FAQs

1. What kind of a plan is DHFL Pramerica Rakshak Gold?

DHFL Pramerica Rakshak Gold is a Non-Participating Guaranteed Endowment Insurance plan that is designed to safeguard your family's financial future, by providing you a corpus at maturity by means of guaranteed benefits. In case of the unfortunate demise of the life insured an immediate payout, monthly payouts and benefit at maturity will be paid to the nominee / legal heirs.

 

2. Who can buy DHFL Pramerica Rakshak Gold plan?

While securing the child's future is one of the key benefits of the plan, it can be purchased to fulfill other financial needs.
For policy term of 12 years – Min 18 years - Max 53 years
For policy term of 15 years – Min 18 years - Max 50 years
For policy term of 18 years – Min 18 years - Max 47 years
With subject to a maximum maturity age of 65 years | Age as on last birthday

 

3. What are the different premium payment terms in DHFL Pramerica Rakshak Gold plan?

DHFL Pramerica Rakshak Gold plan has a limited premium payment term, as given below:
For policy term of 12 years – 7 years premium payment term
For policy term of 15 years – 10 year premium payment term
For policy term of 18 years – 10 year premium payment term

 

4. What is the Minimum and Maximum Sum Assured available in DHFL Pramerica Rakshak Gold?

Minimum: 75,000/-
Maximum: 5 Cr subject to underwriting

 

5. What are the premium modes available in DHFL Pramerica Rakshak Gold?

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 premium in DHFL Pramerica Rakshak Gold plan?

Minimum premium depends upon premium payment modes
12,170/- (Yearly), 6,329/- (Semi Annual), 1,096/- (monthly)
(excluding Tax & any underwriting loading, if any)

 

7. What is the Death benefit under DHFL Pramerica Rakshak Gold plan?

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 following benefits to the Nominee(s)/Legal heir(s).

  • Immediate Benefit: A lump sum amount equal to Base Sum Assured
  • Immediate Benefit: Accrued Annual Guaranteed Additions
  • Monthly Payout: 2% of the Base Sum Assured, starting from the month of death for rest of the policy term subject to minimum 36 monthly payouts even if these fall outside Policy Term
  • Benefit at Maturity Date: A lump sum amount equivalent to the Base Sum Assured multiplied by Guaranteed Maturity Multiple (GMM)

The total benefits payable on death as mentioned above will be at least equal to Death Sum Assured plus Accrued Annual Guaranteed Additions

Where Death Sum Assured would be equal to highest of:

  • 11 times the Annualized Premium#
  • Base Sum Assured multiplied by Guaranteed Maturity Multiple factor
  • 105% of all the Premiums paid* as on date of death,
  • Sum of (a) , (c) and (d) defined above

#The Annualized premium shall be the premium payable in a year chosen by the policyholder, excluding the underwriting extra premiums, taxes and loadings for modal premiums, if any

*Premium paid for this purpose is premium exclusive of any underwriting extras and taxes.

The Policy covers death under all situations (including death during declared or undeclared war, civil commotion, invasion, terrorism, hostilities) except death due to suicide.

 

8. What is the maturity benefit under DHFL Pramerica Rakshak Gold plan?

Maturity benefit is Guaranteed under the DHFL Pramerica Rakshak Gold plan.
Maturity Benefit equals to : (Base Sum Assured x Guaranteed Maturity Multiple (GMM)) + Accrued Annual Guaranteed Additions (subject to policy being in force)

 

9. What is the meaning of Guaranteed Maturity Multiple (GMM)?

Guaranteed Maturity Multiple means the factor applied to Base Sum Assured Base Sum Assured for the purpose of calculating the benefit payable on the Maturity Date. This factor is dependent upon the Policy Term chosen.

Policy Term (Yrs)

12

15

18

GMM Factor

150%

175%

175%

 

10. What are the Annual Guaranteed Additions and when will these additions accrue in the DHFL Pramerica Rakshak Gold 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)

12

15

18

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

 

11. How does the DHFL Pramerica Rakshak Gold plan work?

 

  • Select a Base Sum Assured subject to a minimum of 1,00,000/- and a maximum of 5 Crores
  • Choose the duration for which you want to pay your premiums from the below options:

    Policy Term (Years)

    12 Years

    15 Years

    18 Years

    Premium Payment Term (Years)

    7 Years

    10 Years

    10 Years

  • Pay the premium based on age, gender of the life insured, Base Sum Assured, policy terms & premium payment terms subject to underwriting norms of the Company.

 

 

12. Can I revive DHFL Pramerica Rakshak Gold policy at a later stage?

 

  • Revival of a policy is available up to 2 years from the date of first unpaid premium
  • Payment of all unpaid premiums with applicable interest is required to revive the policy in all cases
  • Upon revival of the Policy, the Policyholder will become entitled to full Policy benefits including any applicable Annual Guaranteed Additions assuming policy was never lapsed or converted to paid-up
  • Revival of the policy is subject to underwriting requirements of the Company as applicable from time to time

 

 

13. Can the monthly Payout be increased or decreased in DHFL Pramerica Rakshak Gold plan?

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.

