FAQs

1. What kind of plan is DHFL Pramerica Smart Assure?

DHFL Pramerica Smart Assure is a non participating endowment plan with the assurance of guaranteed death benefit so that your family remains financially secure. This plan also helps you to grow your savings with maturity additions.

 

2. What is the minimum and maximum entry age offered under DHFL Pramerica Smart Assure plan?

Minimum Entry Age is 8 Years

However the maximum age will be as follows:

 

Maximum: For Policy Term 10 Years: 60 Years
For Policy Term 15 Years: 55 Years
For Policy Term 20 Years: 50 Years

 

3. What is the maximum maturity age in DHFL Pramerica Smart Assure plan?

Maximum Maturity Age is 70 Years

 

4. What are the policy terms available in DHFL Pramerica Smart Assure plan?

Policy terms available under DHFL Pramerica Smart Assure plan are 10/15/20 years.

 

5. What is the premium payment mechanism?

This plan gives you an option to opt for a “Regular Pay” or “Limited Pay”.

 

6. How is Limited Pay option different from Regular Pay option?

Limited Pay option is where Policyholder opts to pay Premium for a limited period out of the total Policy Term, whereas Policy benefits continue for complete term of the Policy. i.e. Mr. A, aged 30 years opts for 10 year Policy Term with Premium Payment Term of 7 years only. This means Mr. A will pay Premium till the age 37 and enjoy the benefits till the age 40.

In case of Regular Pay option Mr. A will have to pay Premium for complete 10 years.

 

7. What are the different Premium Payment Terms offered under DHFL Pramerica Smart Assure plan?

The different Premium Payment Term offered is stated below:

 

Policy Term Premium Payment Term
10 Years 5/7Years
15 Years 7/10/15 Years
20 Years 10/15/20 Years

 

8. What is the minimum and maximum Sum Assured?

Minimum Limited Pay - 75,000/-
Regular Pay - 1Lac
Maximum: 25Lacs

 

9. What is the minimum and maximum premium available under DHFL Pramerica Smart Assure plan?

The plan offers a minimum annual premium of 6,000/- (excluding taxes) and the maximum Annual Premium available is corresponding to maximum Base Sum Assured.

 

10. What are the premium paying modes available under DHFL Pramerica Smart Assure plan?

All modes (Yearly, half yearly, quarterly and monthly* mode) are available under the plan.

*Monthly mode of premium payment is available only through credit card, direct debit and ECS.

 

11. How do I calculate the half-yearly, quarterly or monthly mode premium if I know the yearly premium payable by me?

There is a modal factor for calculating half-yearly, quarterly and monthly premium payment options. You can simply multiply your annual premium with the respective modal factor to arrive at half-yearly, quarterly and monthly mode of premium payment. The premium modal factors are listed below:

 

Premium Mode Modal Factor
Yearly 1
Half Yearly 0.52
Quarterly 0.265
Monthly 0.09

 

12. How does this plan work?

Step 1 Step 2 Step 3
Select a Base Sum Assured subject to a min of 75,000 for Limited Premium payment option and 1Lac for Regular Premium Payment option Choose the Policy Term from the available options from 10 / 15/ 20 years Pay Premiums which would be based on the age of the Life Insured, Sum Assured, Policy Term and the Premium Payment Term chosen, subject to underwriting norms of the company

 

13. What is the Maturity Benefit under DHFL Pramerica Smart Assure plan?

At maturity of the Policy, the Policyholder will receive Maturity Sum Assured plus Accrued Maturity Additions.

Where, Maturity Sum Assured is equal to Base Sum Assured

 

14. What is the Maturity Addition under DHFL Pramerica Smart Assure plan?

The Maturity Additions (MA) will accrue at the end of the respective policy years as defined in the table below, provided the policy is in force for full benefits.

 

Maturity Addition per 1000 of Base Sum Assured is as follows:

 

Policy Year Policy Term 10 Policy Term 15 Policy Term 20
9 100 Nil Nil
10 100 Nil Nil
13 NA 150 Nil
14 NA 150 Nil
15 NA 150 Nil
17 NA NA 200
18 NA NA 200
19 NA NA 200
20 NA NA 200

 

15. What will be the Death Benefit under DHFL Pramerica Smart Assure plan?

On the 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 plus Accrued Maturity Additions.

 

Death Sum Assured is defined as:

  • If Life Insured age at entry is less than 45 years

    Higher of Base Sum Assured Or 11 times of Annualized Premium# or Maturity Sum Assured

  • If Life Insured age at entry is greater than or equal to 45 years

    Higher of Base Sum Assured Or 7 times of Annualized Premium# or Maturity Sum Assured

 

Maturity Sum Assured is equal to Base Sum Assured

 

The Death Sum Assured shall be at least equal to 105% multiplied by Premiums paid (excluding underwriting extra Premium, if any) as on date of death.

