Future Generali Life
has recently launched a new non participating individual limited premium
guaranteed money back plan. The plan offers guaranteed maturity benefit of 70% and
death benefit of 120% of sum assured. One of the
features is the limited premium paying term. After which, at the end of every
year, policy holder will receive guaranteed cash back (money back) of 10% of
your sum assured for the rest of the policy term i.e. 5 years. Plan
offers only two terms i.e. 16 years and 18 years and policy holder has to pay premiums
for 10 years or 12 years depending on term selected. In simple term you can
choose a term of 16 years in which premium paying term is 10 years or else you
can also choose a term of 18 years in which premium paying term is 12 years.
Minimum entry
age in the plan is 7 years and maximum is 55 years. Minimum age at maturity is 23
years and maximum it is 73 years. Minimum premium payable is Rs. 10,000
excluding applicable taxes and there is no upper limit on the maximum premium.
The plan also gives the option of choosing four different options for payment
i.e. yearly, half yearly, quarterly and monthly. The policy holder has to pay
higher premium in case he/she chooses option other than yearly option.
The
points to know before investing in the plan. The return is very poor as
illustrated below and further service tax of 3.09% in first year and 1.545%
thereafter will further reduce your return. The same can be understood with the
help of following example. If a 30 year healthy male takes this plan for sum
assured of Rs. 2lakhs, then his annual premium will be Rs. 17,892/- in the
first year and Rs.17,624/- second year onwards . He will get guaranteed 10% of
the sum assured i.e. Rs. 20,000/- after 11th year till 15th
Year and additional 70% of the sum assured i.e. Rs. 1,40,000/- on maturity. He
has to pay premium for 10 years only. The IRR is of the plan is only 3.34%,
which is calculated with the help of excel and using IRR formula. The detail is
as under. The premium is taken inclusive of service tax.
|
Year
|
Premium
|
|
1
|
-17892
|
|
2
|
-17624
|
|
3
|
-17624
|
|
4
|
-17624
|
|
5
|
-17624
|
|
6
|
-17624
|
|
7
|
-17624
|
|
8
|
-17624
|
|
9
|
-17624
|
|
10
|
-17624
|
|
11
|
20000
|
|
12
|
20000
|
|
13
|
20000
|
|
14
|
20000
|
|
15
|
20000
|
|
16
|
140000
|
|
IRR
|
3.34%
|
