What is a Unit Fund?

The allocated (invested) portions of the premiums, after deducting all the charges and premiums for risk cover under all policies in a particular fund as chosen by the policyholders, are pooled together to form a unit fund.

It is a component of the fund in a ULIP.

A switch enables you to shift the existing units of your unit-linked policy into a new fund.

A premium redirection enables you to change your fund allocation for all the future premiums of your policy.

Top-ups are one-time payments. You can make an additional investment through a top-up over and above your regular premium payments. You can make a top-up anytime while your policy is in force. The applicable norms for top-ups may differ for every product.

For switch and premium redirection, you can download the appropriate form from the download section of our website, fill it in and send it to the nearest Pramerica Life Insurance branch office. You can log in to the website with your user ID and password and give your request online.

Partial withdrawal of a policy implies withdrawal of only a part of the funds of your policy. For specific details on the same, please refer to the ULIP product brochure in the Products section of this website.

Investment returns from ULIP are not guaranteed. In unit-linked products/policies, the investment risk in the investment portfolio is borne by the policyholder. The policyholder may achieve gains or losses on their investments depending upon the performance of the unit-linked fund (s) chosen. It should also be noted that the past returns of a fund are not necessarily indicative of the future performance of the fund.

Broadly, the different types of fees are given below:

Premium Allocation Charge This is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge usually includes initial and renewal expenses apart from commission expenses.
Mortality Charges These are charges to cover the cost of insurance coverage under the plan. Mortality charges depend on factors such as age, amount of coverage, state of health, etc.
Fund Management Charges Charges These are fees levied for managing the fund (s) and are deducted before arriving at the Net Asset Value (NAV).
Policy Administration Charges These are the fees for the plan"s administration and are levied by unit cancellation. This could be flat throughout the policy term or vary at a pre-determined rate.
Surrender Charges A surrender charge may be deducted for premature, partial or complete encashment of units wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge Generally, a limited number of fund switches may be allowed each year without charge, with subsequent switches subject to a charge.
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