Super Top-Up
No financial planning is complete without an Adequate Mediclaim Cover and a Sufficient Term Plan. Any major Illness in a family can take away a large part of financial savings which could impact the financial goals to be achieved by the family. However, the cure of the disease is affordable only to a few sections of the society and that too only if one has the right Insurance. The best of the treatment costs a heavy amount and it is not affordable for everyone to meet the expenses out of their individual corpus. To treat a disease like Cancer, the cost could be anywhere between Rs.25 lakh to Rs.1 crore and maybe more. Not too many people can afford such kinds of expenses for the treatment and one might give up the fight for saving a loved one. Therefore, adequate Coverage is a need of the hour in order to avoid the erosion of the Lifetime savings of the family. Thus, the right coverage is as important as one would like to spend on a nice vacation. And the answer to all this is SUPER TOP UP PLAN which would be over and above your existing coverage.
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SUPER TOP UP PLAN is a plan where Insured has a cover over and above a deductible which has to be borne by him, or his base policy or the GMC cover he enjoys from his Company. The plan is an ideal option one should have to enhance one's coverage which might not be sufficiently covered under the base policy. The Plan is certainly priced more reasonable and comes really handy in case of critical illness where the small sum assured could be grossly insufficient.
FEATURES
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In-Patient Hospitalization : The medical expenses covered for hospitalization of more than 24 hrs.
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Pre-Hospitalization : The medical expenses that you incur on consultations, investigations and medicines during 60 days before you are hospitalized.
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Post-Hospitalization : The medical expenses you incur on consultations, investigations and medicines in 90 days immediately after you are discharged from hospital.
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Day-Care Procedures : The medical expenses for 144 day-care procedures, which do not require 24 hours hospitalization due to technological advancement, are covered.
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Organ Donor - Treatment expenses for the organ donor at the time of organ transplant.
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Ambulance Service : Expenses incurred if ambulance service is used on the way to hospital for hospitalization.
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Waiver of Deductible Benefit : The option to convert the plan to a full fledged Indemnity Health Insurance plan with no underwriting or medicals is available only at renewal between 55-60 years provided you have enrolled with Insurance Company under this policy before the age of 50 years and have renewed continuously without a break.
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Cashless Service : You need to obtain a pre-authorization for all planned admissions at least 48 hours prior to actual admission or regularize any ‘emergency’ admission within 24 hours post the admission
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Portability : If you are insured with some other company’s health insurance and you want to shift to any other insurance company on renewal, you can that offer better features. Our portability policy is customer friendly and aims to achieve the transfer of most of the accrued benefits and makes due allowances for waiting periods etc.
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Tax Benefits : you can presently avail tax benefits for the premium amount under Section 80D of the Income Tax Act.
EXCLUSIONS
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All treatments within the first 30 days of cover except any accidental injury.
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Any pre-existing condition will be covered after a waiting period of 4 years.
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2 years waiting period for specific diseases like cataract, hernia, joint replacement surgeries, surgery of hydrocele etc.
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Expenses arising from HIV or AIDS and related diseases.
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Congenital diseases, mental disorder or insanity, cosmetic surgery and weight control treatments.
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Abuse of intoxicant or hallucinogenic substances like intoxicating drugs and alcohol.
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Hospitalization due to war or an act of war or due to a nuclear, chemical or biological weapon and radiation of any kind.
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Pregnancy, dental treatment, external aids and appliances.
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Items of personal comfort and convenience.
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Experimental, investigative and unproven treatment devices pharmacological regimens.
In a Unit Linked Insurance Policy, the cash you pay more only as costs arises into a pool called the Unit Linked Fund. This store is overseen by the insurance agency and is put resources into a scope of value and obligation instruments to offer you the double advantage of a Life Cover and a possibility to get most extreme advantages.
A Unit Linked Fund can be
separated into various individual parts called units.
Net Asset Value (NAV) is the cost of units of a reserve and is determined in rupees.
Reserve Value is the complete estimation of your premiums that are put resources into different assets of your decision.
