Benefits

 

Payout Period:

The Payout Period which will commence from the month of death of Life Insured or from the Maturity Date, whichever is earlier. The Payout Period applicable for Policy Term 10 and 15 years is 120 months and 180 months respectively.

 

Death Benefit:

On unfortunate demise of the Life Insured during the Policy Term subject to Policy being in-force for full risk benefits, the Company will pay Death Sum Assured in the form of equal monthly payouts during the Payout Period:

 

Where such monthly payout is equal to: Death Sum Assured / Payout Period (in months)

 

Death Sum Assured will be highest of Base Sum Assured or Maturity Sum Assured or 10 times of the Annualized Premium# or 105% multiplied by all the premiums paid (excludes underwriting extra) as of date of death.

 

Where, Base Sum Assured = Annualized Premium# X Policy Term (in years) X Death Benefit Multiple

 

 

The Death Benefit Multiples vary by Policy Term as follows:

Term = 10 Years Term = 15 Years
2 2.5

Where premium is paid annually, the monthly payouts will be 102.5% of Monthly Death Benefit
Maturity Sum Assured = Monthly Maturity Benefit X Payout period (in months)

 

Maturity Benefit:

On survival till Maturity date subject to the policy being in-force for full risk benefits, the Company will pay Maturity Benefit. The Maturity Benefit will be payable in the form of regular monthly payouts during the Payout Period. Where such monthly payout is calculated as:

 

Monthly Maturity Benefit = (Annualized Premium# × Maturity Benefit Multiple) / 12

The Maturity Benefit Multiple will vary by Policy Term and Age at entry as follows:

 

Age at Entry Term = 10 Years Term = 15 Years
<=30 1.60 2.07
31-40 1.59 2.03
41-45 1.54 1.92
46-50 1.49 1.80
51-55 1.40 NA

 

Where premium is paid annually, the monthly payouts will be 102.5% of Monthly Maturity Benefit.

If the Life Insured dies while he/she is receiving the Maturity payouts, monthly Maturity benefit will continue for the remaining duration of Payout Period and no additional Death Benefit will be paid.

The Policyholder/Nominee/Legal Heirs, as applicable will have an option to take all due future Monthly Payouts as a lump sum amount. Lump sum factors will vary with the outstanding number of monthly payouts.

 

Lump sum amount = Monthly Payout X Lump sum factor

The Company may change the Lump sum factor, depending on economic conditions and subject to prior approval from the IRDA of India.


#The Annualized premium will be the premium payable in a year, chosen by the policyholder, excluding the underwriting extra premiums and loadings for modal premiums.

 

Tax Benefits

Tax benefits will be applicable as per prevailing tax laws. Tax laws are subject to change. Please consult your tax advisor for details.

 

Loan Availability

The policyholder can avail a loan against the policy after it acquires Surrender Value but before the payout has started, up to 80% of the Surrender Value. The rate of interest applicable on the loan will be declared by the Company on an annual basis at the beginning of every financial year.