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SUD Defined Benefit Endowment Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

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.
 
How it works – In this plan, a Defined Monthly Benefit amount needs to be chosen and the Premium is calculated accordingly along with Policy Tenure. The premium needs to be paid for the entire Policy Tenure as selected under Regular Premium Paying Term or in a Lumpsum under Single Premium Paying Term. This tenure as selected is the Deferment Period during which no payment is made. The Sum Assured is calculated as 180 times the Defined Monthly Benefit as chosen.
 
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. At the end of the 15 years of Defined Monthly Benefit Period, 5% or 10% of Sum Assured is paid as Goodwill Terminal Benefit and the policy terminates.

SUD Defined Benefits Endowment Plan Maturity Benefits


 

However, on death of the Life Insured:
  • 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.
Thus, the Defined Benefit is paid for a period of 15 years irrespective of the fact whether the Life Insured is alive or not.
 
 
Key Features of SUD Defined Benefit Endowment Policy
 
  • This is an Endowment Plan with Monthly pre-Defined Payout
  • There is Single as well as Limited Payment Option in this plan
  • 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
  • The Defined Benefit is paid for a period of 15 years irrespective of the fact whether the Life Insured is alive or not
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS


 
 
Benefits you get from SUD Defined Benefit Endowment Insurance Policy
 
Death Benefit – 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.
 
Survival Benefit – 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.
 
Maturity Benefit – 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.
 
Income Tax Benefit - 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.
 
 
Eligibility conditions & other restrictions in SUD Defined Benefit Endowment Policy
 

 

 
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 Tenure
Entry Age of Life Insured (in years)
18
60
Age at Maturity (in years)
-
65
Monthly Premium (in Rs.)
Rs 1,000 for Regular
Rs 2,000 for Single
No Limit
Payment modes
Single, Yearly Half-Yearly, Quarterly and Monthly
 
 
 
Sample illustration of Premium SUD Defined Benefit Endowment Plan
 

The below illustration is for Annual Premium for Defined Monthly Benefit of Rs 10,000 of Age at Entry 20, 30 and 40 years respectively for 15 and 20 years Policy Tenure respectively

 

SUD Defined Benefit EndowmentPlan Sample Premiums

 

Additional Features and Benefits of SUD Defined Benefit Endowment Plan
 
Riders – There are no additional riders in this plan
 
 
What happens if?
 
You stop paying the premium - If 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 policy – There 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 policy – Loan facility is not available in this plan.

 
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