FAQs

1. What kind of a plan is Rakshak+?
Rakshak+ is a Non Participating Guaranteed Endowment plan that is designed to safeguard your child's future. This plan creates a corpus at maturity by means of guaranteed additions on the policy and immediate payout, monthly payouts and payout at maturity benefit in case of the unfortunate demise of the life insured.


2. Who can buy this plan?
Anyone between the ages of 18 - 55 years can opt for a Rakshak+ plan subject to a maximum maturity age of 65 years. While securing the child's future is one of the key benefits of the plan, it can be purchased to fulfill other financial needs.


3. What are the different premium payment terms in Rakshak+?
Rakshak+ has a limited premium payment term, as given below: -
For policy term of 10 years 7 years premium payment term
For policy term of 15 years 10 year premium payment term
For policy term of 20 years 15 year premium payment term

4. What is the Minimum and Maximum Sum Assured available in Rakshak+?
Minimum: Rs.1,00,000/-
Maximum: Rs.5,00,00,000/-


5. What are the premium modes available in Rakshak+?
The customer can pay premium by Monthly, Half Yearly and Yearly modes.Monthly Mode only via Credit Card, Direct Debit or ECS. Quarterly Mode is not available.


6. What is the minimum annual premium in Rakshak+ Plan?
The minimum annual premium is Rs.12,000/- (excluding Service Tax, Education Cess &any underwriting loading, if any).


7. Havaldar Ram wants to know what is the Death benefit under Rakshak+?
On unfortunate demise of the life insured during the Policy Term while the Policy is in force for full Policy Benefits, then the Company will pay the following benefits to the Nominee:
a) Death Sum Assured
b) Accrued Annual Guaranteed Additions

Where Death Sum Assured is:

 

Age at entry less than 45 years:
Highest of:
A. Immediate benefit of 100% of the base Sum Assured payable at the time of death PLUS Monthly Recurring benefit of 2% of Base Sum Assured payable every month till the remaining policy term subject to a minimum of 36 monthly payments even if this requires payments after the policy term is over PLUS Final Benefit of Guaranteed Maturity Multiplier (GMM) x Base Sum Assured payable on the scheduled maturity date OR
B. 10 times the Annualized Premium* OR
C. Base sum assured x GMM factor OR
D. 105% of the premium paid

 


Age at entry 45 years and higher:
Highest of:
A. Immediate benefit of 100% of the base Sum Assured payable at the time of death PLUS Monthly Recurring benefit of 2% of Base Sum Assured payable every month till the remaining policy term subject to a minimum of 36 monthly payments even if this requires payments after the policy term is over PLUS Final Benefit of Guaranteed Maturity Multiplier (GMM) x Base Sum Assured payable on the scheduled maturity date OR
B. 7 times the Annualized Premium* OR
C. Base sum assured x GMM factor OR
D. 105% of the premium paid


8. Subedar Sanjay, while discussing Rakshak+ with the DPLI sales representative, is keen to know what is the maturity benefit and if it is guaranteed or not?
Yes, Maturity benefit is Guaranteed under the Rakshak+ plan. Maturity Benefit includes: Base Sum Assured x Guaranteed Maturity Multiple (GMM) + Accrued Annual Guaranteed Additions


9. Can the monthly Payout be increased or decreased?
No, the Monthly Payout cannot be increased or decreased.
Monthly payout is calculated as 2% of the base Sum Assured starting from the month of death for the remaining policy term subject to minimum 36 monthly payouts.


10. What is the meaning of Guaranteed Maturity Multiple (GMM)?
Guaranteed Maturity Multiple means the factor applied to Base Sum Assured or Paid Up Sum Assured, as the case may be, for the purpose of calculating the benefit payable on the Maturity Date. This factor is dependent upon the Policy Term chosen.

 

Policy Term (Yrs)

10

15

20

GMM Factor

150%

175%

200%


11. What are the Annual Guaranteed Additions and when will these additions accrue in the Rakshak+ policy?
Annual Guaranteed Additions
The additions will accrue to the policy at the end of each completed policy year. The Annual Guaranteed Additions will increase after every 3 policy years. The rates of addition are given below for each option of Policy Term. The AGA rates are expressed as per 1,000 of Base Sum Assured.


Policy Term (Yrs)

10

15

20

1-3

30

30

30

4-6

40

40

40

7-9

50

50

50

10-12

60

60

60

13-15

 

70

70

16-18

   

80

19-20

   

90

 

12. What would be the annual additions paid out if the customer has stopped paying the premium?
If the premium has been paid for at least 5 policy years, then the paid-up policy shall be entitled to Annual Guaranteed Additions at the reduced rate on the Paid-up Sum Assured calculated in the following manner.
Reduced Annual Guaranteed Addition Rate multiplied by Paid-up Sum Assured
Where: Paid-up Sum Assured is calculated as T/N multiplied by Base Sum Assured,Reduced Annual Guaranteed Addition Rate is T/N multiplied by AGA Rate
T is total number of Premium paid under the Policy and N is total number of Premium payable under the Policy over the entire Policy Term


13. Naik Sanjay, 30 years, buys a Rakshak+ plan with a Sum assured of Rs.2,50,000 and a term of 15 years. What will be the maturity benefit in case he pays the premium for 6 years?
The maturity benefit for the Rakshak+ plan will be reduced as the policy becomes paid-up.
Maturity Benefit: Paid up Sum Assured x Guaranteed Maturity Multiple (GMM) + Accrued Annual Guaranteed Additions
The Annual Guaranteed Additions, if any, at the reduced rate.
Where, Paid-up Sum Assured is defined as: Paid-Up Sum Assured is calculated as T/N multiplied by Base Sum Assured and
T is total number of Premiums paid under the Policy and N is total number of Premium payable under the Policy over the entire Policy Term


14. Let us assume a customer buys a Rakshak+ policy for a term of 20 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
  • Payment of all unpaid premiums with interest is required to reinstate the policy in all cases
  • Once the policy is revived, all the benefits and applicable AGA under the policy would be reinstated

 


15.What is the revival period available under Rakshak+ plan?
The policy can be revived within two years from the due date of the first unpaid premium.


16. Is there any exclusion under Rakshak+ plan?
Yes. The exclusions are as under:

  • If the life insured commits suicide within 12 months from the coverage commencement date the company would pay an amount equal to 80% of the premiums paid (excluding any underwriting extra, service tax, education cess and survival benefit already paid, if any) as death benefit
  • In case of suicide within one year of the date of revival, higher of 80% of premium paid till the date of death or surrender value would be paid as death benefit

 

17. I am serving in the armed forces, can I buy this plan? What are the exclusions for the same?
Yes. You can buy this plan. There are NO other exclusions apart from the exclusion mentioned in Q 16 above.


18. 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
 

19. What are the tax benefits available under the DHFL Pramerica Rakshak+ plan?
Tax benefits will be applicable as per prevailing tax laws. Tax laws are subject to change. Please consult your tax advisor for details.


20. Can the Rakshak+ plan be offered to Dependents (having no source of income)?
No, Rakshak+ plan can't be offered to Dependents (having no source of income).


21. What is the maximum premium one can opt under Rakshak+?
Maximum premium under Rakshak+, depends on the chosen base Sum Assured, age at entry, policy term and premium payment term, subject to company's underwriting guidelines.


22. Can loans be availed against Rakshak+ policy?
Yes, loans will be available after the policy acquires Surrender value, up to 80% of the Surrender value.