Benefits

 

The Policy will pay the following benefits in case of Death or Maturity during the Policy Term provided the Policy is in force for full risk benefits as on date of the insured event.

 

Death Benefit:

On unfortunate demise of the Life Insured during the Policy Term, the Company will pay an amount equal to the sum of:

Death Sum Assured plus Accrued Annual Guaranteed Additions


Where Death Sum Assured will be equal to:

  • If Life Insured age at entry is less than 45 years
    Higher of 10 times of Annualized Premium* or Base Sum Assured
  • If Life Insured age at entry is greater than or equal to 45 years
    Higher of 7 times of Annualized Premium* or Base Sum Assured

The Death Sum Assured will be at least equal to 105% multiplied by Premiums paid (excluding underwriting extra Premium, if any) as on date of death.

 

*Annualized Premium will be the Premium payable in a year chosen by the Policyholder, excluding the underwriting extra Premium and loadings for modal Premium, if any

 

Maturity benefit

On Survival of the Life Insured to Maturity date, Base Sum Assured along with the Accrued Annual Guaranteed Additions will be payable.

 

Annual Guaranteed Additions

During the Policy Term, a Policy will be eligible for Annual Guaranteed Addition provided the Policy is in force. Annual Guaranteed Addition will be expressed as a percent of cumulative Annualized Premium will be dependent on the Premium band. The following bands are based on the Annualized Premium* paid:


Premium Band Annual Guaranteed Additions Rate

Band 1

Up to 24,999

7.00%

Band 2

25,000 to 39,999

8.00%

Band 3

40,000 to 74,999

9.00%

Band 4

75,000 and above

10.00%


Consider the following example for an individual aged 35 Years, Male, choosing a Policy Term of 10 years, paying annual Premium of Rs 75,000. The rate of Annual Guaranteed Additions will be 10% on cumulative Premiums paid and Annual Guaranteed Additions will be calculated as follows:

 

Policy Year Annual Premium Cumulative Premium Received Annual Guaranteed Additions Accrued Annual Guaranteed Additions Base Sum Assured Maturity Benefit at the end of the Year
1

75000

75000

7500

7500

571429

-

2

75000

150000

15000

22500

571429

-

3

75000

225000

22500

45000

571429

-

4

75000

300000

30000

75000

571429

-

5

75000

375000

37500

112500

571429

-

6

75000

450000

45000

157500

571429

-

7

75000

525000

52500

210000

571429

-

8

75000

600000

60000

270000

571429

-

9

75000

675000

67500

337500

571429

-

10

75000

750000

75000

412500

571429

983929


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, 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.