FAQs

1.What kind of a plan is DHFL Pramerica Life Wealth Enhancer?

DHFL Pramerica Life Wealth Enhancer plan is a Unit Linked non-participating Life Insurance Plan. It is a single pay ULIP plan that is a perfect combo of savings and protection.

2.What is the eligible entry age in DHFL Pramerica Life Wealth Enhancer plan?

Anyone between the ages of 1 to 70 years (offline) & 1 to 68 years (online) can opt for the Life Wealth Enhancer plan. The minimum maturity age is 18 years & maximum maturity age is 75 years.

3.What are the policy terms available under DHFL Pramerica Life Wealth Enhancer plan?

The policy terms available for various payment terms are-
For Limited/Regular Pay:

Age(Last Birthday)
 
Policy Term
Minimum Maximum
1-40 5 to 20 years 5 to 20 years
41-45 5 to 10 years 5 to 20 years
46 & Above Not Applicable 5 to 20 years

For Policies sold online, the minimum policy term is 7 years

4.What is the minimum and maximum premium in DHFL Pramerica Life Wealth Enhancer plan?

The minimum premium is 2,00,000 & maximum is subject to underwriting.

5.What is the cover limit under DHFL Pramerica Life Wealth Enhancer?

The life cover is multiple of single premium which depends on age at entry, as follows-
Age at Entry/Option Option-A Option-B
1 to 45 years 10 x Single Premium 1.25 x Single Premium
46 years and Above NA 1.25 x Single Premium

6.How does the DHFL Pramerica Life Wealth Enhancer plan work?

This plan works in 6 simple steps:
  • Choose Policy Term from 5 years to 20 years, as per your age at entry, subject to minimum maturity age of 18 years and maximum maturity age of 75 years.
  • Pay the premium as a one-time lump sum amount.
  • Choose your sum assured as per your protection needs.
  • Choose any one as your preferred Investment strategy from following options:
    • Defined Portfolio Strategy without Systematic Transfer Plan
    • Defined Portfolio Strategy with Systematic Transfer Plan
    • Life Stage Portfolio Strategy
  • Choose your funds & define the allocation percentage from 5 available funds to invest your money within Defined Portfolio. The minimum investment in any fund should be at least 10% of the Single premium paid if more than 1 fund is chosen.
  • Choose to receive your maturity benefit as lump sum or as a structured payout through settlement option.

7.What is the Maturity benefit available under the DHFL Pramerica Life Wealth Enhancer plan?

At maturity the policyholder will receive a maturity benefit equal to fund value. Death cover chosen will cease on Maturity.

8.What is the Death benefit available under the DHFL Pramerica Life Wealth Enhancer 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, which is equal to higher of-
  • Sum Assured (reduced by applicable partial withdrawal) or
  • Fund Value or
  • 105% of Single Premium

*Sum Assured will be reduced to the extent of partial withdrawals In case of death during two years immediately after partial withdrawal. If death occurs after two years of partial withdrawal, there will be no reduction in the Sum assured.

After the life insured attains the age of 60 years: All the partial withdrawals made within two years before attaining age 60 and any partial withdrawal thereafter shall be reduced from the benefit payable on death. The policy will terminate on payment of death benefit.

9.Does DHFL Pramerica Life Wealth Enhancer plan, give any reward for staying invested in the policy?

Yes, as a reward for continuing your policy, Wealth boosters equal to 1.50% of the average of Fund Value of preceding 36 monthiversaries would be allocated to the Policyholder’s unit account at the end of every 6th, 11th &16th policy year, provided monies are not in Discontinuance Fund.

10.Does DHFL Pramerica Life Wealth Enhancer plan, give any additional benefits?

Yes, Wealth Additions would be allocated as extra units at the end of each policy year, starting from the first policy year. Wealth addition as a percentage of average fund value of preceding 36 monthiversaries would be allocated to the policyholder’s unit account if they fall within the policy term. For duration less than 3 Policy years, average fund value since inception till date of allocation of Wealth Additions, at preceding monthiversaries will be taken.
Policy Year Wealth Additions
[1] to [5] 0.2%
[6] and onwards 1.0%

11.What are the investment options available in this plan to enhance my wealth?

To serve diverse needs of customers DHFL Pramerica Life Wealth Enhancer offers following investment strategies-
  • Defined Portfolio Strategy (with/without Systematic Transfer Plan Option)
  • Life Stage Portfolio Strategy

12.What is Defined Portfolio Investment strategy available in this plan?

