Assured Income Plan_Brochure for PDF - Star Union Dai

A joint venture of
MAKE SPACE
FOR MORE
guarantee your 2
and secure your future
Now,
SUD Life
ASSURED INCOME PLAN
A Non-Linked Non-Participating Guaranteed Return Endowment Assurance Plan
UIN - 142N045V01
Trademark used under licence from respective owners.
nd
income
SUD Life
ASSURED INCOME PLAN
A Non-Linked Non-Participating Guaranteed Return Endowment Assurance Plan
UIN - 142N045V01
Our responsibilities grow with the passage of time. Hence it is important to plan today so
that you can enjoy a better tomorrow.
With SUD Life Assured Income Plan, you can have a guaranteed supplementary income
in future while ensuring financial stability for your family in case of any uncertainty. This
plan assures you a regular guaranteed tax free annual income and also gives you all
your premiums back at the end of the policy term. Now you can also be assured of peace
of mind as in case of anything unfortunate happening to you, your family’s immediate
and future needs will be taken care of through an immediate lump sum and a regular
stream of income throughout the policy term.
What is SUD Life Assured Income Plan
SUD Life Assured Income Plan is a savings-cum-Protection plan that aims to provide an
additional source of income through regular annual payouts and comprehensive
financial protection to your family in case of an unfortunate event through an immediate
lump sum payout and a regular stream of income.
The product can be purchased from any licensed intermediary, including agents and
corporate agents of SUD Life or directly from SUD Life through Direct Marketing
Channel.
Why should you take this Plan?
Guaranteed
Annual Payout
Assured
Guaranteed
Protection
Maturity
(lump sum +
Benefit
Regular income)
Income Tax
Benefits
as chosen by you
for your family
on the premiums
paid and benefits
received
100% of premiums
returned at the end
of policy term
What are the benefits under this Plan?
Guaranteed Annual Payout:
Survival Benefit/Annual Payout: Annual payout chosen by the policyholder at the
inception of the policy will commence from the end of premium payment term or
deferment period depending upon the deferment period chosen. The Annual Payout is
guaranteed during the payout period provided the policy is in force and Life Assured is
alive. The annual payouts are paid at the beginning of each policy year during payout
period.
Guaranteed Benefit on Maturity:
Maturity Benefit: On survival of the life assured to the end of the policy term provided
the policy is kept In-force and all due premiums are paid, all premiums paid by you
will be returned i.e. you will receive the Guaranteed Maturity Benefit as defined
below and the policy gets terminated immediately.
Premium Paying Term
Guaranteed Maturity Benefit
10 Years
10 times of Annualized Premium1
15 Years
15 times of Annualized Premium1
Protection for your family:
Death Benefit2: In the unfortunate demise of the life assured during the policy term
while the policy is in force, your family is protected in three ways with the following
benefits being payable to your nominee/beneficiary:
A) A lump sum benefit i.e. Death Sum Assured3 paid immediately
B) Additional annual payouts4 to take care of immediate loss of regular income
during that phase when your primary income was supporting your family’s needs.
This amount (equal to the annual payout amount chosen by you) is payable every
year starting from the policy anniversary immediately after death, till the beginning of
the Scheduled Annual Payouts. Your family does not have to pay any further
premium.
C) Scheduled annual payouts as originally planned i.e. fixed annual payouts of
either 10, 15, 20 or 25 years as chosen by you at the inception of the policy.
No further benefit is paid at the end of the policy term since the Death Sum Assured is
already paid at the time of death of the Life Assured.
In case, of any financial crunch, the beneficiary can opt to receive the future outstanding
Annual payouts (Additional Annual Payouts and Scheduled Annual Payouts) in the form
of lump sum benefit5 at any point in time, discounted value of the remaining Annual
Payouts will be paid to the beneficiary and the policy will terminate immediately.
How does the plan work?
• Choose the annual payout you wish to receive – the premium amount is
linked to the annual payout you wish you receive in future and the Death Sum
Assured is linked to the annualized premium
• Choose the Premium Payment Term - you have the option to pay your premiums
for 10 years or 15 years through yearly, half-yearly , quarterly or monthly modes
• Choose the Policy Term – this is the period for which you will be covered.
