SUD Life Abhay Plan
SUD Life Abhay is a term insurance policy which offers large cover at affordable premiums. You have the option of covering your life for 40 years or upto the age of 80 years. The plan is flexible and offers an option of Return of Premium in case of no claims. You can also choose limited pay options, in which you have to pay only for a limited number of years and enjoy the cover for the entire policy term.
Let us understand this plan in detail.
| Plan Name | SUD Life Abhay |
| Policy Type | Term Insurance (with Return of Premium option) |
| Category | Non-participating |
| UIN | 142N072V01 |
Key Features
Pure life insurance coverage
Option of Return of Premiums in case of no claim
- Single pay, Regular pay and Limited pay options of 5, 10 & 15 years
- Premiums can be paid monthly, half-yearly, annually or as single pay
- Option for Nominee to receive money in lumpsum or monthly payments C
Tax Benefits on Premiums paid and Death Benefit
Benefits
You can choose from the following 2 options:
- Life cover with Return of Premium - The life cover is enjoyed by the policyholder throughout the policy term. In case the policyholder survives the policy term, the premiums paid are returned at the end of the policy term.
- Life cover - The life cover is enjoyed by the policyholder throughout the policy term.
Premium Payment Term Options
This plan offers flexibility to choose from various policy terms and premium payment terms. The options are as listed below.
| Policy Term | Premium Payment Term |
| 15-40 years | Single Pay |
| 15-40 years | Regular Pay |
| 15-40 years | 5 Pay |
| 15-40 years | 10 Pay |
| 20-40 years | 15 Pay |
Single Pay - Pay premium only once at the start of the policy
Regular Pay - Pay premiums throughout the policy term
5 Pay - Pay premiums only for the first 5 years. Policy will continue to be active through the policy term
10 Pay - Pay premiums only for the first 10 years. Policy will continue to be active through the policy term
15 Pay - Pay premiums only for the first 15 years. Policy will continue to be active through the policy term
In case of death of the policyholder, the nominee will receive the Sum Assured of Death.
“Sum Assured on Death” for Regular pay, 5 Pay, 10 Pay & 10 Pay plans is the highest of the following:
- 105% of all premiums paid
- 10 times the Annualised Premium
- Sum Assured or the cover amount
“Sum Assured on Death” for Single Pay option is the highest of the following:
- 125% single premiums paid
- Sum Assured or the cover amount
The Death Benefit received by the nominee iis tax free.
Death Benefit Payout Options
You can choose how the nominee should receive the payout money. This can be useful in case you want to build a regular cash flow for the nominee for a fixed number of years. The options are as follows:
- Lumpsum - The entire death benefit is paid at one go
- Monthly Income - 1% of the Death Benefit will be paid for 125 months
- Lumpsum + Monthly Income - 50% of Death Benefit will be paid as lumpsum and 0.05% of the Death Benefit will be paid every month for 125 months.
You can choose to make your cover more comprehensive by selecting the following rider. You will have to pay extra premiums for the same.
- Accidental Death and Total & Permanent Disability Rider - In case of death due to an accident, 100% of the Rider Sum Assured will be paid in addition to the base plan amount. In case of total and permanent disability due to an accident, 10% of Rider Sum Assured will be paid in 10 installments every 6 months.
Eligibility
| Parameter | Minimum | Maximum |
| Entry Age | 18 years | 65 years |
| Age at Maturity | 33 years | 80 years |
| Sum Assured | 50 lakhs | 100 crores |
| Policy Term | 15 years | 40 years |
| Single-Premium | Rs. 29,850 | Rs. 20,39,40,000 |
| Annualized Premium | Rs. 3,720 | Rs. 5,81,18,700 |
| Premium Payment Mode | Monthly, Quarterly, Half-yearly, Annually & Single | |
Exclusions
In case of death of the polilcyholder due to suicide within 12 months of commencement of risk, the sum assured will not be paid to the nominee. Only a part of the premiums paid will be refunded as follows - 80% of the premiums paid will be refunded in regular and limited pay options and 90% of the single premium will be refunded.
This pretty much explains the working of this plan. In case you have any questions on this plan, please drop a comment and we will get back to you.
FAQs
What happens if the policy lapses?If your policy lapses, the death benefit will not be payable in case of death of the policyholder. So it is important to ensure that you make your payments on time. However, you have an option to Revive the policy within 2 years of the first missed due date by paying all due premiums with interest.
For Limited Pay Options and the TROP option, a Reduced Paid Up Value is applicable and the policy will continue with the lower cover amount as long as at least 2 years premiums have been paid.
- Reduced Sum Assured on Death = Original Sum Assured of Death x Total premium paid x Balance policy term / Policy term
- Reduced Maturity Benefit (in case of TROP) = Original Maturity Benefit x Total premium paid x Balance policy term / Policy term
Is there a Free-look period in this plan?In case you are not satisfied with the policy after receiving the policy documents, you can cancel the policy and get a refund. There will be deductions for the few days of cover provided, cost of medical tests if any and stamp duty charges. The can cancel the policy within the free-look period as defined here:
- Within 15 days in case the policy is not purchased electronically or through distance marketing
- Within 30 days in case the policy is purchased electronically or through distance marketing