Under this option, you can opt to invest in any of the funds as available (except Discontinued Policy Fund or Liquid Fund) in proportions of your choice. Within the Defined Portfolio strategy, you also have an option to select

Systematic Transfer Plan option (STP)

and/or

Fund Conservation Option

for which Liquid Fund will be made available to you. You can switch monies amongst these funds using the switch option. You have an option to choose from five available funds to invest your money in. You can look at the investment objectives of each of our funds to match with your investment goals and then decide the proportion of money you would like to invest in each of them. If you are opting for more than one fund, the minimum investment in any fund should be at least 10% of the Single Premium paid.

13.What are the different funds available under Defined Portfolio Investment Strategy in this plan?

You have an option to choose from five funds to invest your money in. You can look at the investment objectives of each of our funds to match with your investment goals and then decide the proportion of money you would like to invest in each of them. If you are opting for more than one fund, the minimum investment in any fund should be at least 10% of the premium allocated. The funds and their objectives are as follows:
Fund Investment objectives Asset Allocation
Debt fund
(SFIN:ULIF00127/08/08FIXEDIFUND140)
To generate steady return at lower risk by investing in a range of debt securities. Government securities: 50% to
100%
Corporate bonds: 0% to 50%
Money Market/cash: 0% to 40%
Balance Fund
(SFIN: ULIF00227/08/08BALANCFUND140)
To generate balance return by investing in debt securities to provide stability and by investing in equities to provide potential to enhance the return through capital appreciation. Equity: 10% to 50%
Government securities: 20% to
50%
Corporate bonds: 0% to 50%
Money Market/cash: 0% to 40%

Growth Fund
(SFIN: ULIF00327/08/08GROWTHFUND140) To generate higher return through capital appreciation in the long term by investing in a diversified portfolio of equities. Debt investment will provide a little stability and diversification. Equity: 40% to 80%
Government securities: 10% to
30%
Corporate bonds: 0% to 30%
Money Market/cash: 0% to 40% Large Cap Equity Fund
(SFIN: ULIF00427/08/08LARCAPFUND140) To generate higher return through capital appreciation in long term from a portfolio invested predominantly in large cap equities. Equity: 60% to 100%
Money Market/cash: 0% to 40% Multi Cap Opportunities Fund
(SFIN: ULIF01106/02/18MULCAPOPPO140) To generate capital appreciation for policyholders by dynamically investing across assets to capitalize on changing market conditions. The scheme aims to invest primarily in equities and to mitigate market volatility, in fixed income securities, including money market instruments. The investments will be market capitalization agnostic and will focus on growth oriented opportunities. Equity: 50%-100%
Govt Securities, Corporate Bonds:0%-30%,
Money Market Instruments/Cash: 50%-10

Liquid Fund will be available to the Policyholder only through STP. Investment objective of Liquid Fund is

as under.


Fund Investment objectives Asset Allocation
Liquid Fund (SFIN: ULIF00920/01/11LIQUIDFUND140) To generate steady return at lower risk by investing in a range of short-term debt/liquid money market securities T-Bill/Money Market/Cash: 100%

14.What is Systematic Transfer Plan?

Systematic Transfer Plan is an option under this plan whereby investor’s premium (net of allocation charges) will be first invested in Liquid fund. During the STP period at the beginning of each policy month (monthiversary), a portion will be systematically switched to the funds chosen by the policyholder at inception. With STP, you can invest a specific amount in a regular fashion at monthly intervals. This gives you the advantage of rupee cost averaging. You buy more units when markets are down and fewer units when markets are up, thereby reducing the average cost of purchase of units in the funds selected by you.

 

You have an option to choose STP for 12 or 24 months.

15.How does Systematic Transfer Plan works?

STP works in 2 simple steps

Step 1:

Customer chooses the amount to be invested in a regular fashion in one or more funds out of the five available funds. If the customer is opting for more than one fund, the minimum investment in any fund should be at least 10% of the Single premium

Step 2:

The Single/Annualised premium (net of allocation charges) will be first allocated to the Liquid Fund, and then at the beginning of each policy month (monthiversary), a portion will be systematically switched to the funds chosen by the policyholder at inception. Every month 1/N of units will be transferred from Liquid fund to other funds as per the fund allocation proportion chosen by the policyholder; where N = number of months remaining under the STP scheme.

