FAQs

1. What kind of a plan is Smart Cash Protect?

The Smart Cash Protect plan is a long term participating endowment cum insurance plan. This plan provides a regular stream of income in the form of guaranteed and bonus incomes, year on year, along with life cover and guaranteed sum at maturity.


2. What is a participating plan?

In a participating plan, the policyholder would be eligible to participate in the profits arising from the portfolio of such policies. This plan includes:


3. What type of reversionary bonus does the Smart Cash Protect plan offer?

The Smart Cash Protect plan offers compound reversionary bonus.


4. What is compound reversionary bonus?

This is a regular bonus expressed as a percentage of the total of Sum Assured and the reversionary bonus amount already attached to your policy. Any bonuses declared by the Company during first three policy years shall vest in the policy only after the policy has been in-force for full policy benefits during three policy years. However, this condition will not apply to policies resulting into claims by death during this period.


5. What is Final bonus?

Final bonus is a onetime bonus paid on the termination of the policy due to death, surrender or maturity.


6. Who can buy this plan?

Anyone between the ages of 18-55 years can opt for the Smart Cash Protect plan. The minimum and maximum age requirements vary, depending upon the premium payment term chosen. This can be ascertained from the table provided below:

 

 

 

Premium Payment Terms

12 Years

15 Years

20 Years

Age at Entry*

Minimum

Maximum

23 Years

55 Years

20 Years

55 Years

18 Years

50 Years

Policy Term

 

70 - Age at Entry

75 - Age at Entry

85 - Age at Entry

Policy Term - Minimum#

 

30 Years

35 Years

40 Years

Maximum Maturity Age*

 

85 Years

90 Years

90     Years

* Age as on last birthday | # Depends on Age at Entry


This is the perfect plan for someone who wants to get consolidated, as well as regular benefits, along with the benefits of a life cover.


7. What are the premium payment terms available in the Smart Cash Protect plan?

Premium payment terms available are 12 years, 15 years and 20 years.


8. What are the different policy terms available in the Smart Cash Protect plan?

The Smart Cash Protect policy term depends upon Age at Entry and Premium Payment Term chosen, as given below:

 

 

 

Premium Payment Terms

12 Years

15 Years

20 Years

Age at Entry*

Minimum

Maximum

23 Years

55 Years

20 Years

55 Years

18 Years

50 Years

Policy Term

 

70 - Age at Entry

75 - Age at Entry

85 - Age at Entry

Policy Term - Minimum#

 

30 Years

35 Years

40 Years

Maximum Maturity Age*

 

85 Years

90 Years

90     Years

  • Reversionary Bonus
  • Final Bonus (if any)

*Age as on last birthday | #Depends on Age at Entry


9. Ajay, age 30 years, would like to opt for a 15 year premium payment term. He is keen to know the policy term?

Policy term would be = 75 - Age at Entry = 75 - 30 = 45

With Minimum of 35 years, therefore Ajay's Policy Term is 45 years


10. What are the premium modes available in the Smart Cash Protect plan?

The customer can pay premium by annual, semi-annual and monthly modes. Monthly mode of Premium payment is available only through credit card, direct debit and ECS. Quarterly option is not available.


11. What is the minimum annual premium in the Smart Cash Protect plan?

The minimum annual premium for base plan is Rs.12,000/- (excluding Service Tax, Education Cess, underwriting extra (if any), and rider premium).


12. What is the Minimum and Maximum Sum Assured available in the Smart Cash Protect plan?

Minimum SA: Rs.1,25,000/-

Maximum SA: No limit subject to underwriting


13. What is the Death benefit available under the Smart Cash Protect plan?

In case of the unfortunate demise of the life insured, the policy terminates and the Death benefit is paid to the nominee

If the Life Insured passes away before completion of the first 15 years of the policy:

Death Sum Assured + Accrued Reversionary Bonus + Final Bonus (if any)

The policy will terminate after paying the benefits

 

If the Life Insured passes away after the completion of the first 15 years of the policy:

Death Sum Assured + Final Bonus (if any)

Where Death Sum Assured is Maximum of

  • 11 times the Annualized Premium OR

  • 50% of Sum Assured

 

However, the minimum Death Benefit shall be at least equal to 105% multiplied by the total premium paid as on date of death.