It very well may be determined by utilizing the recipe,
Reserve Value = Total Number of units under an approach x Net Asset Value
For instance, on the off chance that you have 1000 units of a store for which
the NAV is '100, the reserve worth will be '1,00,000.
The advantage you will get toward the finish of the arrangement term is called Maturity Benefit. The Maturity Benefit will be equivalent to the Fund Value at the hour of development.
You ought to check:
All the charges deductible under your strategy, for example, approach assignment charges, finance the executive's charges and other such important charges Features and advantages of your arrangement, for example, dependability increments, premium instalment alternatives and all the more such significant advantages Limitations and avoidances under your arrangements like holding up period, lock-in period, previous sicknesses and all the more such applicable data.
Lapsation* of your arrangement and its hindrances
Other revelations
Illustrations demonstrating the advantages payable to you under endorsed situations of 4% and 8% returns.
*If you don't pay your strategy premium before the finish of the elegance time frame, all advantages gave under your approach will stop. This procedure is called arrangement lapsation . Elegance Period is the additional time given after the premium due date to pay your premium. It would be ideal if you allude your approach record or item leaflet to know more.
The cash paid in case of a terrible occasion relies upon upon the kind of the strategy. On the off chance that you have a One Pay policy* your friends and family will get the Death Benefit, equivalent to higher of An or B or C.**
On the off chance that you have a Limited Pay* or Regular Pay* strategy:
For passage age under 50 years, Death Benefit is the higher of (A+B) or C.
For passage age more prominent than or equivalent to 50 years, Death Benefit is the higher of An or B or C
** Where:
A = A fixed sum called the Sum Assured including Top-ups, assuming any and decreased by any fractional withdrawals+
B = Fund Value including Top-up Fund Value, assuming any
C = Minimum Death Benefit#
These decisions are:
One Pay Policy: Policies where you need to pay the premium just a single time
Limited Pay Policy: Policies where you need to pay premiums for a set number of years and not for the whole length.
Regular Pay Policy: Policies where you need to pay premiums for the whole term of the strategy
#Here, the base passing advantage will be 105% of all premiums paid.
*Some of the ULIPs offer you the decision of premium instalment term.
+Partial withdrawals are permitted after the fruition of five strategy years gave monies are not in DP Fund. You can make a boundless number of incomplete withdrawals as long as the aggregate sum of fractional withdrawals in a year doesn't surpass 20% of the Fund Value in an arrangement year. The fractional withdrawals are liberated from cost. DP Funds allude to Discontinued Policy reserve and comprise of cash from slipped by approaches.
A switch is a choice to move your cash among value and obligation reserves. You can utilize the switch alternative just on the off chance that you have picked the Fixed Portfolio Strategy^ in your Unit Linked Insurance Policy. It is relevant just on target that you have just put resources into the current assets. To move your new premiums into an alternate store, you can utilize the superior redirection administration.
^Fixed Portfolio Strategy is an alternative utilizing which you can deal
with your cash by putting resources into your preferred value and obligation
assets.
With Premium Redirection, you can decide to put your future premiums in an alternate reserve. The premiums which were prior put will stay in indistinguishable assets from picked by you.
Indeed, you can withdraw+ a piece of your income whenever after finishing of five years. Be that as it may, the estimation of withdrawals in a year can't be over 20% of the store esteem. For instance, in the event that your reserve esteem is '1,00,000, at that point you can pull back a limit of '20,000 in the year.
+Provided monies are not in DP Fund. You can make a boundless number of fractional withdrawals as long as the aggregate sum of halfway withdrawals in a year doesn't surpass 20% of the Fund Value in an approaching year. The fractional withdrawals are liberated from cost. DP Funds allude to Discontinued Policy store and comprise of cash from slipped by arrangements.
Truly, you can stop your strategy by starting a give up demand. The charges for giving up your strategy fluctuate from item to item. On giving up your approach, you will get the Surrender Value which will be equivalent to your reserve an incentive on the date of giving up. No instalment will be made to you before the lock-in time of five years. While you can stop your approach before the arrangement term, it is fitting to remain contributed for at any rate 10 years to appreciate the most extreme advantages offered by your strategy.
