SBI Life Unit Plus II Child Plan

(UIN: 111L062V01)

Costs of education in India is showing an increasing trend

Getting your child married is now an expensive affair

It’s a race out there, and you want your child to succeed

As parents, we need to secure the child’s future, NO

MATTER WHAT

Few Facts Every Parent Has To Face:

Each Dream has a value:

Year Cost of education Cost of marriage

1990 Rs. 1 Lac Rs. 1 Lac

2000 Rs. 3.2 Lacs Rs 5 Lacs

2020 Rs. 21.5 Lacs Rs 20 Lacs

Every parents have a dream and each dream has a value:

The only way to fulfill these Dreams is to

save regularly!!

Source: Rediff News

There is a route that ensures:

Comfort of achievement of Dream

Cost that you can Afford

Scope to speed up should you decide

Additional Benefits on the way

Tax saving all the way

Trustworthy right till the end

Unit Plus II Child Plan helps you to

achieve this dream

Let Us Understand More About Unit Plus Child Plan II

The Need To Launch SBI Life Unit Plus II Child Plan:

Regulator’s directive to Banks & Insurance Companies

For policies of more than 10 years term:

Difference between gross and net yield not to be more than

2.25%

FMC capped at 1.35%

For policies of less than equal to 10 years term:

Difference between gross and net yield not to be more than

3%

FMC capped at 1.35% irrespective of the policy term(Ref: 055/IRDA/Actl/ULIP/2009-10)

Circular No: 20/IRDA/Actl/ULIP/2009-10

Circular No: 29/IRDA/Actl/ULIP/2009-10

Need for transparency in the interest of customers

investing money, banks should disclose to the customers,

details of all commissions / other fees received from

financial companies(Ref: RBI/2009-10/224; DBOD.No.FSD.BC.60/24.01.001/2009-10)

What It Meant For The….

The Insurers

1. For a term <= 10 yrs, IRR @ 6%

& 10% returns should not be less

than 3% & 7% respectively

2. For a term > 10 yrs, IRR @ 6%

& 10% returns should not be less

than 3.75% & 7.75% respectively

3. Reduce fund management

charges.

4. Reduce allocation charges

5. Modify plan features to

accordingly

The Customers

1. Pay lower charges for his / her

insurance investment

2. Accumulate more out of his

investments

3. Reach target fund values earlier

4. Save in the most cost effective

way

5. Be aware of all aspects of the

investments

Product Features:

Entry AgeMin: Proposer: 18 years Child: 0 years

Max: Proposer: 57 years Child: 17 years

Maturity Age 65 years subject to age of child should not exceed 25 years

Premium

PPT 3 – 7 years: PPT >=8 years:

Rs 50,000 (Yearly) Rs. 18,000 (Yearly)

Premium modes : Yearly, HY, Quarterly & Monthly

Policy Term

Min: 8 years subject to that the maturity age of child should be 18 years

or more

Max: 25 years less child’s age at entry

Premium Paying

TermAny term from 3 years to 18 years limited to a maximum of policy term

Sum Assured

Min Sum

Assured:

5 X AP

Max Sum Assured:

PPT 3 – 5 years: 10 X AP

PPT 6 – 18 years: Proposer’s Age 18 – 45: 20 X AP

Proposer’s Age 46 – 57: 10 X AP

Top Up

Minimum: Rs 2000 ( X 100 )

Maximum: Cumulative Top Up’s cannot exceed 25% of total basic

premiums paid as on top-up date

Inbuilt Benefits Premium Payor Waiver Benefit and Accidental Death & TPD

How does this Plan works?

