The DHFL Pramerica Smart Wealth+ Plan is a non-participating, unit linked insurance policy, which will help you secure your life and your dependents’ future. The policyholder can pay due premiums for the chosen Limited Premium Payment Term, and enjoy the life cover and policy benefits for the entire policy tenure. The plan also lets you choose between four different investment funds, with varying risks.
The premium amount that is to be paid by the policyholder will depend on the Premium Paying Term. Policyholders are given the option of enhancing their life cover with the DHFL Pramerica Unit Linked Accidental Death Benefit (ADB) Rider. All premiums paid by the policyholder and benefits receive are eligible for tax benefits, as per the prevailing tax laws.
Insurance providers have certain expectations regarding the age of prospective policyholders, based on which they offer plans.
|Parameters||Criteria for eligibility|
|Minimum age at entry||8 years|
|Maximum age at entry||55 years|
|Maximum age at maturity||75 years for the Smart Wealth+ Plan 65 years for DHFL Pramerica Unit Linked Accidental Death Benefit Rider|
As a policy buyer, you will have to choose a sum assured at the time of taking the policy. You must ensure that you select a sum that will be sufficient to cover your family’s future needs. The Sum Assured for the DHFL Pramerica Smart Wealth+ Plan will be a multiple of the Annualized Premium, as shown below:
|Premium Paying Term (PPT)||Age at entry >/= 45||Age at entry < 45|
|5 years||7 years||10 years|
|10, 15, or 20 years||10 years||10 years|
As a policy taker, you will have to pay the insurer a certain sum of money as a premium. The premium you pay on a regular basis is what will decide the Sum Assured, which will be payable to you or your policyholder. The DHFL Pramerica Smart Wealth+ Plan is a Limited Premium Payment Term plan, giving the policyholder the benefit of paying his/her due premiums for a specific period of the policy tenure, while being able to enjoy the policy benefits for the entire tenure. The details pertaining to your premium payments are listed below:
|Policy term||20 years|
|Premium Payment Terms||5, 10, 15, or 20 years|
|Premium Payment Mode||
|Minimum Premium Amount||Varies based on the Premium Payment Term and Premium Payment Mode.|
|Maximum Premium Amount||Rs.5 crore|
*Premiums vary based on age, location, plan term, taxes, and other factors
When one purchases the DHFL Pramerica Smart Wealth+ Plan, the policyholder or the nominee becomes eligible for certain benefits. Listed below are the various benefits that will be accorded to the policyholder by the insurer, under this plan:
|Death Benefit||The death benefit paid by the insurer will be the highest of the Sum Assured or the Fund Value, provided that at least a minimum of 105% of the premiums have been paid.|
|Maturity Benefit||On maturation of the policy, the insurer will pay the policyholder the Fund Value. Post this, the life cover and rider risk cover will stop.|
|Fund Conservation Option at Maturity||In order to conserve funds during the last three policy years, the insurer gives policyholders the option to switch from their Balance funds, Large Cap Equity funds, and Growth funds to Debt funds. The life assured will be notified of this option by the insurer.|
|Choice of Investment Funds||Policyholders are given the flexibility to choose between four funds – Balance Funds, Large Cap Equity Funds, Growth Funds, and Debt Funds – to invest in. Each type of fund has different risks and returns, and policyholders can make a choice based on their needs.|
|Persistency Units||As a way of rewarding your loyalty, the insurer is allocated Persistency Units, which equals 1% of the Fund Value, on the 10th, 15th, 20th anniversary years.|
The insurer gives policyholders the option of enhancing the life cover provided by this policy by opting for an additional rider – the DHFL Pramerica Unit Linked Accidental Death Benefit (ADB) Rider. Once purchased, if the policyholder were to meet with an untimely death due to an accident, the nominee would receive the Rider Sum Assured, in addition to the Death Benefit that they would receive under the Smart Wealth+ Plan.
This plan comes with a suicide exclusion. If the policyholder commits suicide with 12 months from the date of the purchase or revival of the policy, the nominee will be entitled to the fund value, as on the date of death of the policyholder.
A few other features that can help you make an informed decision and get the most out your plan are:
|Free-Look Period||This plan has a free-look period of 15 days (or, 30 days if the policy was purchased through distance marketing), during which the policyholder can return the policy, if the policy terms are not satisfactory.|
|Grace Period||For premiums that are paid monthly, there is a grace period of 15 days, post the date of the last due payment. For premiums paid through non-monthly modes, a grace period of 30 days is provided by the insurer.|
|Policy Loan||Policyholders cannot apply for a loan against this policy.|
|Switching Option||Policyholders can switch their investments between four available funds. To switch between funds, you need to transfer a minimum of Rs.5000, unless the entire amount is switched.|
|Premium Redirection||Policyholders have the option to redirect their investments to more than one fund, provided they give an advance notice to the insurer.|
|Partial Withdrawals||To meet any personal exigencies, policyholders can withdraw their investments after completion of at least 5 policy years. 10 such withdrawals can be made during the entire tenure of the policy.|
|Settlement Option||Once the policy has matured, the policyholder can leave the invested funds with the insurer, and continue to receive returns on the same. You can also liquidate this investment anytime during the settlement period.|
|Addition and Deletion of Riders||If the rider was not purchased along with the DHFL Pramerica Smart Wealth+ Plan, the policyholder can purchase or remove the rider anytime during the policy tenure.|
|Non-Negative Non-Clawback Options||Non-negative non-clawback additions, if eligible, will be added to the value of your fund.|
|Assignment||Assignment is allowed for this policy, under Section 38 of the Insurance Act, 1938.|
|Nomination||Nomination is allowed under this policy, based on Section 39 of the Insurance Act, 1938.|
|Policy Revival||If the policyholder does not pay the due premiums during the grace period, the insurer will give the policyholder the option to revive their lapsed policy within a period of 2 years. Policy revival will not be done unless the company’s board has approved this request.|
|Surrender Benefit||While your DHFL Pramerica Smart Wealth+ Plan will gain a Surrender Value, from the first year of the policy tenure, it will become payable only after the end of the 5th policy year.|
|Reduced Paid-Up Plan||If the policyholder has chosen to have his/her policy converted into a Reduced Paid-Up Plan, the policy will continue for the remaining years as a Paid-Up Policy, with the respective paid-up benefits.|
|Policy Charges||The charges listed below might be applicable for this policy:
All premiums paid by the policyholder and the benefits that they or their nominees are entitled to receive are eligible for tax benefits, as per the prevailing tax laws of the Income Tax Act, 1961. However, tax laws are subject to change, and you are advised to consult with a tax advisor from time to time.
While the policy itself comes with a range of benefits for both the policyholder and their nominee, you are also provided other benefits not limited to the policy, such as:
With the DHFL Pramerica Smart Wealth+ Plan, you can secure the lives of your dependants and provide them with the resources they need for their future. The policy offers policyholders or their nominees many benefits, including a substantial death benefit, a maturity benefit, the option to choose their preferred fund type, etc.
The insurer, DHFL Pramerica Life Insurance Company, started operations in the year 2008. The company is a joint venture between DHFL Investments Limited and Prudential International Insurance Holdings, Ltd. For the financial year 2016-2017, the insurer has reported a Claim Settlement Ratio of 98.8%, which is one of the best in India. The number of awards won by the insurer only go to show why DHFL Pramerica Life Insurance Company is one of the most preferred in the nation.
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