The decision of getting your Maturity Benefit as equivalent yearly compensation outs over a time of five years is called Settlement Option.
Recovery implies encashing the units at the current NAV offered by the organization. This is pertinent in the event of Partial Withdrawals, Switches, Maturity, Surrender, Settlement Option or on an installment of Death Benefit.
The date on which your Life Cover starts is the date of initiation of your approach. This will be the date appeared in your arrangement authentication. On a similar date, the age of the life assured* and term of the approach are determined.
*Life Assured is the individual whose life is canvassed in the protection contract.
Customary Premium Policy is an arrangement wherein you decide to pay your premiums all through the approach term. The recurrence of premium instalment can be month to month, yearly or half-yearly, according to your benefit.
is the date on which your excellent instalment is expected. For instance, on the off chance that your approach's date of initiation is January 4, at that point your month to month premium due dates will be February 4, March 4, etc.
In any case, on the off chance that the date of the beginning is January 31, at that point the following month to month premium due date will be the last date of each schedule month, for example, February 28/29, etc.
*Some of the ULIPs offer you the decision of premium installment span. These are:
Limited Pay Policy: Policies where you need to pay premiums for a predetermined number of years and not for the whole span.
Regular Pay Policy: Policies where you need to pay premiums for whole
term of the arrangement
Spread Cessation (date of
development) is the date on which your strategy arrives at its development or
the date when your arrangement span closes. On this date, your Maturity Benefit
gets payable to you.
Any investment made directly or indirectly in the stock market is not sure to offer returns. Returns depend upon the performance of the fund that customer’s money is invested in.
Any refund of premiums is applicable only within 15 days of receipt of policy document. However, insurance companies might deduct a part of the premium as various fees and charges before reimbursing the amount.
Most insurance companies offer a free-look period of 30 days to customers.
Some part of your premium goes into unit investment. This depends upon the type of ULIP product and varies from company to company.
Yes. Customers can freely switch between funds as per their wish and convenience. However, a certain switching charge is applicable and levied by insurance companies.
Yes. Top-up facility is available and is subject to features of the ULIP scheme that you have availed.
Yes. Insurance providers are expected to furnish annual reports, market scenarios and other fund related analysis and risk control measures to customers.
There are no partial withdrawals allowed for pension and annuity plans. For other plans, a partial withdrawal is generally allowed from the 5th year onwards.
As per a directive, all ULIPs offer guaranteed returns as laid down by IRDA. The returns are payable upon the ULIP’s maturity.
The entire premium amount is used to buy units. The quantum of units bought depends on the ULIP and the year.
ULIPs usually charge a premium allocation charge and a mortality charge.
A mortality charge is levied on ULIPs to cover the cost of insurance. The charges vary depending on the coverage type, age of the policyholder, health etc.
If you fail to pay the premium within the first 3 years of the policy, insurance cover is immediately discontinued. For premiums not paid after 3 years, the surrender value is paid and the contract is terminated.
A regular premium policy is one where the premium is paid throughout the policy term. Payments can be made monthly, quarterly, half-yearly or annually, depending on the policy.
Yes, as per an IRDA directive, ULIPs can be surrendered upon payment of a surrender charge.
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Charges:
Unlike traditional insurance policies, ULIP schemes have a list of applicable charges that are deducted from the payable premium. The notable ones include policy administration charges, premium allocation charges, fund switching charges, mortality charges, and a policy surrender or withdrawal charge. Some Insurer also charges "Guarantee Charge" as a percentage of Fund Value for built-in minimum guarantee under the policy.
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Risks:
Since ULIP (Unit Linked Insurance Plan) returns are directly linked to market performance and the investment risk in the investment portfolio is borne entirely by the policyholder, one needs to thoroughly understand the risks involved and one’s own risk absorption capacity before deciding to invest in ULIPs.