#The Annualized Premium shall be the Premium payable in a year chosen by the Policyholder, excluding the underwriting extra Premium and loadings for modal Premium, if any

 

16. What is Automatic Cover Continuance?

In case the Premium for at least first 3 Policy Years have been paid in full and any subsequent.

 

Premium installment is not paid-

  • The risk cover for full Death benefit shall continue for a period of one successive year (Auto Cover Continuation Period)

  • Auto Cover Continuation Period will be counted from the due date of 1st unpaid Premium even though the policy is in reduced Paid-Up status.

  • If the Life Insured dies during this period, the Company will pay Death Sum Assured as applicable after deducting the Premium due, if any, on date of death

 

17. Can I avail a loan against DHFL Pramerica Smart Assure plan?

Yes, loan is available under the DHFL Pramerica Smart Assure plan, subject to the policy acquiring the surrender value. Maximum loan available will be up to 80% of the surrender value. The rate of interest applicable on the loans will be declared by the Company from time to time.

 

18. What happens if I am unable to pay the premium?

If premium is discontinued before paying premium for first two consecutive policy years in full and the grace period is over:

  • The policy will lapse at the expiry of grace period

  • Lapsed policies can be reinstated within a reinstatement period of 2 years from the date of first unpaid premium by paying all due premiums with interest

  • In case lapsed Policy is not revived, and provided Premium for at least 1 policy year have been paid in full, the Company would pay an amount equal to 15% of 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.

After paying premium for at least first 2 consecutive policy years in full, if the policyholder does not pay subsequent premium(s):

  • The policy will become reduced paid-up and the benefits payable under the policy will be reduced proportionately

  • The policyholder also has the option to surrender a reduced paid up policy to receive an immediate benefit.

 

Death Benefit:

In case of death during the Policy Term, the following reduced death benefit would be paid:

 

T / N (multiplied by) Death Sum Assured + Maturity Additions accrued, if any till the date of reduced paid-up + Reduced Maturity Additions accrued after reduced paid-up, if any

 

Maturity Benefit:

On survival to Maturity the following reduced benefit would be paid:

 

T / N (multiplied by) Base Sum Assured + Maturity Additions accrued, if any till the date of reduced paid-up + Reduced Maturity Additions accrued after the date of reduced paid-up, if any

 

In case the premium is paid for at least 5 policy years in full, then the reduced paid-up policy shall be entitled to Maturity Additions at the reduced rate on the Paid-up status provided the policyholder has paid at least 50% of the total premium payable during the policy term.

The reduced Maturity Additions will be calculated as follows:

Reduced Maturity Additions = Maturity Addition multiplied by (T/N) multiplied by Base Sum

assured divided by 1000

 

Where:

T = Number of premiums paid

N = Number of premiums payable under the policy

 

19. Can I revive the policy at a later stage?

  • Revival of a Policy is available for up to 2 years from the date of first unpaid Premium.

  • 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.

 

20. What happens if I surrender my policy?

It is advisable to pay Premium for the full Premium Payment Term to enjoy maximum benefits under the policy.

At any time 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. On surrender, the surrender value payable will be higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV), where the GSV and SSV are as defined below:

The Guaranteed Surrender Value is Y% of total premiums paid (excluding underwriting extras, if any) till date of surrender plus the guaranteed Surrender Value of the accrued Annual Maturity Addition. Where Y is as defined below:

 

Policy Year in which policy is surrendered GSV as a percentage of premiums paid # (Y)
10 Years 15 Years 20 Years
2nd Year 30.0% 30.0% 30.0%
3rd Year 30.0% 30.0% 30.0%
4th Year 50.0% 50.0% 50.0%
5th Year 53.0% 52.5% 52.0%
6th Year 56.0% 55.0% 54.0%
7th Year 59.0% 57.5% 56.0%
8th Year 62.0% 60.0% 58.0%
9th Year 65.0% 62.5% 60.0%
10th Year 68.0% 65.0% 62.0%
11th Year NA 67.5% 64.0%
12th Year 70.0% 66.0%
13th Year 70.0% 68.0%
14th Year 70.0% 70.0%
15th Year Onwards 70.0% 70.0%

 

The Special Surrender Value is not guaranteed and may change depending upon the then prevailing market conditions subject to prior approval from IRDAI. The Policy shall terminate on payment of Surrender Value and all rights, benefits and interests under this Policy will cease.

 

21. Can I cancel my policy in Free-look period?

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 entails to the sale of the product through a mode other than personal interaction.

 

22. What if 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

 

23. What is the Grace period available under DHFL Pramerica Smart Assure plan?

30 days from the premium due date is allowed for payment of premiums through all modes.

 

24. Are there any tax benefits available?

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

 

25. Is there any exclusion in DHFL Pramerica Smart Assure plan?

There are no exclusions in the plan.

 

26. 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.

 

27. Can DHFL Pramerica Smart Assure plan be bought under MWPA?

Yes, DHFL Pramerica Smart Assure plan can be bought under MWPA, only at the time of inception of the policy.