• Policy Term equals to Premium Payment Term plus Deferment Period (if any) plus
Payout Period
• The eligibility criteria are provided below in the ‘Eligibility and Limits’ section
for your reference
• The premium amount will be based on the chosen Annual Payout , Premium
Payment Term, Deferment period , Payout period and Age of the life assured
• To enjoy the full benefits of your plan, all you have to do is to pay the premiums
throughout the premium payment term
• On survival to the end of the premium payment term or deferment period (if any),
you will receive the annual payouts as defined earlier in the section on ‘Survival
Benefit/Annual Payout’
• On survival to the end of the policy term, you will receive the maturity benefit as
defined earlier in the section on ‘Maturity Benefit’
• In case of death of the life assured during the policy term, the
nominee/beneficiary will receive the death benefit as defined earlier in the
section on ‘Death Benefit’
• Risk will commence on the later of date of clearance of instrument of initial
premium and underwriting acceptance of risk
Benefits explained with an example6:
Mohit, aged 35 is looking for a regular guaranteed income plan to help him to meet his
future expenses. He wishes to receive guaranteed annual income for 15 years after he
turns 50.
SUD Life Assured Income Plan for a term of 30 years is suitable for his requirement. He
pays premium of Rs. 28,224/- annually for 10 years and selects deferment period of 5
years.
ON SURVIVAL TILL MATURITY:
After completion of premium payment term and deferment period, Mohit at age 50,
starts receiving annual income of Rs. 24,000/- at the beginning of each year for payout
period of 15 years.
Thus, he receives total annual income of Rs. 24,000*15 = Rs. 3, 60,000
He will also receive a lump sum of Rs. 282,240 =Rs. 28,224 *10 (10 times of
Annualized Premium excluding service tax and extra premium, if any on maturity) i.e.
effectively he gets back all the Premiums paid by him on maturity.
Thus, Total Benefit Amount would be Rs. 642,240
Scheduled Annual Payout:
Rs. 24000/- from age 50 for 15 years
Premium Paying
Terms of 10 years
AGE: 35 years
Guaranteed Maturity
Benefit: Rs. 2,82,240/- on
attaining age 65
Deferment Period
of 5 years
45 years
50 years
65 years
Payout Period of 15 years
IN CASE OF MOHIT’S UNFORTUNATE DEMISE:
DURING THE PREMIUM PAYING TERM:
In case of Mohit’s unfortunate demise during the 4th policy year i.e. at age 38:
(a) The nominee or beneficiary will get guaranteed Death Sum Assured of
Rs. 311,000/- immediately. No further premium to be paid.
(b) The nominee/beneficiary will further receive Additional Annual Payouts payable
from the 4th policy anniversary (i.e. start of the 5th policy year) to the end of
Deferment Period i.e. 14th policy anniversary or start of the 15th policy year. This
amount is Rs. 24,000 * 11 years = Rs. 2, 64,000
(c) In addition to this, Scheduled Annual Payouts will be received after the end of
Deferment Period for fixed period of 15 years i.e. Rs. 24,000*15 = Rs. 3,60,000/Thus, Total Benefit Amount would be Rs. 3,11,000 + Rs. 2,64,000 + Rs. 3,60,000 =
Rs. 9,35,000
On death during 4th
Policy Year i.e. at
age 38
1st Policy
Year
Additional Annual Payouts: Rs.
24,000 p.a. from the start of 5th
Policy year till the end of the
deferment period
5th Policy
Year
10th Policy
Year
Scheduled Annual Payout: Rs. 24,000
p.a from the start of 16th Policy Year
till the end of Policy Term
15th Policy
Year
30th Policy
Year
Death Sum Assured of Rs. 311,000/paid immediately on death
DURING DEFERMENT PERIOD:
In case of Mohit’s unfortunate demise during 12th policy year i.e. at age 46:
(a) The nominee or beneficiary will get guaranteed Death Sum Assured of
Rs. 311,000/- immediately.
