FAQs

1.What kind of plan is DHFL Pramerica Life Secure Savings Plan?

DHFL Pramerica Life Secure Savings Plan is a non-participating guaranteed annual income plan that has been designed keeping your financial needs in mind. The guaranteed annual income payouts during the Payout Period after completion of Policy Term, make sure that you and your family have a steady income stream while the death benefit during the Policy Term provides financial security to your loved ones when you are no longer around to take care of them.

 

2. What is the duration for the Guaranteed Annual Payout in DHFL Pramerica Life Secure Savings Plan?

Guaranteed Annual Payouts are paid for duration equal to the Premium Payment Term.

 

3. What is the minimum and maximum entry age offered under DHFL Pramerica Life Secure Savings Plan?

Minimum Entry Age is 5 years as on last birthday
Maximum Entry Age is 60 years as on last birthday

 

4.What is the maturity age in DHFL Pramerica Life Secure Savings Plan?

Minimum Maturity Age is 18 years as on last birthday
Maximum Maturity Age is 73 years as on last birthday

 

5.What is the Policy Term available in DHFL Pramerica Life Secure Savings Plan?

A fixed Policy Term of 13 years is applicable in this product

 

6.What are the Premium Payment Terms offered under DHFL Pramerica Life Secure Savings Plan?

Premium Payment Term offered are -- 8 years, 10 years and 12 years.

 

7.What is the minimum and maximum Annual Premium available under DHFL Pramerica Life Secure Savings Plan?

Minimum:           Annual Mode: Rs.25,000 p.a. (Without Taxes)

                           Other Modes: Rs.30,000 p.a. (Without Taxes)

Maximum:          No Limit, subject to Board approved underwriting policy

 

8.What are the Premium paying modes available under DHFL Pramerica Life Secure Savings Plan?

Annual, Semi-annual, Quarterly and Monthly* modes are available under the plan.

*Monthly mode of premium payment is available only through credit card, direct debit and ECS.

 

9.What is the Base Sum Assured available under DHFL Pramerica Life Secure Savings Plan?

Base Sum Assured is equal to 11 x Annualised Premium#.

Minimum Base Sum Assured will be: 11 X Rs.25,000 = Rs.2,75,000/-

#Annualised Premium shall be the Premium payable in a Policy Year, excluding any premium towards underwriting extra, loadings for modal premium and taxes, if any
 

10.How does this plan work?

 

 

11.What is the Maturity Benefit under DHFL Pramerica Life Secure Savings Plan?

On Survival of the Life Insured till the end of the policy term and provided all due premiums have been paid, life insured will receive the following benefits:

  • Annual Payouts during the Payout Period, PLUS
  • Savings Booster with last Annual Payout installment

Where Annual Payouts will be 150% or 175% of Annualised Premium#, based on Premium Payment Term and

Savings Booster is Annualised Premium# multiplied by Savings Booster Multiple.

 

12.Under DHFL Pramerica Life Secure Savings Plan, is Maturity Benefit payable on the basis of different premium payment terms?

Yes, Maturity benefit is payable on the basis of different premium payment terms.

Premium Payment Term of 8 Years

Premium Payment Term of 10 Years

Premium Payment Term of 12 Years

Annual Payouts – 8 annual installments of 150% of Annualised Premium# from the end of 14th year to 21st year

Annual Payouts – 10 annual installments of 175% of Annualised Premium# from the end of 14th year to 23rd year

Annual Payouts – 12 annual installments of 175% of Annualised Premium# from the end of 14th year to 25th year

Savings Booster –  At the end of 21st year based on your entry age and premium band

Savings Booster – At the end of 23rd year based on your entry age and premium band

Savings Booster – At the end of 25th year based on your entry age and premium band

Please refer to Company Website for Savings Booster Multiple (SBM) table.

#Annualised Premium shall be the Premium payable in a Policy Year, excluding any premium towards underwriting extra, loadings for modal premium and taxes, if any

 

13.What is the Payout period under DHFL Pramerica Life Secure Savings Plan?

Payout period is equal to the premium payment term and starts immediately after completion of policy term.

 

14.Under DHFL Pramerica Life Secure Savings Plan, can the Life Insured convert the Annual payouts into monthly payouts?

No, the Life Insured cannot convert the annual payouts into monthly payouts.

 

15.Are there any guaranteed additions or bonuses in DHFL Pramerica Life Secure Savings Plan?

No, there is no guaranteed additions or bonuses under DHFL Pramerica Life Secure Savings Plan.

 

16.What will be the Death Benefit under DHFL Pramerica Life Secure Savings Plan?

In the unfortunate event of demise of the Life Insured during the Policy Term while the policy is in-force, the Company will pay lump sum benefit equal to Sum Assured on Death. Where Sum Assured on Death will be highest of

 

  • 11 times the Annualised Premium# OR
  • 105% of all the premiums paid * till date of death OR
  • Maturity Sum Assured = (One Annual Payout x Lump Sum Factor for annual payout) + (Saving booster x Lump Sum Factor for savings booster) OR
  • Guaranteed amount assured to be paid on death, which is the Base Sum Assured

 

Lump Sum Factor for Annual Payout

Premium Payment Term

8

10

12

Factor

5.57

6.46

7.22

 

Lump Sum Factor for Savings Booster:

Premium Payment Term

8

10

12

Factor

0.51

0.43

0.36

 

#Annualised Premium shall be the Premium payable in a Policy Year, excluding any premium towards underwriting extra, loadings for modal premium and taxes, if any.