D

Life Assured pays the

premium

Year 0 Year 20Year 12Year 5

SA is paid immediately

Future premiums are paid

by SBIL on behalf of the

Life Assured

On Maturity, Fund

Value is payable

either in lump sum

or as per the

settlement option

Year 10

Maturity Benefit

Death Benefit

On Maturity, Fund

Value is payable to

the child either in

lump sum or as per

the settlement option

Life Assured Dies

Settlement Option

Life Assured/Beneficiary may choose to opt for payments in

installments after maturity

2 months prior notice is to be given to the company

Term of

Settlement

Option

Proportion of FV available at the time of each

payment

Year 1 Year 2 Year 3 Year 4 Year 5

2 years ½ 1 - - -

3 years 1/3 ½ 1 - -

4 years ¼ 1/3 ½ 1 -

5 years 1/5 ¼ 1/3 ½ 1

Accidental Death & TPD

In case of Death due to an accident

Death Benefit as mentioned earlier

PLUS

Amount equal to the basic sum assured, subject to a

maximum of Rs. 50 lacs

This is an inbuilt benefit with Unit Plus Child II

In case of TPD due to an accident

10 annual installments will be paid to the life insured

Each installment amounts to 10% of the basic Sum

Assured (subject to a maximum of Rs.50 lacs)

The first payment is due after 6 months of the claim

being accepted by SBIL

In case the LI dies during this period, the remaining

installments will be paid to the beneficiary.

Loyalty Unit Addition

Loyalty Unit Addition is given for in force policies

Loyalty Units will be paid twice during the term of the

policy:

On 10th policy anniversary

At the maturity of the policy

For Policy Term<= 10 years:

Loyalty Addition will occur only at maturity

Policies < 10 years Policies <= 10 years Policies > 10 years

On Maturity

Loyalty Units

= 0.20% x [Avg. FV

during the last 24

policy months] x

[Policy Term]

On Maturity

Loyalty Units

=0.35% x [Avg. FV

during the last 24 policy

months] x [Policy Term]

On 10th Policy Anniversary

Loyalty Units

=0.15% x [Avg. FV during

the last 24 policy months] x

[10]

On Maturity

Loyalty Units

=0.20% x [Avg. FV during

the last 24 policy months]x

[Policy Term]

Loyalty Unit Calculation

Fund Options

FundEquity and Equity

related instrument

Debt and Money

Market Instrument

Risk

Profile

Index Fund Min: 90% Max:100% Min: 0% Max: 10% High

Equity Fund Min: 80% Max:100% Min: NIL Max: 20% High

Equity Optimiser Fund Min: 60% Max: 100% Min: NIL Max: 40% High

Top 300 fund Min: 60% Max:100% Min: 0% Max: 40%High

Growth Fund Min: 40% Max: 90% Min: 10% Max: 60%Medium to

High

Balanced Fund Min: 40% Max: 60% Min: 40% Max: 60% Medium

Bond Fund

Debt:

Min: 60% Max: 100%

Money Market:

Min: Nil Max: 40%

Low to

Medium

Money Market Fund

Debt:

Min: 0% Max: 20%

Money Market:

Min: 80% Max: 100%

Flexibility

Fund Switching

Available at any point of time

Two free switches in a policy year are

allowed.

Additional charged at Rs 100.

Minimum switch amount is Rs 5000

Premium Redirection

Allowed twice in a policy year.

Additional charged at Rs 100/- per

re-direction request

Top Up

Available when there are no unpaid

premiums

Minimum: Rs 2000 (X 100)

Maximum: Cumulative Top Up cannot

exceed 25% of Total basic premium paid as

on Top Up date

Top Ups have a lock in period of 36 months:

Not applicable in last 3 policy years

Partial Withdrawal

Allowed from 6th policy year onwards

Two partial withdrawal allowed in a policy year.

One Free. Additional will be charged at Rs 100

Minimum partial withdrawal: Rs 5000

(multiples of 1000)

Maximum partial withdrawal: 20% of Fund

Value as on withdrawal request date

Maximum of 5 partial withdrawals are allowed in

entire Policy Term

Option 1: Option 2:

Increase / Decrease SAMF to

increase /decrease SA , however

basic premium remains constant.

