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Platinum Plus IV
Birla Sun life launches its fourth plan in its ‘NAV Guaranteed’ series. The policy is meant for the risk averse who want to invest in the stockmarket

Insurance companies are providing guarantees on different parameters of insurance plans to make customers feel secure about their investment in unit-linked insurance plans (Ulips). In keeping with the trend, Birla Sun Life has launched its fourth plan in its ‘NAV Guaranteed’ series of Platinum Plus—Platinum Plus IV.

Features

Platinum Plus IV is on offer only till 15 December 2009. It is a 10-year plan with a premium paying term of three years. It offers the higher of the fund value or the sum assured as death benefit (Type I Ulip). The minimum age at entry is 18 years and the maximum is 70 years. The sum assured should be at least five times the annual premium.

The policy offers four premium payment modes—monthly, quarterly, half-yearly and annual.

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Features

Type Of Policy Unit-Linked Children's Plan

Death Benefit Higher of the fund value or the sum assured
Maturity Benefit In addition to the fund value, an amount equivalent to the number of units multiplied by the excess, if any, of the guaranteed maturity unit price and the unit price at the time of maturity will be payable
Minimum Annualised Premium Rs 50,000 per annum, Rs 25,000 half yearly, Rs 15,000 quarterly; or Rs 10,000 per month
Basic Sum Assured 5 times the annualised premium
Term Options 10 years
Premium Paying Term 3 years

Charges


Premium Allocation Charge 10% in the first year and 4% in the second and third years
Policy Administration Charge Rs 720 on the first Rs 1,000 of sum assured in all years plus Rs 6 per Rs 1,000 of the sum assured in the first 3 years
FMC 1 1.50%
Surrender Charge 16%, 13% and 10% of annual premium for policy years 1, 2 and 3, respectively, nil thereafter
Partial Withdrawal Charge Free

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Partial withdrawals are allowed only after three complete policy years. However, you cannot withdraw anything less than Rs 50,000.

Fund options

There is only one fund option available under this plan—Platinum Plus Fund IV.

Guaranteed Loyalty Additions

It guarantees the highest daily net asset value (NAV) in the first seven years of the term. So, the highest NAV—between 15 September 2009 and 15 December 2016—is guaranteed at the time of maturity.

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Asset Allocation

Platinum Plus Fund IV

  • 0-40% in money market and cash
  • 0-100% in debt instruments and derivatives
  • 0-100% in equities and equity-related securities

Performance Report

  CAGR (%)*

  • Platinum Plus Fund I
  • Platinum Plus Fund II   
  2.25
42.93

 You Can Also Look At


  • SBI Life Smart ULIP
  • Max New York Life SMART Xpress

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Exit

Surrender charges are applicable in the first three years of the policy and nil, thereafter.

Performance

Fund performance of previous Platinum Plus Funds—Platinum Plus I and Platinum Plus II—have been quite varied (see Performance Report).

What to do

The policy focuses on the guarantee of NAV. It is meant for the risk averse who are interested in investing in the stockmarket. With the fund mandate being open to 0-100 per cent, for debt as well as equity allocation, you can’t be sure of the performance of the fund. The plan doesn’t yet meet the latest cost ceilings imposed by the Insurance Regulatory and Development Authority (Irda) on capping of charges on all counts.


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