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• Providers:
There are several public and private sector insurance providers that either operate solo or have partnered with foreign insurance companies to sell unit linked insurance plans in India. The public insurance providers include LIC of India, SBI Life and Canara while and some of the private insurance providers include Aegon Life, Edelweiss Tokio Life Insurance, Reliance Life, ICICI Prudential, HDFC Life, Bajaj Allianz, Aviva Life Insurance,Max life insurance , Kotak Mahindra Life, and DHFL Pramerica Life Insurance.
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Tax Benefits:
Investment in ULIPs is eligible for tax benefit up to a maximum of Rs 1.5 lacs under Section 80C of the Income Tax Act. Maturity proceeds are also exempt from income tax. There is a caveat. The Sum Assured or the minimum death benefit must be at least 10 times the annual premium. If this condition is not met, the benefit under Section 80C shall be capped at 10% of Sum Assured while the maturity proceeds will not be exempt from income tax.
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Flexibility
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ULIP schemes offer flexibility that is not just applicable to one aspect of the policy but is comprehensive in nature. Following are the kinds of flexibility that you get to avail with your ULIP schemes.
• Life cover can be chosen
Life cover that comes with the insurance part of ULIPs can be chosen by customers depending upon their financial capabilities.
• Premium amount can be changed
After a certain period of time, almost all ULIPs provide their customers option to change the premium amount. This amount can either be increased or decreased by customers depending upon their current financial status. Top-up facility is also offered by most ULIP schemes so that customers who want to maximize their gain can invest higher additional amounts whenever they want.
• Riders can be opted for
Riders are additional benefits that can be availed by paying a marginally higher premium. Examples of such riders are a critical illness rider, major illness rider etc. ULIPs allow customers to avail additional optional riders for added benefits and enhanced protection.
• Fund option can be chosen
ULIPs are insurance policies where a part of your money is put into an investment avenue like mutual funds, stocks, bonds etc. Most insurance providers offer customers the flexibility to choose the fund type in which they want their money to be invested. These funds range from aggressive to conservative variants so as to cater to the need of almost all kinds of customers.
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Transparency
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Transparency is one of the key features of ULIPs. Unlike other investment tools, ULIPs offer high flexibility to customers and hence they control their ULIP policies to a good extent. Clear benefits and features, illustrative brochures and free-look period make sure that customers are doubly sure before they start investing in their ULIP schemes.
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Liquidity
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ULIP schemes offer liquidity to customers depending upon the insurance provider from which they have been availed. Most insurance companies offer a lock-in period of 3 or 5 years after which customers are free to make either full or partial withdrawals.
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Multiple Benefits out of a Single Scheme
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The best feature of ULIPs is that these policies offer not juts insurance benefit but also an avenue for people to grow their money through investment in shares and funds. This investment tool is ideal for customers who have a lower risk appetite but want to grow their money, nonetheless.
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Tax Benefits
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ULIPs offer not only protection and returns but also tax exemption under section 80C of the Income Tax Act for life insurance and health insurance plans and under section 80D for life insurance and critical illness riders. Also, ULIPs are a great way to save in a disciplined way and to also ensure growth of the saved amount.
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Risk mitigation
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Since ULIPs invest money in various funds and also offer protection, these products are low-risk investment tools. These policies are great for customers who wish to avail the advantage of market growth without actually participating in the stock market.
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Death and Maturity Benefits:
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Following are the death and maturity benefits associated with ULIPs. These benefits are central to any ULIP policy irrespective of the insurance provider the scheme is availed from. The benefits may however, slightly differ from one insurance company to another.
• Death Benefits
Death benefits of ULIPs are offered in case of unfortunate demise of the policyholder. Generally, death benefit is equal to the sum assured plus fund value. However, depending upon the cause of death (accidental or natural) death benefits may vary.
• Maturity Benefits
Maturity benefits are offered to policyholders when the policyholder survives beyond the maturity period. Maturity benefits are equal to the amount of fund value. However, certain insurance companies may offer additional benefits subject to policy terms and conditions.
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Claim Process :
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Health Insurance Policy
