FAQs

1. What kind of a plan is Flexi Cash?

Flexi Cash plan is a participating non linked endowment insurance plan. This plan provides the flexibility to choose your premium payment term and your maturity date as per your financial requirements. The plan also provides a cash benefit every year from the beginning of 2nd policy year till the completion of premium paying term.

 

2. What is a participating plan?

In a participating plan, the policyholder would be eligible to participate in the profits arising from the portfolio of such policies distributed through either of the following two methods.

 

3. What type of reversionary bonus does the Flexi Cash plan offer?

The Flexi Cash plan offers compound reversionary bonus.

 

4. What is compound reversionary bonus?

This is a regular bonus expressed as a percentage of the total of Base Sum Assured and the reversionary bonus amount already attached to your Policy. Any Bonuses declared by the Company during first three policy years shall vest in the Policy only after the Policy has been in-force for full Policy benefits during three Policy years. However, this condition will not apply to policies resulting into claims by death during this period.

 

5. What is Final bonus?

Final bonus is a onetime bonus paid on the termination of the policy due to death, surrender or maturity.

 

6. Who can buy the Flexi Cash plan?

Anyone between the ages of 8-60 years can opt for the Flexi Cash plan. The maximum age requirements vary, depending upon the policy term chosen. This can be ascertained from the table provided below:

Policy Terms 15 Years 25 Years 35 Years Age at Entry* Minimum 8 Years Maximum 60 Years 50 Years 40 Years Premium Payment Term 5 Years 10 Years 15 Years * Age as on last birthday

 

7. What are the policy terms and premium paying terms available in the Flexi Cash plan?

Policy terms available are 15 years, 25 years and 35 years for premium payment terms 5 years, 10 years and 15 years respectively.

 

8. What are the premium modes available in the Flexi Cash plan?

The customer can pay premium by annual, semi-annual and monthly modes. Monthly mode of Premium payment is available only through credit card, direct debit and ECS. Quarterly option is not available.

 

9. What is the minimum annual premium in the Flexi Cash plan?

The minimum annual premium for base plan is Rs.17,000/- (excluding Service Tax, Education Cess, underwriting extra (if any), and rider premium).

 

10. What is the maximum premium one can opt for under the Flexi Cash plan?

Maximum premium under the Flexi Cash plan has no limit, depends on the chosen Sum Assured and subject to underwriting.

 

11. What is the minimum and maximum sum assured available in the Flexi Cash plan?

Minimum SA: For policy term 15 Years Rs.1,70,000/- For policy term 25 and 35 Years Rs.2,00,000/- Maximum SA: No limit subject to underwriting

 

12. What is the Maturity benefit available under the Flexi Cash plan?

At maturity the policyholder will receive a maturity benefit equal to 100% of Base Sum Assured chosen at inception PLUS Accrued Compound Reversionary Bonus PLUS Final Bonus if any, subject to policy being in force.

 

13. What is the Flexi Benefit period under the Flexi Cash plan?

Flexi Benefit period is the period during which the policyholder can opt to avail full maturity benefit. The Flexi Benefit Period varies by Policy Term and is as follows: Policy Term (Years) 15 25 35 Flexi Benefit Period Anytime between 10 and 15 Years Anytime between 15 and 25 Years Anytime between 20 and 35 Years

 

14. What benefit will be paid during Flexi Benefit period in Flexi Cash plan?

During this period, full benefits due in the policy will be paid. 100% of Sum Assured PLUS Accrued Reversionary Bonus PLUS Final Bonus, if any.

 

15. During Flexible Maturity period if customer wants to take maturity, will it be considered as surrender or maturity?

It will be considered as maturity will be paid which is equal to 100% of Sum Assured PLUS Accrued Compound Reversionary Bonus PLUS Final Bonus, if any.

 

16. What is the Death benefit available under the Flexi Cash plan?

In case of the unfortunate demise of the life insured during the policy term, the policy terminates and the Death benefit is paid to the nominee subject to policy being in-force, Death Sum Assured PLUS Accrued Compound Reversionary Bonus PLUS Final Bonus, if any, is payable. Where Death Sum Assured is: i. For age at entry less than 45 years Highest of 10 times the Annualized Premium (Or) 100% of base sum assured ii. For age at entry 45 years and higher Highest of 7 times the Annualized Premium (Or) 100% of base sum assured However, the death sum assured together with bonuses shall be at least equal to 105% multiplied by all the premiums paid* as on date of death. The Annualized premium shall be the premium payable in a year chosen by the policyholder, excluding the underwriting extra premiums and loadings for modal premiums, if any

*Premium paid for this purpose is premium exclusive of any underwriting extras, if any

 

17. How does the Flexi Cash plan work?

Select a Sum Assured subject to a minimum of Rs.1,70,000/- for 5 year premium payment term and Rs.2,00,000/- for 10 year and 15 year premium payment term

Chose the duration for which you want to pay your premiums from either of 5, 10 or 15 years

Pay the premium based on the age, sum assured and the premium payment term chosen

 

18. Can the premium payment term of the Flexi Cash plan be changed at a later date?

No, premium payment term, once chosen, cannot be changed at a later date.

