Payable on death of the life insured during the policy term provided the policy is in-force

The lump sum ‘Death Benefit' is payable immediately on the death of the life insured and is defined as the higher of:

• 10 times the sum of annualised Premium* and underwriting extra premiums, (if any),
• 105% of sum of TotalPremiums Paid, underwriting extra premiums and loadings for modal premiums (if any) as on the date of death of the life insured
• Guaranteed Sum Assured at Maturity
• Any absolute amount assured to be paid on death

*Annualised Premium shall be the premium amount payable in a year chosen by the policyholder excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.

The policy gets terminated after payment of Death Benefit.

Maturity benefit is equal to Guaranteed Sum Assured at Maturity (GSAM).  The policy gets terminated after the payment of maturity benefit.

Payable immediately on surrender

The policy can only be surrendered once it acquires a Guaranteed Surrender Value (GSV) .i.e., on payment of first two full year’s premium.

The surrender value will be equal to the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).  The GSV is defined as:-

GSV factor x (Total Premiums Paid plus loading for modal premiums (if any) for base policy)

In practice, an SSV will be paid to the policyholder which will always be higher than or equal to the GSV.

The policy gets terminated after payment of surrender benefit.

Total Premiums Paid’ means total of all the premiums received, excluding any extra premium, any rider premium and taxes.

The GSV factors for the base policy are as follows:

Once the policy has acquired a surrender value, in case of non-payment of due premiums before the expiry of the grace period

Once the policy has acquired a surrender value, in case of non-payment of due premiums till the expiry of the grace period, the policy will not lapse but will become Reduced Paid Up (RPU). The policy will continue with reduced benefits as below:-

RPU Guaranteed Sum Assured on Maturity = ((Total Premiums Paid plus loadings for modal premiums paid (if any)forbase policy) / (Total Premiums Payable  plus loadings for modal premiums payable (if any)for base policy)) * Guaranteed Sum Assured on Maturity.

RPU Death Benefit = ((Total Premiums Paid plus loadings for modal premiums paid(if any)for base policy) / (Total Premiums Payable plus loadings for modal premiums payable (if any)for base policy))* Death Benefit

The death benefit and maturity benefit for a policy in RPU mode will be as follows:

Death Benefit for a RPU Policy: RPU Death Benefit will be paid immediately on death of life insured during the term of the policy in RPU status

Maturity Benefit for a RPU Policy: RPU Guaranteed Sum Assured at Maturity shall be payable on the maturity date. 

Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. It is advisable to seek an independent tax advice.