UTI-Unit Linked Insurance Plan

ULIP is a plan that allows you to save for your family & your future. It primarily attempts to fulfill investment needs of an investor with insurance needs of an insurance seeker. Here savings component takes precedence over insurance cover.

Features & Benefits :
Tax Concession :

• Investment by an individual in the scheme is eligible for deduction from the income under section 80C of the IT Act 1961.
• No deduction at source.

Insurance Cover :

• Life Insurance cover up to 15 lacs
• Life Insurance cover at low cost
• No medical examination for cover
• Personal accident cover up to Rs 50,000

Wealth Creation :

• Equity allocation helps in earning market related return
• Debt Allocation provides stability to the portfolio

Flexibility :

• SIP (Systematic investment plan) Mode of investment
• Flexibility to invest higher than the target amount
• Choice to investor for fixed or declining term cover

Convenience
Cover to continue even in case of non-receipt Convenience of installment

Type of Policies
Fixed Term Cover : It is a type of pure life insurance policy where the life coverage remains the same during the entire term of the policy & is ideal for an investor who prefers a larger insurance cover.

Declining Term Cover : It is a type of pure life insurance policy where the life coverage reduces during the entire term of the policy & is ideal for an investor who needs an insurance cover towards meeting a specific financial problem.

Insurance Coverage (Illustration)
Below table shows how the insurance cover offered works out for two policies

Year of Investment	Amount of Contribution	Declining Term  Insurance cover	Fixed Term Insurance Cover
1	Rs. 10,000/-	Rs. 90,000/-	Rs. 1,00,000/-
2	Rs. 10,000/	Rs. 80,000/	Rs. 1,00,000/-
3	Rs. 10,000/	Rs. 70,000/	Rs. 1,00,000/-
4	Rs. 10,000/	Rs. 60,000/	Rs. 1,00,000/-
5	Rs. 10,000/	Rs. 50,000/	Rs. 1,00,000/-

Advantages	UTI ULIP	Insurance ULIP
Entry Load	2.25%	12-35% *
Personal Accident Cover	Up to Rs. 50,000/-	Nil
Disclosure norms	Stricter disclosure norms lead to greater transparency for investors	Lesser transparency in disclosures
Tracking performance	Performance can be easily compared against the benchmark as well as the peer-group	Performance can not be tracked easily due to lack of benchmark
Track record	over 36 years	No substantial Track record

Criteria	Reliance SIP + Insure	Birla Sunlife Century SIP	HSBC SIP Plus	Kotak star Kid	Advantage UTI ULIP Sip
Eligible investors	Aged b/w 20-46 yrs	Aged b/w 18-46 yrs	Aged b/w 20-50 yrs	Nominee of child within 45yrs of age	• Age 12-48 ½ yrs for 10 yrs plan • Age 12-42 ½ yrs for 15 yrs plan
Min Investment	Rs. 2000/- per month	Rs. 1000/- per month	Rs. 2000/- per month	Rs. 1000/- per month	Rs. 500/- per month
Insurance Cover	Up to Rs. 10 lakhs	• Up to Rs. 20 lakhs • Year1: 10 times • Year 2: 50 times • Year 3: 100 times	-  Critical Illness, Accidental Death, Permanent disability - Cover terminates if claim paid once - up to Rs. 10 lakhs	- up to Rs 1 crore - for cover more than Rs. 10 lakhs, medical examination/sign a good health declaration - Cover declines as the age progresses.	- upto Rs. 15 lacs - fixed as well as declining term cover is provided - Accidental cover up to Rs. 50,000/- - Bonus on maturity: 10 yrs plan: 5% 15 yrs plan: 7.5 %

UTI MF itself settles claims for UTI-ULIP while for others; claim has to be taken up by the investor with the respective insurance companies.

UTI ULIP Monthly SIP Plan
SIP

• It starts for as low an investment as Rs 500/- per month
• The insurance cover given to the investor is up to 180 times the SIP investment per month

Below calculation shows that a monthly installment of only Rs.500/- can get an investor a life cover of 180 times the SIP amount for the 15 year plan.

Condition	Cover up to 180 times the SIP amount
Min monthly SIP	Rs 500/-
Max Period	15 yrs
Target amount	90,000
Max Ins cover= Target amount	90,000
Cover/ SIP monthly	180

Features	SIP (monthly) under UTI ULIP
Minimum SIP installment	Rs.500/- and in multiples of Rs.100/-
Minimum target amount under the 10 year Plan	Rs.60,000/-
Minimum target amount under the 15 year Plan	Rs.90,000/-
Eligibility	a. Under 10 year Plan: Between the age group 12 years - 48 ½ years b. Under 15 year Plan: Between the age group 12 years - 42 ½ years
Entry Load*	2.25%
Exit Load	2% for the premature withdrawal Entry Load*
Payment Options	ECS, Direct Debits & PDCs

• SIP Mandate to be given at least 1 month before the first SIP installment date.
• Period of SIP shall be the plan period chosen by the investor i.e. 10 years or 15 years.
• Investors will be considered to be under the annual mode of contribution & annual payment of premium will be applicable.
• The premium payable for a year will be deducted from the first SIP Installment received that year.
• Post Dated Cheques are needed for a period of at least 2 years at a time.
• Existing Investor can opt for SIP only for additional target amounts

Investment Objective: To provide return through growth in the NAV or through dividend distribution and reinvestment there of. - Asset allocation:

• Debt securities - Minimum 60%, Maximum 100%
• Equity & Equity Linked instruments - Minimum 0%, Maximum 40%
• Money Market instruments - No fixed allocation
• Plans available: 10 yrs / 15 yrs
• Minimum Target Amount: Rs 15,000/-
• Maximum Target Amount: Rs 15 Lakhs w.e.f. 07.07.08
• Eligible investors: Anyone between 12 and 55 1/2 can invest*
• Maturity bonus: 5% & 7.5% on 10 yr & 15 yr plans respectively
• Liquidity: Premature withdrawal in case of an emergency and partial repurchase
• Load: Entry Load: 2.25% and Exit Load:2% in case of premature withdrawal
• Benchmark: CRISIL Debt Hybrid (60:40)