Policy will terminate after the payment of Death Benefit

 

17.How will the payouts work in case a customer aged 40 years (male) opts for DHFL Pramerica Life Secure Savings Plan with 13 years as Policy Term and 10 years of Premium Payment Term? He is paying an amount of Rs.1,00,000 (excluding service tax) every year.

Benefits he will receive are:

Age

Policy Term

Premium Payment Term

Annual Premium

Guaranteed Annual Income

Additional Guaranteed Booster

40 Years

13 Years

10 Years

Rs.1,00,000

Rs.1,75,000

Rs.4.63 Lakh

 

 

 

In the unfortunate event of Life Insured’s death during the policy term, beneficiary will receive the Sum Assured on Death^ i.e. Rs.13,29,590 as the death benefit and the policy will terminate

^Please refer to “Benefit in Detail” section for more information.

 

18.What will be the payout in case of death of Life Insured happens during the Payout period, under DHFL Pramerica Life Secure Savings Plan?

In the unfortunate event of death of Life Insured during the Payout Period, the beneficiary will continue to receive the outstanding Annual Payouts and Savings Booster when due.

The beneficiary would have the option to take lump sum amount which will be discounted value of remaining Annual Payouts (if any) and Savings Booster at 8.85% per annum.

 

19.Is there an option to receive Maturity Benefits in Lump Sum, under DHFL Pramerica Life Secure Savings Plan?

Yes, there is an option to receive Lump Sum maturity benefit i.e. the annual payouts along with the Savings Booster as a lump sum amount by making a written request to the Company at least 6 months before Maturity Date. Lump sum amount in such case will be equal to the Maturity Sum Assured.

 

20.Under DHFL Pramerica Life Secure Savings Plan, can the Life Insured convert the Annual payouts into monthly payouts during payout period?

No, Life Insured cannot convert the Annual payouts into monthly payouts at any given point.

 

21.Can I avail a loan against DHFL Pramerica Life Secure Savings Plan?

Yes, loan is available under the DHFL Pramerica Life Secure Savings plan, subject to the policy acquiring the surrender value. Maximum loan available will be up to 75% of the surrender value. The rate of interest applicable on the loans will be declared by the Company from time to time.


22.What happens if I surrender my policy?

It is advisable to pay Premium for the full Premium Payment Term to enjoy maximum benefits under the policy.

If your Policy acquired a Surrender Value and life insured choose to discontinue his/her policy, he/she will be entitled to receive Surrender Value which will be higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) of the Policy. The Policy will be terminated once it is surrendered and cannot be revived. Please refer to policy document for details.
The Policy shall acquire a Surrender Value on payment of:

 

  • At least two full years’ premium if the premium payment term is less than 10 years
  • At least three full years’ premium if the premium payment term is 10 years or more

If life insured discontinue the payment of premiums before his/ her Policy has acquired a Surrender Value, their Policy will lapse at the end of the grace period and the Death Benefit will cease immediately and no benefits will be paid when the Policy is in lapsed status.

If the Policy has acquired a Surrender Value and no future premiums are paid, life insured may choose to continue his/ her Policy on Paid-up basis.

 

23.What happens if I am unable to pay the premium?

On Policy becoming Paid-up, benefits under the plan will be reduced as given below:

Benefit

Payout

On Death

Paid-up Factor x Sum Assured on Death

On Maturity

  • Paid-up Factor x Annual payouts at the end of each year during payout period; plus
  • Paid-up Factor x Savings Booster, payable along with the last installment of annual payouts

Paid-up Factor = Number of premiums paid/Number of premiums payable
 

24.Can I revive the policy at a later stage?

  • Revival of a lapsed/Paid-up policy is available within the policy term for up to 2 years from the due date of the first unpaid premium but before policy maturity
  • Payment of all unpaid Premium with interest is required to revive the Policy in all cases.
  • Revival of the policy is subject to underwriting requirements.
  • Once the Policy is revived, all the benefits under the Policy would be revived.

 

25.Can I cancel my policy in Free-look period?

You will have a period of 15 days (30 days in case the Policy is sold through Distance Marketing* i.e. any means of communication other than in person) 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 bond, the Company will refund the Premiums 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 if the Life insured commits suicide?

In case of death of the Life Insured due to suicide within 12 months:

  • From the date of inception of the policy, the Company shall pay to the nominee or beneficiary 80% of the premiums paid, provided the policy is in force or
  • From the date of revival of the policy, the Company shall pay to the nominee or beneficiary an amount which is higher of 80% of the premiums paid till the date of death or surrender value, if any

 

27.Are there any additional riders, under DHFL Pramerica Life Secure Savings Plan?

No, there is no additional rider under this plan.

 

28.What is the Grace period available under DHFL Pramerica Life Secure Savings Plan?

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

 

29.Are there any tax benefits available?

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