We would like to inform you that now you have an option to choose a "Settlement Option",
wherein the maturity benefits would be payable in installments over a fixed period (during this period the balance amount
remains invested in the funds as per the fund allocation as on date of maturity). It is not mandatory and is purely your
choice/decision whether to opt for a settlement option or take the maturity in lump sum.
Terms & Conditions:
i. This is a facility through which you can let your fund value remain invested in your policy account and take regular
payouts at specified intervals. This helps your fund to be invested as per the fund allocation as on date of maturity.
ii. You are required to choose the number of years, over which you want to receive the payouts (Settlement Period- 2, 3, 4 or 5 years)
and the frequency of payout which can be yearly, halfyearly, quarterly or monthly. The term of the settlement period and
frequency once chosen, cannot be changed during the settlement period.
iii. The first payout will be payable on the Date of Maturity and further payouts will be made on the first day of
completion of each year, half-year, quarter or month from the Date of Maturity depending on the chosen payout frequency.
iv. The available number of units under the Policy shall be divided by the residual number of installments to arrive
at a number of units for each installment which will then be multiplied by the net asset value on the date of payment.
Each further installment will be as per the Fund Value available on date of payout divided by the number of outstanding installments.
v. The last installment would be the remaining fund value.
vi. During the Settlement Period
a. Your Fund Value will remain invested in the funds existing as on the Date of Maturity and the Fund value is subject to market risks.
It may go up or down basis the market performance of your fund portfolio".
b. The investment risk will continue to be borne by you and the market risk would continue to impact your fund value.
c. There is NO life insurance cover and NO Investment Guarantee applicable after the
Date of Maturity.
d. In case of unfortunate death of the Policyholder, the Fund Value on the date of intimation of death would be payable to the nominee.
The nomination remains valid till the last instalment is paid and the nominee cannot continue with settlement period option.
e. The installments will be payable through EFT (Electronic Fund Transfer) or any other electronic mode to the bank account details provided in our records.
f. For payouts, appropriate number of units from each fund will be redeemed based on the percentage of that fund to the total Fund
Value as on the date of payout.
g. You have the option to take the balance Fund Value in the Policy account at any point of time.
h. No charges are applicable during this settlement period, except for Fund Management Charges (FMC) as per the funds invested in.
i. Partial withdrawals are not allowed during this period (only complete withdrawal is allowed).
j. Switching between funds during the Settlement period is not allowed.