Guaranteed Highest NAV

All Insurance companies launched ULIP plans with Guaranteed Highest NAV in the last 7 years.

I wonder how there can be a Guarantee in a market linked plan.

Even if you invest in Debt funds, you cant guarantee the Highest NAV of a particular period  on maturity.

So these funds will be managed in such a way that the NAV is not going beyond a level.

Is it worth investing in such plans.

Instead you may very well go for a 100% equity or for a balancer Plan which will give a better return over a period of 8 more years.

Guaranteed Highest NAV

ULIP plans from insurance companies are regulated by IRDA.

SEBI wants to regulate and like to have a monitoring control over ULIP plans. ( IRDA is against this)

Now all insurance companies launched Guaranteed Highest nav in the first 7 years for a 8 to 10 year term ULIP policies.

This is to be analyzed by SEBI.

In Market linked plans there can be No Guarantee.

Agents are to be educated and trained well.

JEEVAN VARSHA

JEEVAN VARSHA
Close Ended Money Back Policy (Plan196)

Features
Policy Term : 9 years & 12 years
Premium paying term : 9 years only
Minimum Sum Assured : 50000/-
Maximum Sum Assured : No Limit
Survival Benefit : once in 3 years
Guaranteed Addition : Rs 65 per 1000 SA per year for 9 year term
Rs 70 per 1000 SA per year for 12 year term
Loyalty Addition (variable) : there will be a loyalty addition on maturity
Probably Rs 200/ for 9 year term and
Rs 400 for 12 year term
Tax Advantage : Premium eligible for tax rebate under sec 80 C
Returns Tax Free under sec 10 (10 D)
Benefits Illustration
Age of LA : 30 yrs
Term : 12 yrs
Premium Paying Term : 9 yrs
Sum Assured : Rs 200000
Annual Premium : Rs 31062
Survival Benefit
End of 3rd year (Guaranteed) : Rs 20000
End of 6th year (Guaranteed) : Rs 40000
End of 9th year (Guaranteed) : Rs 60000
Maturity Benefit
End of 12th year (Guaranteed) : Rs 248000
Loyalty Addition (variable) : Rs 80000
(LA calculated approximately at Rs 400/- per 1000 for 12 year term)

Scheme closes on 31st March 2009. Hurry. Invest and enjoy guaranteed benefits
Shanmuham S call 98412 87024 mail sshanmuham@gmail.com blog http://shans.tk

Jeevan Aastha

LIC's Jeevan Aastha (Table 195) 

is a Single Premium Plan with Guaranteed Addition.

Loyalty Addition also there at maturity.

Term: 

5 and 10 years.

Mode: 

Single Premium.

Minimum and Maximum Age at Entry:  

13 years and 60 years.

Maturity Benefit:  

Maturity Sum Assured with guaranteed Addition and Loyalty addition, if any.

Guaranteed Addition: 

Rs 100 per Thousand of Maturity Sum Assured 10 year term and Rs.90 for 5 year term.

Basic Sum Assured: 

1,50,000 minimum and in multiples of Rs 30,000/

Maturity Sum Assured: 

1/6 th Of Basic Sum Assured.

Benefits for a BSA of Rs 1,50,000/

5  year term Rs 36,250 + loyalty addition

10 year term Rs 50,000 + loyalty addition

how it works:  (GA X MSA X Term) + MSA. (5 year term)

                          (90 X 25 X 5)  = 11,250 + 25,000

Premium:

5 year term 

26108/- for 13 years, 26198/- for 25 years, 26265/- for 35 years.

26663/- for 45 years, 27825/- for 55years.

10year term

24668/- for 13 years, 24773/- for 25 years, 24938/- for 35 years.

25635/- for 45 years, 27495/- for 55 years.

Scheme opened on 8th Dec'08. 

Open till 21st Jan'09 only.