ULIP fund value query

POSTED BY santtu ON September 24, 2012 1:32 pm COMMENTS (2)

Hi Team,


First of all, I would like to thank you for checking this query.


I have one ULIP plan from ICICI. I want to know how they are calculating the Fund value on each day.


What I was thinking I want to share with you. PLease let me know if that is wrong.


Suppose 2 years I have paid premium of 10000 each. I thought on the day I have done the payment it would get divided by that particular date NAV i.e. (premium paid – allocation charges)/ NAV on that day = my earned unit.


 I was checking my daily fund value and it shows different unit count. I was thinking the the unit count would be fixed until my next premium payment and the fund value would fluctuate as per the daily NAV.


As I am seeing the daily unit count also fluctuates please let me know where I am wrong. Then how would I can count my fund value myself. The document says the first two years the premium allocation charges are 6% and 5% respectively.


Thank you.

2 replies on this article “ULIP fund value query”

  1. Dear Santtu,

    Your fund value at any date is the number of units multiplied by the applicable NAV.

    Since this is a life insurance policy, there is a life cover which is provided to the life assured. The cost of the life cover is called mortality charge and this cost is recovered by redeeming units.

    For example:

    Current NAV: Rs. 20
    Current units: 10,000
    Fund Value: =10,000 X 20 = Rs. 2,00,000

    Mortality charge: Rs. 300
    Units redeemed to pay this charge: 300/20 = 15 units
    Fund value after deduction of mortality charge: 9985*20 = 1,99,700

    In case there is a policy administration charge, the same is deducted in the manner explained above.

    Warm Regards,
    Life Insurance Help
    ICICI Prudential Life Insurance

  2. Dear Santtu, please try to understand apart from Allocation charges, there are many more. Mortality charges (the basic prem. for your insurance deducted from your prem. amount or mly basis from your ULIP fund value), policy admin charges, fund management charges, any other. Please check your policy bonds for actual impact of charges & the type of charges applied on your prem.



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