ULIP with more features

The Unit Trust of India (UTI) has added various new features to its Unit-Linked Insurance Policy (ULIP) scheme.

The renovated ULIP would now be an open-ended tax saving cum insurance plan. Minor children above the age of 12 are now eligible for insurance cover and can join the plan, subject to the condition that the minor has his/her own source of regular and independent income. The scheme would also have a personal accident insurance cover of Rs 50,000. The minimum and maximum investment limit, under the plan is Rs 15,000 and Rs 75,000, respectively.

Payment can be made either, annually or semi-annually. A further option to pay renewal contribution every month through pay roll may be introduced in association with employers, subject to certain terms. The 10- and 15-year plans carry a bonus of 5 per cent and 7.5 per cent, respectively, payable on maturity. Investors continuing in the plan after the maturity will get a post-maturity bonus of 0.5 per cent of the target amount for each completed year after the maturity date, provided the investor has not withdrawn any amount earlier. -- BL Research Bureau