Products > Insurance > Life Insurance > Highest Nav Plan

Withvolatility in the stock market, investors seek safer vehicles for participating in the equity markets. They need more secure avenues that guarantee that their long-term goals are not jeopardized. TheHighest NAV plan is an answer to the needs of these investors.

Insurance companies have introduced the Highest NAV Plan that offers the policyholders an insurance coverage as well as a promise to maximize returns on their investments.

What is a Highest NAV Plan?

Highest NAV Plan is an insurance policy that offers life insurance coverage as well as maximum returns on investments through investments. These policies generally invest in market related instruments like shares, bonds, debentures etc.

The guarantee on the Highest NAV is available only if the policyholder survives the term. In case of his demise, the nominee receives the prevailing value or the sum assured by the policy.

Key features of Highest NAV Plan

The various features of Highest NAV Plan are

  • Guaranteed return at maturity
  • Easy liquidity with partial withdrawal
  • Insurance cover
  • Short premium paying term
  • Convenient premium modes
  • Unlimited investment under single premium
  • Can be invested by anyone within the age group of 10 to 65 years
  • Maturity sum of the policy will be based on the Net Asset Value recorded over the first 7 years of its term period
  • Policy can be surrendered only during the policy term and not during the extended cover

Benefits of Highest NAV Plan

  • Offers capital guarantee from the first day of the investment
  • Even in case of volatile market conditions, the principal amount remain secured
  • The growth in the Net Asset Value also remains secure
  • The shift in equity exposure and debt happens faster in Highest NAV Plan than in any other plan

How does Highest NAV Plan Work?

For most of the Highest NAV Plan, the fund manager constantly reallocates money between debt and equity to assure the previous highest NAV.

In a year, the investment is split between debt and equity in such a manner that the investor gets an assured NAV at the end of 10 years.

Over the year, if the equity market goes down, the capital stays safe in non-market avenues. However, when the market rises, the NAV also rises.

Click here if you want us to recommend you a Higest Nav Plan