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Underwriting expense charges:
These charges are deducted monthly only in the
first year by liquidating units of the funds that
you have invested in, and are based on the age
of the life to be insured.
They are calculated as follows:
| Age
of life insured (years) |
Charges
before the cut off sum assured |
Charges
after the cut-off sum assured |
| 18 to
35 |
0.2 |
0.10 |
 |
| 36 to
45 |
0.3 |
0.14 |
|
| 46 to
59 |
0.4 |
0.18 |
|
| 60 above |
0.6 |
0.26 |
|
Administration Expenses:
In the first year, the administration expense
would be 7% for annual premium upto Rs.20,000.
For higher premiums, the expense would be 3% of
the annual premium amount.
In subsequent years, the administration expense
would be 4% for annual premium upto Rs.20,000.
For higher premiums, the expense would be 2% of
the annual premium amount.
Mortality charges:
The annual mortality charge is equal to the Basic
Sum Assured less premiums due but not paid less
the selling value of all the units held by you,
multiplied by the mortality charge for the life
insured’s current age indicated in the following
table. These charges may be changed in future,
but only if a change takes place for all similar
policies.
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