Generali Central Life Insurance New Assured Wealth Plan

What is Generali Central Life Insurance New Assured Wealth Plan?

The Generali Central Life Insurance New Assured Wealth Plan is a regular premium-paying life insurance policy designed to strike a balance between wealth growth and financial protection. Policyholders have the flexibility to select from two unique investment plan options—Option 1 provides a standard endowment payout, while Option 2 ensures that the policy continues to accrue benefits for the family even after the unfortunate demise of the life assured, without any future premium obligations. With flexible premium payment terms and policy terms, this plan allows individuals to build a substantial corpus, enriched by annual Guaranteed Additions, culminating in a guaranteed lump-sum payout at maturity.

Features of Generali Central Life Insurance New Assured Wealth Plan

• Dual Product Options: Policyholders can customize their coverage by choosing between Option 1 (a standard endowment plan) and Option 2 (a legacy continuation plan where the policy remains active after the life assured's death).
• Guaranteed Additions: The plan enhances your savings by offering Guaranteed Additions at a simple percentage rate of the Sum Assured for each completed policy year, starting from the 8th policy year until the end of the policy term.
• Flexible Policy Terms: You can align the plan with your financial goals by selecting a Policy Term of 12, 16, 18, or 20 years.
• Limited Premium Payment: The plan offers the convenience of limited premium payment terms of 6, 8, or 10 years, allowing you to finish paying premiums early while enjoying extended coverage.
• Increasing Death Benefit: Under Option 1, the death benefit payout increases over time as Guaranteed Additions continue to accrue and get attached to the policy.
• Tax Benefits: Premiums paid and benefits received under the policy may be eligible for tax benefits as per the prevailing provisions of the Income Tax laws.

Eligibility Criteria for Generali Central Life Insurance New Assured Wealth Plan

Benefits of Generali Central Life Insurance New Assured Wealth Plan

• Death Benefit (Option 1): In the event of the life assured's unfortunate demise during the policy term, the nominee will receive the Death Sum Assured plus any Accrued Guaranteed Additions. The Death Sum Assured is the highest of either 10 times the Annualized Premium, or 105% of the total premiums paid as of the date of death.
• Death Benefit (Option 2): If the life assured passes away during the policy term, the plan provides two distinct payouts. First, a Lump Sum Death Payout equal to the Death Sum Assured is paid immediately. Second, all future premiums are waived, the policy continues to accrue Guaranteed Additions, and the final Sum Assured plus all accrued Guaranteed Additions is paid at the end of the policy term.
• Maturity Benefit: Under both options, if the life assured survives till the end of the policy term, the plan pays a Guaranteed Maturity Benefit. This payout includes the Maturity Sum Assured (which equals the Sum Assured) along with all Accrued Guaranteed Additions.
• Guaranteed Additions: Subject to the payment of all due premiums, the policy accrues simple Guaranteed Additions at the end of each policy year, starting from the 8th policy year until the end of the policy term. These are calculated as a percentage of the Sum Assured and vary based on the entry age, premium payment term, policy term, and the chosen option.
• Tax Benefits: Policyholders can avail themselves of applicable tax benefits on premium payments and benefit proceeds as per the prevailing Income Tax laws, which are subject to amendments.

Additional Details of Generali Central Life Insurance New Assured Wealth Plan

• Premium Payment Options: Premiums can be paid Yearly, Half-Yearly (52.0% of the annual premium), Quarterly (26.5% of the annual premium), or Monthly (8.83% of the annual premium). Policyholders can change their premium payment mode without any additional charges.
• Grace Period: Generali Central Life Insurance provides a grace period of 30 days for Yearly, Half-Yearly, and Quarterly premium frequencies, and 15 days for the Monthly premium frequency to pay any missed premiums without losing risk cover.
• Free-look Period: Policyholders have a free-look period of 15 days from the receipt of the Policy Document to review the terms. If the policy is purchased through distance marketing or in an electronic format, the free-look period is extended to 30 days.
• Surrender Rules: The policy acquires a surrender value and can be surrendered for cash after the payment of all due premiums for at least the first two full policy years. Generali Central Life Insurance will pay the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).
• Paid-up Value: If premiums have been paid for at least two full policy years and subsequent premiums are missed, the policy automatically converts to a paid-up policy. The Sum Assured is proportionately reduced. While already accrued Guaranteed Additions remain attached to the policy, no future Guaranteed Additions will accrue once the policy is converted to paid-up.
• Revival Provisions: A lapsed or paid-up policy can be revived within a consecutive period of 5 years from the due date of the first unpaid premium, provided the policy term has not expired. Revival requires the payment of all overdue premiums with interest (9% p.a. compounded yearly for FY 2020-21).
• Policy Loans: Once the policy acquires a surrender value, policyholders can apply for a loan up to 85% of the surrender value. The minimum loan amount allowed is ₹10,000, and the applicable interest rate for the financial year 2020-21 is 8% per annum compounded half-yearly.
• Vesting for Minors: For policies issued to minor lives, the ownership of the policy automatically vests in the life assured upon attaining the age of majority (18 years).
• Nomination and Assignment: Nomination operates strictly under Section 39, and Assignment operates under Section 38 of the Insurance Act, 1938.

Exclusions Under Generali Central Life Insurance New Assured Wealth Plan

Suicide Exclusion: If the life assured commits suicide within 12 months from the risk commencement date or the revival date of the policy, the nominee is entitled to receive at least 80% of the total premiums paid till the date of death, or the available surrender value on the date of death, whichever is higher, provided the policy is actively in force.