Consumer Voice - - For the child's benefit -

None of the poli­cies of­fer life cover to the ben­e­fi­ciary (child) for whose ben­e­fit the poli­cies are ap­par­ently made. Many poli­cies con­tain a list of charges (given be­low) that are de­ducted from the pre­mium, thereby par­tially re­duc­ing the growth of the fund pro­por­tion­ately.

Pre­mium al­lo­ca­tion charge

Fund man­age­ment charge

Pol­icy ad­min­is­tra­tion charge

Mor­tal­ity charge

Sur­ren­der/dis­con­tin­u­ance charge

Switch charge

Pre­mium re­di­rect­ion charge

Par­tial with­drawal charge Wher­ever ‘sur­ren­der value’ is of­fered af­ter five years, poli­cies of­fer par­tial with­drawals but no loans are al­lowed.

Where sur­ren­der value is avail­able af­ter three years, par­tial with­drawals are not al­lowed but loans are al­lowed. Death ben­e­fit to the pro­poser is given up to 105 per cent of the ba­sic sum as­sured in most of the poli­cies.

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