8. Tax Benefits*: As per the prevailing norms under the Income Tax Act, 1961.
*You may be eligible for Income Tax benefits as per the applicable income tax laws in India, which are subject to change from time to time. You are advised to consult your tax advisor on applicable tax benefits under the policy.
#The Guaranteed Survival Income will vary with Premium Payment Terms and Annualized Premium bands.
##Annualized premium is the premium amount payable in a year chosen by the policyholder, excluding the applicable taxes, underwriting extra premiums, rider premiums and loadings for modal premiums, if any
Advantages
Security
Protection through a life cover till you reach 100 years of age.
Flexibility
Plan according to your life goals with option to defer and accumulate the Guaranteed Survival Income and/ or Non-Guaranteed Survival Income (cash bonus), if declared.
Simplicity:
Buy with ease with a simple application process and a hassle-free issuance.
Reliability
Get Survival Incomes for a lifetime & uninterrupted Life Cover during auto-cover period.
Survival Income:
Guaranteed Survival Income:
a) On survival of the life assured and provided all premiums which have fallen due are paid, this will be paid at the end of each policy year starting from the end of the premium payment term, till surrender, death or maturity, whichever is earlier.
b) Guaranteed Survival Income is Guaranteed Income Rate multiplied by the Basic Sum Assured.
Non-Guaranteed Survival Income (Cash Bonus):
a) On survival of the life assured and provided all premiums which have fallen due are paid, in addition to the
Guaranteed Survival Income, this will be paid at the end of each policy year starting from the end of the 7th policy year till surrender, death or maturity, whichever is earlier
b) Non-Guaranteed Survival income will be equal to the Cash bonus rate, if declared, multiplied by the Basic Sum Assured.
Flexibility to accumulate the Survival Incomes:
An option to defer and accumulate the Guaranteed Survival Income and/or Non-Guaranteed Survival Income (Cash Bonus), if declared. The accumulated deferred survival incomes along with applicable interest is payable as lumpsum to the policyholder on request at any point of time after the deferment of the survival income during the policy term, or on death of the Life Assured / surrender/ maturity, whichever is earlier.
The applicable interest rate for accumulation of deferred Survival Income shall be the RBI Repo rate less 100 basis points as on 1st April of the financial year, in which the accumulated amount is payable. Currently, the Repo rate is 4.00% p.a. as at 1st April 2022 and hence the applicable interest rate for Financial year 2022-23 is 3.00% p.a., compounded annually.
Maturity Benefit :
On survival of the life assured till the end of policy term, the following is payable in lumpsum:
a) Guaranteed Sum Assured on Maturity^ plus Terminal bonus, if declared.
b) Additionally, accumulated deferred survival income, if any will be paid.
c) On maturity of the policy, the policy will terminate and no further benefits will be payable.
^Guaranteed Sum Assured on Maturity is defined as the Total Annualized Premiums payable under the policy.
Death Benefit :
On Death of the life assured, during the policy term the following will be paid to the nominee or legal heir:
a) Higher of A or B, where:
A. Sum Assured on Death; plus Guaranteed Survival Income*, if any; plus Interim Non-Guaranteed Survival Income# (Interim Cash Bonus), if declared; plus Terminal bonus, if declared.
B. 105% of the Total Premiums Paid upto the date of death.
b) Additionally, accumulated deferred survival income, if any will be paid.
*Guaranteed Survival Income and Interim Non-Guaranteed Survival Income is applicable for the year in which death occurs.
#Interim Non-Guaranteed Survival Income is equal to Interim Cash bonus rate, if declared, multiplied by the Basic Sum Assured.
Total Premiums paid/received/payable means total of all the premiums received, excluding any extra premium, any rider premium and applicable taxes.
Sum Assured on Death is Death Benefit Multiple (DBM) multiplied by the Annualized Premium. DBM is based on age at entry of the life assured.
“Auto-Cover Period” under a Reduced paid-up policy shall be as follows:
1. If at least first two full policy years’ but less than five full policy years’ premiums have been paid and any subsequent premium is not duly paid: Auto Cover Period of one year from the due date of first unpaid premium shall be available.
2. If at least five full policy years’ premiums have been paid and any subsequent premium is not duly paid: Auto Cover Period of two years from the due date of first unpaid premium shall be available.
Rider Benefit: Refer to the rider brochure for more information.
