POSTED BY September 15, 2012 3:01 am COMMENTS (11)ON
Dear Manish Sir,
Recently my dad purchased ICICI Pru life stage wealth series II with 5 yr PPT of 1 lac. p.a with policy term of 10yrs .following are the funds where he can invest :-
1. Opportunities Fund
2. Multi Cap Growth Fund
3. Bluechip Fund
4. Multi Cap Balanced Fund
5. Income Fund
6. Money Market Fund
7. Return Guarantee Fund
8. Dynamic P/E fund
Out of that my first purchase is of money market fund and income fund 50K each . As in the policy term and condition it has been mentioned that following charges
1).Premium allocation charges 1st year – 2% and 2nd yr onwards 0% .
2).Policy administration charges (these charges is % of the annual premium will be charged every month for the term of policy) 1yr to premium payment term – 0.47%
PPT to maturity – 0.10%
3).Fund Management charges (these will be applicable and wiil be adjusted from the NAV on a daily basis )
0.75%p.a for money market fund
1.25%p.a for Return Guaranteed fund (additional 0.25% for this fund)
1.35% p.a for rest of fund (6 fund)
3).Mortality Charges These will be deducted on monthly basis on the sum assured .
These are my following Question:-
1).These fund management charges are not cleared to me . Can u plz explain by showing some calculations.
2)/Mortality charges will be deducted monthly . I approached regarding this to agent he told me that it will be just once for whole period of policy . As per IRDA rules we can get 10times of annual premium as sum assured by giving just 1 time mortality charges . If I want to increase my sum assured then these charges will apply . I want to confirm about that ,is the agent saying right ?
Lastly my dad has average knowledge of share market shall he continue in same , As this policy is in free look period ,shall I continue or cancel it