Protection Plus

What this product is

A unit-linked plan that combines life cover with market-linked investing across six fund options, letting you choose how much equity risk to take while building a fund value.

You might need this if…

• You might need this if you want life insurance and market-linked investing bundled into a single policy rather than buying them separately.
• You might need this if you're comfortable with investment risk and want to pick your own equity/debt mix across six fund options, from a pure Bond Fund to the highly-equity Flexi Smart Growth Fund.
• You might need this if you want a top-up option to invest lump sums opportunistically on top of your regular premiums.
• You might need this if you want the flexibility to switch between funds as markets move, with a few free switches each year.

How it actually works

• Premiums are split between charges and units bought in your chosen fund(s); the minimum annual premium is ₹60,000.
• Sum assured is a multiple of your annualised premium (7x-40x depending on age and term), and can be topped up with additional lump sums.
• On death, the nominee gets the higher of the sum assured, the fund value, or 105% of premiums paid.
• On maturity, you receive the fund value, plus a refund of the mortality charges deducted over the policy term.
• An optional Linked Accidental Death Benefit Rider can be added, costing ₹0.40-0.80 per ₹1,000 of extra cover.
• Charges include a 3-8% premium allocation charge, a 1.35% p.a. fund management charge, and monthly admin charges from year 6.

Worked example

The tiers

Worth knowing before you decide

• There's a mandatory 5-year lock-in; if you stop paying before then, your money moves to a Discontinued Policy Fund earning only a 4% p.a. floor until year 5.
• Investment returns are not guaranteed, and you bear all the market risk on the fund value.
• No loan facility is available against this policy.
• Partial withdrawals are only allowed after year 5, capped between roughly 15-30% annually.

Official source

⌟ Official product brochure

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