(b) The nominee/beneficiary will further receive Additional Annual Payouts
payable from 12th policy anniversary (i.e. start of the 13th policy year) till the end of
Deferment Period i.e. 14th policy anniversary or start of the 15th policy year. This
amount is Rs. 24,000 * 3 = Rs. 72,000
(c) In addition to this, Scheduled Annual Payouts will be received after the end of
Deferment Period for fixed period of 15 years i.e. Rs. 24,000*15 = Rs. 3,60,000/Thus, Total Benefit Amount would be Rs. 3,11,000 + Rs. 72,000 + Rs. 3,60,000 =
Rs. 7,43,000
On death during
12th Policy Year i.e.
at age 46
1st Policy
Year
10th
Policy
Year
Additional Annual
Payouts: Rs. 24,000 p.a.
from the start of 13th
Policy year till the end
of the deferment period
Scheduled Annual Payout: Rs. 24,000
p.a from the start of 16th Policy Year
till the end of Policy Term
13th Policy 15th Policy
Year
Year
30th Policy
Year
Death Sum Assured of Rs. 311,000/paid immediately on death
DURING PAYOUT PERIOD:
In case of Mohit’s unfortunate demise during the 18th policy year i.e. at age 52:
(a) The nominee or beneficiary will get guaranteed Death Sum Assured of
Rs. 311,000/- immediately.
(b) Mohit had already received 3 Scheduled Annual Payouts till his unfortunate
demise (Rs. 24,000*3=Rs. 72,000). The remaining Scheduled Annual Payouts will
continue to be paid to the nominee/beneficiary for the remaining payout period (for
a period of 12 years) i.e. Rs. 24,000 *12 = Rs. 2,88,000/Thus, Total Benefit Amount would be Rs. 72,000 + Rs. 3,11,000 + Rs. 2,88,000 = Rs.
6,71,000
On death during
18th Policy Year i.e.
at age 52
1st Policy
Year
10th Policy
Year
15th Policy
Year
Remaining Scheduled Annual Payouts:
Rs. 24,000 p.a. from the start of 19th
Policy year till the end of Policy Term
19h Policy
Year
30th Policy
Year
Death Sum Assured of Rs. 311,000/paid immediately on death
LUMPSUM BENEFIT
In case of any financial crisis, the nominee or beneficiary has the option to receive future
outstanding annual payouts (additional as well as scheduled annual payouts) in the form
of lump sum benefit at any point in time.
For instance, nominee or beneficiary decides to opt for lump sum benefit at the time of
death (i.e. during 4th policy year), then, Lump Sum Benefit = Rs. 24,000 (Annual
Payout) * 12.6920 (Discounting Factor: per Re.1/- annual payout) = Rs. 3, 04,608
Total Death Benefit = Death Sum Assured + Lump sum Benefit i.e Rs. 311,000 + Rs.
304,608 = Rs. 615,608
What are the eligibility and plan limits?
Simply make sure you meet the age criteria as mentioned below. You will have to choose
a suitable annual payout as per your future needs and the limits mentioned below:
Age at Entry
Minimum: 8 years (last birthday)
Maximum: 55 years (last birthday)
Age at Maturity
Maximum: 75 years (last birthday)
Annual Payout
Min: Rs. 24,000
Max: Rs. 50 Lakhs (subject to board approved
underwriting guidelines)
Premium Payment Modes
Annual, Half Yearly, Quarterly or Monthly Modes
(for Monthly Mode, through ECS/SI only)
In this plan, risk will commence immediately on the issuance of the policy for all lives
including minors lives
Policy Term comprises of Premium Payment Term, Deferment Period and Payout Period.
The various Policy Terms which can be availed are given below:
Premium Payment
Term in Years
(a)
Deferment
Period in Years
(b)
Payout Period
in Years
(c)
Policy Term
in Years
(d)=a+b+c
10
0
10
20
10
0
15
25
10
0
20
30
10
0
25
35
10
5
10
25
10
5
15
30
10
5
20
35
15
0
15
30
15
0
20
35
15
5
15
35
TERMS & CONDITIONS
Modal Factor:
Tabular Premiums Rates are for yearly modes of payments. Following factors are applied
to annual premium (after discounts, if any) when paying premiums other than annual
mode Based on the premium payment frequency chosen by you, the Annual Premium
payable will be multiplied by the modal factors given below:
Modal factors
1
0.5125
0.2625
0.0885
Yearly
Half-yearly
Quarterly
Monthly
Premium payment mode
Policy Loan:
Not Applicable
Grace Period:
In case you have missed paying your premium by the due date, we will allow a grace
period of 30 days from the date of the first unpaid premium, for annual, half-yearly and
quarterly modes. The grace period will be 15 days in case of monthly mode.
