Can ALICO arrange a monthly income for my daughter following my death or disability the premium paying period?
Yea of course. We offer an option Income Benefit Rider for nominal additional premium. IBR pays a monthly income form the date of death/disability until the end of the IBR term. The amount of monthly income is decided by you.
Is it necessary for me to submit any evidence of good health or undergo medical exams to buy VDM?
Yes. Evidence of good health or medical exams will be required. The extent of medical exams and tests will depend on your age, the Basic Premium, the premium paying period, the amount of monthly income benefit elected under IBR and the IBR term.
What is Unit Linked Life Insurance?
Unit linked life insurance policy provides you the opportunity to participate in stock market linked investments, while enjoying the benefit of life insurance. The investments are expressed in terms of number of unites and unit price of investment sub-accounts under a range of investment strategies for you to choose from. Investment in sub-accounts is carried out by buying it’s under Offer Price. The value of the investment is the number of units hold in that sub-accounts times its unit Bid Price. The Offer Price is higher then the Bid Price by a percentage referred to as the Bid –Offer spread.
What are investment strategy choices I have?
You have the following investment strategy choices that would match your needs and financial objectives:
Aggressive strategy: This strategy seeks to provide you with long term capital growth mainly through investments in equities.
Balance strategy: This strategy seeks steady growth in capital through a combination of investments in stocks and government securities and/or other secured investment.
Conservative strategy: The strategy would be the most appropriate for those owners, who wish to invest more cautiously. Accordingly, the investments are made in government and/or other secured investments. There is no exposure to the stock market.
Islamic Sharah Compliant strategy: the investment sub-account offered under this strategy conforms to the Sharah as determined by the Sharah Board appointed by the Company or by a third party fund manager or by an issuer, as applicable.
Under each strategy you have an investment sub-account as listed in the application. The percentage of premium you wish to allocate to buy units in an investment sub-account should also be indicated. Each of these percentages should be a multiple of 10% (or zero in case you do not wish to invest in it). The sum of there percentages must equal 100%.
You can therefore direct the investments by creating you own investment strategy portfolio from a range of potions to suit your needs and preferences. You will have the option to switch between investment sub-accounts anytime subject to certain condition
How will the account value build up by the premium I pay to provide for the marriage expenses?
The percentages of premium you wish to allocate to the investment sub-account (net of premium related expenses) will be applied to buy units of those sub-accounts at the applicable Offer Price. The units purchased will be credited to the appropriate sub-account representing the investment sub-account. Each timer you pay premium more units are added to your sub-account. The number of units added will depend on the Offer Price of the unit on the day of purchase.
To pay monthly management charges, administration, cost insurance (if any) and premium for supplementary contracts (if any), deduction will be made from the sub-account on a pro rata basis by canceling the equivalent number of units at the Bid Price of the sub-account. This process will continue during your chosen premium paying period.
Your account value at any point in time will be the aggregate of the investment sub-account values. The value of a sub-account is the number of units held times the Bid Price of that sub-account.
What will be the impact on my account value if I stop premium payments?
The monthly deduction for expenses and cost of insurance where applicable will continue to be made from the sub-account, whether or not you pay premium. If you stop premium payment the number of units in each sub-account will continue to deplete.
Your policy will lapse if the account value becomes insufficient to the monthly deductions. As such, it is advisable to continue premium payment under the policy for the full premium paying period.
Is there any incentive to continue premium payment for its full term?
Yes. Generous incentive is offered in the from of Loyalty Bonuses, which are allotted at the end of each 5 years period provided (A) the policy is in force (B) all the premiums falling due during this 5 year period have been paid and (C) partial withdrawals have not been made during this 5 years period
The Bonus amount is applied to units in the selected investment sub-account at the Offer Price and added to your account value. The rates of Bonus as follows:
Policy Anniversary |
Percentage of the
Basic Premium |
5 |
10% |
10 |
25% |
Thereafter every 5th anniversary |
25% |
What percentage of the Basic Premium I pay is allocated to my account value?
Policy Year |
Net Allocation as a Percentage of Basic Premium |
1 |
35% |
2-5 |
94% |
6 onwards |
100% |
What other expenses are changes to my account value?
|
1/12 of 1.5% of account value per month in the first 10
Thereafter, 1/12 of 1.3% of account value per month.
|
|
|
|
|
|
Rs.300.00 on partial withdrawal full surrender
|
|
Rs. 300.00 on each transfer between sub-accounts
|
Would I be able to male withdrawals from my account during the premium paying period?
Yes may make withdrawals from your account value after the has run for 5 years, subject to minimum and maximum withdrawals amount as per Company rules. The withdrawals can or more investment sub-account as determined by you and will be processed by canceling the appropriate number of units of the sub-account(s). The withdrawals amount payable would be the number of units canceled times the applicable Bid Price.
Since the main purpose of the account value is to for your daughter’s marriage, it is not advisable to make any early withdrawals. Furthermore, you lose entitlement to the loyalty bonus if you make partial withdrawals during any of the preceding 5 years.
s.
What is difference between the account value and cash surrender value?
Cash surrender value equals the account value less a surrender charge depends on the policy your. The policy acquires cash value after premiums had been paid for two years.
Can I have estimates of the account values at different durations before my daughter’s marriage?
An illustration will be provided assuming 3 different unit Bid price growth rates to give an idea of your account value at different duration up to maturity.
Please note that the entire amounts shown in the illustration are projection and not guaranteed.
What if the child dies during the premium paying period?
God Forbid if the child dies, you can substitute another child or terminate the policy and receive the basic premiums paid or the account value, whichever is higher.
|
.gif){kind=spacer}
