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Future Generali Nivesh Plan

(UIN No: 133L028V01)


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


One investment now. Wealth for a lifetime.


The Future Generali Nivesh Plan is the simplest ULIP in the market because it practically takes care of itself. All you need to do is make a single investment at the start of your policy term; we’ll ensure that you receive maximum returns and thereby, achieve all your financial goals. Simple, isn’t it?



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1. Key features


  • Unit linked Endowment plan with a fixed policy term
  • Simple single premium product with 98% allocation rate and reduced sum assured from the 2nd year onwards.
  • In case of the unfortunate death of the life assured during the policy term, the fund value plus the sum assured will be payable as death benefit.
  • Tax benefits as per the prevailing tax rules

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2. Benefits


2.1 Maturity Benefit:

On life assured’s survival to maturity of the policy, the Fund Value as on the date of Maturity is payable under the policy.

On maturity, the life assured can also choose the settlement option to receive his fund value. If the settlement option has been chosen, then the fund value under the policy will be paid in annual instalments spread over a period of up to five years from the date of maturity.

However, the money will remain invested in the funds chosen and is subject to the same investment risks as during the policy term. During such period, we will continue to deduct charges other than the mortality charges.


Death Benefit

Prior to Risk Commencement

In case of the unfortunate demise of the life assured prior to the commencement of risk under the policy, the fund value will be paid.


After Risk Commencement

In case of the unfortunate demise of the life assured after the commencement of risk, the Sum Assured plus the fund value is payable under the policy.


If life assured is a minor and under the age of 10 years at issue, 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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3. Investment options

Your premium is invested in unit funds of your choice. Currently you have a choice of 5 investment funds, providing you flexibility to direct your investments to 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:Low risk investment 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 instruments 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, Corporate Bonds and money market instruments for liquidity.

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 by 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

Composition

Min.

Max.

Risk Profile

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

Future Maximize

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. To an extent, the fund will also invest in govt. securities, corporate bonds and money market instruments.

Composition

Min.

Max.

Risk Profile

Fixed Income including Money Market Instruments 10% 50% High
Equity Instruments 50% 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. To a certain extent, the fund will also invest 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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4. Flexibility

Switching between the Funds: Switch your existing fund allocation to another fund option available and thus actively manage your own investment. Six switches are free in a policy year, thereafter Rs.100/- is charged per switch. Minimum amount that can be switched is Rs. 5,000/-.


Surrender: Policy will acquire surrender value after the payment of the single premium and will be payable only after the completion of three policy years. The surrender value will be the Fund Value less the surrender penalty, as applicable. If a policyholder surrenders a policy before the end of 3 years from the date of commencement, the surrender value will be calculated as on the date of surrender and the amount will be kept frozen with the insurer and the same will be payable on completion of three policy years. The policy will take no further part in the investment performance. No subsequent charges will be deducted for such a policy.


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 minor. The minimum amount that can be withdrawn is Rs.5,000. In a policy year, four partial withdrawals are allowed free of cost and any partial withdrawal thereafter will be subject to charge as mentioned below. Minimum Fund Value of Rs. 10,000 has to be maintained post withdrawal.


Settlement optionYou may also opt for the settlement option for your maturity benefit. Under the Settlement Option, the maturity benefit may be taken in installments spread over a period up to five years from the date of maturity. In order to opt for the settlement option, a notice must be given at least 30 days before the maturity date.


However the money will remain invested in the funds chosen and is subject to the same investment risks as during the policy term. During such period, we will continue to deduct charges other than the mortality charges


During this period, there will be no life cover. On death of the life assured during the settlement period, the fund value will be payable. Switching and partial withdrawal will be allowed in the settlement period subject to conditions mentioned against switching & partial withdrawal below.


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5. Charges

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.


Premium allocation charge is 2% of Single Premium paid.


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 Maximize Fund 1.35%
Future Apex Fund 1.35%

Policy Administrative Charge

1st yr charge: Rs. 15 per 1000 SA for 1st 50,000 SA and Rs. 2 per 1000 SA for (SA-50,000). Policy administration charge from year 2 onwards: Rs.50 per month till maturity.

The monthly administration charge cannot be increased by more than 5% per annum since inception


Switching Charge

Six free switches are allowed each policy year. Subsequent switches will attract a charge of Rs.100/- per switch. Unused switches cannot be carried forward. This charge is subject to increase upto Rs.250/- per switch in the future.


Surrender Penalty

2% of fund value for 1st year and 1% of fund value for 2nd and 3rd year. After 3 policy years, the surrender value will be equal to the fund value as on date of surrender.


Partial Withdrawal Charge

A total of four withdrawals are free in a policy year, thereafter an amount of Rs. 200, is deducted from the withdrawal amount.


Mortality Charge

This is the cost of the life insurance cover which will be recovered by cancellation of units and deducted at the beginning of each policy month. The cancellation of units will be based on Sum Assured at risk.


The Mortality Charge per Rs. 1000 Sum at risk


Mortality Charge per Rs.1,000/- Sum at risk
Age as on Last Birthday Mortality Charges
20 Years 1.35
25 Years 1.53
30 Years 1.58
40 Years 2.88
50 Years 7.35

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6. Eligibility criteria


Minimum – Maximum Entry Age 8 Years – 60 Years (as on Last Birthday)
Minimum - Maximum Age at Maturity 18 Years – 70 Years
Premium Paying Frequency Single
Policy Term 10 Years
Sum Assured For 1st Year:
Sum Assured = 5 times single premium.
For 2nd Year onwards:
Sum Assured from 2 yrs onwards = 1.1 times single premium
Single Premium Minimum : Rs 50,000 Maximum : No limit

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7. Other Features:


Free Look 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.


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. The Policyholder can also assign the Policy to a party by filing a written notice to us. 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.


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 a daily basis using 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:

With respect to 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.


With respect to 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.


Suicide Exclusion

If the life assured, whether sane or insane, commits suicide within one year from the Date of Issue of the Policy, the policy shall become null and void. In such event, the Fund Value will be refunded and all benefits under the policy cease.


Tax Benefits

As per prevailing tax rules.


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8. Variability of Charges

  • The premium allocation charges are guaranteed.
  • The monthly administration charge cannot be increased by 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 mortality charges are guaranteed for the term of a policy.
  • Surrender penalties are guaranteed
  • 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.


9. 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 Nivesh’ 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.

PROHIBITON OF REBATES


Section 41 of the Insurance Act, 1938 states:


No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:


Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.


Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.


NON-DISCLOSURE


Section 45 of Insurance Act, 1938 states:


Under the provision of section 45 of the Insurance Act, 1938, the company is entitled to repudiate a policy on the ground that a statement made in the proposal or in any report of a medical officer or referee or friend of the insured or any document leading to issue of the policy was inaccurate or false, before the expiry of 2 years from the effective date of the policy, and thereafter that if such false or inaccurate statement was on a material matter or suppressed facts were material to disclose and it was fraudulently made and the policyholder knew that the statement was false or was material to disclose.

Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal.

Premium Table

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