Automatic Asset Allocation

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. Large Cap Equity Fund and Whole Life Income 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:

Fund Allocation details at policy inception and during policy term
Age Band [lbd]^	Large Cap Equity Fund	Whole Life Income Fund
5-17	90%	10%
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%

^ The Age band refers to the age at last birthday

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

The fund Allocation might get changed due to market ups & downs. 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.

The Automatic Asset Allocation can be chosen for both Regular Premium and Top-Up Premium accounts. A separate service request would be required by Company, if Policyholder wishes to apply for Automatic Asset Allocation on Top-Up Premium account.

Other rules for Automatic Asset Allocation:

1) Automatic Asset Allocation can be availed at the option of the policy holder, exercisable 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 Premiums funds (if any), other than the Large cap Equity Fund and Whole Life Income Fund, would remain in those funds and continue to grow

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

4) 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

5) Automatic Asset Allocation is free of any charge.

6) 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

7) Automatic Asset Allocation Option will not be available when SMART is chosen

8) In case of family option, the AAA would work as per the age of the Policy holder and cease on his/her death. Post death it is upon the discretion of the new policyholder to choose or not to choose AAA. If it is chosen then it works as per the age of the new policyholder.

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.