• Star Union Dai-Ichi Life Group Leave Encashment Scheme

    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

    SUD Life Group Leave Encashment Scheme from Star Union Dai-ichi Life Insurance Co. Ltd. is designed for groups who involve in common economic activity. Groups such as offices, associations, organization, etc. can use this scheme to reduce their financial liability. The situations where employees leave the organization or moves internally, the organization is required to encash the leave balance in order to release them from their duty. This scheme allows the organization to invest in a group scheme that offers life cover along with the benefit of leave encashment options. With the coverage of this scheme, the leave encashment is paid by the insurer from the policy fund.

    Eligibility - Who is the SUD Life Group Leave Encashment Scheme for?

    In order to buy this scheme, Star Union Dai-ichi Life Insurance Co. Ltd. has outlined the following eligibility criteria:

    Parameters Eligibility
    Minimum age at entry 18 years
    Maximum age at entry 69 years
    Maximum age at maturity 70 years
    Group size Members:
    • Minimum - 50
    • Maximum - No limit
    Minimum sum assured Rs.1,000
    Maximum sum assured As per scheme rules
    Scheme term 1 year (renewable)
    Life cover premium
    • Minimum - Rs.1,000/- per scheme
    • Maximum - no limit
    Minimum premium Rs.60,000
    Maximum premium As per scheme rules (no limit)
    Premium payment term
    • Life cover premium - Yearly
    • Annual contribution - Yearly, half-yearly, quarterly, or monthly
    • Initial contribution - Master policyholder will pay the initial contribution relating to past accrued leave in one lump sum or in annual installments (not more than 5 installments)

    The age is based on the last birthday of the applicant.

    Sum Assured and Premium Range- What You Get and What It Costs

    • Sum Assured – The SUD Life Group Leave Encashment Scheme offers a minimum or Rs.1,000 for each member as the sum assured amount and there is no limit on the maximum sum assured amount (subject to scheme rules). If the member's age is more than 62 years, a fixed sum assured of Rs.1,000 will be applicable.
    • Premium – The master policyholder can purchase this scheme for a minimum or Rs.60,000 and there is no limit on the maximum contribution (subject to scheme rules). The life cover premium is required to be paid in advance on a yearly basis, however, the annual contribution can be paid in yearly, half-yearly, quarterly, and monthly basis.

    Plan Coverage- What the SUD Life Group Leave Encashment Scheme covers

    Death benefit In the event of member's unfortunate death, the accrued leave encashment amount will be payable to the nominee.
    Retirement benefit If the member attains retirement, he/she will be entitled to the accrued leave encashment amount. If the member's employment is subject to premature retirement, resignation, or termination, the accrued leave encashment amount will be payable to the member.
    Nomination The policyholder can change the details of the nominee or the nominee itself during any time during the policy term. In order to change the nominee details, the policyholder/member is required to get in touch with Star Union Dai-ichi Life Insurance Co. Ltd.

    Riders / Add-On Plans – Additional coverage under the SUD Life Group Leave Encashment Scheme

    The SUD Life Group Leave Encashment Scheme allows the attachment of rider to enhance the scheme benefits. The policyholders can opt for 'SUD Life Accidental Death and Dismemberment Benefit Rider' to claim for loss of income resulting from an injury that was caused by an accident. Additionally, the base scheme along with the attachment of the rider will provide the dual benefit of basic sum assured and rider sum assured, when applicable.

    Exclusions - What the SUD Life Group Leave Encashment Scheme doesn’t cover

    Suicide – In the event of a member's unfortunate death due to suicide, whether sane or insane, within one year from the risk commencement date, the premiums paid in for that member will be forfeited, and no claim will be paid to the nominee/beneficiary of that member. This exclusion is applicable only for the life cover and rider cover. The accrued leave encashment amount will be payable as per scheme rules.

    Other Key Features – Free-look Period, Surrender Values, Grace Period etc.

    Surrender values The scheme acquires surrender value after the completion of the first policy year. In order to surrender this scheme, the policyholder is required to bear the surrender charges. If the scheme is surrendered on the 2nd policy year, 3% of the accumulated fund is required to be paid as the surrender charge. Surrendering the scheme in the 3rd and 4th year attracts 2% and 1% surrender charges respectively. If the scheme is surrendered in the 5th policy year, the policyholder is not required to pay any surrender charges.
    Grace period The scheme offers a grace period of 30 days for payment of due premiums. If the policyholder fails to pay the due premiums within the grace period, the scheme will lapse and the cover will cease to exist.
    Revival of the policy Once the policy has lapsed, the policyholder can revive the cover by paying all the due premium within 2 years from the date of the first unpaid premium.
    Nominee During the policy term, only the master policyholder can get it touch with Star Union Dai-ichi Life Insurance Co. Ltd. to amend the details of the nominee pertaining to any member's cover.

    Tax benefits – How you can save with the SUD Life Group Leave Encashment Scheme

    The scheme allows the employers or the master policyholder of a group to declare the contributions as business expenses that are essential for tax savings. The tax benefits are based on the latest tax rules and regulations that are subject to change. Customers are advised to consult a qualified tax advisor before making a purchase decision.

    Other benefits – How you can save with the SUD Life Group Leave Encashment Scheme

    The SUD Life Group Leave Encashment Scheme helps various types of groups to reduce their financial liability by saving for a dedicated fund that is used for leave encashment. In addition to the life cover, leave encashment, and other benefits, the scheme offers the following types of advantage that include but are not limited to:

    • Policy information – Any individual or customer can obtain policy related information from Star Union Dai-ichi Life Insurance Co. Ltd. through a broad range of communication methods such as e-mail, toll-free number, insurer's website, and outlets across India.
    • Policy notifications - The policy notifications are sent to the policyholders to keep them aware about the upcoming premium due date, policy renewal date, etc. The notifications are sent through e-mails and text SMS.

    Why you should buy the SUD Life Group Leave Encashment Scheme from Star Union Dai-ichi Life Insurance

    The groups who have 50 or more members can take advantage of this cost-effective scheme to manage their leave encashment administration effectively. Additionally, the SUD Life Group Leave Encashment Scheme offers enhanced coverage through the add-on/rider option. Star Union Dai-ichi Life company is one of the largest life insurance companies who offer an extensive range of insurance products for different stages of life. The insurer offers excellent customer services through their team of knowledgeable and qualified advisors. The insurer can be contacted by various communication methods for more information on the products.

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