FAQs

1. What kind of a plan is DHFL Pramerica Life Wealth Maximiser?
DHFL Pramerica Life Wealth Maximiser plan is a Unit Linked Non Participating Life Insurance Plan. It is a plan that makes you financially equipped and significantly insured to fulfill the certain as well as uncertain needs of your family..
 

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

Anyone between the ages of 90 days to 65 years can opt for the Wealth Maximiser plan, subject to the minimum maturity age of 18 years & maximum maturity age of 75 years

 

3. What are the policy terms available under DHFL Pramerica Life Wealth Maximiser plan?
The policy terms available under various payment options are:

For Limited/Regular Pay:

Age (Last Birthday)

Policy Term

Minimum

Maximum

0 – 40

5 Years

30 Years

41 – 65

5 Years

25 Years

 

For Single Pay minimum policy term is 5 years & maximum policy term is 10 years.

 

4. What is the minimum and maximum premium in DHFL Pramerica Life Wealth Maximiser plan?
The minimum & maximum is as follows-

Minimum

Single Pay:

1,20,000

Limited/ Regular Pay:

Frequency

Minimum Premium

Annual

36,000

Half-yearly

18,000

Quarterly

9,000

Monthly

3,000

Maximum

Subject to underwriting.

Top up Premium:

Minimum: 5,000

Maximum: Sum of total base premiums paid till date of Top-up payment.

 

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

The life cover is multiple of annualized premium which depends on age at entry, as follows-

Age at Entry

Single Pay

Limited/Regular Pay

Up to 30

1.25

30

31 – 35

20

36 – 40

15

41 – 44

12.5

45 – 55

10

56 & above

7

Top-Up: 1.25 X Top-Up Premium

 

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

This plan works in 6 simple steps:

  • Choose Policy Term from 5 years to 30 years, as per your age at entry, subject to minimum maturity age of 18 years and maximum maturity age of 75 yea
  • Choose the premium payment term from Single pay/Limited pay or regular pay.
  • Choose the premium payment frequency from (Annual/Half yearly/Quarterly/Monthly) if you have opted for Limited/Regular payment term & pay your premium. In case of Single pay, your frequency will remain Single.
  • Choose any one as your preferred Investment strategy from following options:
  • Defined Portfolio Strategy
  • Life Stage Portfolio Strategy
  • In case of Defined Portfolio Strategy, you can choose to invest with or without Systematic Transfer Plan Option. Choose your funds & define the allocation percentage from 4 available funds to invest your money within Defined Portfolio. The minimum investment in any fund should be at least 1% of the Single / Annual Premium (as applicable) paid if more than 1 fund is chosen.
  • Choose your Sum Assured from a variety of cover multiples available under the plan.

 

7. What is the Maturity benefit available under the DHFL Pramerica Life Wealth Maximiser plan?
At maturity the policyholder will receive a maturity benefit equal to fund value including the Top-up fund value (if any). Death cover chosen will cease on Maturity.

 

8. What is the Death benefit available under the DHFL Pramerica Life Wealth Maximiser 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* including Top-Up Sum Assured, if any  or
  • Fund Value, including Top-Up Fund Value, if any, or
  • 105% of total Premium paid including Top-Up premiums, if any.

Where, Sum Assured is defined as multiple of Annualized Premium / Single Premium as opted at inception of policy

*Sum Assured will be reduced to the extent of partial withdrawals made in the last 2 years for age on death below 60 years and for age on death 60 years and above, all partial withdrawals made from the age of 58 years onwards. The partial withdrawal made from the top-up premium shall not be reduced for this purpose.

 

9. Does DHFL Pramerica Life Wealth Maximiser plan, give any reward for staying invested on opting longer Policy terms in the policy?

Yes, as a reward for continuing your policy, Persistency units equal to 0.50% of the average of Fund Value including Top-Up Fund Value of preceding 36 monthiversaries would be allocated to the Policyholder’s unit account at the end of every policy year, starting from sixth policy year provided monies are not in Discontinuance Fund.

 

Note: No Persistency Units would be given to policies sold online

 

10. Does DHFL Pramerica Life Wealth Maximiser plan, give any additional benefits or rewards?

Yes, Wealth Boosters would be allocated as extra units at the end of every fifth policy year, starting from the end of tenth policy year. Wealth Booster as a percentage of average fund value including Top-up Fund Value of preceding 36 monthiversaries would be allocated to the policyholder’s unit account at the end of 10th, 15th, 20th, 25th and 30th policy anniversaries if they fall within the policy term.

Policy Anniversary

Premium Band

Band 1

Band 2

Band 3

10th

1.00%

1.25%

1.50%

15th

1.25%

1.75%

2.00%

20th

1.50%

2.25%

2.50%

25th

1.75%

2.75%

3.00%

30th

2.00%

3.25%

3.50%

 

Note: No Wealth Boosters would be given to policies sold online.

