What is SUD Life Star TULIP Plan?

The Sum Assured will be calculated by multiplying your annualized premium   with the multiplier that you have selected. 

If the life assured passes away while the policy is active, the death benefit will be paid. The Death Benefit will be the highest of Sum Assured (minus any partial withdrawals made in the past two years immediately preceding the death) or the fund value as on the date of intimation of death of the Life Assured*, or 105% of the total premiums paid. 

The nominee can opt to receive the death benefit in instalments through the Settlement Option or in a lump sum.

*Charges (if any) other than fund management charges recovered subsequent to the date of death will be added back to the Fund Value.

When selecting how to invest your premium, you have two strategies to choose from: Self-Managed Investment Strategy and Age-Based Investment Strategy. Here’s a breakdown of each.

This strategy gives you the flexibility to choose from eleven different funds, allowing you to invest according to your preferred risk level and investment goals. You also have the freedom to change your fund selection whenever you want.

With this strategy, you first select whether you want an aggressive or conservative investment approach. Based on your choice, your investments are distributed between two funds: Blue Chip Equity Fund and Gilt Fund. As you move from one age band to another, the funds are redistributed based on attained age.  Annual rebalancing: On annual basis, units shall be rebalanced as necessary to achieve the above proportions of the Fund Value in the Blue Chip Equity Fund and Gilt Fund. The rebalancing of units shall be done on the last day of each Policy year.

On annual basis, units shall be rebalanced as necessary to achieve the above proportions of the fund value in the Blue-Chip Equity Fund and Glit Fund. The rebalancing of units shall be done on the last day of each policy year.

Based on the plan option selected, if you are diagnosed with a minor CI condition, 25% of the sum insured will be paid in a lump sum. The claim for minor CI condition can be claimed twice. The premiums will be waived for 3 policy year. In case the outstanding policy term is less than 3 years, then premium for outstanding policy term will be waived. If you are diagnosed with a major CI condition, the sum insured will be paid in a lump sum after deducting the payout already made for minor CI claims. As the policy nears its maturity dates, it needs to be ensured that short term market volatility does not affect the accumulated savings. To achieve this, the investments from Blue Chip Equity Fund will be systematically transferred to Glit Fund in five instalments in the last five policy anniversary before maturity of the policy. The premium, after deducting applicable charges, is invested in the funds based on the investment strategy you select. During the policy term, you have the option to switch between funds or make partial withdrawals if required. Wealth Booster will be added to the fund by way of creation of extra units every 5th Policy Year starting from the end of 20th Policy Year. Each Wealth Booster shall be equal to 1.5% of Average Fund Value of the last 24 months. If the life insured  survives until the policy matures, the fund value calculated at prevailing NAV along with return of mortality charges is paid out as the maturity benefit.

A man aged 35 years buys the SUD Life STAR TULIP Insurance plan for a period of 25 years. The policy details are as follows: Annualized premium- ₹1 lakh, Sum assured on death - ₹30 lakhs, Sum assured multiplier – 30X, Premium Payment term – 7 years, Premium payment frequency – Annual, Investment Strategy – Self-Managed and the chosen fund is Blue Chip Equity Fund. The life assured passes away in the 6^th policy year. In this case, the beneficiary will receive the sum assured, which is higher than the fund value, assuming annual return of 8%. Thus, a death benefit of ₹30 lakhs will be paid. However, if the plan matures, the fund value will be paid out. For an assumed return of 4% per annum, the fund value would be ₹9,68,925, while at 8% the fund value it will be ₹22,91,627.