For e.g.: A policyholder chooses the STP option with premium allocation of 20% in Debt Fund and 80% in Growth Fund. Then for the first month 1/12 * 20% of units in Liquid fund will be switched to Debt Fund and 1/12 * 80% of units in Liquid Fund will be switched to Growth Fund. This transfer will happen after the deduction of all the charges for that monthiversary. For second month 1/11 * 20% of units in Liquid fund will be switched to Debt Fund and 1/11 * 80% of units in Liquid Fund will be switched to Growth Fund and so on each policy year.

16.Is there any feature in the product which will safeguard the fund value from any downside around the time of maturity?

To preserve your capital towards end of your Policy, DHFL Pramerica Life Wealth Enhancer gives you an option of Fund conservation within Defined Portfolio Strategy when your investments are due to be paid back. You should notify the company at least 30 days before the start of last policy anniversary when the right to exercise this option becomes available. All your investments are systematically transferred from Debt Fund, Balance fund, Growth fund and Large Cap Equity fund to Liquid Fund in the last 12 months of your Policy; on monthly basis.

17.What is Life stage Portfolio Investment strategy available in this plan?

Considering the ever changing financial needs as per the different life milestones, we offer a life stage based investment strategy wherein the investments are distributed between Multi Cap opportunities Fund and Debt Fund with their proportions varying as per defined in table below. As and when the next milestone is achieved, the funds will be re-distributed according to the attained age (age of life insured) as given in following table.
Age last birthday last policy anniversary Debt Fund Multi Cap Opportunities Fund
Up to 25 15% 85%
26 - 30 20% 80%
31 - 35 25% 75%
36 - 40 30% 70%
41 - 45 35% 65%
46 - 50 40% 60%
51 - 55 45% 55%
56 & above 50% 50%

On a quarterly basis, the strategy shall be reviewed and rebalanced, if necessary, to achieve above proportions. The rebalancing will be done on the first day of each quarter of the financial year except for the last 12 months of the policy. If the first day is a non-valuation date then the next working day's NAV will be applicable

In the last 12 months, the remaining investments from Multi Cap opportunities Fund will be systematically transferred to the liquid fund in 12 installments.

18.What types of flexibilities are available in DHFL Pramerica Life Wealth Enhancer plan?

19.After completion of Lock-In Period, what are settlement options available with this plan?

Upon Maturity of the policy, you will have the option, to receive maturity benefit as a structured payout over a period of 1, 2, 3, 4 or 5 years post maturity by availing settlement option. For e.g. if you choose settlement period of 2 years with semi-annual frequency, the first installment will be paid on the Maturity Date, second installment will be paid upon completion of six months from date of maturity and so on.
  • During the period the inherent risk in the underlying investment funds will be borne by the policyholder.
  • The frequency of the periodic payments during settlement option can be annually or semi-annually.
  • The period of settlement shall not in any case be extended beyond a period of five years from the date of maturity.
  • The payments will be made in installments, based on settlement period and frequency of payouts chosen, with the first installment payable on the date of maturity.
  • The Company will continue to deduct the fund management charges and no other charges shall be levied. The units will continue to be invested in the same funds as on date of maturity during settlement period.
  • No switching and partial withdrawals are available during the settlement period.
  • The policyholder can take complete withdrawal at any time during the settlement period and no charge will be levied for such withdrawal. The Company would divide the total units available at Maturity by number of installments chosen by the policy holder and would then redeem these units at specified interval. The value of unit redeemed at each time interval would depend on NAV movement only.
  • You can opt for this option by giving a notice at least 30 days before date of maturity
  • During settlement period, no life cover or other insurance cover will be provided. On death during this period fund value will be paid to the beneficiary.
  • The policy will terminate once the fund value falls below a minimum amount of Rs. 5,000 during settlement period or at the end of settlement period by paying fund value at that time.

20.What are non-negative Claw-back additions?

From the end of 5th Policy year, at the end of each policy year, a Policy may also be eligible for non-negative claw-back additions if the reduction in yield at that time is greater than the maximum reduction in yield allowed by regulations issued in this regard by the Authority. The non-negative claw-back additions, if required, will be added to the fund value.

21.In case of surrender of policy after lock-in period of 5 years, will the customer get any surrender value?

Yes, policy issued under this plan will acquire surrender value from first policy year. However, no surrender value will be payable during the "lock in period" , which is a period of five consecutive Policy years from the date of commencement of the Policy. After completion of 5 consecutive years, On complete withdrawal, the surrender value will be equal to the fund value, including the value of Wealth Additions and Wealth Boosters will be payable immediately to policyholder.

