SUD Defined Benefit Endowment Plan
SUD Defined Benefit Endowment Plan is a Monthly Payment Endowment Plan. It is a Traditional without Bonus plan from Star Union Daiichi Life Insurance Company.
Key Features
There are no additional riders in this plan
Benefits
In case of death of the Life Insured within the Policy Tenure:
- During the Premium Payment Term, the nominee gets a Lumpsum Death Benefit of 25% of the Sum Assured is paid immediately after deducting all due premiums and the policy continues to pay for the Defined Monthly Benefit as selected from the next installment for a period of 15 years.
- After the Premium Paying term, i.e. during the Defined Benefit Period, the monthly Defined Benefit would continue as it is to the nominee and a Goodwill Terminal Benefit is also paid to the nominee when the Defined Benefit Period ends.
Once the Premium Paying Term or the Deferment Period is over, the Monthly Benefit starts as selected at the Policy Inception for a period of 15 years and the policy continues.
On survival till the end of the policy tenure, i.e. at the end of the 15 years of Defined Monthly Benefit Period, 5% or 10% of Sum Assured is paid to the policyholder as Goodwill Terminal Benefit and the policy terminates.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
How it works
- During the Premium Payment Term, a Lumpsum Death Benefit of 25% of the Sum Assured is paid immediately after deducting all due premiums and the policy continues to pay for the Defined Monthly Benefit as selected from the next instalment for a period of 15 years.
- After the Premium Paying term, i.e. during the Defined Benefit Period, the monthly Defined Benefit would continue as it is to the nominee and a Goodwill Terminal Benefit is also paid to the nominee when the Defined Benefit Period ends.
Eligibility
| Minimum | Maximum | |
| Sum Assured (in Rs.) |
180 X Defined Monthly Benefit
|
|
| Policy Term (in years) | 5, 10, 15 | 20 |
| Premium Payment Term (in years) | Single | Equal to policy term |
| Entry Age of Life Insured (in years) | 18 | 60 |
| Age at maturity (in Rs.) | - | 65 |
| Monthly premium (in Rs.) |
Rs 1,000 for Regular
Rs 2,000 for Single
|
No Limit
|
| Payment modes | Single, Yearly, Half-yearly, Quarterly or Monthly | |
FAQs
You stop paying the premiumIf the policy holder stops paying the premium, the policy lapses and all benefits cease to exist. However, if at least 3 years’ premiums have been passed with up to date premium payment, the policy gets converted to a Paid Up Plan and continues with reduced benefit. The policy can however be revived within 3 years from the due date of the first unpaid premium.
You want to surrender the policyThere are Surrender Benefits after 3 years of Regular Premium and 1 year for Single Premium.
Minimum Guaranteed Surrender Benefit- 30% of all premiums paid – 1st year’s premium (for Regular Premium Payment Option) and 90% of Single Premium Paid (for Single Premium Payment Option)
You want a loan against your policyLoan facility is not available in this plan.