In case of death during the grace period, your policy will be in force and death benefit
will be paid after deductions of the premiums then due and all premiums falling due
during the policy year of death as defined earlier in this brochure under the section
‘Death Benefit’.
Rider:
Currently, No rider is available for sale with this product.
SUD Life Accidental Death and Total & Permanent Disability Benefit Rider - Traditional
(UIN: 142B005V01) can be attached with this product after launch of the rider. For more
details on rider, please refer rider brochure and terms and conditions (when launched).
Policy Surrender:
If you have paid all premiums for at least first two consecutive full years, your policy will
acquire a surrender value. Surrender Value payable would be higher of “Guaranteed
Surrender Value” and “Special Surrender Value”. Once Surrender Value is paid, your
policy will be terminated and no further benefits will be paid under the policy.
Guaranteed Surrender Value:
The Guaranteed Surrender Value (GSV) is defined as the GSV Factor multiplied by the
total premiums paid (excluding service tax and extra premiums, if any) till the date of
surrender MINUS annual payouts already paid, if any.
The Guaranteed Surrender Value Factors at sample Policy Years of surrender and
sample Policy Terms are furnished in the table below:
Policy
Year
Premium Payment Term
10 Years
Policy Term
1
Premium Payment
Term 15 Years
Policy Term
20 Years
25 Years
30 Years
35 Years
30 Years
35 Years
0%
0%
0%
0%
0%
0%
5
52%
52%
52%
52%
50%
50%
10
68%
63%
60%
60%
53%
52%
15
85%
73%
70%
68%
62%
60%
20
98%
83%
80%
77%
72%
69%
25
NA
115%
105%
100%
95%
90%
30
NA
NA
160%
140%
150%
130%
35
NA
NA
NA
190%
NA
180%
Special Surrender Value:
Special Surrender Value (SSV) is arrived at by the company, using the actuarial basis as
approved by the regulator from time to time. Your policy will be terminated and no
further benefits will be paid under the policy after we have paid you the surrender value.
Lapse:
If you have not paid the due premiums within the grace period for the first two full years,
your policy will lapse. The life cover ceases and no benefits are payable under a lapsed
policy.
Reduced Paid-up Insurance:
If you have paid the premiums due under your policy for at least first two full years and
subsequent premiums are not paid, then your policy will acquire Reduced Paid-Up
status. Benefits for Reduced Paid-up policy are as defined below:
Death Benefit for Reduced Paid-up Policy:
Death Benefit structure of a reduced Paid-up will be exactly as applicable to a policy
where all due premiums are paid (as defined earlier in the section on ‘Death Benefit’).
However, the quantum of the death benefit will be reduced in the proportion
of total premium paid vis-a-vis total premium payable i.e.:
Paid-up Death Sum Assured =
Reduced Annual Payout =
Total number of premiums paid
Total number of premiums payable
x Death Sum Assured
Total number of premiums paid
Total number of premiums payable
x Annual Payout
In case, the Beneficiary wants to receive the future outstanding Reduced Annual payouts
in the form of lump sum benefit at any point in time, discounted value of the future
outstanding Reduced Annual Payouts will be paid to the beneficiary and the policy
terminates immediately.
The future outstanding Reduced Annual Payouts will be discounted as defined earlier in
the section on ‘Death Benefit’.
Survival Benefit/Annual Payout for Reduced Paid Up Policy:
Survival Benefit/Annual Payout structure of a reduced Paid-up will be exactly as
applicable to a policy where all due premiums are paid (as defined earlier in the section
on ‘Survival Benefit/Annual Payout’).
