FAQs

1. What kind of a plan is DHFL Pramerica Wealth+ ACE?

DHFL Pramerica Wealth+ ACE plan is a non participating Single Premium Unit Linked Insurance Plan. It is a plan that helps you to create wealth, for milestone needs of your life.

2. What is the eligible entry age in DHFL Pramerica Wealth+ ACE plan?

Minimum 8 Years for Policy Term 10 Years
3 Years for Policy Term 15 Years
90 Days for Policy Term 20 or 25 Years
Maximum 65 Years

For Accidental Death Benefit Rider, minimum entry age is 18 years and maximum entry age is 60 years.

3.What are the policy terms available under DHFL Pramerica Wealth+ ACE plan?

The policy terms available are 10 years, 15 years, 20 years and 25 years. Under Accidental Death Benefit Rider, minimum duration can be opted is 5 years.

4.What is the minimum and maximum single premium in DHFL Pramerica Wealth+ ACE plan?

The minimum single premium is 65,000/- and maximum single premium depends on maximum Sum Assured, subject to underwriting.

5. How does the DHFL Pramerica Wealth+ ACE plan work?

wealth+ Ace

6. What is the Maturity benefit available under the DHFL Pramerica Wealth+ ACE plan?

At maturity the policyholder will receive a maturity benefit equal to fund value including the value of persistency units. Death cover and the rider risk cover chosen, if any will cease on Maturity.

7. What is the Death benefit available under the DHFL Pramerica Wealth+ ACE plan?

In case of the unfortunate demise of the life insured during the policy term, the policy terminates and the death benefit is paid to the nominee, which is equal to higher of Sum Assured less partial withdrawals (if applicable) or Fund Value (including the value of persistency units) or 105% of Premium paid. Where Sum Assured is defined as Multiple of Annualized Premium:

 

Age at Entry less than 45 Years 1.25 times of Single Premium
Age at Entry 45 Years and above 1.10 times of Single Premium

Subject to maximum Sum Assured of 10 Crore.

8.Does DHFL Pramerica Wealth+ ACE plan, give any reward for staying invested in the policy?

Yes, DHFL Pramerica Wealth+ ACE plan gives reward in the form of persistency units of the average of fund value at preceding 36 monthly anniversaries would be allocated to the unit account at the end of every 5th policy year starting 10th policy anniversary if they fall within the policy term. The persistency units will be as follows:

 

Premium Band From To Persistency Units
Band – 1 65,000 1,99,999 1.50%
Band – 2 2,00,000 Onwards 2.00%

wealth+ ace

9. What are the different funds available in this plan?

You have an option to choose from four funds to invest your money in. You can look at the investment objectives of each of our funds to match with your investment goals and then decide the proportion of money you would like to invest in each of them. If you are opting for more than one fund, the minimum investment in any fund should be at least 10% of the single premium. The funds and their objectives are as follows:

 

Fund Investment Objective Asset Allocation Risk Profile
Debt fund (SFIN: ULIF00127/08/08FIXEDIFUND140) To generate steady return at lower risk by investing in a range of debt securities Government securities:50% to 100% Corporate bonds:0% to 50% Money Market/cash:0% to 40% Low
Balance Fund (SFIN: ULIF00227/08/08BALANCFUND140) To generate balance return by investing in debt securities to provide stability and by investing in equities to provide potential to enhance the return through capital appreciation. Equity:10% to 50% Government securities:20% to 50% Corporate bonds:0% to 50% Money Market/cash:0% to 40% High
Growth Fund (SFIN: ULIF00327/08/08GROWTHFUND140) To generate higher return through capital appreciation in the long term by investing in a diversified portfolio of equities. Debt investment will provide a little stability and diversification Equity:40% to 80% Government securities:10% to 30% Corporate bonds:0% to 30% Money Market/cash:0% to 40% Very High
Large Cap Equity Fund (SFIN: ULIF00427/08/08LARCAPFUND140) To generate higher return through capital appreciation in long term from a portfolio predominantly in large cap equities. Equity:60% to 100% Money Market/cash:0% to 40% Very High

Liquid Fund will be available to the Policyholder only through STP. Investment objective of Liquid Fund is as under.

