Star Union Dai-ichi Guaranteed Money Back Plan

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Introduction/Overview

Star Union Dai-ichi Guaranteed Money Back Plan is a traditional plan without Bonus facility. This policy helps its customers to focus on long-term protection and savings and enjoy money back benefits in the interim period as well. Both long and short-term financial benefits are available to the policyholders.

 Key Features

  • The policy has a premium paying term of only ten years regardless of whether the policy term is 10, 15 or 20 years.
  • Survival, Maturity and Death Benefits are available in this plan.
  • This policy has the added benefit of Guaranteed Additions, which grows at 4% - 6% depending on the policy term.
  • A premium rebate is available for a sum assured of Rs. 5 lakhs or more.

Benefits

  • Maturity Benefit is paid if the person whose life is insured is alive when the policy matures, he or she receives the Sum Assured plus the accrued Guaranteed Additions. The Sum Assured is subject to deduction of the Survival Benefits already paid,
  • If the person insured is alive, the policyholder receives Survival Benefits every five policy years before the end of the policy term. The Survival Benefit is equal to 200% of the Annualized premium.
  • In the event of the passing away of the person insured, the nominee receives the Sum Assured plus Guaranteed Additions as part of the Death Benefit.
  • Tax benefits are available on the premium paid and Maturity Benefits as per sections 80(C) and 10 (10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

13 years

50 years

Maturity Age (Last Birthday)

-

70 years

Policy Term (PT) in years

10 years, 15 years, 20 years

Premium Paying Term (PPT) in years

10 years

Premium Paying Frequency

Annual, Semi-annual, Monthly, Payroll Savings Program

Sum Assured

Rs. 3 lakhs

Rs. 10 crore

Details About Premium

Sample illustration for a healthy 30 year old individual.

Policy Year

Age at the end of the policy year

Amount in Rupees

Annualized Premium at the beginning of the policy year (Excluding service tax and cess)

Guaranteed Benefits

Death Benefit during policy term

Survival Benefits during policy term

Maturity Benefit at the end of the policy term

1

31

44,365

5,01,775

0

0

2

32

44,365

5,03,549

0

0

3

33

44,365

5,05,324

0

0

4

34

44,365

5,07,098

0

0

5

35

44,365

5,08,873

88,730

0

6

36

44,365

5,10,648

0

0

7

37

44,365

5,12,422

0

0

8

38

44,365

5,14,197

0

0

9

39

44,365

5,15,971

0

0

10

40

44,365

5,17,746

0

4,29,016

Policy Details

Grace period: There is a limited timeframe of 30 days from the due date of the unpaid premium to pay all dues, without interest. This timeframe is reduced to 15 days if payments are being done on a monthly basis.

Lapse: Failure to pay three years of due premiums within the Grace Period will result in the policy lapsing. The life cover will cease and no benefits are payable once the policy has lapsed.

Policy termination or Surrender Benefit: This policy acquires Surrender Value on the completion of three full policy years with the provision that all premiums were paid. The policy is terminated upon the earliest of the following: on payment of the Surrender Benefit, or Death Benefit or Maturity Benefit.

Free look period: A limited free look period of 15 days from the date of receiving policy documents is allowed to review the policy. This timeframe is extended to thirty days if the policy was sold via distance marketing mode.

Inclusions

  • Based on the chosen policy term, Guaranteed Additions accrue annually throughout the policy term. For a ten year cover,  the Guaranteed Addition is 4% of the Annualized Premium, for fifteen years cover its is 5% of the Annualized Premium and it is 6% of the Annualized Premium for the twenty years cover.

Additional features or riders

  • Revival of a lapsed policy is possible if the policyholder submits a written request for reinstatement within a timeframe of two years from the date of the first unpaid premium.

Exclusions

  • People who work in high risk/hazardous occupations and environments will be screened by the company or will be offered the policy at a higher premium rate corresponding to the higher mortality risk.
  •  The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund only 80% of the premiums received. The same is applicable if the person insured commits suicide within one year from the date of last reinstatement. In this case, if the policy is still in force then the company will refund the higher of the Surrender Value on the date of death or 80% of the premiums paid until the date of death.

Documents Required

The policyholder has to fill up an ‘Application form’ with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof.