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SUD Life Prabhat Tara 3 Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

SUD Life Prabhat Tara 3 Plan

 

SUD Life Prabhat Tara 3 Plan is a Unit Linked Insurance Plan for children. Thus, it is a Non-Traditional Insurance Plan which can be taken for the benefit of the Child plan from Star Union Daiichi Life Insurance Company.

 

How it works – In this plan, premium can be paid for 5, 7 or 10 years under Limited Premium Paying Term or till the 18 – Age at Entry of the Child under Regular Premium Paying Term. The plan however continues till the end of the Policy Tenure or till the parent is 65 years old or the child is 25 years old, whichever is earlier.

 

This is a ULIP with 3-Way Death Benefit. In this plan, the premium, net of charges is invested in any of the 4 funds available for Investment Purpose. There are 2 Additional and 2 In-Built Riders in this plan.

 

On Survival till the end of the Policy Tenure, the Fund Value is paid to the Policyholder as Maturity Benefit and the policy terminates.

 

However, if the Life Insured dies within the policy tenure, the nominee gets 3-Way Death Benefit:

  • The Basic Sum Assured as Immediate Death Benefit
  • Future Premiums are waived off and the plan continues as per schedule
  • Monthly Income Benefit is 1% of the Basic Sum Assured and will be payable every month. The first payment will be made at the end of the policy month following the death of the Life Assured and will cease at the end of the policy term
  • Fund Value is paid at the end of the Policy Tenure as per schedule and the policy terminates

 

 

Key Features of SUD Life Prabhat Tara 3 Insurance Plan

 

  • This is a Child Unit Linked Insurance Plan
  • There is 3 fold Death Benefit available in this plan
  • There is Limited as well as Regular Payment Option in this plan
  • The plan continues till the child is 25 years of age
  • There are 4 funds available in this plan for Investment Purpose
  • On Survival till the end of the Policy Tenure, the Fund Value is paid to the Policyholder as Maturity Benefit
  • In case of Death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured as Immediate Death Benefit and the future premiums are waived off and the Fund Value is paid at the end of the Policy Tenure
  • In case of Death of the Life Insured, 1% of the Basic Sum Assured is paid at the end of every month as Monthly Income Benefit
  • There are 2 additional riders available in this plan

 

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits you get from SUD Life Prabhat Tara 3 Insurance Policy

 

Death Benefit – In case of death of the Insured Parent within the Policy Tenure, the nominee gets 3 Fold Death Benefit as follows:

  • The Basic Sum Assured as Immediate Death Benefit
  • Rider Sum Assured, if any
  • Future Premiums are waived off and the plan continues as per schedule
  • Monthly Income Benefit is 1% of the Basic Sum Assured and will be payable every month. The first payment will be made at the end of the policy month following the death of the Life Assured and will cease at the end of the policy term
  • Fund Value is paid at the end of the Policy Tenure

 

Maturity Benefit – On survival till the end of the policy tenure, the policyholder gets the entire Fund Value as Maturity 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 Life Prabhat Tara 3 Policy                 

 

 

Minimum

Maximum

Regular/Limited Premium Sum Assured (in Rs.)

For Age at Entry <45 years:

Annualized Basic Premium X Higher of (10 or 0.5 X Policy Term)

For Age at Entry >=45 years: Annualized Basic Premium X Higher of (7 or 0.25 X Policy Term)

Annualized Basic Premium X 12.5

Policy Term (in years)

12

25

Premium Payment Term (in years)

5/7/10

18 – Age at Entry

Entry Age of Life Insured (in years)

19

52

Entry Age of Child (in years)

0

13

Age at Maturity (in years)

-

65

Age at Maturity of Child (in years)

-

25

Annualized Premium (in Rs.)

24000

No Limit

Payment modes

Yearly, Half-yearly, Quarterly or Monthly

 

 

Additional Features and Benefits of SUD Life Prabhat Tara 3 Plan

 

Riders – There are 2 Additional Riders in this plan:

  1. SUD Life Accidental Death & Total and Permanent Disability Benefit Rider
  2. SUD Life Critical Illness Benefit Rider

And 2 in-Built Riders:

  1. Premium Waiver Benefit Rider
  2. Monthly Income Benefit Rider

 

Investment Fund Options - In this plan, there are 4 funds for Investment:

  1. Apex Equity Fund
  2. Apex Growth Fund
  3. Apex Balanced Fund
  4. Apex Bond Fund

 

Top-up – Premium can be paid anytime except in the last five policy years. The minimum top-up premium is Rs. 5000 and each Top Up Premium is locked in for 5 years. The Sum Assured also increases proportionately with a Top Up Premium.

 

Switching - Any amount of the Fund Value can be switched from one fund to another at any point of time subject to a minimum amount of Rs 10,000. Only 1 switch is free every policy year post which there is a charge of Rs 100 per switch.

 

Premium Redirection – is allowed from the 2nd policy year onwards and by default, new allocation percentage will be applicable to all future premiums along with Top Ups. Only 1 Premium Re-direction is free every policy year post which there is a charge of Rs 100 per transaction.

 

Partial Withdrawal - Partial withdrawals are allowed only after completion of 5 policy years or after completion of 18 years of the Life Insured, whichever is later. The minimum partial withdrawal is Rs 5,000 subject to at least 125% of the Annual Premium + cumulative nominal Top Up amount received in the last 60 calendar months should remain in the Fund Value for Limited and Regular Premium.

The first partial withdrawal in any given policy year will be free of charges. Subsequent withdrawal will attract charges of Rs 100 per withdrawal.

 

Settlement Option – There is an option for taking the Maturity Benefit over equal installments over a period of time instead of in a lumpsum, called Settlement Option and the Period for settlement is called Settlement Period. The maturity benefits can be paid in yearly, half-yearly, quarterly and monthly instalments. During this Settlement Period, the fund value will remain invested in the existing funds, and only the Fund Management Charges will be deducted. No Partial Withdrawal or switching is allowed during this period. In case of death during settlement period, the remaining Fund Value will be paid to the legal heirs.

 

 

Charges in SUD Life Prabhat Tara 3 Plan

 

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

Policy Year

Premium Allocation Charge

1st – 5th Year for Regular/Limited Premium

6%

6th Year onwards for Regular/Limited Premium

4%

Top Up Premium

2%

 

 

Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

Policy Year

Policy Administration Charge

1st Year

Rs 360

Increasing Every Year @

5% p.a. subject to a Maximum of Rs 2,000

 

 

Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

Type

Charge

Apex Equity Fund

1% of Fund Value

Apex Growth Fund

1% of Fund Value

Apex Balanced Fund

1% of Fund Value

Apex Bond Fund

1% of Fund Value

 

 

Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

Year of Discontinuation

Annual Premium <= Rs 25,000 p.a.

Annual Premium > Rs 25,000 p.a.

1st

Lower of  20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000

Lower of  6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000

2nd

Lower of  15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000

Lower of  4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000

3rd

Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500

Lower of  3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000

4th

Lower of  5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000

Lower of  2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000

5th onwards

NIL

NIL

 

 

Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.

 

Service Tax would be applicable on the charges depending on the applicable rates.

 

 

What happens if?

 

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee. The policy can however be revived as well.

 

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.

 

You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to 3.5% p.a.and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

 

If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.

 

You want a loan against your policy – Loan facility is available in this plan after completion of 3 policy years.

 

Other ULIP Plans from Star Union Dai-ichi
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