I have been specially advocating unit linked plans for a variety of reasons.Two most important reasons are that unit linked plans are most cost effective,transparent and have capacity to grow your money faster.There are four such plans :
1)Unit Linked Endowment Plan
2)Unit Linked Pension Plan
3)Unit Linked Pension Plan (Single Premium)
4)Unit Linked Young Star Plan
I discuss below what each of the above is meant for:
1) Unit Linked Endowment Plan: This covers your life risk at up to 40 times of your chosen yearly premium. Like for example if you decide to opt for the premium payment of INR 10K per year(this is the minimum level) you may get the life risk cover of INR 4 lacs and also may get INR 4 lac of Accidental Risk Cover additionally.There is a further provision where you may take the rider of Health Insurance Cover and get INR 4 lac coverage for the health i.e. cover against six life threatening diseases.
Under the provisions of plan you are compulsorily required to pay premiums for the first three years.Beyond three years many more useful provisions unfold for the policy holder.You may then go for premium holiday and you policy continues.You may withdraw you money in one or more instalments including the growth subject to maintenance of balance equal to one years' premium in the policy fund.You would be able to top up extra monies from time to time.The choice of six fund for the investment is common to all plans and the special provision of allowing you to switch between the funds in any proportion for up to twenty four times in a single year free of cost , is a special benefit provided by HDFC SLIC.This enables you to stay in safe waters and still grow your money faster.You may refer to the enclosed sheets giving the actually achieved returns by the policy holders whom I have given Unit Linked policies since Feb '04. You may further see that the team managing your funds has beaten the bench mark index by over 10% each year since inception in respect of the growth fund.Not only this HDFC SLIC stands ahead of peers as per the study by the AMFI.The facility of nomination is common to all Unit Linked Plans.All the payments as premiums qualify for rebate under section 80 C.
2) Unit Linked Pension Plan: This plan does not provide the risk cover but the other features are common excepting that after three years you may not withdraw money in instalments but in case of need may get the whole sum without any deduction by surrendering the policy.The pension starts at the end of the policy term as per you instructions as there are four different ways that you may choose for getting the pension.This decision is not required to made now but at the time of commencement of pension payment. For getting this plan the medicals are not required.
3) Unit Linked Pension Plan ( Single Premium): It has all the feature given above except that this can be taken with Single Premium of INR 25 K or more and further premiums are not required to be paid. However, you may keep topping up extra money according to your need and availability of free cash for accumulation for pension needs.This is particularly useful for the people with erratic/uncertain income.
4) Unit Linked Young Star Plan: This is a plan which has all the features under the ULEP discussed in the first para.It is empowered with a special provision of payment of premiums for the full policy term by the company itself in case of an unfortunate event of demise of the policy holder as well as in case of his suffering from one of the six dreaded diseases(if health cover is also chosen).Thus there are payments by the company first at the time of the unfortunate happening equal to the sum assured and then second time when the plan matures equal to the money invested out of the premiums along with the growth ( this usually would be much more than the sum assured).This provision makes this plan particularly useful for people who have children of tender age and have in mind to take care of their welfare and have to make provision for their higher education or marriage.I have seen practically that those who opted this plan for their children's sake are having blissfully peaceful mind.It is not that what you save under this plan can not be used by you during the policy period.You as policy holder may withdraw money more than once after first three years have passed. You may like wise increase, decrease premium or go on premium holiday as is the case with ULEP.This is why I call this plan as the most useful single platform for money management,tax saving, provision for children and life/health risk management.
Coming to specific charges I would request you to refer to brochures of the company and also refer to the comparative study of charge structure of different leading companies offering Unit Linked Plans.I am sure you would have some further points to clarify,please do call me at 09376168780 and let me visit you personally to explain in light of your income pattern, family structure and your personal leanings and safety concerns.
Hari Om
Krishna Kumar Khandelwal
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