The Fund unit account is built up by creating units out of major portion of the premiums received. A small portion of the premiums is deducted towards certain charges.

The value of the units allotted to the Fund unit account may increase/decrease depending on the investment return on assets representing the Fund.

The number of units allotted to the policyholder's Fund unit account will decrease if and when some units are cancelled to recover certain charges.

After deduction of a level Mortality, Accidental cover and Expense Charges, the net premium will be converted into a specific number of Fund units, upto 3 decimal places, on the basis of the last quoted offer price before the payment of the premium. For the initial three months from the launch of the plan, the offer price will be fixed at Rs.10 per unit.

In case of single premium plan, level Mortality, Accidental Cover and Expense Charges will be recovered from the single premium. For subsequent years, the level charges will be recovered by canceling the units of equivalent value at the beginning of each policy year. Premium paid by the policyholder will buy units at the current Offer price and units will be cashed at the current bid price of the units.

For all transactions taking place on a particular day, the bid/offer price current at that time ie the price arrived at, at the last valuation will apply.

The Net Asset Value (NAV) of the Fund will be computed every week by dividing the net assets of the fund by the number of units outstanding on the valuation day. This will be the Net Fund Unit Value (NFUV) Offer price. The Bid price will be 5% lower than the offer price.

The dates of payment of renewal premiums depend upon the date of commencement and mode of payment of premium. The premium can be paid within 30 days from due date of payment.Additional premium, irrespective of the mode of premium payment may be paid by the policyholder at any time during the term of the plan.

The amount may vary from one installment to another. However, total of such additional premiums will not exceed the sum assured under the plan. This additional premium will not increase any risk coverage under the plan.

Mortality Charge: Age specific cost of mortality is deducted from the premium charged on on level basis throughout the original term of the plan. In case of single premium plan, level mortality charge for the first year will be recovered from the Single premium. For subsequent years, the level mortality charge will be recovered by canceling units of equivalent value at the beginning of each year.

Accident Cover Charge: 50p per thousand Sum Assured per annum will be recovered for Accident Benefit from the premium paid. For Half-Yearly mode of payment, the amount recovered will be 25p per thousand Sum Assured from the half-yearly premium paid.

In case of single premium, level charge for the first year will be recovered out of the Single premium. For subsequent years, accident premium will be charged by canceling units of equivalent value at the beginning of each year.

Expense Charge:These charges are charged on level basis throughout the term of the plan. In case of single premium plan, level expense charge for the first year will be recovered out of the Single premium. For subsequent years, expense charge will be recovered by cancelling units of equivalent value at the beginning of each year.

Fund Management Charge: 1 % of the Fund per annum will be debited to the fund for fund management charge. This charge will be applied on a weekly basis i.e. at the time of valuation of the Fund for declaring Net Fund Unit Value (NFUV) for the following week.

Bid/Offer Spread:A bid / offer spread will be upto 5% on NFUV. If bid / offer spread is 5% the offer price will be equal to the NFUV and the bid price will be 5% less than the offer price. The NFUV will be declared on weekly basis.

Revising Charges:The Corporation reserves the right to revise any/all charges after every five years subject to the limit that charge/s will not be increased by more than 50% of the existing charge/s.

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