Advertorial
iMaximize is a unit-linked insurance plan (Ulip) from AEGON Religare Life Insurance. It is available online on the insurer's website. It has no premium allocation charge. It has a low fund management charge of 1.35 per cent, an all-equity fund option and two death benefits to choose from.
Death Benefits
There are two options for death benefit t in this plan. First, it is a Type I version that gives higher of the sum assured, or fund value, or 105 per cent of the paid premiums as death benefit t to the nominee. Second, it comes with the premium continuation benefit (PCB) and the income benefit (IB).
If the policyholder dies before the maturity of the policy, the nominee gets the higher of the sum assured, or 105 per cent of paid premiums, but the policy continues. The insurer keeps putting in premiums into the fund till maturity through PCB. Also, an amount equal to annual premium is paid to the nominee every year through the IB feature. Mortality charges, that is, cost of the actual insurance would be applicable accordingly.
Fund Fundas
You may choose from two options, trigger portfolio strategy and self-managed portfolio strategy, to manage your funds. Under trigger portfolio strategy, the premiums paid are initially put in the all-equity Accelerator Fund. Whenever the fund value under Accelerator Fund is equal to, or more than 110 per cent of all the premiums paid, the excess amount is switched to the all-debt Secure Fund.
Under self-managed portfolio strategy, one can invest in any of the three investment funds, such as Secure, Stable and Accelerator Funds, in any proportion. The plan adds units into the fund starting in the 12th policy year and continues till maturity. The value is equal to 0.45 per cent of the average fund value of the last 12 months before the allotment of special units. On maturity, the fund value is paid to the policyholder. Costing
The plan gives Rs. 10,58,137 and Rs. 14,91,070, if a 35-year-old male invests Rs. 50, 000 annually for 15-years with a sum assured of Rs. 10 lakh at an annual rate of 6 per cent and 10 per cent, respectively, if the entire fund is invested in an all-equity fund. The net yield is 4.19 per cent and 8.19 per cent at 6 per cent and 10 per cent, respectively (under option one of death benefit).
Comparison
For similar plans, such as Bima Advantage from Future Generali Life and Aviva Freedom Life Advantage from Aviva, the net yield comes to 7.15 per cent and 7.81 per cent, respectively, at an assumed annual growth rate of 10 per cent.
What To Do
The plan is among the cheapest in the Ulip space as there is no front-end cost, and has a low fund management charge. As it's available online, you can directly contact the insurer without any agent's help. The second option under the death benefit is good for those looking to save for children's needs. Others may stick to option one. Avoid the trigger option and choose the Accelerator Fund till three years away from maturity.
iMaximize is a unit-linked insurance plan (Ulip) from AEGON Religare Life Insurance. It is available online on the insurer's website. It has no premium allocation charge. It has a low fund management charge of 1.35 per cent, an all-equity fund option and two death benefits to choose from.
Death Benefits
There are two options for death benefit t in this plan. First, it is a Type I version that gives higher of the sum assured, or fund value, or 105 per cent of the paid premiums as death benefit t to the nominee. Second, it comes with the premium continuation benefit (PCB) and the income benefit (IB).
If the policyholder dies before the maturity of the policy, the nominee gets the higher of the sum assured, or 105 per cent of paid premiums, but the policy continues. The insurer keeps putting in premiums into the fund till maturity through PCB. Also, an amount equal to annual premium is paid to the nominee every year through the IB feature. Mortality charges, that is, cost of the actual insurance would be applicable accordingly.
Fund Fundas
You may choose from two options, trigger portfolio strategy and self-managed portfolio strategy, to manage your funds. Under trigger portfolio strategy, the premiums paid are initially put in the all-equity Accelerator Fund. Whenever the fund value under Accelerator Fund is equal to, or more than 110 per cent of all the premiums paid, the excess amount is switched to the all-debt Secure Fund.
Under self-managed portfolio strategy, one can invest in any of the three investment funds, such as Secure, Stable and Accelerator Funds, in any proportion. The plan adds units into the fund starting in the 12th policy year and continues till maturity. The value is equal to 0.45 per cent of the average fund value of the last 12 months before the allotment of special units. On maturity, the fund value is paid to the policyholder. Costing
The plan gives Rs. 10,58,137 and Rs. 14,91,070, if a 35-year-old male invests Rs. 50, 000 annually for 15-years with a sum assured of Rs. 10 lakh at an annual rate of 6 per cent and 10 per cent, respectively, if the entire fund is invested in an all-equity fund. The net yield is 4.19 per cent and 8.19 per cent at 6 per cent and 10 per cent, respectively (under option one of death benefit).
Comparison
For similar plans, such as Bima Advantage from Future Generali Life and Aviva Freedom Life Advantage from Aviva, the net yield comes to 7.15 per cent and 7.81 per cent, respectively, at an assumed annual growth rate of 10 per cent.
What To Do
The plan is among the cheapest in the Ulip space as there is no front-end cost, and has a low fund management charge. As it's available online, you can directly contact the insurer without any agent's help. The second option under the death benefit is good for those looking to save for children's needs. Others may stick to option one. Avoid the trigger option and choose the Accelerator Fund till three years away from maturity.
No comments:
Post a Comment