The Accidental Death and Total & Permanent Disability Benefit Rider – Traditional from Star Union Dai-Ichi (SUD) Life Insurance is a non-linked, non-participating add-on plan, which can be purchased to enhance your base policy. While your base policy is instrumental in providing a life cover, purchasing an add-on rider will ensure that you have a higher level of protection.
The key benefit of this rider is that if the policyholder meets with an accidental death or suffers from permanent disability due to an accident, the policyholder or his/her nominee will be entitled to claim the rider sum assured from the insurer. This rider is also extremely affordable. The premiums start from Rs.8 for a rider sum assured of Rs.10,000. Insured members are also eligible to claim tax benefits, as per the prevailing income tax laws.
Policyholders who would like to purchase this add-on rider will need to keep the following eligibility criteria in mind.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||65 years|
|Maximum age at maturity||Maturity age of the base policy or policyholder attaining 71 years of age, based on whichever occurs first|
*Ages mentioned above are as on the policyholder’s last birthday.
Rider Sum Assured
The Rider Sum Assured is what you/your nominee will be paid if you meet with an accident during the tenure of the rider/policy. Before you choose the rider sum assured, you will have to ensure that it does not exceed the sum assured of the base policy. Since the rider sum assured and the rider premiums are linked, you will also have to ensure that the premiums for all the riders that you have purchased do not exceed 30% of what you pay as the premium for the base policy.
|Minimum Rider Sum Assured||Rs.10,000|
|Maximum Rider Sum Assured||Rs.50 lakh|
The rider premium is what you will pay annually to keep this rider running. Premium amounts will usually vary based on the rider sum assured, premium payment term, and the policy term. Listed below are a few details about the particulars of your premium payments.
|Minimum term of the policy||5 years|
|Maximum term of the policy||47 years|
|Premium Payment Term||
|Premium Payment Mode||Same as the premium payment mode of the base policy|
|Minimum Premium Amount||Rs.8|
|Maximum Premium Amount||Rs.71,300|
* Premiums may vary based on age, location, plan term, GST, and other factors.
**Rider policy term will be the same as that of the base policy.
|Accidental Death Benefit||If the policyholder meets with an accidental death, the insurer will pay the nominee 100% of the rider sum assured.|
|Benefit payable upon Total and Permanent Disability due to an Accident||If the policyholder meets with an accident that causes total and permanent disability, the insurer will pay 10 half-yearly instalments to the life assured. Each instalment will be equal to the rider sum assured times 10%. If the policyholder dies during this period of receiving the instalments, the remaining instalments will be paid to the nominee as a lump sum and the rider will terminate.|
If the life assured meets with an untimely accidental death or suffers from permanent disability due to any one of the factors listed below, the rider benefit will not be paid by the insurer.
|Grace Period||You can pay your missed premium before the end of the grace period to keep the policy from lapsing. The grace period for yearly, half-yearly, and quarterly modes of payment is 30 days. The grace period for the monthly mode of payment is 15 days.|
|Reduced Paid-Up Benefit||
|Policy Revival||The rider can be revived within 2 years from the date of the first due unpaid premium. It can be only revived with the base policy. To revive the rider, you will need to:
|Maturity Benefit||No maturity benefit will be paid, as per this policy.|
|Loan||No loan can be taken against this policy.|
|Termination of Rider/Cover||The rider will only terminate if:
|Restrictions||Individuals working in high-risk occupations will be screened and the sum assured and premium will be offered as per the Board’s guidelines.|
|Free-Look Period||The rider can be returned within the free-look period. The free-look period is 30 days for policies purchased through distance marketing, and 15 days otherwise.|
|Nomination||Nomination is permitted as per Section 39 of the Insurance Act, 1938, as per the terms and conditions of the base policy.|
|Assignment||Assignment is permitted as per the base policy’s terms and conditions.|
Policyholder can claim tax rebates on the premiums that they pay and any benefits received, as per Section 80C and Section 10(10D) of the Income Tax Act, 1961. You should, however, consult with a tax advisor from time to time, since tax laws can change without any prior notice.
While purchasing the rider is a smart way to increase your coverage, here are a few other benefits of being a member of Star Union Dai-Ichi.
A life insurance policy is a must-have for every individual since it gives one’s family members much-needed financial aid in times of need. However, purchasing an additional rider can help you increase your level of coverage. If the insured member has purchased the Accidental Death and Total & Permanent Disability Benefit Rider – Traditional, and happens to meet with an unfortunate accident, the benefits payable can help one’s family tide over difficult circumstances.
With regard to the insurer, Star Union Dai-Ichi Life is one of the most preferred insurance providers in the country. The company is a joint venture between leading Japanese insurer Dai-Ichi Life and India-based Bank of India and Union Bank of India. The Indian JV partners provide SUD Life a network of over 11,000 branches nationwide and a customer base of over 64 million. The company has several customer care channels, such as a dedicated toll-free number, landline number, email ID, and an SMS-based service, through which timely assistance is offered to customers.
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