1) Premiums paid are used to purchase units at their current price on the date of allocation. Policyholder can purchase units of either a With Profits Fund or a Unit Linked Fund

2) Units are accumulated till date of maturity/retirement to form a fund, which can be utilized to buy an annuity

3) With Profits Fund guarantees that unit price will never fall. The unit value of this fund is increased by crediting bonuses at regular intervals.

4) Unit value in the Unit Linked Fund can fluctuate depending upon the performance of the assets held

5) Offers flexibility of making lump sum investments through additional single premiums, apart from the regular premiums. These increase the savings value of the policy besides maximising tax benefits. The minimum lump sum investment through additional single premium is Rs 10,000.

6) Additional single premium units can be surrendered only on full surrender of the policy.

7) Policyholder can increase the premium at policy anniversaries by a Company determined indexation.

8) Regular premiums paid under the policy can be increased subject to a minimum increase of Rs 1,000. However, regular premium once increased cannot be reduced.

9) Policy term can be increased by a minimum of one year at least three months prior to the maturity date. This option can be exercised only once during the term of the policy.

10) Policy can be retained by converting it into a paid-up policy till 70 years of age even after the expiry of term.

11) Policy can also be converted into a paid-up policy provided two years premium has been paid and the policy has accumulated sufficient value.

12) In case of additional single premium units, surrender penalty is applied in the first three years only from the date of the lump sum investment through additional single premiums.

13) Lump sum proceeds received at the time of maturity are tax free under Section 10 {10A(iii)} of the Income Tax Act.