February 19, 2009 | The Economic Times
Tata AIG unveils Ulip with returns based on highest NAV
Tata AIG Life Insurance Company Ltd on Wednesday announced the launch of Tata AIG Life InvestAssure Apex, a unit-linked insurance plan that enables the policyholder to enjoy returns based on the highest NAV declared over 100 months.
According to the company, this is achieved through a feature called the ‘Guaranteed Maturity Unit Price’ (GMUP), which captures the highest unit price of the Apex Return Lock-in Fund recorded on the one hundred (100) reset dates. This means that on predecided date in each calendar month, the NAV of the Apex Return Lock-in Fund will be recorded for 100 calendar months and the highest NAV among the 100 NAVs will be guaranteed to the investor if the policy remains in force till maturity.
This limited offer plan gives the customer the convenience of paying for three years for a 10-year plan and flexibility to review premium payable in 2nd and 3rd year subject to minimum premium. The plan also allows partial withdrawals after 3 years.
Speaking at the launch, Trevor Bull, managing director, Tata AIG Life Insurance Company, said, “Tata AIG Life InvestAssure Apex simply guarantees the upside for the customer. By locking in the highest declared NAV, the Apex Lock-in Fund provides the opportunity to lock your returns at the highest returns that the market provides over the 100 month period. This flexibility encourages participation and the guarantee will provide customers the confidence in this volatile market.”
Tata AIG Life InvestAssure Apex works with the following funds:
Apex Investment Fund – The investment objective for Apex Investment Fund is to provide capital protection with a high level of safety and liquidity through judicious investment in high quality short-term debt.
The Apex Return Lock-in Fund – The investment objective for Apex Return Lock-in Fund is to use the participation in an actively managed well diversified equity portfolio of large cap companies to generate capital appreciation and use high credit quality debt instruments to lock-in that capital appreciation.
The product also offers customers the option to choose the sum assured from a minimum of 5 times the annualized premium to a maximum of 60 times.