14. Ajit, while discussing the Smart Cash Protect plan with the DPLI sales representative, asks him about the survival and maturity benefits under this plan.

The various benefits of the plan, including the Maturity benefit, are as follows, subject to policy being in force:

  • Survival Benefit: Reversionary Bonus accrued during the initial 15 policy years payable at the end of 15th policy year

  • Guaranteed Income: Annual payout of 6% of Sum Assured commencing from the completion of 16th policy year till maturity

  • Bonus Income: Annual payout of bonus declared every year commencing from the completion of 16th policy year till maturity

  • Maturity Benefit: 50% of Sum Assured PLUS Final Bonus (if any)

 

15. How does the Smart Cash Protect plan work?

  • Select a Sum Assured subject to a minimum of Rs.1,25,000
  • Chose the duration for which you want to pay your premiums from either of 12, 15 or 20 years
  • Pay the premium based on the Age, Sum Assured and the Premium Payment Term chosen

16. Can the premium payment term of the Smart Cash Protect plan be changed at a later date?

No, premium payment term, once chosen, cannot be changed at a later date.


17. Can the guaranteed income under Smart Cash Protect plan be increased or decreased?

No, the guaranteed income cannot be increased or decreased. Policyholder will be entitled to receive annual payouts in the form of a Guaranteed Income equal to 6% of Sum Assured and Bonus Income declared every year.


18. Can the Smart Cash Protect plan be surrendered?

Yes, the policy can be surrendered after paying premium for first 2 policy years in full.


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

Yes, the customer will get the surrender value and the policy will terminate and no further benefits would be paid on death or maturity.

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 less any survival benefits already paid plus the GSV of the Accrued Reversionary

Bonuses, where X is as defined below plus the guaranteed surrender value of the accrued reversionary bonuses.

The Special Surrender Value is not guaranteed and may change depending on the prevailing market conditions and subject to prior approval from the regulator.

 

Year in which Policy is surrendered GSV factor (X)
2 30.00%
3 40.00%
4 50.00%
5 and onwards Increasing every year by 2.5% subject to maximum of 70%

20. What is the revival period available under the Smart Cash Protect plan?

The policy can be revived within 2 years from the due date of the first unpaid premium.


21. Let us assume a customer buys a Smart Cash Protect plan 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 bonuses under the policy would be reinstated
  • On revival of a paid-up policy, any final paid-up bonus added at the time of conversion of a policy to paid-up would be reversed

 

22. What happens when the Life Insured commits suicide?

In case of death due to suicide within 12 months,the nominee or the beneficiary of the Life Insured shall be entitled to

  • 80% of the premium paid, from the date of inception of the policy, provided the policy is in force OR
  • An amount which is higher of 80% of the premium paid till the date of death or the Surrender value as available on the date of death, from the date of revival of the policy.

 

23. 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.


24. What are the tax benefits available under the Smart Cash Protect plan?

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


25. What is the maximum premium one can opt under the Smart Cash Protect plan?

Maximum premium under the Smart Cash Protect plan has no limit, dependents on chosen sum assured and subject to underwriting.


26. Can loans be availed against the Smart Cash Protect plan?

Yes, loans will be available after the policy acquires Surrender value, up to 80% of the Surrender value.


27. What is the Grace period available under the Smart Cash Protect plan?

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


28. Can extra loading on premium be applied under any circumstances in the Smart Cash Protect plan?

Yes, if the occupation of life insured is associated with any specific hazard as mentioned in the application form, extra loading on the premium may be applied. Extra loading can also be applied in cases of submitting non standard age proofs and subject to underwriting decision on medical cases.