This is a traditional life insurance policy that bundles savings. As a non-participating plan, it guarantees the maturity amount upfront.
WHAT DO YOU GET?
The policy comes with a limited premium paying term of five years. This means you need to pay premiums only for the first five years of the policy, but you can choose a policy term of 10, 12 and 15 years. You start by choosing a sum assured (the minimum that the insurer guarantees to pay either on death or on policy’s maturity). Depending on factors like the sum assured, age and policy term, a premium is calculated. And depending on that, the policy will calculate the guaranteed additions that will accrue every year from the end of the first year. This accrued addition is calculated as a percentage of the sum assured. So, if you pay a premium of Rs.50,000, you will get an accrued addition at 7% of the sum assured every year. For a premium of Rs.1.8 lakh or more, the guaranteed addition is 8% of the sum assured.
