Mr. Kumar is a healthy 30 year old salaried, married professional and was recently blessed with a baby. He wants to ensure his family continues to maintain a similar lifestyle even if he is not around. He wants to purchase a protection plan at an affordable cost and also wants the premiums paid to be refunded after the term of the policy.
Step 1: Mr. Kumar decided that he needs a life cover of Rs. 25 Lacs.
Step 2: Mr. Kumar reviews the three Policy Term options and decides that for his purpose, the 11 pay, 30 years Policy Term is the best option.
Step 3: The Annualised Premium for his policy at Sum Assured of Rs. 25 Lacs comes out to be Rs. 30,500.
The income will start from the Policy Anniversary following the Date of Death.
The above illustrations and stated values are only suggestive. Actual Premium amount and Sum Assured may vary depending on the age, health conditions and certain other factors.
Comprehensive protection with in - built accidental death benefit: Base Policy Sum Assured is paid in case of Death. In case of Death by accident, the nominee gets an additional 50% of the Base Policy Sum Assured.
Return of premiums on survival at maturity: Guaranteed return of all premiums paid (including extra premiums), in case of your survival till maturity.
Flexibility to choose the period of protection by paying for a limited period: Pay premiums for a limited period of 11 years. The plan offers you the flexibility to choose the Policy Term between 20 / 25 / 30 years (period of protection).
COMPARE THIS PLAN WITH OTHER TERM PLANS
Maturity Benefit- At the end of Policy Term, the Policyholder will get Guaranteed Maturity Sum Assured which is the Total Premium paid over the Premium Payment Term.
Death Benefit- On death during the term of the policy, a lump sum Death Benefit will be paid to the nominee of the life insured.
The death benefit is equal to the death Sum Assured, which is defined as the higher of:
10 times the Annualised Premium;
105% of Total Premiums paid;
Guaranteed Maturity Sum Assured (GMSA)
Guaranteed Death Sum Assured (GDSA);
Annualised Premium is Annual Premium including extra premium but excluding service tax or any other taxes, cesses or levies, if any. Total Premium is all premiums paid including extra premiums and loaded for modal factors but excluding service tax or any other taxes, cesses or levies, if any till date. Guaranteed Maturity Sum Assured (GMSA) is the Total Premium payable over the Premium Payment Term. Guaranteed Death Sum Assured (GDSA) is 100% of Sum Assured for non-accidental claims and 150% of Sum Assured for accidental claims. Death by accident means a sudden, unforeseen, involuntary event caused by external, visible and violent means as revealed by an autopsy provided such death was caused directly by such accident and independently of any physical or mental illness within 180 days of the date of accident
Tax Benefits- You may be entitled to certain tax benefits on your premiums and Policy benefits. Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. It is advisable to seek an independent tax consultation.
Minimum Entry Age - 21 years Maximum Entry Age - For 20 Year Policy Term - 55 years
Maximum Maturity Age of the Life Insured (age as on last birthday)
75 (Seventy Five) years
Minimum: Rs. 5 Lacs (subject to a minimum premium limit) Maximum: Rs. 1 Cr
Note: The sum assured can only be chosen at intervals of Rs. 50,000
Premium Payment Term (PPT)
Premium Payment Modes and Modal Premium Factors
Annual, Semi - Annual, Quarterly and Monthly. For Non - Annual Modes, Modal Factors will be applicable:
Annual (1.0), Semi - Annual (0.52), Quarterly (0.265) and Monthly (0.09)
Minimum and Maximum Premium
Minimum Premium : Rs. 8,500 p.a. (For annual mode policies)
For Non - Annual Modes, the Modal Factors will be applicable Maximum Premium : Based on the Maximum Sum Assured of Rs. 1 Crore
What happens if
This Policy shall acquire a Surrender Value provided all the due Premiums for the first 3 (Three)
Policy Years have been received and applied by Us on or after the due dates.
You may request in writing to surrender this Policy at any time only if the Policy has acquired the Surrender Value. On receipt of valid request, this Policy shall terminate and the Surrender Value (if any) prevailing on the date of such request for the surrender of this Policy, shall be payable by Us. If the Policy has not acquired the Surrender Value in accordance with Section 8.1 above, then, no Surrender Value shall become payable by Us.
The Surrender Value payable will be subject to the condition that there are no statutory or other restrictions to the contrary. Upon surrender of this Policy, no benefits under this Policy shall be payable thereafter and this Policy will terminate.
You are not entitled to any loan under this Policy
LAPSATION OF POLICY
Subject to Section 3.3, if the Premium (along with the service tax or any other taxes, cesses or levies, if any) is not received by Us by the end of the grace period as specified in Section 9.10 above, this Policy shall lapse and no benefits under Section 3 shall be payable under this Policy and no rights can be exercised by You till the revival of the Policy.
If You revive this Policy in accordance with Section 9.12 below, then, the benefits and the rights under this Policy shall be revived.
However, if this Policy has acquired a Surrender Value and upon non-payment of the overdue Premiums by You till the expiry of the grace period as specified in Section 9.10 above, then, this Policy shall not lapse and shall by default become a Policy under Reduced Paid Up Mode.
REVIVAL OF POLICY
A lapsed Policy can be revived at Our discretion, within 2 (Two) years from the due date of the first unpaid Premium:
on receipt of Your written request to revive this Policy by Us;
if You produce an evidence of insurability at Your own cost which is acceptable to Us; and
on payment of all overdue Premiums (along with the service tax or any other taxes, cesses or levies, if any) to Us with late fee and/ or interest at such a rate as may be determined by Us from time to time.
The revival of the lapsed Policy shall take effect only after We have approved the same in accordance with Our board approved underwriting policy and communicated to You in writing. All the benefits under the lapsed Policy shall be revived upon such revival without interest. If a lapsed Policy is not revived within the prescribed period allowed for revival, this Policy shall terminate on the expiry of such prescribed period for revival.
You have an option to revive a Policy under Reduced Paid Up Mode, within 2 (Two) years from the due date of the first unpaid Premium, by:
requesting Us in writing;
paying all the overdue Premiums (along with the service tax or any other taxes, cesses or levies, if any), together with interest and/ or late fee as determined by Us from time to time; and
submitting an evidence of insurability at Your own cost which is acceptable to Us.
The revival of the Policy under the Reduced Paid Up Mode shall take effect only after We have approved the same in accordance with Our board approved underwriting policy and communicated. Our decision to You in writing. All original benefits including death and maturity benefit, which were originally payable will be restored on such revival. However, no interest shall be payable by Us on such restoration.
If a Policy under Reduced Paid Up Mode is not revived within the prescribed period as specified in 3, then, the Policy under Reduced Paid Up Mode cannot be revived and will continue to be under Reduced Paid Up Mode for the remaining part of the Policy Term.