UNIT LINKED INSURANCE PLANS

Investment planning may not seem important in your 20s. However, with time, it
becomes an essential part of your life as you begin to realize the importance of
matching your finances with life objectives.
With an investment plan, you can easily set out clear future goals for yourself and
your loved ones. After that, the plan will help you create a combination of long-
term investment options and maximize your existing finances to accumulate
wealth.
Among the popular wealth-creation instruments available today, Unit Linked
Insurance Plans (ULIPs) offer the benefits of both life cover and investments.
Moreover, ULIPs offer investment opportunities into a variety of market-linked
investment instruments, thus making them an exciting investment planning
proposition for the long-term.
About ULIP Plans
Unit Linked Insurance Plans or ULIPs are insurance products that combine the
benefits of saving and protection in a single instrument. While the plan offers you
risk coverage, it also introduces you to the various investment opportunities in the
liquid investments, fixed income securities and equities.
Overall, ULIPs can be classified as a comprehensive investment and protection
plan that allow you to invest in a variety of market-linked fund options. At the
same time, you receive the benefit of life cover throughout the tenure of the policy.
Therefore, ULIPs provide you with the opportunity to invest in different funds
which can be chosen depending upon your risk appetite.
Process of ULIP Plans
You periodically pay the premium for the ULIP plan. Subsequently, the insurer
deducts the charges and invests the remaining amount into different funds
depending on your choice. Primarily, the money is invested in either debt, equity
or balanced funds.
The remaining amount (or allocated premium) is utilised to purchase units from
different fund. The number of ‘Units’ allocated under each fund depends upon the
premium allocated and the NAV (Net Asset Value) of that fund. NAV of a fund is
the price of each unit in that fund. The allocation of premium in different funds is
done, by fund managers in proportions provided by you.
On maturity, you receive the accumulated fund value. The fund value for a policy
is the total value of units across different segregated funds opted in that policy. In
case of an unfortunate event (death), your nominee or beneficiary receives the
higher of
i) Fund value
ii) Sum assured or
iii) 105% of premiums paid till date of death (the amount received as death benefit
also depends on whether your policy is a Type 1 or Type 2.

Benefits of ULIPs Plan

Flexibility
With ULIPs, investors get the flexibility to:
- Switch between funds that align with their financial needs;
- Make partial withdrawals (these are subject to specific terms and conditions)
Transparent Structure
ULIPs allow investors to keep track of their investment portfolio. You are also
regularly updated with the changes in the invested percentage of premium and the
levied charges. Further, you are also informed about the number of units that you
hold and their value.
Ability to Choose Between Various Funds
With a Unit Linked Insurance Plan, you can decide between various fund options
and select the one that aligns with your risk appetite. Therefore, you can choose to
invest in equity if you have a high-risk tolerance. Whereas, if you are looking to
take less risk, you can invest in debt or a hybrid fund.
Rider Options for Additional Coverage
ULIPs are one of the most proficient market-linked investment instruments, They
also allow you to opt for additional life cover for your loved ones through rider
options such as accidental death rider and critical illness rider.
Dual Benefit
Unit Linked Insurance Plans or ULIPs are one of a kind life insurance plans that
offer investment benefits while providing life cover throughout the policy period.
Systematic Savings
Most of us postpone saving up money for our future needs such as child's college
education, mortgage payments or even retirement funds. However, we need to be
proactive about how we spend our money today and save it for the future. Buying a
ULIP will help ensure that you save small yet systematically for all your future
needs.

Tax Benefits
ULIP offers tax benefits under section 80c of the Income Tax Act, 1961 to an
individual for the premiums paid subject to the conditions/limits specified therein.
The death and maturity benefit received from a ULIP is exempted under section 10
(10D) of the Income Tax Act, 1961, subject to the conditions specified therein.
Where the amount paid to the policyholder is not exempt under the provisions of
section 10(10D), the said amount will be subject to tax deduction at source by
provisions of section 194DA of the Act.
Choice of Funds
ULIP plans offer a variety of market-linked investment funds to suit your financial
needs and risk appetite. Therefore, you get an opportunity to invest in funds
including equity, fixed income security and balanced funds.
ULIP Fund Options with Future Generali
Future Generali offers a variety of ULIP fund options to suit risk appetite.
Investor can choose to invest in any of the following six funds. In turn, the
premium and, net of applicable charges, shall be invested in the funds of your
choice. These funds are segregated into fixed income securities, liquid and equity
investments, in line with their risk profile.

Fund Name Investment Investment Objectives Portfolio Risk

Strategy Allocation Profile

Future Income Fund Investments in To provide stable returns by - Money Low Risk
(SFIN: assets of low risk investing in assets of Market
ULIF002180708 comparatively low to moderate Instruments:
FUTUINCOME133) level of risk. The interest 0%-50%
credited will be a major - Fixed
component of the fund’s return. Income
The fund will invest primarily in investments:
fixed interest securities, such as 50%-100%
Government Securities of - Equity
medium to long duration, Instruments:
Corporate Bonds and Money NIL
Market Instruments for liquidity.

Future Balance Fund The balance of To provide a stable return from - Money Moderate
(SFIN: high return and investing in both Fixed Interest Market Risk
ULIF003180708 risk balanced by Securities as well as in Equities Instruments:
FUTBALANCE133) stability provided to balance the stability of return 0%-30%
 by fixed interest through the former and growth in - Fixed
instruments capital value through the latter. Income
This Fund will also invest in Instruments:
Money Market Instruments to 40%-70%
provide liquidity. - Equity
Instruments:
30%-60%

Future Maximize Fund Investment in a To provide potentially high - Money High

(SFIN: ULIF00418 spread of equities. returns to Unit holders by Market Risk
0708 FUMAXI Diversification by investing primarily in equities to Instruments:
MIZE133) sector, industry target growth in capital value of 0%-40%
and risk assets. This Fund will also invest - Fixed
to a certain extent in Income
Government Securities, Instruments:
Corporate Bonds and Money 10%-50%
Market Instruments. - Equity
Instruments:
50%-90%

Future Apex Fund Investment in a To provide potentially high - Money High

(SFIN: spread of equities. returns to Unit holders by Market Risk
ULIF010231209 Diversification by investing primarily in equities to Instruments:
FTUREAPEX133) sector, industry target growth in capital value of 0%-50%
and risk. assets. The Fund also will invest - Fixed
to a particular extent in Income
Government Securities, Instruments:
Corporate Bonds and Money 0%-40%
Market Instruments. - Equity
Instruments:
50%-100%

Future Opportunity Investment in a To generate capital appreciation - Money High

Fund (SFIN: spread of equities. and provide long-term growth Market Risk
ULIF012090910 Diversification by opportunities by investing in a Instruments:
FUTOPPORT U133) sector, industry portfolio predominately of 0%-20%
and risk. Equity and Equity related - Fixed
Instruments generally in S&P Income
CNX Nifty stocks and to Instruments:
generate consistent returns by 0%-15%
investing in Debt and Money - Equity
Market Instruments. Instruments:
80%-100%

Future Secure Fund Provide stable To generate capital appreciation 100% in Low Risk
(SFIN: returns by and provide long-term growth Money
ULIF001180708 investing in opportunities by investing in a Market, Cash
FUTUSECURE133) comparatively low- portfolio predominately of and Short-
risk assets. Money Market, Cash and Short- Term Debt
Term Debt