Star Union Dai-ichi Dhan Suraksha Plus Plan

*Please note that the quotes shown will be from our partners

Introduction/Overview

Star Union Dai-ichi Dhan Suraksha Plus Plan is unique unit linked insurance policy.  It provides financial security for the loved ones of the policyholders. The plan's customers receive numerous benefits for staying invested year after year. It helps in generating wealth for the policyholders who can actively manage their investments with the various options offered.

Key Features

  • The policyholder has a choice of four different funds in which to allocate their investments.
  • Liquidity of funds is available in the form of partial withdrawals.
  • The policyholder has a choice of premium payment term. He or she may choose to pay premiums for only seven years or ten years or even throughout the policy term.

Benefits

  • If the policyholder survives until the policy matures, he or she receives a Maturity Benefit, which is the Fund Value as on the maturity date.
  • In the unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit.  The  Death Benefit is the higher of:
  1. The Base Fund Value, or
  2. The Base Sum Assured, or
  3. 105% of the total Regular/Limited premiums paid.
  • Based on the customer’s propensity to take risks, there is a choice of four Unit Linked Funds for investment.
  • Liquidity is available in the form of partial withdrawals, which are allowed after the first five policy years are completed. The minimum withdrawal amount is Rs. 5000.
  • Policyholders can opt to manage their investments with the switching and premium redirection options.
  • Tax benefits are available on the premium paid and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

8 years

50 years

Maturity Age (Last Birthday) of the Life Assured

-

70 years

Policy Term (PT) in years

10 years

30 years

Premium Paying Term (PPT) in years

Limited Period of 7 years or 10 years / Regular pay

Premium Paying Frequency

Annual, Semi-annual, Quarterly, Monthly

Annual Premium

Rs. 24000 for Annual Mode

Rs. 30000 for other modes

Rs. 100 crores

Sum Assured

Age < 45: Maximum of 10 x Annualized Premium

Age>= 45: Maximum of 7 x Annualized Premium

Age <=41: 15 x Annualized Premium

Age 42 to 44: 14 x Annualized Premium

Age>= 45: 10 x Annualized Premium

 

Details About Premium

Age

Policy Term

PPT

Annual Premium

Sum Assured Multiple

Sum Assured

20 years

12 years

7 years

Rs. 50000

10

Rs. 500000

20 years

30 years

10 years

Rs. 50000

15

Rs. 750000

44 years

26 years

26 years

Rs. 50000

14

Rs. 700000

Policy Details

Grace Period: The policyholder is given a timeframe of thirty days to pay all due premiums. This timeframe is reduced to 15 days in case of premiums being paid via monthly mode. The policy will acquire a “Discontinued” status if payment is not made within the applicable timeframe.

Policy Termination or Surrender Benefit: If the policy is surrendered before the completion of 5 years, then the insurance cover ceases, and the Fund Value will be transferred to the Discontinued Policy Fund. Proceeds from this will be payable only after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. After completing five policy years, if it is surrendered, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policyholder and the policy will terminate immediately. If the policy is not reinstated within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Surrender Benefit, Maturity benefit or the Death Benefit.

Free Look Period: Policyholders have a limited free look period of 15 days from the date of receiving policy documents to review the policy. The timeframe is thirty days for policies that have been sold via distance marketing mode. If the policyholder does not wish to continue with the policy, then he or she can cancel the policy. The customer will receive the Fund Value plus the unallocated premium minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • The policyholder may switch between the four unit-linked funds at any point of time during the policy term.
  • Policyholders may opt to change the allocation of future premiums with the Premium Redirection facility.
  • The policyholder can opt to receive the Maturity Benefit in installments rather than as a lump sum. The payouts may be received via half-yearly, quarterly or monthly modes.

Additional Features or Riders

  • The revival of a lapsed or discontinued policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium and pays all due premiums.
  • Various charges apply to this policy. They are as follows:
  1. Premium Allocation Charge, which is deducted from the Premium paid by the customer. The balance is invested in the investments chosen by the policyholder
  2. Policy Administration Charge is deducted at the start of each month and is subject to a maximum of Rs. 6000 p.a.
  3. Fund Management Charges are deducted daily while calculating the NAV of the funds.
  4. At the beginning of each month, Mortality Charges are deducted by cancellation of units from the fund value.
  5. Surrender/ Discontinuance Charges are paid only from the sixth policy year onwards.
  6. Switching Charge – There is a limit of one free switch allowed in a single policy year. Subsequently each switch is charged at Rs. 100 per switch.
  7. Partial Withdrawal Charge – There is one free partial withdrawal in a policy year, after which subsequent partial withdrawals are charged at Rs. 100.
  8. Premium Redirection Charges – In a year only one premium redirection is free of cost. Further premium redirection requests are charged at Rs. 100 per request.
  9. Medical examination expenses are borne by the policyholder at the time of revival of the policy.
  10. There are Miscellaneous Charges in the form of service tax and education cess, which is applied on the notification from the government from time to time.

Exclusions

  • 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 or reinstatement. The company will refund the Fund Value as on 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 and medical examination.