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Future Generali Guarantee Plus

(UIN No: 133L026V01)


IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER


Not everything in life is reliable. Fortunately, there are some things you can count on, Like our Future Generali Guarantee Plus.


You can not predict the future; but you can definitely ensure that it is financially secured. And when it comes to security, the more the Better! We offer you Future Generali Guarantee Plus, a unique plan that guarantees you more than you can ask for so that you can plan for your financial goals.


Financial planning is the start for a secure future and investments are better if they are flexible and systematic. We value your investments and ensure that your investments get accelerated returns. Hence we offer you Future Generali Guarantee Plus, a plan with which you can reap the benefits of your savings tomorrow,and be certain that you will receive up to 325% of your first year premium in addition to life cover.


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1. Key features


  • Unit linked endowment insurance plan
  • Provides Assured Loyalty Additions which ranges from 110% to 325% of the first year annualized premium
  • On death other than accidental, sum assured + fund value + Assured Loyalty Additions(if any) is payable to the nominee
  • On death due to accident provided life assured is above age 18, 3 times sum assured + fund value + Assured Loyalty Additions (if any) is payable to the nominee
  • On maturity, fund value + Assured Loyalty Additions are payable to the life assured
  • Partial withdrawal can be made after 3rd policy year
  • No Surrender penalty from the sixth policy year

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2. How does it Work?


Step 1: Decide your premium amount

You have to first decide the amount you want to invest as premiums under the policy. The minimum amount of premium is Rs 15,000.


Step 2: Decide your Sum Assured

Your Sum Assured depends on the amount of premium that you decide to pay. The minimum Sum Assured is 5 * annualized premium.


Step 3: Decide your policy term

You have to decide the policy term of 10 yrs, 15 yrs, 20 yrs, 25 yrs & 30 yrs for which you would like to avail the benefits of the policy. You have to pay the premium through out the policy term. Depending upon your financial planning, you can decide the policy term.


Step 4: Choose your investment funds

You choose the funds in which you would like to invest depending upon your preferences and risk profile.


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3. Benefits


3.1 Maturity Benefit:

On the maturity of the policy the Fund Value as on the date of Maturity plus the Assured Loyalty Additions are payable to the life assured

The life assured may also choose to receive the maturity benefit under Settlement option as mentioned below.


3.2 Death Benefit

Prior to Risk Commencement

If the death of the life assured either natural or due to accident, occurs prior to the commencement of risk under the policy, fund value plus assured loyalty additions, if eligible, will be paid.


After Risk Commencement

Death other than accidental

If the death of the life assured occurs after the commencement of risk, then

  • the Sum Assured plus the fund value plus Assured Loyalty Additions (if eligible) are payable to the nominee

Death due to accident

If the death of the life assured occurs due to an accident, and the life assured is a major at the time of death, then

  • 3 * Sum Assured plus the fund value plus Assured Loyalty Additions (if eligible) are payable to the nominee

With in first three policy years, after the risk commencement, if the premiums are discontinued and the life assured dies during the revival period, we will pay the fund value as on date of death


Note

  1. No additional accidental death benefit is payable under the policy if the life assured is a minor at the time of the death..

  2. If life assured is below age 10 at the time of policy issuance, risk under the policy will commence from the later of

    • The policy anniversary falling after life assured attains 10 years of age

    • 2 policy years after commencement of the policy


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4. Assured Loyalty Additions

On maturity of the policy, the life assured receives the Assured Loyalty Additions as a percentage of first year premium depending upon the policy term. The Assured Loyalty Additions are payable on in-force policy at maturity or at earlier death after 8 policy years from inception of the policy. The Assured Loyalty Additions are as under


Policy Term Assured Loyalty Additions(as % of First year Premium)
10 years 110%
15 years 165%
20 years 215%
15 years 265%
30 years 325%

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5. Investment options

Your premium is invested in unit funds of your choice. Currently you have a choice of three investment funds, providing you the flexibility to direct your investments in any of the following unit linked funds of the Company. The funds invest in a mix of cash/other liquid investments, fixed interest securities and equity investments in line with their risk profile.


