• Star Union Dai-Ichi Life Defined benefit Endowment Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    The Defined Benefit Endowment Plan from SUD Life gives customers the opportunity to create future income that would be beneficial to meet different needs, whether they are emergencies or planned expenses. By contributing now, the plan will pay out assured regular sums at monthly intervals for 15 years. At the same time, policyholders also benefit from having life cover through the premium payment term.

    Eligibility -Who is the SUD Life Defined Benefit Endowment Plan for?

    Insurance providers set out certain criteria that needs to be met by the customer before they can purchase the policy. The eligibility criteria of this plan is as follows:

    Eligibility Criteria Details
    Minimum entry age 18 years
    Maximum entry age 60 years
    Maximum age at maturity 65 years

    *Ages mentioned refer to age last birthday

    Sum Assured and Premium Range - What you get and what the SUD Life Defined Benefit Endowment Plan costs

    The sum assured is the amount of money that will be paid to the beneficiary upon the death of the policyholder, or to the life insured upon maturity of the policy. Premiums are the amount of money that has to be paid in order to receive the benefits of the plan. Premiums can be paid either as a single one-time payment or in installments. Given below are the details of the sum assured, premiums and policy terms available with the SUD Life Defined Benefit Endowment Plan.

    Particulars Details
    Sum assured 180 times the Defined Monthly Benefit
    Policy term 5, 10, 15, and 20 years
    Premium payment terms
    • Single pay
    • Equal to policy term
    Premium payment frequency One-time payment, annual, semi-annual, quarterly and monthly
    Minimum premiums Depends on the monthly benefit selected and the policy term
    Minimum monthly benefit Regular Pay - Rs.1,000 per month Single Pay - Rs.2,000 per month
    Maximum monthly benefit No limit (in multiples of Rs.500)

    *Premiums vary based on age, location, plan term and other factors

    Plan coverage - What the SUD Life Defined Benefit Endowment Plan covers

    The SUD Life Defined Benefit Endowment Plan offers multiple benefits for the life insured and the nominee. Given below are some of the important benefits associated with this plan.

    Benefits Details
    Death benefit Upon the death of the life insured, the plan will payout the following to the nominee:
    • A lump sum of 25% of the sum assured minus unpaid premiums will be paid out immediately.
    • Defined monthly benefit for 15 years
    Risk cover will cease upon the death of the life insured. If the life insured dies during the payout period, then the remaining monthly benefits will be paid as per the schedule. A goodwill terminal benefit is also payable: 5% of the sum assured for 5/10-year terms and 10% of the sum assured for 15/20-year terms.
    Maturity benefit If the life insured survives till the end of the policy term, the defined monthly benefit payments will begin and carry on for a period of 15 years. At the end of the Defined Benefit payment period, a goodwill terminal benefit is also payable: 5% of the sum assured for 5/10-year terms and 10% of the sum assured for 15/20-year terms.
    Tax benefits Available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

    Riders / Add-On Plans – H3> Additional coverage under the SUD Life Defined Benefit Endowment Plan

    Riders are additional plans that you can attach to a base insurance plan. The rider will enhance the level of protection offered. There are no riders available with this plan.

    Exclusions - What the SUD Life Defined Benefit Endowment Plan doesn’t cover

    If the life insured commits suicide within 1 year from the commencement of the policy, whether medically sane or insane, then the policy will be void. SUD Life will refund the following:

    • Regular Pay - 50% of the premiums paid not including extra premiums and taxes. No interest is payable on the premium.
    • Single Pay - 90% of the premiums paid not including extra premiums and taxes. No interest is payable on the premium.

    For those who work in hazardous occupations, the policy will be offered at a higher premium after suitable screening.

    Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

    Knowing the details mentioned in your life insurance policy document is very important. These details are mentioned in the policy document and you are advised to read it before purchasing it. Given below are some of the important features of the SUD Life Defined Benefit Endowment Plan.

    Features Details
    Free-look Period If the policyholder disagrees with the terms of the policy, they can return the original policy bond and submit a letter with the reasons for objection with 15 days from the receipt of the policy document. The premium paid will be refunded minus any expenses incurred by SUD Life, stamp duty, proportionate risk premium, and medical expenses.
    Grace Period 30 days is granted from the premium due date as a grace period for yearly, half-yearly and quarterly modes. For monthly mode, the grace period is 15 days. The benefits will continue till the end of the grace period.
    Policy Loan Not available.
    Policy Lapse If premiums are not paid by the end of the grace period, the policy will lapse.
    Reduced Paid-up Policy The policy will acquire a paid-up value after the third policy anniversary if premiums for three full years have been paid. The policy will continue to be in force with reduced benefits.
    Surrender Value The policy can be surrendered after the third policy anniversary and before the end of the policy term. The surrender value is the higher of Guaranteed Surrender Value or Special Surrender Value. Regular pay - The minimum GSV is 30% of the premiums paid not including the first year’s premium and extra premiums. Single pay - The minimum GSV is 90% of the premiums paid not including extra premiums.
    Reinstatement From the due date of the first unpaid premium, you can reinstate your lapsed policy within 3 years. You need to submit the following:
    • A written application.
    • Satisfactory medical evidence at your own expense.
    • Payment of all premiums due + 9% p.a. interest.
    Nomination The policyholder can nominate a person to receive the benefits of the policy. The nomination must be done before the end of the policy term or death of the policyholder.

    Tax benefits – How you can save with the SUD Life Defined Benefit Endowment Plan

    As per the prevailing tax laws in India, you can claim for tax benefits under Section 80C and Section 10(10 D) of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. You are advised to consult a tax advisor to maximise your benefits.

    Other benefits – How you can save with the SUD Life Defined Benefit Endowment Plan

    When you choose SUD Life as your insurance provider, you can stand to benefit from the following:

    • View and download brochures and sample policy documents online
    • Contact the customer care via phone, email, or post
    • Register online to meet an advisor
    • Get sound advice on suitable insurance policies and options.

    Why you should buy the Defined Benefit Endowment Plan from SUD Life

    Star Union Dai-ichi Life Insurance provides a host of insurance products that cater to different stratas of society. The company designs its products to suit the different needs of customers. At SUD Life, the customer is placed at top priority. The company caters to over 64 million customers and is growing closer to securing a top position in the insurance market in India.

    The Defined Benefit Endowment Plan caters to those who want to plan ahead for their future and their retirement. The plan guarantees a payout upon death of the life insured or upon maturity of the plan.

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