However, the quantum of the survival benefit/Annual Payout will be reduced
in the proportion of total premium paid vis-a-vis total premium payable i.e.:
Reduced Annual Payouts as defined below will be paid during the Payout Period
provided the Life Assured is alive.
Reduced Annual Payout =
Total number of premiums paid
Total number of premiums payable
x Annual Payout
On Surrender of Reduced Paid-up policy
On surrender of Reduced Paid-up policy, the Higher of Guaranteed Surrender Value or
Special Surrender Value will be paid and contract gets terminated.
On Maturity of Reduced Paid-up Policy
On survival of the Life Assured to the end of the Policy Term, you will receive the Paid-up
Maturity Sum Assured.
Total number of premiums paid
Paid-up Maturity Sum Assured =
x Guaranteed Maturity Benefit
Total number of premiums payable
This effectively means that all premiums paid by you will be returned
Policy Revival/Reinstatement:
• You can revive your lapsed policy or reinstate your reduced paid-up policy by sending
us a revival/reinstatement request within two years from the due date of the first
unpaid premium.
• You will need to pay the due and unpaid premiums, with interest applicable at the
time of payment and produce proof of continued insurability and medical evidence
to the Company’s satisfaction (as per the board approved underwriting rules
applicable at that time). You have to bear the cost of medical examination required,
if any.
• The Company reserves the right to accept or reject the revival/reinstatement of the
lapsed/reduced paid-up policy as per the board approved underwriting guidelines.
• Once revived/reinstated, all benefits under the policy will be restored to original
levels (i.e. level of benefits payable in case of in-force policies).
Suicide Clause:
In the event the Life Assured commits Suicide, whether sane or insane at that time, within
twelve months from the date of commencement of risk, the insurance cover shall
become void and the beneficiary of the policyholder shall be entitled to 80% of the
premiums paid (excluding extra premiums and taxes) till the date of death of the Life
Assured, provided the policy is in force. In the event the Life Assured commits Suicide,
whether sane or insane at that time, within twelve months from the date of the last
reinstatement/revival of the policy, the insurance cover shall be void and the beneficiary
of the policyholder shall be entitled to an amount which is higher of 80% of the premiums
paid (excluding extra premiums and taxes) till the date of death or the surrender value,
(higher of Guaranteed Surrender Value and Special Surrender Value) if any, as
available on the date of death, provided the policy is in force
Termination of Policy:
The Policy will terminate on occurrence of the earliest of the following events:
i. On Surrender of the policy (i.e. upon payment of applicable surrender value)
ii. On policy being lapsed by non-payment of first two full Years’ premium and not
revived within the Revival period.
iii. On Maturity of the policy (i.e. upon payment of maturity benefit).
iv. On death of the Life Assured and after payment of last Annual Payout.
Free Look Period:
A period of 15 days (30 days if your policy is purchased through distance marketing7) is
available to you from the date of the receipt of the policy document to review the terms
and conditions of the policy. If you are not satisfied with the terms and conditions of the
policy, you may return the policy within the free look period by stating the reasons for
your objections.
You will be entitled to a refund of the amount of premium received by us excluding
expenses incurred by us on the policy (i.e. stamp duty, proportionate risk related charges
(including extra risk premium) for the period of cover and any expenses borne by us on
medicals). All your rights under this Policy shall immediately stand extinguished at the
cancellation of the Policy.
Notes:
1) 1Excluding service tax and extra premium, if any
2) 2Any outstanding premiums and unpaid premiums, falling due during the policy year
in which death occurs will be recovered from the Death Benefit
3) 3Death Sum Assured is the highest of:
• 10 times of the Annualized Premium (i.e. premium payable in a year excluding
any extra premium, service tax and loading for modal factors, if any)
• 105% of all the premiums paid (excluding service tax and extra premium, if any)
as on the date of death of the Life Assured
• Guaranteed Maturity Benefit (as mentioned earlier in the document under
“Guaranteed Benefit on Maturity”),
• Absolute amount assured to be paid on death where Absolute amount assured to
be paid on death is as below:
Premium Paying Term Absolute Amount Assured to be Paid on Death
10 Years
11 times of Annualized Premium rounded up to the next Rs. 1000
15 Years
16 times of Annualized Premium rounded up to the next Rs. 1000
4) 4The number of additional payouts will be equal to Max (0, (Premium Paying Term +
Deferment Period, if any – Policy Year of death)). This benefit is not applicable in case
of death of the life assured during payout period
5) 5Lump Sum Benefit = Annual Payout * Discounting Factor (per Re.1/- annual payout)
Discounting Factor for converting future outstanding annual payout in to lump sum
benefit at sample Policy Years when lump sum is exercised is provided below:
Premium Payment Term = 10 years
(discounted @ 6.25%p.a.)