Future Secure

Strategy:Investment in low risk assets such as money market investments

Objective:To provide stable returns by investing in relatively low risk assets. The fund will invest exclusively in treasury bills, bank deposits, certificate of deposits, other money market instrument and short duration govt. securities.

Composition

Min.

Max.

Risk Profile

Money Market, Cash and Short Term Debt NIL 100% Low
Equity Instruments NIL NIL

Future Income

Strategy:Investments in assets of low or moderate risk

Objective:To provide stable returns by investing in assets of relatively low to moderate level of risk. The interest credited will be a major component of the fund’s return. The fund will invest primarily in fixed interest securities, such as Govt. securities of medium to long duration and Corporate Bonds etc and money market instruments for liquidity

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Composition

Min.

Max.

Risk Profile

Fixed Income Investments and Money Market Instruments NIL 100% Low
Equity Instruments NIL NIL

Future Balance

Strategy:Balance of high return and risk balanced by stability provided by fixed interest instruments

Objective:To provide a balanced return from investing in both fixed interest securities as well as in equities so as to balance stability of return through the former and growth in capital value through the latter. The fund will also invest in money market instruments to provide liquidity

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Composition

Min.

Max.

Risk Profile

Fixed Income including Money Market Instruments 10% 70% Medium
Equity Instruments 30% 90%

Future Apex

Strategy:Investment in a spread of equities. Diversification by sector, industry and risk.

Objective:To provide potentially high returns to unit holders by investing primarily in equities to target growth in capital value of assets. The fund will also invest to a certain extent in govt. securities, corporate bonds and money market instruments.

Composition

Min.

Max.

Risk Profile

Fixed Income including Money Market Instruments 0% 50% High
Equity Instruments 50% 100%

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6. Flexibility

a) Top-up Premium:Anytime during the tenure of the plan, you can pay top-up premium over & above regular premium, provided all regular premium is paid as and when due. The minimum top-up premium amount is Rs.2, 500/- (and in multiples of ‘000 thereafter) .There is no limitation on number of top-ups made in a single policy year. Every top-up made during the tenure of the policy has a lock-in period of three years.

Note:Additional top-up single premiums can be paid over the policy term while the policy is in force.

b) Top-up Sum Assured:If the total top-up premium is more than 25% of the total basic premium paid till date, then such top-up premium will be accepted with an additional Sum Assured or Top-up Sum Assured to the extent of 110% of the top-up single premium exceeding this 25% limit and will be subject to the underwriting norms of the company

c) Premium Redirection:At any time after completion of one year, you may instruct us in writing to redirect all future premiums in an alternative proportion to the various unit funds available. Redirection will not affect the premium paid prior to the request. Premium redirection can be done maximum twice in a year.

d) Switching between the Funds:Switch your existing fund to another fund option available and thus actively manage your own investment. Six switches are free in a policy year. The minimum amount that can be switched is Rs. 5,000/-. Any switch over and above the available free switches in a policy year is subject to a charge. The un used free switches in a policy years cannot be carried forward to the following policy year

e) Surrender:Surrender can be made any time during the policy term. If policy is surrendered before the end of 3 policy years, the surrender value equal to fund value less applicable surrender penalty will be kept frozen on date of surrender & no subsequent charges will be deducted & that surrender value will be paid at completion of 3 years. Assured Loyalty Additions are not payable on surrender.

f) Partial Withdrawal:Partial Withdrawal is allowed after the completion of 3rd policy year if life assured is a major or during the lifetime of the proposer if the life assured is a minor. The minimum amount that can be withdrawn is Rs.5,000 (in multiple of ‘000). In a policy year, only one partial withdrawal is allowed. The maximum amount that can be withdrawn per year is 10% of the fund value. The partial withdrawal are not allowed during the last five policy years


After each withdrawal the Fund Value should be at least the higher of:

  • One year’s annualized premium
  • The top-up single premiums paid in the last 3 years

