IDBI Federal Wealthsurance Premier ULIP is for high net-worth individuals (HNIs). The minimum premium is Rs5 lakh, but the charges are lower than other ULIPs
IDBI Federal Wealthsurance Premier ULIP is a single premium ULIP, with a wide array of investment funds and protection benefits bundled together on a low-charge structure. The single-premium ULIP serves more as an investment than an insurance cover. It is easier to sell for agents and the one-time payment is convenient for customers. The charges on Wealthsurance Premier is lower than other single-premium ULIPs, but the hefty premium the customer is required to pay makes up for the lower charges.
The minimum premium is Rs5 lakh. The premium allocation charge (PAC) is 0.5%, while the policy administration charge is calculated at 0.05% per month or 0.6% per annum on premiums between Rs5 lakh to Rs10 lakh, and 0.02% per month or 0.24% per annum on premiums above Rs10 lakh to Rs25 lakh. There is no PAC and policy administration charge for premiums above Rs25 lakh. The maximum fund management charge is 1.35% (for all ULIPs), which is in fact lower than any mutual fund expense ratio. The minimum policy term is 5 years and the maximum is 75 years, less the age of entry. It is a long duration policy term indeed.
The product offers flexibility of investment according to an individual's risk-return profile. There is a choice of assured returns, variable returns linked to market performance and returns linked to market, but with the protection of capital. The market-linked product has self-managed or expert-managed options. There are no charges for switches.
But mortality charges are high. SBI Life has one of the lowest mortality charges for ULIPs. The mortality charges for Wealthsurance Premier ULIP are more than similar ULIPs by LIC, ICICI, ING Vyasa and Max New York Life, but it is similar to Bajaj Allianz iGain III. It is also lower than such new ULIPs like Birla Sunlife Foresight.
The minimum sum assured depends upon the age at entry. If the person is younger than 45, the minimum sum insured is 1.25 times the single premium amount. If the person is 45 or older, the minimum sum insured is 1.1 times the single premium amount. There is no maximum limit on the sum insured. The limit, if any, is determined by underwriting.
The plan has optional insurance benefits like comprehensive health and accident cover. It also has major diseases and serious illness benefits, with payment of lump-sum cash as well as hospital cash benefit through a daily cash allowance. The accident benefit has an accidental death and disablement benefit.
Upon the unfortunate demise of the person whose life is insured, prior to maturity, the insurer shall pay the nominee the basic sum assured, or the fund value as of the date of intimation of death. The death benefit will be at least 105% of total premiums paid.
Wealthsurance Premier can insure HNI's wealth plan against death, 13 accidental injuries, 17 major diseases, and serious illnesses requiring hospitalisation or disablement which prevents engaging in an income-earning activity.
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Reckitt Benckiser Plc will set up a new, wholly-owned subsidiary investing company with a 100% foreign equity to make a downstream investment to fully acquire Paras Pharma
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved fast moving consumer goods (FMCG) giant Reckitt Benckiser's plan to invest around Rs3,300 crore via a subsidiary to fund its acquisition of Paras Pharmaceuticals, reports PTI.
A meeting of the CCEA held here cleared the proposal of Reckitt Benckiser Plc to set up a new, wholly-owned subsidiary investing company with a 100% foreign equity to make a downstream investment to fully acquire Paras Pharma.
"The approval is expected to result in foreign direct investment (FDI) amounting to Rs3,300 crore approximately in the wholly-owned subsidiary of Reckitt Benckiser Plc UK," an official statement said
In December last year, Reckitt Benckiser had agreed to fully acquire Ahmedabad-based Paras Pharmaceuticals for Rs3,260 crore.
The shares of the new subsidiary will be 100% subscribed by Reckitt Benckiser (Singapore) (entire equity except 10 shares) and R&C Nominees (10 shares), it added.
Paras Pharma is a privately-owned firm with a portfolio of leading over-the-counter health and personal care brands including, Moov, D'Cold, Dermicool, Krack, Itch Guard and Ring Guard.
It also has a personal care business led by Set Wet, a leading hair gel and deodorant brand.
Reckitt Benckiser had acquired the firm as to expand its business in India.
The Hero Group had earlier stated that the two private equity firms, BC India Investors II, part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up 29% stake in HIPL for Rs3,650 crore
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved a proposal for Rs4,500 crore foreign direct investment (FDI) in Hero Investments Pvt Ltd (HIPL), one of the main shareholders in the country's largest two-wheeler maker-Hero Honda-by two private equity firms, reports PTI.
"The CCEA today approved the proposal of Hero Investments Pvt Ltd to receive FDI amounting to Rs4,500 crore approximately in the investing company from Bain Capital and Lathe Investment Pvt Ltd," an official statement said.
The proposal was recommended to the CCEA by the Foreign Investment Promotion Board (FIPB) in February 2011.
The Hero Group had earlier stated that the two private equity firms, BC India Investors II, part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up 29% stake in HIPL for Rs3,650 crore.
HIPL is one of the main shareholders in the country's largest two-wheeler maker, Hero Honda. It held a 17.33% stake in the company as of 31 December 2010.
In December last year, the promoters of HIPL, the BM Munjal family, had agreed to buyout the entire 26% stake of Japan's Honda in Hero Honda for Rs3,841.83 crore.
After buying out Honda from Hero Honda, HIPL will own 43.33% of India's largest two-wheeler maker.
The Hero Group had earlier this month signed definitive agreements with the PE firms-BC India Private Investors II, an affiliate of Bain Capital LLC, and Lathe Investment Pvt Ltd, a wholly-owned subsidiary of state-run Singapore Investment Corporation (Ventures) Pvt Ltd-for the stake sale in HIPL.
The group said the funds raised from the PE firms will be used to retire a significant portion of the debt that was raised by HIPL recently for financing the acquisition of Honda Motor Company's stake in Hero Honda.