FAQs

1. What kind of a plan is DHFL Pramerica Smart Fee Protect?

DHFL Pramerica Smart Fee Protect is a Non-Participating Endowment Insurance Plan that addresses the vital financial concerns every parent has of protecting his or her child's education. Unique features in this plan help the child continue his/her education at the standards he/she is used to.

 

2.Who can buy DHFL Pramerica Smart Fee Protect plan

Securing child’s future being the key benefit of the plan, it can be purchased by any individual subject to the following conditions:

 

Age at Entry*

Minimum: 18 Years

Maximum: 50 Years

Maximum Maturity Age*

65 Years

*Age as on last birthday

 

Policy Issuance is subject to underwriting norms of the company.

 

3. What are the different premium payment terms in DHFL Pramerica Smart Fee Protect plan?

DHFL Pramerica Smart Fee Protect plan has a limited premium payment term, as given below:

 

Policy Term Premium Payment Term
10 Years 7 Years
15 Years 8 Years/10 Years

 

4. What is the Minimum and Maximum Base Sum Assured available in DHFL Pramerica Smart Fee Protect?

Base Sum Assured is calculated as: Monthly Income at inception X Premium Payment Term X 12

Minimum: Rs.1,68,000/-

Maximum: No Limit, subject to Board approved underwriting policy

 

5. What are the premium modes available in DHFL Pramerica Smart Fee Protect?

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 Smart Fee Protect plan?

Minimum premium depends upon premium payment modes.

Minimum: Rs.26,638 /-(Yearly),
Rs.13,852/-(Half Yearly),
Rs.2,397/-(Monthly)

excluding Service Tax, Swachh Bharat Cess (SBC) & any underwriting loading, if any.

 

7. How does the DHFL Pramerica Smart Fee Protect plan work?

  • Monthly Income that the customer wants to provide for is decided subject to a minimum of Rs 2,000 per month
  • Suitable Policy Term & Premium Payment Term chosen from the available options:

 

Policy Term (Years) 10 Years 15 Years
Premium Payment Term (Years) 7 Years 8 Years/10 Years

 

  • Premium is based on age, gender of the life insured, Base Sum Assured, Policy & Premium Payment Terms subject to underwriting norms of the Company is paid.

 

8.What is the Maturity Benefit under DHFL Pramerica Smart Fee Protect plan?

On Survival of Life Insured till Policy Maturity date (subject to policy being in force), Base Sum Assured along with accrued Annual Guaranteed Additions will be paid.

Base Sum Assured = Monthly Income at inception x Premium Payment Term x 12

 

9. What is the Death Benefit under DHFL Pramerica Smart Fee Protect 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).

  • Monthly Income: On death during the Policy term the policy will terminate and applicable Monthly Income will be payable subject to a minimum payment for 48 Months. Monthly Income chosen at inception increases by 5% pa (simple) starting 2nd Policy Year and during payment.
  • Lump sum Benefit: Base Sum Assured together with accrued Annual Guaranteed Additions would be payable at the scheduled maturity date.

The total benefits payable on death will be equal to Death Sum Assured plus Accrued Annual Guaranteed Additions$

Where Death Sum Assured is highest of:

  • 10 times of Annualized Premium *(or)
  • 105% of all the Premiums paid (excluding underwriting extra, if any) as on date of death (or)
  • Guaranteed Sum Assured on maturity which is equal to Base Sum Assured (or)
  • The absolute amount assured to be payable on death which would be sum of the following two components:
    • Recurring monthly income for rest of the policy term subject to a minimum payments for 48 months
    • Base Sum Assured payable on scheduled Maturity Date

$Payable on the scheduled maturity date

*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.

 

10. What are the Annual Guaranteed Additions and when will these additions accrue in the DHFL Pramerica Smart Fee Protect policy?

Annual Guaranteed Additions

 

During the Policy Term, Policy will be eligible for Annual Guaranteed Additions provided the policy is in force for full risk benefits or premiums have been paid till death of the Life Insured. AGA is defined in terms of the Monthly Income bands.

The rates of addition applied as a percent of cumulative Annualized Premium*are given below:

 

Monthly Income @ Inception Policy Term

From

To

10 Years

15 Years

2,000

3,500

5.00%

6.00%

3,501

6,000

5.25%

6.25%

6,001

12,000

5.50%

6.50%

12,0001

And above

5.75%

6.75%

 

*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.

 

11. Jatin, 35 year old, opts for DHFL Pramerica Smart Fee Protect with 10 year Policy Term and 7 year Premium Payment Term. The Monthly Income chosen at inception is Rs 3,501/- & he needs to pay Rs 48,294/- (excluding applicable taxes) every year as Annualized Premium. How will AGA accrue?

(Premium specified is of standard life and this is a monthly mode policy.)

The applicable rate of Annual Guaranteed Additions will be 5.25%. Below is how the Annual Guaranteed Additions will accrue.

 

Policy Year Annualized Premium* Paid Cumulative Annualized Premium* Annual Guaranteed Additions accrued Cumulative Additions

1

48,294

48,294

2,535

2,535

2

48,294

96,588

5,071

7,606

3

48,294

144,882

7,606

15,213

4

48,294

193,176

10,142

25,354

5

48,294

241,470

12,677

38,032

6

48,294

289,764

15,213

53,244

7

48,294

338,058

17,748

70,992

8

 

338,058

17,748

88,740

9

 

338,058

17,748

106,488

10

 

338,058

17,748

124,236

 

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

 

12. Will AGA's accrue even on death of Life Insured?

In case of death, Annual Guaranteed Additions will continue to accrue till the scheduled maturity provided the policy is in-force for full risk benefits at the date of death.

 

13. Are Riders available in DHFL Pramerica Smart Fee Protect?

The proposition can be made more comprehensive by adding rider/s to the base plan which covers specific events and further enhance the security of the family.

We have:

  • DHFL Pramerica Traditional Accidental Death Benefit Rider [UIN No: 140B001V02]
  • DHFL Pramerica Traditional Critical Illness Benefit Rider [UIN No: 140B002V02]

 

14. When will the riders under this plan terminate?

The rider benefits will terminate at the end of PPT of the Base Policy and also if policy lapses or becomes reduced paid up due to non- payment of premium during the PPT. Please refer to the Rider brochure for detailed benefits and Terms & Conditions before concluding the sale.

 

15. Can Loans be availed against DHFL Pramerica Smart Fee Protect plan?

In situation of an emergency, the customer may require funds to meet some expenses. To fulfill this need, they can avail loan against the Policy. Loan will be available after the Policy acquires Surrender Value, up to 75% 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 loans will be declared by the Company on an annual basis at the beginning of every financial year

 

16. What happens if customer wants to surrender DHFL Pramerica Smart Fee Protect policy?

It is advisable to pay Premiums for the full Premium payment term to enjoy maximum benefits under the Policy.

At any time during the Policy Term while the 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 Policy years for Premium Payment Term less than 10 years have been received in full, the Policy can be surrendered.

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 (excluding underwriting extra but including modal premium loading, if any) plus the Guaranteed Surrender Value of the accrued Annual Guaranteed Additions and Accrued reduced AGA, if any. X is as defined in the next page:

 

Policy Year in which Policy is surrendered

GSV as a percentage of Premiums paid excluding underwriting extra Premiums, if any (X)

Premium Payment Term

 

7 Years

8 Years

10 Years

2

30.0%

30.0%

N.A

3

30.0%

30.0%

30.0%

4

50.0%

50.0%

50.0%

5

50.0%

50.0%

50.0%

6

50.0%

50.0%

50.0%

7

50.0%

50.0%

50.0%

8

55.0%

52.5%

52.5%

9

63.0%

55.0%

55.0%

10

70.0%

57.5%

57.5%

11

NA

60.0%

60.0%

12

NA

62.5%

62.5%

13

NA

65.0%

65.0%

14

NA

67.5%

67.5%

15

NA

70.0%

70.0%

 

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. Can the Policy be revived at a later stage?

