Saturday, August 25, 2007

Young Star Plan for a term of 25 yrs and held by an NRI professional

Dear Policy Holders,

This is about Young Star Plan for a term of 25 yrs and held by an NRI professional gentlemen working in USA for the benefit of his daughter.The policy was issued in April 05 and Rs.25000/- premium is annually payable. The risk cover is Rs 5 lacs. The three instalments of premium paid add up to Rs.75000/- out which initial charges of Rs. 13500/- were deducted from first two premiums and the net investment made totalled Rs.61250/- and the present value of fund as on 10 Aug 07 stands at Rs.89 K ( Growth Fund Units Held :1454) and works out to annual return of 41% after accounting for the risk cover charges at around Rs.1200/- annually.

The policy holder has the following options available to him:

a) He can top up amounts and 99% will be invested in the fund/s of his choice.
b) He can withdraw money without any deduction/charge to the extent
of Rs.74000/- and the policy will remain in force.
c) He can go on premium holiday and policy will remain in force.
d) He can surrender the policy and full value of units standing at Rs. 89000/- will be paid out to him.

The returns on this remain tax exempted under section 10 (10) D. The contributions are covered U/S 80C qualifying for the income tax rebate.

In case of his unfortunate death , his wife/child will receive the sum assured of Rs. 5 lacs just then and the future premium till the policy maturity date will be paid by the company itself and the total fund value including returns would be paid to the beneficiary at the end of the term. This duel advantage is the core of the this children oriented plan.

Hari Om

Krishna Kumar Khandelwal

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