FAQs

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

DHFL Pramerica Smart Income is a non-participating guaranteed annual income plan that has been designed keeping your financial needs in mind. The guaranteed annual income benefits of the plan make sure that you and your family have a steady income stream while the death benefit provides financial security to your loved ones when you are no longer around to take care of them.

 

2. What is the duration for the Guaranteed Annual Payout in DHFL Pramerica Smart Income plan?

Guaranteed Annual Payouts is for duration equal to the Premium Payment Term (and not the Policy Term).

 

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

Minimum entry Age is 8 years as on last birthday; subject to minimum Age at Maturity is 18 years. However, the maximum Age at entry is 60 years as on last birthday

 

4. What is the maximum maturity age in DHFL Pramerica Smart Income plan?

Maximum Maturity Age is 75 years as on last birthday

 

5. What are the Policy Terms available in DHFL Pramerica Smart Income plan?

Wide ranges of Policy Terms are available under DHFL Pramerica Smart Income plan, from Minimum 7 years to maximum 20 years.

 

6. What are the different Premium Payment Terms offered under DHFL Pramerica Smart Income plan?

The different Premium Payment Term offered is stated below:

 

Policy Term (Years) Premium Payment Term Options (Years)
7 5
8 5 or 6
9 5,6, or 7
10 5, 6, 7, 8, 9 or 10
11 6, 7, 8, 9, 10 or 11
12 7, 8, 9, 10, 11 or 12
13 8, 9, 10, 11, 12 or 13
14 9, 10, 11, 12, 13 or 14
15 10, 11, 12, 13, 14 or 15
16 11, 12, 13, 14 or 15
17 12, 13, 14 or 15
18 13, 14 or 15
19 14 or 15
20 15

 

7. What is the minimum and maximum Annual Premium available under DHFL Pramerica Smart Income plan?

The plan is offered at a minimum Annual Premium of Rs.17,142/- (excluding taxes) with no maximum Annual Premium limit, subject to underwriting norms of the Company.

 

8. What are the Premium paying modes available under DHFL Pramerica Smart Income plan?

Yearly, Half Yearly and Monthly* modes are available under the plan. For Policy Term less than 10 years, only Annual mode of premium payment is available.
*Monthly mode of premium payment is available only through credit card, direct debit and ECS.

 

9. What is the Base Sum Assured available under DHFL Pramerica Smart Income plan?

Base Sum Assured is equal to 11 x Annualized Premium#.
#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

 

10. How does this plan work?

Step 1 Step 2 Step 3
Select a suitable Policy Term from the available options of 7 to 20 years and a Premium Payment Term from available options The policy will provide life cover during the Policy Term only. Annual payouts will start from the Maturity date for duration equal to the Premium Payment Term Pay Premiums for a duration equal to Premium Payment Term chosen

 

11. What is the Maturity Benefit under DHFL Pramerica Smart Income plan?

On Survival of the Life Insured till Maturity date, the Company will pay Annual Payouts for duration equal to the payout period, where Annual Payout is defined as

Annualized Premium# x Maturity Benefit Multiplier**(MBM)
The Maturity Benefit Multiplier** (MBM) would vary by Policy Term and entry age of life insured.
The first Annual Payout would be made on the Maturity Date. If the Life Insured dies while he/she is receiving the Annual Payouts, the Annual Payouts would continue for the remaining duration of Payout Period.
*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** For MBM please refer to Company website

 

12. What is the Payout period under DHFL Pramerica Smart Income plan?

Payout Period is the period over which the maturity benefit is paid in equal installments. The payout period is equal to the premium paying term and commences immediately after the end of policy term.

 

13. What will be the Death Benefit under DHFL Pramerica Smart Income plan?

On the unfortunate demise of the Life Insured during the Policy Term subject to Policy being in-force, the Company will pay lump sum benefit equal to Death Sum Assured, which will be highest of

  • Base Sum Assured (is equal to 11 x Annualized Premium#) OR
  • Maturity Sum Assured (is equal to Annualized Premium# x Maturity Benefit Multiplier** (MBM) x Lump sum factor) OR
  • 105% of all the premiums (excluding underwriting extra Premium, if any) paid till the date of death

The policy will terminate after payment of Death Benefit.
#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
Lump Sum Factor

Annual Payout X lump sum factor

Lump sum factor table

PPT Factor PPT Factor
5 4.4258 11 8.1888
6 5.1557 12 8.6890
7 5.8410 13 9.1587
8 6.4845 14 9.5997
9 7.0888 15 10.0138
10 7.6561

 

14. How will the payouts work in case a customer aged 25 years opts for DHFL Pramerica Smart Income with 15 years as Policy Term and 10 years of Premium Payment Term? He is paying an amount of Rs.1,00,000 (excluding service tax) every year.

Benefits he will receive are:


Age Policy Term Premium Payment Term Annual Premium MBM** Factor Guaranteed Annual Income
25 Years 15 Years 10 Years 1,00,000 1.940 1,94,000


**For MBM please refer to the Company Website

 

15. Can I avail a loan against DHFL Pramerica Smart Income plan?

Yes, loan is available under the DHFL Pramerica Smart Income 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.

 

16. 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 during the policy term while the Policy is in effect and Premium for at least two consecutive Policy years have been paid in full, you will be eligible to 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 premiums paid (excluding underwriting extras, if any) till date of surrender where X is as defined below:

Policy Year in which policy is surrendered GSV as a percentage of premiums paid # (X)
Policy Term
7 Years
Policy Term
8 Years
Policy Term
9 Years
Policy Term
10 Years and above
2 50% 30% 30% 30%
3 55% 50% 50% 50%
4 60% 55% 50% 50%
5 70% 60% 55% 50%
6 75% 70% 60% 55%
7 80% 75% 70% 60%
8 NA 80% 75% 65%
9 NA NA 80% 70%
10 NA NA NA 75%
11 and above NA NA NA 80%

#Premiums paid shall be the Total Premium, paid in a policy year chosen by the policyholder, excluding the underwriting extra premiums but including the loadings for modal premiums, if any
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.

 

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

1. 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 and before Maturity Date by paying all due premiums with interest subject to Company’s underwriting guidelines
  • In case lapsed Policy is not revived by the said date, the company would pay an amount equal to 15% of the Premiums paid at the end of such period provided the policyholder has paid premium for at least one policy year in full.

2. 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 Benefit:

On survival to Maturity the following benefit would be payable at the end of each year during Payout Period:

T / N (multiplied by) Annual Payout

Where:
T = Number of premiums paid under the policy
N = Number of premiums payable under the policy

 

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

  • Revival of a Policy is available within the policy term 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.

 

19. 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.

 

20. 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

 

21. What is the Grace period available under DHFL Pramerica Smart Income plan?

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

 

22. 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.

 

23. Is there any exclusion in DHFL Pramerica Smart Income plan?

There are no exclusions in the plan.

 

24. 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.

 

25. Can DHFL Pramerica Smart Income plan be bought under MWPA?

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