For the purpose of partial withdrawals, all top-up premiums, whether or not associated with insurance cover, except top-up premiums paid during last three years of the policy, shall be treated as Single Premium. For a top-up premium made during the period of the policy, a lock-in period of three years shall apply from the date of payment of that top-up premium

g) Settlement option:You may also opt for the settlement option for your maturity benefit. Under Settlement Option, the maturity benefit may be taken in installments spread over a period up to five years from the date of maturity. However, the Assured loyalty addition, if eligible, will be paid at maturity of the policy. The policy administration charges and fund management charges will continue to be deducted. Partial withdrawals and Switching will be allowed in the settlement period subject to conditions mentioned against partial withdrawal & switching above. During the settlement period, the investment risk in investment portfolio will continue to be borne by the policyholder.

h) Increase / Decrease in Sum Assured:At any time during the term of the policy you have an option to Increase / decrease your initial sum assured within the allowable maximum /minimum limit. However the premium will not change and remain same. Increase in the sum assured is subject to underwriting as per Company policy.


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7. Charges

a) Premium Allocation Charge

The premium allocation charge will be deducted from the premium amount at the time of premium payment and the remaining premium will be used to purchase units in various investment funds according to the fund allocation specified by you.

The allocation charge is as per the table below

Policy Term 1st year 2nd & 3rd year 4th - 10th year 11th year onwards
10 40% 5% 2% Nil
15 50%
20 72%
25 72%
30 72%

Top up Single Premium = 2%


b) Fund Management Charge

FMC will be charged at the time of computation of the NAV, which will be done on a daily basis. This will be charged as a percentage of the value of the assets and will be adjusted towards the NAV

Fund management charge (% p.a.)
Future Secure Fund 1.10%
Future Income Fund 1.35%
Future Balance Fund 1.35%
Future Apex Fund 1.35%

c) Policy Administrative Charge

The policy administrative charge under the policy is,

1st year: Rs.15 per 1,000 sum assured for first Rs.50,000 and Rs.2 per 1,000 sum assured for the balance sum assured

2nd year onwards: Rs 50 per month

This charge will be recovered by canceling units on a monthly basis proportionately from each investment fund.

d) Switching Charge

Six free switches are allowed each policy year. Subsequent switches will attract a charge of Rs.100 per switch. The switching charges are subject to increase up to Rs.250 per switch.

3.1 Insurance Charge - -Below mentioned are the sample insurance charges for lives for 1000 of sum assured

Age 25 35 45 55
Insurance Charge 2.53 2.88 5.36 13.06

e) Surrender PenaltyA policy can be surrendered at any time during the policy term. If a policy is surrendered in the first 3 policy years, the surrender value will be payable only on completion of 3 policy years. The surrender value will be the fund value less the surrender penalty, as applicable. For top-up accounts, there is a lock-in period of 3 years

Policy Year Surrender penalty as a % of fund value
Year 1 100%
Year 2 50%
Year 3 35%
Year 4 20%
Year 5 10%
Year 6 onwards Nil

f) Miscellaneous Charge:

This charge is levied for any alterations within the contract, such as, change in premium mode, premium redirection etc. The charge is expressed as a flat amount levied by cancellation of units.


This charge is levied only at the time of alteration and is equal to Rs.250 per alteration. All charges will be subject to Service Tax at prevalent rate which is 10.3% currently.


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8. Eligibility criteria


Minimum– Maximum Entry Age Minimum: 0 years (as on last birthday)
Maximum: 60 years (as on last birthday)
Maximum Age at Maturity 70 Years
Premium Paying Frequency Yearly & Half-Yearly
Policy Term 10 yrs, 15 yrs, 20 yrs, 25yrs & 30yrs. The policy term shall be such that the life assured is a major at the time of maturity of the policy
Premium Paying Term Regular Premium Payment term
Minimum
 Sum Assured
5*Annual Premium
Maximum Sum Assured M*First Year Annual Premium, where M is a factor which depends upon the age at entry (of the life assured)
Age at Entry (last birthday) Multiple Factor
0 to 50 years 12
51 to 55 years 10
56 to 60 years 5

Maximum – Rs 25,00,000
Top up single premium – 110%. This Sum Assured related to top-up single premiums will be over and above the maximum limits stated above on the basis of basic regular premiums.
Minimum/ Maximum Premium Minimum – Rs 15,000/-
Maximum – Rs 5,00,000/-
For top-up single premiums: Minimum – Rs .2,500

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9. Other Features

  1. Free Look-in period: If you are not satisfied with the terms and conditions under your policy, you may cancel the policy within the free look period of 15 days from the date of receipt of the policy document. We will refund the premium paid subject to the deduction of the proportionate risk premium for the period of cover, the expenses incurred by us towards medical examination, if any, and stamp duties. Where premiums have been allocated to units, the Fund Value as on the date of cancellation will be payable.
  2. Grace Period: A grace period of 30 days from the premium due date will be allowed for payment of yearly & half yearly premium. The policy will remain in force during the grace period. If any premiums remain unpaid at the end of the grace period, the policy shall lapse. The policy benefit thereafter would have no further value except as provided under the non forfeiture provisions

    9.1 Premium Discontinuance: If premiums are not paid in the days of grace, a policy lapses. The following will apply based on the number of years premiums are paid before lapse.

    Discontinuance of due premiums before completion of 3 policy years:

    If all the due premiums have not been paid within days of grace, the insurance cover & inbuilt accidental death benefit shall cease immediately after days of grace. The policy will continue to participate in the performance of the funds and all charges other than insurance charges will continue to be deducted.

    policy may be revived within the revival period of 3 years from the due date of first unpaid premium.

    In case the policy is not revived during this period, the policy shall be terminated and the surrender value, if any, shall be paid at the end of the period allowed for revival.

    If a policyholder surrenders a policy before the end of 3 years from the date of commencement, the surrender value will be kept in suspense till the end of three policy years, and will be payable at that time. No subsequent charges will be deducted for such a policy.

    Treatment of such policies in valuation of liabilities:

    During the revival period, a provision will be made for liabilities arising out of likely future revivals of these policies.

    Discontinuance of due premiums after payment of at least 3 years' premiums:

    If all the due premiums have been paid for at least three consecutive years and subsequent premiums are unpaid, a policy may be revived within the revival period of 3 years from the due date of first unpaid premium.

    During this limited period for revival, the insurance cover under the base plan shall be continued by levying appropriate charges. The cover under the inbuilt accidental death benefit will also continue.

    At the end of the allowed period for revival, if the policy is not revived, the policy shall be terminated by paying the surrender value. However, the life insurance cover and in built accidental death cover under the plan may continue, if so opted to by the policyholder, by levying appropriate charges until the surrender value does not fall below an amount equivalent to one full year’s premium.

    When the fund value reaches an amount equivalent to one full year’s premium, the policy shall be terminated by paying the fund value

    In a policy, where the premiums are discontinued, the Assured Loyalty Additions is not payable.

  3. Revival: If premiums are not paid within the period of grace and the policy is not surrendered, the policy may be revived for full benefits within 3 years from the due date of the first unpaid premium and before the date of maturity while the life assured is still alive. The revival will be considered on receipt of written application from the policyholder along with the proof of continued insurability of life assured and on payment of all overdue premiums. The revival will be effected on the company’s discretion and subject to such conditions as the company in its discretion may decide.

    9.2 Nomination & Assignment: Provided the policyholder is the life assured, he / she may, at any time before the policy matures for payment, nominate a person or persons as per Sec 39 of the Insurance Act 1938, to receive the policy benefits in the event of his / her death. It is ensured that the nominee has insurable interest in the life of the assured.

    The Policyholder can also assign the Policy to a party by filing a written notice to us along with the original Policy document. The assignment should either be endorsed upon the Policy itself or documented by a separate instrument signed in either case by the Assignor stating specifically the fact of assignment. Only the entire policy can be assigned and not individual benefits or any part thereof. Any assignment shall automatically cancel a nomination except the assignment in favour of the Company.