22.What happens if policyholder wants to surrender the policy before completion of lock-in period of 5 years?

Before completion of lock in period of 5 years, if you choose to completely withdraw from the plan, the fund value (including value of wealth additions) after deducting appropriate discontinuance charges (or surrender charges if any) as on the date of withdrawal will be credited to the Discontinued Policy Fund. The proceeds of the Discontinued Policy Fund shall be paid out to the policyholder on the expiry of Lock in period only. During the period when the Policy is in Discontinued Policy Fund no risk cover would be provided and death benefit would be equal to the value of units in the discontinuance fund.

23. What is the Discontinuance Charge under DHFL Pramerica Life Wealth Enhancer plan?


Policy Year in which Policy is discontinued Single Pay
1 Lower of 1% of (SP or FV) subject to a maximum of 6000
2 Lower of 0.5% of (SP or FV) subject to a maximum of 5000
3 Lower of 0.25% of (SP or FV) subject to a maximum of 4000
4 Lower of 0.1% of (SP or FV) subject to a maximum of 2000
5 and onwards NIL

Where FV = Fund Value, SP= Single Premium & AP = Annualized Premium

24. List the charges applicable under DHFL Pramerica Life Wealth Enhancer plan.

Charges applicable under DHFL Pramerica Life Wealth Enhancer plan are stated below:
  • Premium Allocation Charge
  • Policy Administration Charge
  • Mortality Charge
  • Fund Management Charge

Premium Allocation Charge:

Premium allocation charge of 3% will be deducted from the Premium amount at the time of Premium

payment before allocating the same to the unit account.

For policies sold online, no premium allocation charge would be applicable.

Policy Administration Charge:

Policy administration charge 100 per month will be deducted during the first five years at the beginning of each month by deduction of units from the unit account. There is no policy administration charge from 6th year and onwards.

Mortality Charge:: Mortality charge will apply on the sum at risk. It will be deducted monthly by cancellation of units from the unit account.

Annual charges per 1000 sum at risk for a healthy male & female are as follows:


Attained age of Life Insured 25 30 35 40 45 50 55 60
Mortality Charge 0.4945 0.5350 0.6600 0.9405 1.5175 2.607 4.1075 5.991

Fund Management Charge:


Debt Fund 1.20% p.a.
Liquid Fund (in case of STP & FCO only) 1.20% p.a.
Balance Fund, Growth, Large Cap Equity Fund, Multi Cap Opportunities Fund 1.35% p.a.
Discontinued Policy Fund (DPF) 0.50% p.a.

The FMC will be adjusted in the unit price of each fund and will be levied on a daily basis. FMC is reviewable subject to maximum of 1.35% p.a. for each of the fund and upon prior approval of the IRDA

25.What happens when the Life Insured commits suicide?

In case of death due to suicide or attempted suicide, whether sane or insane, within 12 months from the date of inception of the policy, nominee(s) or beneficiary of the policyholder shall be entitled to the fund value available as on the date of death and the charges, if any levied subsequent to the date of death shall also be paid back along with such death benefit

26. 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 fund value as on date of cancellation plus unallocated part of premium plus charges deducted from policy by cancellation of units, subject to the deduction of proportionate risk premium and any expenses incurred by the Company on insurance stamp duty and on medical examination. Distance Marketing entails to the sale of the product through a mode other than personal interaction.

27.What are the tax benefits available under the DHFL Pramerica Life Wealth Enhancer plan?

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

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 DHFL Pramerica Life Wealth Enhancer plan be bought under MWPA?

Yes, DHFL Pramerica Life Wealth Enhancer plan can be bought under MWPA, only at the time of inception of the policy.

30.Who is a nominee?

A nominee is the sole person who receives the proceeds of your life insurance policy in case of your untimely death.

31.Can a minor be appointed as nominee?

Yes. But when you are appointing a minor(less than 18 years of age) as your nominee, you will also have to appoint an appointee. The benefits will become payable to the appointee as long as the nominee is a minor.

32.Are there any riders with Life Wealth Enhancer ULIP?

No, there are no riders available with Life Wealth Enhancer ULIP.

33.Can DHFL Pramerica Life Wealth Enhancer be assigned?

Yes, Assignment is effected as per Section 38 of Insurance Act, 1938 in this Policy.