Are you sure that you are well aware of all the terms of policy and understand them completely. Let’s see! What is SAMF? Sounds unusual no! Same was my reaction when I heard about it. Then, I have visited the website of finance knowledge, which is known as rupeetalk. I researched a little bit and get to know too much about it. SAMF means sum assured multiplier factor on the basis of which, you get your funds value at the time of maturity of policy or death of policyholder.
At the time of taking policy, insurer offers you a range of sum assured that can be chosen by you according to your requirements. This kind of option is offered only with unit linked insurance plans(ULIPs), which are good option for saving and wealth accumulation. As per your chosen percentage or option, you will receive the sum assured at the time of maturity or if the policyholder dies.
You also have an option to make changes in it within the policy term. In case you feel like your insurance cover is not enough. Then, you can also choose to increase your sum assured within the policy term for at least three times. If the policyholder is above 50 years, then he may not be able to access this option. Rupeetalk.com also mentioned that with lower sum assured multiplier factor(SAMF), you will be getting more fund value with less mortality charges. And, vice versa is applicable in opposite situation.
With increase or decrease in sum assured, premium will also get changed accordingly. Any change in SAMF will also impact the riders, mortality charges and surrender value of the policy. SAMF if once decreased cannot be increased ever in future. Any change in SAMF, may also generate the requirement of some medical tests and cost of those medical examination will be counted on your account.
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https://rupeetalk.com/life-insurance/
https://rupeetalk.com/life-insurance/sbi-life-insurance/