Automatic Asset Allocation (AAA)

 

Generally, with the increase in age, our risk appetite decreases. Automatic Asset Allocation is a unique feature that takes care of your portfolio and changes its allocation as per your age in such a way that you reap maximum returns with adjustment to risk exposure of your portfolio.

 

You can opt for this option anytime which will automatically distribute your investment into two funds with different risk profile and fund objectives. Future Equity Pension Fund and Future Income Pension Fund are the two funds in which your investment will be distributed depending on your age. Age wise table is given below:

 

Your Funds will be allocated in the following manner:

 

Equity and Debt allocation details at policy inception and during policy term

Age Band^

(in Years)

Future Equity Pension Fund

Future Income Pension  Fund

18 - 25

85%

15%

26 – 30

80%

20%

31 – 35

75%

25%

36 – 40

70%

30%

41 – 45

65%

35%

46 – 50

60%

40%

51 – 55

55%

45%

56 – 60

50%

50%

61 – 65

45%

55%

66 – 70

40%

60%

71 – 75

35%

65%

 

^ The Age band refers to the age at last birthday

 

Near to vesting age, to ensure capital protection so that short term market volatility at that the time of vesting does not impact the investments, we will systematically transfer  your investments from Future Equity Pension Fund to Future Income Pension Fund in 10 installments during the last 10 quarters of the policy term.

 

Every Policy Quarterly Anniversary, the investments in the two funds will be rebalanced based on the current age as on the quarterly policy anniversary and the fund allocation percentage for that age band.

 

Other rules for automatic asset allocation:

 

1) Automatic Asset Allocation can be availed at the option of the policy holder, exercisable at inception or on any policy anniversary. Request to start the Automatic Asset Allocation should be received 30 days in advance of the policy anniversary. You can discontinue this option any time during the term of the plan

 

2) Any amount remaining in Regular Premiums funds & Top-Up Premiums funds (if any), other than the Future Equity Pension Fund and Future Income Pension Fund, would remain in those funds and continue to grow.

 

3) AAA will not be compulsorily applicable to Top up premiums. If the customer wants his top up premiums to go under AAA option, he has to apply for it separately

 

4) Manual fund switching for Regular Premiums funds & Top-Up Premiums funds (if any) on which AAA is active is not allowed.

 

5) Manual fund switching is allowed on other available funds at applicable charges. Conditions regarding switch fee, minimum switch, and minimum fund after switch etc. for normal switching option shall be as applicable under this plan

 

6) Automatic Asset Allocation is free of any charge.

 

7) For all age-dependant features, the revision to Policyholder’s age will be effected on the annual anniversary of your policy following your birthday and not on your actual birthday

 

8) AAA is not available when SMART is chosen

 

We may refuse request for Automatic Asset Allocation, or cease offering Automatic Asset Allocation by giving 30 days of written notice subject to prior approval of Insurance Regulatory and Development Authority.

 

 

 

 

 

 

 

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