Key Features
Guaranteed amount paid on policy maturity
Plan has accrued Guaranteed Additions (GAs)
Tax benefits apply to premiums paid and benefits received
Benefits
- On death of the life assured during the policy term, for a premium paying or fully paid policy, the following will be payable:
Death Benefit = Higher of (A,B), Where
A = Sum Assured on Death, plus subsisting bonuses already accrued, plus accrued guaranteed additions
B = 105% of all the premiums paid as on date of death
Sum Assured on Death is defined as, highest of
- 10 X (Annualized Premium + underwriting extra premium, if any + loadings for model premiums, if any)
- Minimum guaranteed sum assured on maturity
- Absolute amount assured to be paid on death
- On survival of the life assured till the end of the policy term for a policy on which all due premiums are paid, the following will be payable: Maturity Benefit = Higher of (D, E)
Where, D = Guaranteed Maturity Benefit (GMB)- accrued Guaranteed Additions
- subsisting reversionary bonuses already accrued to the policy, if any
- terminal bonus, if any
E = 100.1% X (annualized premium plus loadings for modal premiums, if any)
Your GMB will be set at policy inception and will depend on age, policy term, premium, premium payment term and gender. Your GMB may be lower than your Sum Assured on death.
Guaranteed Additions (GAs) as a percentage of annualized premium is set out in the following table:
| Policy year/ PPT | 5 years or 7 years | 10 years, 15 years or 20 years |
| 1 - 5 | 8% | 10% |
| 6 - 10 | 10% | 12% |
| 11 - 15 | 12% | 15% |
| 16 onwards | 15% | 18% |
Note:
- During PPT: GA will accrue on premium payment*
- After PPT: GA will accrue at the beginning of policy year
How it works
Age at entry - 35 years
Premium paying mode - Yearly
Policy term - 20 years
Annual premium – Rs.30,000
Premium paying term - 10 years
Sum Assured on death – Rs.3,00,000
| Benefits | Benefits @ 4% ARR# | Benefits @ 8% ARR# |
| Total Guaranteed Benefit on Maturity (A) = (i) + (ii) | Rs.3,11,550 | Rs.3,11,550 |
| Guaranteed Maturity Benefit (i) | Rs.2,29,050 | Rs.2,29,050 |
| Guaranteed Additions on Maturity (ii) | Rs.82,500 | Rs.82,500 |
| Estimated accrued reversionary bonuses (B) | 0 | Rs.1,11,306 |
| Estimated terminal bonus (C) | Rs.87,873 | Rs.2,27,692 |
| Estimated Maturity Benefit (A+B+C) | Rs.3,99,423 | Rs.6,50,548 |
Eligibility
| Premium payment option | Limited Pay | ||||
| Premium payment term (PPT) (years) | 5 | 7 | 10 | 15 | 20 |
| Policy term (years) | 10 to 15 | 12 to 17 | 15 to 20 | 20 to 25 | 25 to 30 |
| Minimum annual premium (`) | 40,000 | 18,000 | 12,000 | 9,600 | 8,400 |
| Min / Max age at entry (years) | 3 / 45 | 1 / 58 | 91 days/ 55 | 91 days/ 50 | 91 days/ 45 |
| Min / Max age at maturity (years) | 18 / 60 | 18 / 70 | |||
| Minimum Basic Sum Assured on Death | 4,00,000 | 1,80,000 | 1,20,000 | 96,000 | 84,000 |
| Premium paying frequency | Annual / Half-yearly / Monthly | ||||
Surrender Value
If the PPT of your policy is 10 years or more, the policy will acquire a surrender value after payment of three full years’ premium. If PPT is less than 10 years, the policy will acquire a surrender value after payment of two full years’ premium.
On policy surrender, you will get higher of the following:
- Guaranteed Surrender Value plus guaranteed surrender value of any subsisting bonus and guaranteed additions, as applicable.
- Special Surrender Value (SSV).
Where,
- Guaranteed Surrender value of subsisting bonuses =Guaranteed Surrender Value Factors for subsisting bonuses X Subsisting bonuses accrued
- Surrender value of accrued GAs =Guaranteed Surrender Value Factors for guaranteed additions X Accrued GAs
- These Guaranteed Surrender Value Factors convert the face value of accrued GAs and subsisting bonuses accrued, payable on maturity or earlier death, to their expected present value. These factors are guaranteed.
- The SSV is not guaranteed.