Revival of a Policy is available within the Policy Term 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.

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.

 

19. What happens if the Policyholder is unable to pay Premium? For Policies with Premium Payment Term less than 10 Years

If the Policyholder discontinues the Premium Payment before paying Premium for at least two consecutive Policy years in full, the Policy will lapse without any value at the expiry of the grace period and no benefit would be payable. 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 the Policyholder decides not to pay any further Premiums after paying Premium for at least two consecutive years in full, the Policy will be converted into a reduced Paid-Up Policy after the expiry of Grace Period with reduced benefits as defined below. 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 three consecutive Policy years in full, the Policy will lapse at the expiry of the grace period and no benefit would be payable. 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 the Policyholder decides not to pay any further Premiums after paying Premium for at least three consecutive years in full, the Policy will be converted into a reduced Paid-Up Policy after the expiry of the Grace Period with reduced benefits as defined below. The policyholder also has the option to surrender a reduced paid up policy to receive an immediate benefit.

 

Reduced Paid Up

Death Benefit:

In case of Death of the Life Insured during the Policy Term after the Policy has become reduced paid-up, the following reduced Death Benefit will become payable into 2 parts:

  • Recurring (reduced Monthly Income): T (divided by) N (multiplied by) Monthly Income to the Nominee for rest of Policy Term subject to a minimum of 48 reduced monthly payments even if this requires payments after the Policy Term is over.
  • On Scheduled Maturity Date: T (divided by) N (multiplied by) Base Sum Assured plus, Annual Guaranteed Additions$ accrued till the date of reduced paid-up Plus
    Reduced Annual Guaranteed Additions$ accrued after policy becomes reduced paid-up, if any.

However, total benefits payable on death in case of reduced paid-up policy shall be at least be equal to:

  • T (divided by) N (multiplied by) Death Sum Assured plus,
  • Annual Guaranteed Additions$ accrued till the date of reduced paid-up Plus Reduced Annual Guaranteed Additions$ accrued after policy becomes reduced paid-up, if any,

$ Accrued Annual Guaranteed Additions and Accrued reduced AGAs, if any would be payable on the scheduled maturity date.

 

Maturity Benefit:

On survival to Maturity, reduced Paid-up Value equal to

  • T (divided by) N (multiplied by) Death Sum Assured plus,
  • Annual Guaranteed Additions accrued till policy becomes reduced paid up plus
  • Accrued reduced AGA after policy becomes reduced paid up, if any

Where: T = Number of Premiums paid ,N = Number of Premiums payable, under the Policy

 

Annual Guaranteed Additions for a reduced paid up policy (reduced AGAs):

A reduced paid up policy will also be entitled to Annual Guaranteed Additions at a reduced rate provided premiums has been paid for at least five policy years in full. The reduced AGA rate will be applied to total Annualized Premium* paid (Cumulative Annualized Premium*) and is defined as follows.

Reduced AGA rate = T/N x AGA rate

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

 

Surrender Benefit:

Upon surrender of a reduced paid-up policy; higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) as defined in Sl. No. 14 would be payable.

 

Early Termination Value (where the policy has not acquired Surrender Value)

For Policy Term of 15 years with 10 years Premium Paying Term: Provided Premium for at least two consecutive Policy Years have been paid in full and the policy has not acquired the surrender value, the Company would pay an amount equal to 30% 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

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

 

20. Is there any exclusion under DHFL Pramerica Smart Fee Protect plan?

Yes. The exclusion is as under:

If death occurs due to suicide, whether sane or insane, within twelve months from the Date of commencement of risk 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.

In case of rider chosen riders exclusions would be applicable.

Please refer to the Rider brochure for detailed benefits and Terms & Conditions before concluding the sale.

 

21. What if the Policy Holder 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 has 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.

 

22. What are the tax benefits available under the DHFL Pramerica Smart Fee 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.