Fund Investment objectives Asset Allocation Risk Profile
Liquid Fund (SFIN: ULIF00920/01/11LIQUIDFUND140) To generate steady return at lower risk by investing in a range of short-term debt/liquid money market securities T-Bill/Money Market/Cash: 100% Low

10. What is Systematic Transfer Plan?

Systematic Transfer Plan is an option under this plan whereby an investor invests a lump sum amount in Liquid fund. At the beginning of each month during the STP period, regular fund transfer from liquid fund to the fund chosen is done. On one hand, while investing in an equity-oriented fund provides you the potential of obtaining returns in excess of inflation and an opportunity to create wealth, the unpredictability of equity returns can be unpleasant, especially in turbulent markets. On the other hand, investing in a debt-oriented fund assures you of stable returns, but you lose the opportunity of creating substantial amount of wealth by obtaining returns that beat inflation. Systematic Transfer Plan (STP) is an option to help customer get the best of both worlds and take the advantage of rupee cost averaging

11. How does Systematic Transfer Plan works?

STP works in 3 simple steps For example, Rajeev selects the duration of STP as 12 months and selects Large Cap Equity fund only.

 

  • In the first policy month (say–Jan), all the units will be divided by 12 and transfers will be made from Liquid fund to large cap equity fund.
  • On the start of next month, the remaining units, after deduction of charges, will be divided by (n-1) i.e. by 11.
  • Similarly in the last month the entire remaining units will be transferred as it will be divided by 1.
Month Formula 1/n Value
Jan 1/n 1/n 1/12
Feb 1/n-1 1/n-1 1/11
Mar 1/n-2 1/n-2 1/10
Apr | 1/n-3 1/9
May | 1/n-4 1/8
Jun | 1/n-5 1/7
Jul | 1/n-6 1/6
Aug | 1/n-7 1/5
Sept | 1/n-8 1/4
Oct | 1/n-9 1/3
Nov 1/n-(n-2) 1/n-10 1/2
Dec 1/n-(n-1) 1/n-11 1/1

12. Are there any riders available under DHFL Pramerica Wealth+ ACE plan?

Yes under DHFL Pramerica Wealth+ Ace plan, you can opt for "DHFL Pramerica Unit Linked Accidental Death Benefit Rider". If you chooses ADB rider, claimant will get rider Sum Assured along with the base Sum Assured in case of Accidental Death. Rider SA cannot exceed the Sum Assured of base plan, subject to maximum of 50 lakhs. Minimum term for "DHFL Pramerica Unit Linked Accidental Death Benefit Rider" is 5 years.

13. Is there an option to add or delete rider under DHFL Pramerica Wealth+ ACE plan?

Yes, there is an option to add or delete Accidental Death Benefit rider under DHFL Pramerica Wealth+ ACE plan. For further details please refer to Rider brochure.

14. What types of flexibilities are available in DHFL Pramerica Wealth+ ACE plan?

Partial Withdrawals:

Can be made from your investment account, to take care of financial needs during the term of policy.

 

  • After first 5 policy years
  • Maximum 5 partial withdrawals are allowed during the entire term of the policy
  • Minimum amount that can be withdrawn is 10,000
  • Total amount of partial withdrawals in a policy year cannot exceed 20% of the single premium.
  • After making a partial withdrawal, the policyholder has to wait for 2 years to avail next partial withdrawal.
  • Partial withdrawal is not allowed until the minor life insured, if applicable attains majority i.e. on or after the attainment of age 18
  • If there is a partial withdrawal from the unit account then in case of death during 2 years immediately after partial withdrawal, the sum assured for basic risk cover will get reduced by the amount of the partial withdrawal

 

Switching:

Switch your investments within the available funds, depending on financial priorities and market outlook.

 

  • Changing the allocation of existing units.
  • In a year 4 switches are free.
  • Subsequent switches will be charged at the rate of 250/- per switch.
  • Minimum switch amount is 5,000 unless 100% of the fund is switched.

 

Settlement Option:

At maturity, the policyholder has an option to stay invested and benefit from market fluctuations

 

  • The Policyholder must opt for this option, by giving advance notice at least 7 days before the date of maturity
  • This can be done for a maximum period of 5 years
  • During this tenure, fund value may be withdrawn as a lump sum or at periodic installments (annually, semi-annually, quarterly or monthly) as specified on date of maturity
  • Investment risk is borne by the policyholder
  • Minimum amount of periodic installment, if opted must be 5,000/-
  • During this tenure, facilities like life cover, switching or partial withdrawal will not be available
  • During this period, only fund management charges would be deducted.