Policy Term →
20
25
30
35
Premium Payment
Term = 15 years
(discounted @
5.75%p.a.)
30
35
Policy Year when
lump sum option
is exercised↓
1
10.9433 12.2656 13.2421 13.9633 13.9541 14.7923
5
9.5555
11.2407 12.4852 13.4043 13.0927 14.1410
10
7.2737
9.5555
11.2407 12.4852 11.7064 13.0927
15
4.1839
7.2737
9.5555 11.2407
9.8729
11.7064
20
0.0000
4.1839
7.2737
7.4481
9.8729
25
30
0.0000
9.5555
4.1839
7.2737
4.2412
7.4481
0.0000
4.1839
0.0000
4.2412
35
0.0000
0.0000
6) 6In preparing this benefit illustration, it is assumed that the life assured is a healthy
individual. The premium mentioned in this illustration is exclusive of service tax and
education cess, which are payable in addition. All benefits mentioned in this
illustration will be paid as defined earlier in this brochure under the section on ‘Death
Benefit’, ‘Survival Benefit/Annual Payout’ and ‘Maturity Benefit’
7) 7Distance marketing includes every activity of solicitation (including lead generation)
and sale of insurance products through the following modes: (i) Voice mode, which
includes telephone-calling (ii) Short Messaging service (SMS) (iii) Electronic mode
which includes e-mail and interactive television (DTH) (iv) Physical mode which
includes direct postal mail and newspaper & magazine inserts and (v) Solicitation
through any means of communication other than in person.
Nomination:
Nomination is allowed as per Section 39 of the Insurance Act 1938 as amended from
time to time
Assignment:
Assignment is allowed as per Section 38 of the Insurance Act 1938 as amended from
time to time
PROHIBITION OF REBATES
Section 41 of the Insurance Act, 1938 as amended from time to time:
“(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement
to any person to take out or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectus or tables of the insurer:
(2) Any person making default in complying with the provisions of this section shall be
punishable with fine which may extend to ten lakh rupees.”
Income Tax Benefits:
As per the current laws, income tax benefits are available under Section 80C and Section
10(10D) of Income Tax Act, 1961 which are subject to change in tax laws from time to
time. Prevailing benefits would be applicable as per the prevailing laws from time to
time. Please consult your tax advisor.
Service Tax:
Service tax and cess as imposed by the Government from time to time will be charged on
the premium.
SUD Life Assured Income Plan (UIN: 142N045V01)
A joint venture of
Toll free no.18002008833
Call: 022 39546300
(Charges apply, 8.00 am to 8.00 pm,Mon-Sat)
Email: customercare@sudlife.in
visit: www.sudlife.in
IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums.
IRDAI does not announce any bonus. Public receiving such phone calls are requested to lodge a police complaint along with
details of phone call, number.
Insurance is the subject matter of the solicitation. IRDAI Registration No: 142 CIN:
U66010MH2007PLC174472 Registered Office: Star house, 3rd floor, West Wing, C-5, G
Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400051. Corporate Office: 11th
floor, Raghuleela Arcade, Opp. Vashi Railway Station, Vashi, Navi Mumbai – 400703. Star
Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and
‘SUD Life Assured Income Plan’ is the name of this plan. Neither the name of the insurance
company nor the name of the plan in anyway indicates the quality of the plan, its future
prospects or returns. No Commission is payable in case the product is purchased through
Direct Marketing Channel.
Trademark used under licence from respective owners.