that you pay. The remaining amount is then invested in various strategies and polices that will generate returns for you. The types of charges levied include: Premium Allocation Charges: This refers to a percentage of the premium amount which is deducted upfront and goes towards allocation of premium to various funds selected by the policy holder. Policy Administration Charge: This is charged by the insurance company and goes towards the administrative charges borne by the insurer for the maintenance of the ULIP plan. Mortality Charges: This refers to the charges levied by the insurer for providing policy holders with the insurance coverage. Fund Management Charges: As the term suggests, this charge is levied by the insurer and goes towards fund management. Surrender Charges: Should you decide to surrender your plan prematurely (before tenure), you would have to bear a charge. This is referred to as surrender charges. Normally, one can surrender their ULIP plan after a period of 5-years. -
✔️Is the interest earned on ULIP plans taxable?
No. The interest that you earn on a ULIP plan is tax-free. -
✔️I want to surrender my Bajaj Allianz ULIP policy. Can I do this anytime?
Generally, you would need to wait for the end of the 5-year lock-in period to surrender your ULIP plan. However, should you choose to do it earlier, you will have to pay a charge as applicable. -
✔️What do you mean by top-ups? Are these also tax-exempted under Section 80C?
Any additional investment which is over and above the normal premium amount that you are allowed to make in a ULIP plan is called a top-up. When it comes to tax-exemption, top up premiums enjoy this benefit, just as a regular premium would. -
✔️What do you mean by ‘Settlement’?
Instead of going for a lump sum amount during maturity, some of the ULIP plans allow policyholders the option of receiving these benefits as periodic instalments over a 5-year period. This happens post-maturity and is referred to as ‘Settlement.’ -
✔️Are there any terms and conditions associated with partial withdrawal?
Yes, there are. Partial Withdrawal is only allowed under the following circumstances: 1. If the amount of withdrawal is Rs. 5000, 2. The value of the Regular Premium Finds does not fall by four times as compared to the Annual Premium post partial withdrawal, 3. The maximum amount of the partial withdrawal is 10% of all the premiums that have been paid. 4. The total amount that is withdrawn throughout the term of the ULIP policy cannot exceed more than 50% of the total premiums that are paid, 5. The interval between two partial withdrawals is not less than 3 months. This said, a partial withdrawal is only allowed when the insured attains 18 years of age. -
✔️What are the conditions/circumstances under which my Bajaj Allianz ULIP policy can get terminated?
Under the following scenarios, your ULIP plan will automatically and immediately get terminated - 1. Policy foreclosure, 2. On the date the insurance provider receives intimation about the death of the policyholder, 3. If payment of surrender benefit or discontinuance value is made by the policyholder, 4. On the date of the maturity of the ULIP plan, unless settlement opted for by the policyholder, 5. Expiry of the settlement, 6. Cancellation of the policy during the initial free look period. If the policyholder has opted for settlement, the ULIP policy gets terminated post the last settlement pay-out. -
✔️Do you offer life cover during the period of settlement option?
No, life cover isn't available during the settlement period. -
✔️What do you mean by Return of Mortality Charge (ROMC) Benefit which comes under Bajaj Allianz Life Goal Assure?
When the policy comes to an end, as on the date of maturity, the complete amount deducted as mortality charges during the tenure of the life cover policy term is added back as ROMC to your fund. -
✔️What are the funds under ULIP that policyholders can choose?
There are 8 funds to choose from: 1. Equity Growth Fund II, 2. Accelerator Mid-Cap Fund II, 3. Pure Stock Fund, 4. Pure Stock Fund II, 5. Asset Allocation Fund II, 6. Blue chip Equity Fund, 7. Bond Fund and 8. Liquid Fund. -
✔️I am not satisfied with my ULIP policy. Can I get a refund?
As a policyholder, you can seek a refund of the premiums upon disagreement with the terms and conditions, within 15 days of receiving the policy document, also known as the free-look period. In such a situation, the premium amount shall be refunded after deducting any expenses incurred for medical examinations, stamp duty and the risk premium proportionate to the coverage period. -
✔️Can I invest in an additional contribution over and above the regular premium?
