IN LINE with the recent spate of insurance plan launches, Max New York Life has introduced a new Ulip (unit-linked insurance plan) – Flexi Fortune – in the market.
Premium Paying Term:
The limitedpay plan offers three choices in terms of premium paying tenure – one can opt for either a 5-pay-10-year term, 10-pay-15-year-term or 15-pay-20-year term. In simple words, what this means is that you can choose to pay premiums for five years while the policy continues till 10 years (in the first option).
Protection Cover:
The sum assured (or the protection cover) will, depending on your choice and age, range from 10 to 30 times your annual premium. There is also a provision to increase the sum assured by 10% every year, but additional mortality charges as applicable will be levied.
Systematic Transfer Plan:
Under this option, which is available only to those who choose the annual payment mode, your annual premium will, after deduction of premium allocation charges, be initially directed to the Secure Plus Fund. Subsequently, on each monthly anniversary, 1/12th of the initial units purchased (in the Secure Fund) will be switched to the Growth Super Fund. However, this shifting will not be considered as a switch.
Charges:
The premium allocation charge works out to 5% in the first year and 4% in the subsequent years. Policy administration charges in the first amount to . 960 for a 10-year policy and . 600 for policies with tenures of 15 and 20 years. Second year onwards, this charge will go up by 5% per annum, compounded.
Other Features:
The policy also offers two riders, namely personal accident and dreaded disease benefits. Minimum age of entry for the policyholder under this Ulip is seven years, while the maximum is 50 years. Under the 5-pay-10-yearterm option, the minimum premium payable is . 50,000. In case of the 10-pay and 15-pay variants, the minimum premium under the annual mode is . 24,000. The policy places an upper limit of . 1 lakh for all premium payment modes.
UPSIDE:
The feature where the sum assured goes up every year and systematic transfer plan that ensures disciplined investing while reducing the risks by spreading the investment over a period of year.
DOWNSIDE:
High policy administration charges - 600-960 in the first year, depending on the premium paying term. More importantly, this fee will increase at the rate of 5% every year.