15. Can the DHFL Pramerica Wealth+ ACE plan be surrendered?

Yes, the policy will acquire a surrender value from the 1st policy year but it will become payable only after completion of first 5 policy years.

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

Yes, the policy will acquire surrender value from the first policy year but it becomes payable only after completion of first 5 policy years. The surrender value will be the fund value less discontinuance (or surrender) charges.

17. What happens if policyholder wants to surrender the policy before completion of lock-in period of 5 years?

Before completion of lock in period of 5 years, if the Policyholder chooses to completely withdraw from the plan, the fund value as on the date of withdrawal after deducting appropriate discontinuance charges (or surrender charges) will be credited to the Discontinued Policy Fund. The proceeds of the Discontinued Policy Fund shall be paid out only after the expiry of Lock in period and policy will terminate after that. During the period when the Policy is in Discontinued Policy Fund no risk cover would be provided. In case of death of the Life Insured when the Policy is in DPF, death benefit would be equal to the value of units in the discontinuance fund.

18. What is the Discontinuance Charge under DHFL Pramerica Wealth+ ACE plan?

Policy Year in which Policy is discontinued Discontinuance Charges / Surrender Charge
1 Lower of 1% of (SP or FV) subject to a maximum of 6000
2 Lower of 0.5% of (SP or FV) subject to a maximum of 5000
3 Lower of 0.25% of (SP or FV) subject to a maximum of 4000
4 Lower of 0.1% of (SP or FV) subject to a maximum of 2000
5 and onwards NIL

Where FV = Fund Value and SP = Single Premium

19. List the charges applicable under DHFL Pramerica Wealth+ ACE plan.

Charges applicable under DHFL Pramerica Wealth+ ACE plan are stated below:
  • Premium Allocation Charge
  • Policy Administration Charge
  • Mortality Charge
  • Fund Management Charge

 

Premium Allocation Charge:

 

  • Deducted from the premium amount at the time of premium payment
  • Deduction done before allocating the same to the unit account
Single Premium Allocation Charge for Policy Term of 10 Years Allocation Charge for Policy Term of 15,20 & 25 Years
Band 1 4.00% 3.50%
Band 2 3.00% 2.50%

 

Policy Administration Charge:

 

  • Monthly deduction of charges, at the beginning of each policy month
  • Deduction from the policyholder’s unit account by way of cancellation of units
Policy Year Single Premium Amount Policy Admin Charges (per month)
1-3 Band-1 Lower of 0.180% of Single Premium or 150
Band-2 Lower of 0.075% of Single Premium or 150
4 onwards NIL

 

Mortality Charge:

 

  • Applicable on the Sum at risk
  • Deducted monthly by cancellation of units from the unit account
  • Indicative annual mortality per 1000 of SAR for a healthy male are
Attained Age (Years) 20 30 40 50
Mortality Charge 1.27 1.46 2.69 6.92

 

Fund Management Charge:

FMC is adjusted from the NAV of various funds

 

Debt Fund, Liquid Fund (in case of STP ) 1.20% p.a.
Balance Fund, Growth, Large Cap Equity Fund 1.35% p.a.
Discontinued Policy Fund (DPF) 0.50% p.a.

20. What happens when the Life Insured commits suicide?

In case of death due to suicide or attempted suicide, whether sane or insane, within 12 months of the policy commencement date, then the company shall pay an amount equal to fund value as on the date.

21. 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 fund value as on date of cancellation plus unallocated part of premium plus charges deducted from policy by cancellation of units, subject to the deduction of proportionate risk premium and any expenses incurred by the Company on insurance stamp duty and on medical examination. Distance Marketing entails to the sale of the product through a mode other than personal interaction.

22. What are the tax benefits available under the DHFL Pramerica Wealth+ ACE plan?

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

23. 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.

24. Can DHFL Pramerica Wealth+ ACE plan be bought under MWPA?

Yes, DHFL Pramerica Wealth+ ACE plan can be bought under MWPA, only at the time of inception of the policy.