 

19. Under Flexi Cash plan, when will be the Guaranteed Loyalty Benefit payable?

Guaranteed Loyalty benefit is equal to 10% of annualized premium. This benefit will be payable annually at the start of policy year from the beginning of 2nd policy year till the completion of premium payment term, provided the policy is in force for full policy benefits.

 

20. Can the Flexi Cash plan be surrendered?

Yes, the policy can be surrendered after paying premium for first 2 policy years in full.

 

21. In case of surrender of policy, will the customer get any surrender value?

Yes, the customer will get the surrender value and the policy will terminate and no further benefits would be paid on death or maturity. On Surrender, Surrender Value equal to higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) would be paid. The Guaranteed Surrender Value is X% of total premiums paid less any Guaranteed Loyalty Benefits already paid where X is as defined below plus the guaranteed surrender value of the accrued reversionary bonuses.

 

22. Let us assume a customer buys a Flexi Cash plan for a term of 25 years. He stops paying premiums after 3 years and informs the company that he would be unable to pay future premiums. However, in the 9th policy year, he wants to again start paying the premium. Would we allow him to do so? If yes, are there any T&C?

No, the customer cannot restart paying the premium. Revival of a policy is available for up to 2 years from the date of first unpaid premium.

 

23. What is the revival period available under the Flexi Cash plan?

The policy can be revived within 2 years from the due date of the first unpaid premium.

  • Payment of all unpaid premiums with interest is required to reinstate the policy in all cases.
  • Revival of the policy is subject to underwriting requirements.
  • Once the policy is revived, all the benefits and bonuses under the policy would be revived. Policyholder will be entitled to the bonuses declared during the policy year(s) and Guaranteed Loyalty Benefit, if any, when the policy was in paid up/lapse stage and was not given to the policyholder.
  • On revival of a paid-up policy, any final paid-up bonus added at the time of conversion of a policy to paid-up would be reversed.

 

24. What happens when the Life Insured commits suicide?

The nominee or the beneficiary of the Life Insured shall be entitled to:

  • 80% of the premium paid, from the date of inception of the policy, provided the policy is in force OR
  • An amount which is higher of 80% of the premium paid till the date of death or the Surrender value as available on the date of death, from the date of revival of the policy

 

25. What if I want to cancel my policy since I do not agree with the terms and conditions mentioned in the policy?

You will have a period of 15 days (30 days in case the policy is sold through distance marketing) from the date of receipt of the Policy document to review the terms and conditions of the Policy and where you disagree to any of these terms and conditions, you have an option to return the Policy stating the reasons for objection. On receipt of the letter along with the Policy documents, the company will refund the Premium paid, subject to the deduction of proportionate risk Premium and any expenses incurred by the Company on insurance stamp duty and medical examination. Distance Marketing entails to the sale of the product through a mode other than personal interaction.

 

26. What are the tax benefits available under the Flexi Cash plan?

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

 

27. What is the Grace period available under the Flexi Cash plan?

30 days from the premium due date is allowed for payment of premiums through all modes.

 

28. What is MWPA?

Married Women Property Act, 1874 (MWPA) where a husband has taken a life insurance policy and expressed it to be for the benefit of the wife, children or any of them, such policy shall be deemed to be a trust for the benefit of the wife, children or any of them so expressed and can neither be utilized either by the husband or his creditors nor form a part of his estate. In such policy, where expressly mentioned, all the benefits arising out of the same are identified and treated as his separate property.

 

29. Can Flexi Cash plan be bought under MWPA?

Yes, Flexi Cash plan can be bought under MWPA.

  • Reversionary Bonus
  • Final Bonus
    • The policy can be revived within 2 years from the due date of the first unpaid premium.
    • Payment of all unpaid premiums with interest is required to reinstate the policy in all cases
    • Revival of the policy is subject to underwriting requirements
    • Once the policy is revived, all the benefits and bonuses under the policy would be revived. Policyholder will be entitled to the bonuses declared during the policy year(s) and Guaranteed Loyalty Benefit, if any, when the policy was in paid up/lapse stage and was not given to the policyholder.
    • On revival of a paid-up policy, any final paid-up bonus added at the time of conversion of a policy to paid-up would be reversed.
    • In case of death due to suside with in 12 months, the nominee or the beneficiary of the Life Insured shall be entitled to
    • 80% of the premium paid, from the date of inception of the policy, provided the policy is in force OR
    • An amount which is higher of 80% of the premium paid till the date of death or the Surrender value as available on the date of death, from the date of revival of the policy