  4. Net Asset Value (NAV) calculation:

    Unit Price: A unit in each fund has its own price called the Net Asset Value (NAV). The NAV of each fund is calculated on daily basis with the following formula:

    When Appropriation (Purchasing) price is applied:

    NAV = (Market Value of Investment + Express incurred in the purchase of the assets + Current Assets + Accrued Income net of Fund Management Charges – Current Liabilities – Provisions) / Number of Units outstanding (before any new units are allocated)

    When Expropriation (Selling) price is applied:

    NAV = (Market Value of Investment - Express incurred in the sale of the assets + Current Assets + Accrued Income net of Fund Management Charges – Current Liabilities – Provisions) / Number of Units outstanding (before any units are redeemed)

    Allocation / redemption of units:

    In respect of premiums received up to 3.00 p.m. under a local cheque or a demand draft payable at par or by way of cash, the closing NAV of the day on which the premium is received shall be applicable. In respect of premiums received after 3.00 p.m., the closing NAV of the next business day shall be applicable.

    In respect of premiums received under outstation cheques/demand drafts, the closing NAV of the day on which the cheques/demand draft is realized shall be applicable

    All requests for switch, surrender or partial withdrawal received up to 3.00 p.m. will be processed at the closing NAV of the day on which the request is received. All such requests received after 3:00 p.m. will be processed at the closing NAV of the next business day.

  5. Tax Benefits

    Tax benefits are available as per prevailing tax laws. Please consult your tax advisor for the same.


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10. Exclusions


No benefit will be payable in respect of any condition arising directly or indirectly through or in consequence of the following exclusions and restrictions -


Suicide Exclusion

If the life assured commits suicide within one year from the risk commencement date or revival date, if revived, whether sane or insane at that time, the company will limit the death benefit to the Fund Value and no insurance benefit will be payable.


For benefit under Accidental Death

No benefit will be payable in respect of any condition leading to accidental death arising directly or indirectly from, through or in consequence of the following exclusions:


  • Arising out of self inflicted injury, suicide, or death whilst under the influence of intoxicating alcohol, or narcotic substances
  • Arising out of riots, civil commotion, rebellion, war (whether war be declared or not), invasion, hunting, mountaineering, steeple chasing or racing of any kind, bungee jumping, river rafting, scuba diving, paragliding or any such adventurous sports or hobbies
  • As a result of the life assured committing any breach of law.
  • Arising from employment of the life assured in the armed forces or military service of any country at war (whether war be declared or not) or from being engaged in duties of any para-military, security, naval or police organization; and
  • As a result of accident while the life assured is engaged in aviation or aeronautics in any capacity other than that of a fare-paying, part-paying or non-paying passenger, in any aircraft which is authorized by the relevant regulations to carry such passengers and flying between established aerodromes

VARIABILITY OF THE CHARGES

  • The premium allocation charges are guaranteed.
  • The monthly administration charge can be increased by not more than 5% per annum since inception
  • The switching charges are subject to increase up to Rs.250 per switch.
  • The company may change the Fund Management charges from time to time.
  • The insurance charges are guaranteed for the term of a policy.
  • Surrender penalties are guaranteed
  • The 10% cap on partial withdrawal is subject to change.
  • All charge will be subject to a service tax as applicable.

A month’s notice will be given to the policyholder in case of an increase of charges whenever charges can be increased. The increase, if any, will apply from the policy anniversary coinciding with or following the increase.

Any change in amount or rate of charges as stated above will be subject to IRDA approval..


NOTE ON THE RISK OF INVESTMENT IN THE UNITS OF THIS POLICY

  1. Unit Linked Life Insurance products are different from the traditional insurance products as in the former, the investment risks in the investment portfolio is borne by the policyholder.
  2. 'Future Generali India Life Insurance Company’ is only the name of the insurance Company and ‘Future Generali Guarantee Plus’ is only the name of the unit linked life insurance contract and does not in anyway indicate the quality of the contract, or its future prospects of return.
  3. The various funds offered under this contract are the names of the funds and do not in any way reflect their quality, their future prospects and returns.
  4. The premium paid in unit linked life insurance policies are subject to market risks associated with the capital markets. The unit prices are not guaranteed and may go up and down depending on market conditions.
  5. Past performance of the funds is no indication of future performance which may be different.
  6. All premiums/benefits payable under this plan are subject to applicable laws and taxes including service tax, as they exist from time to time.

Premium Table

Click to view the premium table

Click Here To Calculate Premium (Site 1)

Click Here To Calculate Premium (Site 2)

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