Who this cover is for
Investors seeking disciplined market participation with built-in life protection and appetite for equity volatility.
Coverage scope
Policy scope is governed by insurer terms, endorsements, and policy schedules. Common provisions include:
Market-Linked Growth
Premiums invested across diversified equity, debt, and hybrid funds managed by institutional fund managers.
Unlimited Fund Switching
Shift accumulated units between equity and debt portfolios according to macroeconomic cycles without capital gains tax.
Dual Benefit (Cover + NAV)
Nominees receive the higher of sum assured or accumulated fund value upon unfortunate demise.
Mortality Charge Refund Options
Select modern products refund total mortality deductions back to the fund upon maturity.
Key limitations and exclusions
Every insurance contract outlines specific conditions, waiting periods, and deductibles to review before policy inception:
Market Risk Borne by Policyholder
Investment risk in unit-linked portfolios is entirely borne by the investor; returns are not guaranteed.
Mandatory 5-Year Lock-in
IRDAI mandates a strict 5-year lock-in period before any partial withdrawals or surrenders are permissible.
Tax Thresholds on High Premiums
Under current tax laws, returns on ULIPs with annual aggregate premiums exceeding ₹2.5 Lakhs are subject to capital gains taxation.
How Sanghvi Consultancy assists you
With 45+ years of insurance experience in Navrangpura, Ahmedabad, Sanghvi Consultancy provides personal policy guidance:
- Detailed fee breakdown (fund management, administration, and mortality drag).
- Benchmarking insurer fund performance against relevant broad market indices (Nifty 50, Crisil Composite).
- Recommending asset allocation strategies tailored to your investment horizon.
Frequently asked questions
What charges are deducted inside a ULIP?
Charges include Premium Allocation Charge (at entry), Policy Administration Charge, Fund Management Charge (capped by IRDAI at 1.35% p.a.), and Mortality Charge for life cover.
Can I withdraw money from my ULIP before 5 years?
No. Withdrawals or surrenders are legally blocked for the first 5 years under IRDAI regulations. Surrendered funds move to a Discontinued Policy Fund yielding a minimum statutory rate until year 5.
Discuss your policy with an advisor.
Get clear answers on policy terms, insurer waiting periods, and claim support without aggressive sales calls.