Yes, you can invest in any additional contribution which is over and above your regular premium based on your choice, subject to the additional feature being available for the unit-linked insurance plan. This facility is called as ‘Top-Up.’ -
✔️Can I switch funds?
Yes, we allow policyholders to switch funds, provided the feature is available for the unit-linked insurance plan. -
✔️Please list the loyalty additions that are payable under Bajaj Allianz Life Goal Assure.
The insurance company provides and allocates the loyalty additions to the fund value of a regular premium as a percentage of one annualized premium. This happens from the 6th year of the policy, provided all premiums are paid and up to date. These additions include: 1. 5-year policy: Here loyalty additions are not applicable, 2. 10-year policy: 0.50% of loyalty addition applicable, 3. 15-year policy: 1% of loyalty addition applicable, 4. 20-year policy: 1.5% of loyalty addition applicable. -
✔️What do you mean by Fund Boosters that come as a benefit provided under Bajaj Allianz Life Goal Assure Plan?
On the date of maturity, boosters are added to the fund value of the regular premium, provided all premiums are up to date and paid. These fund boosters that are provided as a percentage of one annualized premium are: 1. 5-year policy: Fund Booster benefit not applicable, 2. 10-year policy: 20% fund booster benefit applicable, 3. 15-year policy: 40% fund booster benefit applicable and 4. 20-year policy: 60% fund booster benefit applicable. -
✔️What are the two different portfolio strategies available in Bajaj Allianz Future Gain?
Under Bajaj Allianz Future Gain, there are two portfolio strategies. These are - 1. Investor selectable portfolio strategy and 2. Wheel of life portfolio strategy. Investor selectable portfolio strategy - Under this strategy, the policyholder can choose to invest between 8 funds and enjoys the freedom of allocating premiums based on his/her choice. Wheel of life portfolio strategy - Financial needs and goals change as life progresses. Therefore, having an investment strategy that can be re-aligned to such changes is essential. The wheel of life investment strategy allows the policyholder to allocate premiums among 5 funds in pre-defined ratio. This ratio changes as the policy ages towards maturity. -
✔️Is it possible for the policyholder to decrease his/her sum assured that is provided under the Bajaj Allianz Future Gain portfolio strategy?
Yes, this is possible. However, the policyholder must wait for a year to do so. Also, do keep in mind that this is subject to the minimum amount allowed under the particular product and is only allowed on policy anniversary. -
✔️Is it possible for the policyholder to change the term of premium payment under the Bajaj Allianz Future Gain portfolio strategy?
Yes, the choice to increase or decrease the term of premium payment is provided to the policyholder. However, this is again subject to the minimum and maximum terms allowed under that specific ULIP product/plan. -
✔️How much of my premium amount is used in purchasing units?
As you already know, the entire premium amount is not used for purchasing units. Though we do not charge any allocation fees, there are other deductions and charges that vary from product to product. These are deducted from your premium amount and the remainder is used for purchasing units. -
✔️What will happen in case of non-payment of premiums?
On discontinuance of premiums during the first 5 policy years: At the end of the notice period of 30 days, the policy will be converted to a Discontinued Life Policy and the Fund Value minus discontinuance charge will be transferred to the Discontinued Life Policy Fund. The discontinuance value shall be payable at the end of the lock-in period of 5 policy years. On discontinuance of premiums after the first 5 policy years: A notice will be sent by the Company to the Policyholder within 15 days of the expiry of the grace period to exercise one of the options mentioned below within 30 days of receipt of such notice - 1. Option A: Revive the Policy or, in writing, agree to revive the policy within the revival period by paying all due premiums, 2. Option B: Intimate the Company In writing to surrender the policy and receive the surrender benefit, or 3. - Option C: In writing, intimate the Company to continue the policy as a paid-up policy with a paid-up sum assured with all the other benefits excluding additional rider benefits, Loyalty Additions & Fund Boosters, subject to deduction of all applicable charges under the policy. Till the expiry of the revival period or receipt of intimation of surrender request as per or receipt of intimation to convert as paid-up policy, whichever is earlier the policy shall be treated as in-force with all risk cover, including additional rider benefits, if any, by deduction of all applicable charges under the policy. If the company does not receive any intimation then, on the Date of Discontinuance, the Policy will be terminated and the Surrender Benefit shall be paid immediately.