 

11. What are the premium bands available in this plan?

Following Premium Bands would be applicable to this plan:

Premium Band

Limited/Regular Pay

Single Pay

From ()

To ()

From ()

To ()

Band 1

36,000

1,19,999

NA

NA

Band 2

1,20,000

2,99,999

1,20,000

2,99,999

Band 3

3,00,000

And above

3,00,000

And above

 

12. What are the investment options available in this plan to maximize my wealth?

To serve diverse needs of customers DHFL Pramerica Life Wealth Maximiser offers following investment strategies-

  • Defined Portfolio Strategy (with/without Systematic Transfer Plan Option)
  • Life Stage Portfolio Strategy

 

13. 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 following four 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 1% of the Single / Annual Premium paid.

 

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

 

You have an option to choose from four 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 1% of the premium allocated. The funds and their objectives are as follows:

Fund

Investment objective

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%

 

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%


 

 

 

15. What is Systematic Transfer Plan?

Systematic Transfer Plan is an option under this plan whereby investor’s premium is first invested in Liquid fund every policy year till completion of premium payment term 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.

 

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 months only. The option would be available to policies where premium is paid annually or single pay policies

 

 

16. 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 four available funds.

If the customer is opting for more than one fund, the minimum investment in any fund should be at least 1% of the Single/Annualized premium

Step 2: The Single/Annualised premium (net of allocation charges) will be first allocated to the Liquid Fund every policy year till completion of premium payment term, 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.

 

17. 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 Maximiser gives you an option of Fund conversion within Defined Portfolio Strategy when your investments are due to be paid back. The Company shall be notified by the Policyholder at least 30 days before the start of last policy year 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. All Premiums received during this period will be re-directed to Liquid Fund.

 

18. 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 Large Cap Equity Fund and Debt Fund with their proportions varying as per the different life stages. At inception the funds will be distributed between two funds, Large Cap Equity & Debt Fund. As and when the next milestone is achieved, the funds will be re-distributed according to the attained age (age bands) as given in following table.

 

Age last birthday last policy anniversary

Debt Fund

Large Cap Equity 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 Equity Fund will be systematically transferred to the liquid fund in 12 installments.

 

 

19. What types of flexibilities are available in DHFL Pramerica Life Wealth Maximiser plan?

 

Top-up: To boost your savings, you can pay additional Top-Up Premiums over & above the base premium as long as all due premium till date has been paid, subject to following conditions:

  • Top-Up premiums are allowed at anytime during the policy term, except during last 5 years of Policy Term
  • Each Top-Up premium will be invested in separate Top-Up account with a 5 year’s lock-in period from the payment date, except in case of full surrender
  • At any time during the Policy Term, the total Top-Up premiums shall not exceed the sum total of the base premium paid to date.
  • The minimum Top-up premium is 5,000. Sum Assured would increase by Top-up Sum Assured after availing a Top-up facility.
  • All Top-up premiums made during the Policy Term shall have insurance cover treating them as single premium.

 

Switching:

Within Defined Portfolio Strategy, you can switch your investments within the available funds, depending on your financial priorities and investment decision. There are no switching charges or restriction on number of switches during entire policy term. The minimum switch amount is Rs 5000 unless 100% of the fund is switched.

 

Premium Redirection:

Within Defined Portfolio Strategy, you have the flexibility to change the proportion of Premium that is invested in different funds by giving an advance notice to the Company of at least 15 days before exercising this option. All Regular Premium or Top-Ups received after this date will be invested as per the revised mandate till the Policyholder does not change the same. Premium however cannot be redirected to liquid fund. In case you select more than one fund, at least 1% of the allocated Premium should be invested in each fund. There are no Premium Redirection charges or restriction on number of redirection during the entire policy term. This feature would not be applicable for single premium payment policies.

 

Partial Withdrawal:

To manage any unexpected need for money or for any exigency, partial withdrawals can be made from your investment account after 5 Policy years.

  • For purpose of partial withdrawals, lock in period for Top-up premiums will be five years from date of payment.
  • Partial withdrawal is not allowed until the minor life insured, if applicable attains majority i.e. on or after the attainment of age 18.
  • The policyholder can make unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy Year.
  • The minimum withdrawal amount is Rs 10,000. The partial withdrawals are free of cost.
  • Partial withdrawals shall be allowed from the fund value built up on from the top-up premiums, if any, as long as such fund value supports the partial withdrawals and subsequently, the partial withdrawals may be allowed from the fund value built up from the base premium
  • If there is a partial withdrawal from the unit account of base premium; then in case of death during two years immediately after partial withdrawal, the sum assured for base risk cover will get reduced by the amount of the partial withdrawal. If death occurs after two years of partial withdrawal, there will be no reduction in sum assured. After attainment of age 60, all the partial withdrawals made within two years before attaining age 60 and any partial withdrawal thereafter shall be reduced from the sum assured.

 

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

At Maturity, you will have the option, to leave the fund invested with the Company and take the benefit in the form of periodic payments over a period of 1, 2, 3, 4 or 5 years post maturity. For e.g. if you choose settlement period of 1 year with monthly frequency, the first installment will be paid upon completion of one month from date of maturity.