 

14. What happens if customer wants to surrender DHFL Pramerica Rakshak Gold policy?

It is always advisable to pay premiums for the full Premium Payment Term to receive Annual Guaranteed Addition throughout your Policy Term and enjoy maximum benefits.

At any time during the Policy Term while your Policy is in effect and Premium for at least first three consecutive Policy years for Premium Payment Term 10 years and Premium for at least first two consecutive years for Premium Payment Term 7 years have been received in full, you can surrender your Policy.

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

The Guaranteed Surrender Value is X% of total Premium paid plus the Guaranteed Surrender Value of the accrued Annual Guaranteed Additions. X is as defined below:

Year in which Policy is surrendered GSV as a percentage of premiums paid(X)
Policy Year Policy Term = 12 Years Policy Term = 15 Years Policy Term = 18 Years
2 30% NA NA
3 30% 30% 30%
4 50% 50% 50%
5 50% 50% 50%
6 55% 50% 50%
7 55% 50% 50%
8 60% 55% 55%
9 65% 55% 55%
10 70% 55% 55%
11 75% 60% 60%
12 75% 60% 60%
13 NA 65% 65%
14 NA 70% 65%
15 NA 75% 70%
16 NA NA 70%
17 NA NA 75%
18 NA NA 75%

 

15. What is the maximum premium one can opt under DHFL Pramerica Rakshak Gold?

Maximum premium under DHFL Pramerica Rakshak Gold, depends on the chosen base Sum Assured, age at entry, policy term and premium payment term, subject to company's underwriting guidelines.

 

16. Can loans be availed against DHFL Pramerica Rakshak Gold policy?

Yes, loans will be available after the Policy acquires Surrender value, up to 75% of the Surrender value. The rate of interest applicable on the loans will be declared by the Company on an annual basis at the beginning of every financial year.

 

17. What is the grace period in the plan?

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

 

18. What happens if I am unable to pay Premium?

For Policies with Premium Payment Term equal to 7 Years
If the Policyholder discontinues the Premium Payment before paying Premium for at least first two consecutive Policy years in full, the Policy will lapse at the expiry of the grace period. Such lapsed policies can be revived within a period of 2 years from the date of first unpaid Premium but before Maturity Date by paying all due premiums with interest subject to Company's underwriting guidelines.

If you decide not to pay any further Premiums after paying Premium for at least two consecutive years in full, your Policy will be converted into a Paid-Up Policy after the expiry of the Grace Period with following reduced benefits. The policyholder also has the option to surrender a reduced paid up policy to receive an immediate benefit.


For Policies with Premium Payment Term equal to 10 Years
If the Policyholder discontinues the Premium Payment before paying Premium for at least first three consecutive Policy years in full, the Policy will lapse at the expiry of the grace period. Such lapsed policies can be revived within a period of two years from the date of first unpaid Premium but before Maturity Date by paying all due premiums with interest subject to Company's underwriting guidelines.

If you decide not to pay any further Premiums after paying Premium for at least three consecutive years as applicable in full, your Policy will be converted into a Paid-Up Policy after the expiry of the Grace Period with following reduced benefits. The policyholder also has the option to surrender a reduced paid up policy to receive an immediate benefit.


Reduced Paid-Up

Death: If the Life Insured dies at any time before the Maturity Date while the Policy is in reduced paid up status, then the Company will pay following benefits to the Nominee:
(T / N) x Death Sum Assured + AGA Accrued till the date of paid-up Where: T = Number of premiums paid | N = Number of premiums payable under the policy

Maturity: On survival of Life Insured to Maturity Date of the paid up Policy, the Company will pay the Policy holder an amount equal to
(T / N) x Base Sum Assured x Guaranteed Maturity Multiple (GMM) + AGA Accrued till the date of paid-up
Where: T = Number of premiums paid | N = Number of premiums payable under the policy

Surrender: On surrender of a paid-up policy, a surrender value will be payable.


Early Termination Value for policies which have not acquired Surrender Value

If a policy has not acquired Surrender Value due to nonpayment of premium, the Company would pay the following amount (%Premium paid*) on subsequent death or on the expiry of revival period or immediately on receiving a written request from the policyholder, whichever is earlier.

No. Of Completed Years
Premium Paid
Premium Payment Term = 7 Years Premium Payment Term = 10 Years
1 15% 15%
2 Not applicable, as the policy has already acquired Surrender Value 30%

*Premium paid for this purpose is premium exclusive of any underwriting extras.

 

19. Is there any exclusion under DHFL Pramerica Rakshak Gold plan?

Yes. The exclusion is as under:
If death occurs due to suicide, whether sane or insane, within 12 months from the Date of Commencement of Policy/Risk or within 12 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.

 

20. 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 bond 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 includes sale of insurance products through any means of communication other than in person including but not limited to tele-calling and electronic modes.

 

21. What are the tax benefits available under the DHFL Pramerica Rakshak Gold plan?

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