Unit-linked insurance plans (Ulips) are again gaining traction and insurers are trying to get your attention by reducing costs. Max Life Insurance Co. Ltd also launched a Ulip called Max Life Online Savings Plan. As its name suggests, it is available online. Max Life has waived some of the charges. Here are some details.
It comes in two variants: a Type-1 Ulip that pays higher of the insurance cover or the fund value on death of the policyholder during the policy term; on maturity policyholder gets the fund value.
The Type-2 plan works like a child plan. On death of policyholder, the nominee (child) gets the insurance cover; future premiums are waived off and on maturity the nominee gets the fund value. Regulations mandate a minimum payment of 105% of all the premiums paid on death for both the variants.