 

  • During the period the inherent risk in the underlying investment funds will be borne by the policyholder.
  • 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 arrears based on settlement period and frequency of payouts chosen.
  • 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 frequency of the periodic payments during settlement option can be annually, semi-annually, quarterly or monthly.
  • 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 7 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.

 

21. What are non negative Claw-back additions?

From the end of 5th Policy year, at the   end of each 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.

 

22. Can I increase/decrease the Sum Assured in DHFL Pramerica Life Wealth Maximiser?
Yes, you can increase or decrease the sum assured within maximum and minimum limits after third policy anniversary, provided you have paid all the premium/s due and would be subject to underwriting and other requirements of the Company. No increase in Sum Assured is available after 55 years of age. A written notice at least 15 days in advance is required from you before the policy anniversary from which the increase/decrease in sum assured is desired. The company also reserves the right to decline the increase in sum assured or impose extra mortality charges. The policyholder shall bear the medical cost on such increases. On reduction of Sum Assured, the risk cover for additional benefit will also reduce.

 

23. Can I increase/decrease the Premium payment term in DHFL Pramerica Life Wealth Maximiser plan?

Yes, you can opt for Increasing/Decreasing the Premium Payment Term, provided-

  • All due premiums have been paid, you can choose to increase the Premium Payment Term by notifying the Company.
  • At least five years’ premiums have been paid; you can choose to decrease the Premium Payment Term by notifying the Company.
  • Increase or decrease in Premium Payment Term must always be in multiples of one year.

This benefit is not applicable for the Single Pay option.

 

24. Can I increase/decrease the Policy Term in DHFL Pramerica Life Wealth Maximiser plan?

Yes, you can choose to increase or decrease your policy term by notifying the Company.

  • An increase in policy term is allowed, subject to underwriting. Your Sum Assured may increase subject to the minimum sum assured conditions.
  • On decrease of policy term, your Sum Assured will not reduce unless it is requested by you.

 

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

Yes, the Policy will acquire surrender value from the first Policy year but it becomes payable only after completion of “lock-in period” which is a period of 5 consecutive Policy years from the date of commencement of the Policy.

The surrender value will be the value of units less discontinuance (or surrender) charges, if applicable.

 

26. What is the Discontinuance Charge under DHFL Pramerica Life Wealth Maximiser plan?

Policy Year in which Policy is discontinued

Regular/Limited Pay

Single Pay

1

Lower of 6% of (AP or FV) subject to a maximum of Rs. 6000

Lower of 1% of (SP or FV) subject to a maximum of Rs. 6000

2

Lower of 4% of (AP or FV) subject to a maximum of Rs. 5000

Lower of 0.5% of (SP or FV) subject to a maximum of Rs. 5000

3

Lower of 3% of (AP or FV) subject to a maximum of Rs. 4000

Lower of 0.25% of (SP or FV) subject to a maximum of Rs. 4000

4

Lower of 2% of (AP or FV) subject to a maximum of Rs. 2000

Lower of 0.1% of (SP or FV) subject to a maximum of Rs. 2000

5 and onwards

NIL


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

No discontinuance charge will be applicable for Top-Up fund value.

 

 

27. List the charges applicable under DHFL Pramerica Life Wealth Maximiser plan.

Charges applicable under DHFL Pramerica Life Wealth Maximiser plan are stated below:

  • Premium Allocation Charge
  • Policy Administration Charge
  • Mortality Charge
  • Fund Management Charge

 

Premium Allocation Charge:

This will be deducted from the Premium amount at the time of Premium payment before allocating the same to the unit account.

Allocation Charge

Policy Year/Premium Band

Band 1

Band 2

Band 3

1

5.0%

2.0%

2.0%

2 to 5

2.5%

2.0%

2.0%

6 and onwards

2.5%

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

Top-up premiums are subject to an allocation charge of 2.0%

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

 

Policy Administration Charge:

Policy administration charges will be deducted at the beginning of each month by deduction of units from the unit account.

 For policies purchased other than online channels.

Policy Administration Charge (per month) as a % of annual/single premium

Policy Year/Premium Band

Band 1

Band 2

Band 3

1 to 5

0.21%

0.10%

Nil

6 and onwards

0.25%

0.10%

Nil

For policies sold online, no policy administration charges would be applicable

 

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

 

Monthly mortality charges for Top-up Sum Assured cover would be calculated as Top-up Sum Assured less Top-up Fund Value x mortality charge rate for the given age/gender.

 

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

Age at entry

25

30

35

40

Mortality Charge

0.9890

1.0700

1.3200

1.8810

 

Fund Management Charge:

Debt Fund

1.20% p.a.

Liquid Fund (in case of STP only)

1.20% p.a.

Balance Fund, Growth, Large Cap Equity 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

 

28. 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 or from the date of revival of the Policy, the 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.
 

29. 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.
 

30. What are the tax benefits available under the DHFL Pramerica Life Wealth Maximiser plan?

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

31. 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.

 

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

 

33. 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.

 

34. 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.

 

35. Are there any riders with Life Wealth Maximiser ULIP?

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

 

36. Can DHFL Pramerica Life Wealth Maximiser be assigned?

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