Generali Central Life Insurance Dhan Vridhi

What is Generali Central Life Insurance Dhan Vridhi?

The Generali Central Life Insurance Dhan Vridhi is a traditional endowment policy that serves the dual purpose of wealth creation and life insurance protection. By paying regular premiums throughout the chosen policy term, policyholders accumulate a corpus that benefits from guaranteed additions during the initial years and participates in the company's profits thereafter. In the event of an unfortunate demise during the policy term, it provides a lump sum death benefit to the nominee, ensuring the family's financial security. If the life assured survives till the end of the term, a maturity benefit comprising the sum assured and accrued additions/bonuses is paid out.

Features of Generali Central Life Insurance Dhan Vridhi

Below are the features of Generali Central investment plans: 

• Guaranteed Additions: The plan enhances your savings by providing Guaranteed Additions at the end of every policy year for the first 5 years.
• Profit Participation: Beyond the first 5 years, the policy participates in the company's profits through Compound Reversionary Bonuses and Terminal Bonuses, boosting your wealth accumulation.
• Comprehensive Life Cover: Offers life insurance protection for the entire policy term, providing a financial safety net for your family.
• Flexible Terms: Policyholders can align the plan with their financial goals by choosing a policy term of 10, 15, 20, 25, or 30 years.
• Tax Benefits: Premium payments and the benefits received may qualify for tax deductions and exemptions under prevailing income tax laws.

Eligibility Criteria for Generali Central Life Insurance Dhan Vridhi

Benefits of Generali Central Life Insurance Dhan Vridhi

• Death Benefit: If the life assured passes away during the policy term, the nominee receives the Death Benefit. This payout includes the Sum Assured on Death plus accrued Guaranteed Additions, vested Reversionary Bonuses, and a Terminal Bonus (if declared). The Sum Assured on Death is the highest of:
  • 10 times the Annualised Premium (for entry age less than 50) or 7 times the Annualised Premium (for entry age 50 and above).
  • 105% of the total premiums paid up to the date of death.
  • The absolute amount assured to be paid on death (equal to the Sum Assured).
• Maturity Benefit: Upon surviving the policy term, the policyholder receives the Sum Assured along with accrued Guaranteed Additions, vested Reversionary Bonuses, and any Terminal Bonus declared.
• Guaranteed Additions: These are added to the policy at the end of each policy year for the first 5 years, provided due premiums are paid. The rate is 3% of the Sum Assured for policy terms of 10 and 15 years, and 5% of the Sum Assured for policy terms of 20, 25, and 30 years.
• Bonuses: The plan participates in profits by declaring a Compound Reversionary Bonus at the end of each financial year, based on the company's performance. A Terminal Bonus may also be declared and paid at maturity or death.
• Tax Benefits: The premiums paid are eligible for tax deduction under Section 80C, and the benefits received are exempt under Section 10(10D) of the Income Tax Act, 1961, subject to prevailing rules.

Riders Under Generali Central Life Insurance Dhan Vridhi

There are no riders available or specified under the Generali Central Life Insurance Dhan Vridhi plan.

Additional Details of Generali Central Life Insurance Dhan Vridhi

• Premium Payment Options: Premiums are payable for the entire policy term and can be paid on a yearly, half-yearly, quarterly, or monthly basis.
• Grace Period: A grace period of 30 days is allowed for yearly, half-yearly, and quarterly frequencies, and 15 days for monthly frequencies. During this time, the policy remains active and full life cover is maintained.
• Revival Provisions: A lapsed policy can be revived within a period of five years from the due date of the first unpaid premium, subject to underwriting approval and payment of all arrears with applicable interest.
• Surrender Rules: The policy acquires a surrender value after two full years of premium payments (for a 10-year policy term) or after three full years of premium payments (for a policy term of 15 years or more). The payout is the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).
• Paid-up Value: If premium payments are stopped after the policy has acquired a surrender value, it converts into a reduced paid-up policy. The Death and Maturity Sum Assured are proportionally reduced based on the number of premiums paid.
• Policy Loans: You can take a loan against the policy once it acquires a surrender value. The maximum loan amount available is 85% of the surrender value, with an interest rate of 9% p.a. (for FY 2019-20).
• Free-look Period: Policyholders have a free-look period of 15 days (30 days if purchased via distance marketing or electronic mode) from the date of receipt of the policy document to review the terms. If not satisfied, the policy can be returned for a refund of premiums paid, subject to minor deductions.
• Nomination and Assignment: Allowed as per Section 39 and Section 38 of the Insurance Act, 1938, respectively.

Exclusions Under Generali Central Life Insurance Dhan Vridhi

• Suicide Exclusion: If the life assured commits suicide within 12 months from the policy commencement date, the nominee is entitled to 80% of the total premiums paid, provided the policy is active. If suicide occurs within 12 months from the date of policy revival, the nominee receives the higher of 80% of total premiums paid till the date of death or the surrender value available on the date of death.