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:
|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.
|Sum assured||180 times the Defined Monthly Benefit|
|Policy term||5, 10, 15, and 20 years|
|Premium payment terms||
|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.
|Death benefit||Upon the death of the life insured, the plan will payout the following to the nominee:
|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:
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.
|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:
|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:
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.
*The customer reviews/feedback/opinions expressed on this website are solely of their authors and do not reflect, in any way, the view of BankBazaar Insurance.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.