Step 1 – the policyholder chooses the premium amount, the coverage option, policy term and the premium payment term.
Step 2 – the policyholder then chooses to invest the allocated premium in any of the available 6 funds. The funds are Bluechip Equity Fund, Accelerator Fund, Opportunity Fund, Stable Fund, Debt Fund and Secure Fund.
Step 3 – the policyholder can make partial withdrawals, premium redirections or switch his investments if required. Top-up can also be made to increase the Fund Value.
Step 4- in case of death during the plan term, the death benefit is paid according to the coverage option selected.
Step 5 – if the insured survives the plan tenure, the maturity benefit is paid which is the Fund Value including top-up premium Fund Value.
Ravi, aged 40 years, buys the plan paying a premium of Rs.50, 000. He chooses a Sum Assured of Rs.5 lakhs and allocates his premiums to Opportunity Fund.
Option 1 – He chooses Death Benefit option I. If he dies during the plan term, higher of Rs.5 lakhs or the Fund Value is paid to the beneficiary.
Option 2 – He opts for Death Benefit Option II. On his death during the plan term, Rs.5 lakhs is paid immediately to the beneficiary. Thereafter, Rs.50, 000 is contributed by the company towards the policy and premiums are waived off. Moreover, every year, Rs.50, 000 is also paid by the company to the beneficiary. On maturity, the Fund Value is paid.
Ravi can make partial withdrawals, switch between funds, invest additional premiums through top-ups and also redirect future premiums to any other fund.
Option 3 – if the plan matures and Ravi is alive, the Fund Value is paid.
|Age at entry (in completed years)||Death Benefit Option I – 7 years
Death Benefit Option II – 18 years
|Death Benefit Option I – 55 years
Death Benefit Option II – 50 years
|Age at maturity (in completed years)||NA||Death Benefit Option I – 70 years
Death Benefit Option II – 65 years
|Term of the plan||15,20,25 years|
|Premium paying options||Regular pay or Limited Pay|
|Premium Paying term||Death Benefit Option I – 5,7,10,15 years or equal to plan term
Death Benefit Option II – 10,15 years or equal to plan term
|Annual premium amount||Death Benefit Option I:
If Premium Paying Term is 5,7 years – Rs.36,000
Other Premium Paying Terms – Rs.24,000
Death Benefit Option II:
Age less than 45 years – Rs.24,000
Age 45 years and above – Rs.36,000
|Sum Assured||If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above – higher of 7 times the annual premium or 0.25*term*annual premium
|If age is 45 years and above– 10 times the annual premium
For other ages, the minimum Sum Assured would be the maximum too.
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.
If the insured is aged below 45 years, the minimum increase in Sum Assured is 1.25 times the top-up premium. If age is 45 years and above, the minimum increase in Sum Assured is 1.10 times the top-up premium. The maximum top-up Sum Assured is limited to 10 times the top-up premium if age is up to 35 years.
The funds are reallocated to Secure Fund when the insured dies so that the Fund Value is protected from market volatility.
Premiums paid are exempted from tax under Section 80C up to a maximum of Rs.1.5 lakhs. Death benefit received would be tax-free under Section 10(10D).
A period of 30 days is allowed as free-look period for cancelling the plan after issuance.
The lock-in period is 5 years.