FAQs

1.What kind of a plan is DHFL Pramerica Magnum Assure?

DHFL Pramerica Magnum Assure is a non participating endowment insurance plan with guaranteed monthly payouts that helps take care of your future needs and guarantees a secure future for you and your family.

 

2.How does the DHFL Pramerica Magnum Assure plan work?

 

3.Who can buy the DHFL Pramerica Magnum Assure plan?

Age at entry## Minimum 18 years
Maximum For Policy Term 10 Years 55 Years
For Policy Term 15 Years 50 Years

## Age as on last birthday

 

4.What are the Policy Terms and Premium Payment Terms available in DHFL Pramerica Magnum Assure plan?

The Policy Terms available under DHFL Pramerica Magnum Assure are 10 Years & 15 Years and the Premium Payment Terms will be equal to the Policy Terms.

 

5.What is the minimum & maximum Annual Premium in DHFL Pramerica Magnum Assure plan?

Minimum Annual Premium = 48,000


There is no limit to Maximum premium under the DHFL Pramerica Magnum Assure plan. It is subject to underwriting norms of the company.

 

6.What is the minimum and maximum Sum Assured available in the DHFL Pramerica Magnum Assure Plan?

Minimum: 9,60,000/-
Maximum SA: No limit, subject to underwriting.

 

7.What are the premium modes available in DHFL Pramerica Magnum Assure?

The customer can pay premium either Yearly or Monthly.

However, Monthly mode of premium payment is available only through credit card, direct debit, ACH/ ECS (only in banks where ECS is not available).

 

8.What is the Payout period in DHFL Pramerica Magnum Assure?

Payout Period means the period during which the applicable benefit under the Policy would be payable. The payout period applicable for Policy Term 10 and 15 years is 120 months and 180 months respectively. In case of death of Life Insured, the Payout Period shall commence from the month of the death. In case of Maturity, the Payout Period shall commence from the Maturity Date.

 

9. What is the Maturity Benefit available under the DHFL Pramerica Magnum Assure plan?

On survival till Maturity date subject to the policy being in-force for full risk benefits, the Company will pay Maturity Benefit in form of regular monthly payouts during the payout period. Where such monthly payout is calculated as:

 

Monthly Maturity Benefit = (Annualized Premium# × Maturity Benefit Multiple) divided by 12

 

The Maturity Benefit Multiple would vary by Policy Term and Age at entry as follows:

Age at Entry Term = 10 Years Term = 15 Years
<=30 1.60 2.07
31-40 1.59 2.03
41-45 1.54 1.92
46-50 1.49 1.80
51-55 1.40 NA

 

Where premium is paid annually, the monthly payouts will be 102.5% of Monthly Maturity Benefit.

 

10.What is the Death Benefit available under the DHFL Pramerica Magnum Assure plan?

On unfortunate demise of the life insured during the Policy Term subject to Policy being in-force for full risk benefits, the Company will pay Death Sum Assured in the form of equal monthly payouts during the Payout Period:

Where such monthly payout is equal to: Death Sum Assured divided by Payout Period (in months)

 

Death Sum Assured will be highest of Base Sum Assured (Or)Maturity Sum Assured (Or)10 times of the Annualized Premium# (Or) 105% multiplied by all the premiums paid (excludes underwriting extra) as of date of death.

Where, Base Sum Assured = Annualized Premium# X Policy Term (in years) X Death Benefit Multiple

 

The Death Benefit Multiples vary by Policy Term as follows:

Term = 10 Years Term = 15 Years
2 2.5

 

Where premium is paid annually, the monthly payouts will be 102.5% of Monthly Death Benefit

Maturity Sum Assured = Monthly Maturity Benefit X Payout period (in months)

 

#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.

 

11.What will be the Death Benefit if the Life Insured under the DHFL Pramerica Magnum Assure plan dies while he/she is receiving the Maturity payouts?

