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 the Extra Premium(if any);

• 105% of sum of Total Premiums Paid and Extra Premium (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

*Annualized Premium” shall be the premium amount payable in a policy year chosen by the policyholder, excluding Extra Premium, Rider Premium, loading for modal premiums and applicable taxes, cesses and levies, 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.

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 for Base Policy)
% of (Total Premiums Paid 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.

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 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 at Maturity = ((Total premiums paid for base policy) / (Total premiums payable under base policy) X Guaranteed Sum Assured at Maturity.

RPU Death Benefit = (Total premiums paid for base policy) / (Total premiums payable under base policy) X 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.