Increase / Decrease basic regular

premium to increase / decrease

SA. The SAMF remains constant

SA – Sum Assured

SAMF – Sum Assured Multiplying Factor

SA Increase and Decrease possible in Unit Plus II Child Plan through 2

Options:

SA Modification conditions:

• Available from 4th policy anniversary

• Option can be exercised only 3 times during the policy life

• SAMF once decreased, cannot be increased in future

• Impact on the Payor Waiver Benefit: the amount of annualized premium

considered for the benefit is equal to the lower of “basic annualized premium

chosen at inception” AND “new annualized premium selected”.

• Request to be sent 2 months prior to the next policy anniversary

Sum Assured Modification

Premium Mode

Min. increase/decrease in Annual

Regular Premium ( Rs )

Yearly Mode Rs 10,000 ( x 100 )

Half Yearly Rs 5,000 ( x 100 )

Quarterly Rs 2,500 ( x 100 )

Monthly Rs 1,000 ( x 100 )

Premium Modification

Option available at each policy anniversary starting from 4th policy year

Option is exercised maximum of 3 times during the policy term

Premium can be increased without any limit

Minimum decrease in annualized premium is same as mentioned above for

minimum increase in annualized premium.

The total decrease in premium (in the entire policy term) is restricted to 50%

of the original premium and / or the minimum limits provided by the product,

whichever is higher

Unpaid Premium (within first 3 years)

Year 1 Year 2 Year 4

Customer pays

first year

premium

Customer does not pay

2nd year premium

If revival not done within

3 years from FUP ,

Surrender Value will be

paid and policy will

terminate

Revival Period – 3 years

Life Cover, PPWB & Accident Cover lapses immediately

Mortality Charges Discontinue while other charges continue

Year 1 Year 2 Year 3 Year 4

Customer pays

first 3 years premium

Year 6

If policy is not revived,

then either policy is

surrendered OR cover

continues till FV

reaches one AP or

maturity whichever is

earlier

Revival Period – 3 years

Policy goes into revival mode

for 3 years from FUP

Customer Does not

Pay 4th Renewal

Life Cover, PPWB & Accident Cover and accidental cover are maintained

automatically till the end of the revival period

All charges continue to get deducted

Unpaid Premium (after first 3 years)

Surrender Benefit:

Policy will acquire a surrender value only after payment of full

premium in the 1st policy year

Surrender request received

within first 3 policy years

Fund Value is disinvested

Fund Value net of relevant

surrender charges is paid on

the 1st working day of 4th

policy anniversary

Surrender request received

after first 3 policy years

Fund Value net of

surrender charges is paid

immediately

Year Surrender penalty as % of fund

value

1 15%

2 10%

3 7.5%

4 5%

5 5%

6 onwards NIL

Surrender Charges

No surrender penalty will apply if surrender is done after completion of

5th policy years irrespective of the number of years of premium paid

Top Up Allocation Charge is 2% of the top up amount

Premium Allocation Charges

Years/PPTPPT from 8 - 18

yearsPPT 3 - 7 years

1 15% 12.5%

2 4% 3.5%

3 4% 3.5%

4 4% 3.5%

5 4% 3.5%

6th onwards Nil Nil

Fund Management Charges:

Other Charges

Policy Administration Charges

Equals to Rs 60/ month

Equity Fund 1.35%

Money Market Fund 0.25%

Bond Fund 1.00%

Growth Fund 1.35%

Balanced Fund 1.25%

Index Fund 1.25%

Top 300 Fund 1.35%

Equity Optimiser Fund 1.35%

Other Charges

Medical Expense in case of revival/increase of SA

Medical Underwriting would be done as per the

prevailing underwriting norms

Expenses, if any, will be borne by the Life

Assured

Maximum expense to be incurred is Rs 3000

Miscellaneous Charges

Additional amount of Rs 100/- per statement is

charged for issuance of duplicate/additional copy of

yearly fund statement

Thank You

For More Details :

K.Prakash

Insurance Advisor

Sai Services

9160003221

N.Hari Krishna

Agency Manager

9989389716