If the Life Insured dies while he/she is receiving the Maturity payouts, monthly Maturity benefit would continue for the remaining duration of Payout Period and no additional Death Benefit would be paid.

 

12.Can the due monthly payouts be taken out as lump sum?

The Policyholder/Nominee/Legal Heirs, as applicable will have an option to take all due future Monthly payouts as a lump sum amount. Lump sum factors will vary with the outstanding number of monthly payouts

 

Lump sum Amount = Monthly Payout (multiplied by) Lump sum Factor

The Company may change the lump sum factor depending on economic conditions and subject to prior approval from IRDA of India.

Please refer Company website for Lump sum factors applicable to this plan.

 

13.Can Loans be availed against DHFL Pramerica Magnum Assure plan?

Loan will be available after the Policy acquires surrender value, up to 80% of the surrender value. The outstanding loan amount and unpaid interest on the loan amount shall be deducted from any amount payable under your Policy. 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. Any outstanding loan amount together with any unpaid interest thereon shall be adjusted against any Monthly Payout which become payable during the payout period.

 

The policyholder cannot avail loan during payout period.

 

14.What would happen if I discontinue to pay premiums?

At any time during the Policy Term while your Policy is in effect and Premium for at least two consecutive years have been paid in full, you will be eligible to surrender your Policy.

 

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

It is advisable to pay premiums for the full premium payment term to enjoy maximum benefits under the policy.

 

On surrender, Surrender Value equal to higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) would be paid.

 

The Guaranteed Surrender Value is X% of total premiums paid, where X is as defined below:

 

Policy Year in which policy is surrendered GSV as a percentage of premiums paid # (X)
10 Years 15 Years
2 to 5 50% 50%
6 55% 55%
7 60% 60%
8 65% 65%
9 70% 70%
10 75% 75%
11 and above NA 80%

 

#Premium paid shall be the premium paid in a policy year chosen by the policyholder, excluding the underwriting extra premiums but including the loadings for modal premiums, if any.

 

The Special Surrender Value is not guaranteed and may change depending upon the then prevailing market conditions subject to prior approval from IRDA of India.

The Policy shall terminate on payment of Surrender Value and all rights, benefits and interests under this Policy will cease.

 

16.What is the revival period available under the DHFL Pramerica Magnum Assure plan?

Revival of a Policy is available for up to 2 years from the date of first unpaid premium subject to fulfilling the following conditions:
 

  • 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

 

 

17.What if a customer wants to cancel the policy since he/she does not agree with the terms and conditions mentioned in the policy?

He/she 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 bond to review the terms and conditions of the Policy and where he/she disagrees to any of these terms and conditions, he/she will 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.

 

18.What are the tax benefits available under the DHFL Pramerica Magnum Assure plan?

Tax benefits under section 10(10D) and section 80 C of Income Tax Act 1961 will be applicable as per prevailing tax laws. Tax laws are subject to change.

 

19.What is the Grace period available under the DHFL Pramerica Magnum Assure plan?

A grace period of 30 days is allowed for payment of premiums through all modes.

 

20.What are the exclusions in the plan?

There are no exclusions in the plan. The Policy covers death under all situations (including death during declared or undeclared war, civil commotion, invasion, terrorism, hostilities) except death due to suicide whether sane or insane, within twelve months of the Policy Commencement Date or within twelve months from the date of revival of the Policy, where the Company’s obligation under this Policy shall be to pay an amount equal to higher of 80% of total Premium paid (excluding underwriting extra if any), or Surrender Value, if any.

 

21.What happens when the Life Insured commits suicide?

If death occurs due to suicide or attempted suicide, whether sane or insane, within twelve months of the Policy Commencement Date or within twelve months from the date of revival of the Policy, then the Company’s obligation under this Policy shall be to pay an amount equal to higher of 80% of total Premium paid (excluding underwriting extra if any), or Surrender Value, if any.