• Star Union Dai-Ichi Life Group Withdrawn Products

    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 Insurance over a period of time had introduced various group plans keeping in mind the various needs of different kind of customers. But, due to changing requirements of the consumers, many of those group plans had be withdrawn.

    We will discuss about the plans that were withdrawn and what purpose they were designed to serve.

    List of Group Withdrawn Plans

    • Group gratuity scheme- This group scheme looked to ensure that employees who have given their service to the organisation for five years and above are paid the gratuity upon their resignation or retirement. The plan provided death benefit to the nominee upon the death of the insured and was also a great initiative in order to retain employees. The minimum age of entry for this scheme was 18 years with maximum being 59 years or one year before retirement. The policy term for this plan was one year and minimum number of members required were 10.
    • Group leave encashment scheme- This plan allowed the employer to pay off an employee looking to cash on his/her leaves. Based on statistics with respect to the liabilities related to encashment of leaves, the total funds required would be determined and based on net premiums contributed, the total amount would be credited to an account maintained by SUD. The employee post his/her exit from the company could then encash the total number of leaves he/she chose not to take. The amount will be paid from the running fund to the member of the group. The minimum entry age to be eligible for this scheme was 18 years and maximum being a year before retirement or 59 years. The minimum sum assured per member was Rs.1,000 and maximum sum assured would depend on the rules as per the scheme.
    • Group savings linked insurance scheme- This was a one year renewable policy which looked to provide insurance to people working in both organised and unorganised groups. Under this plan, a portion of contribution made with respect to the insured was kept as insurance cover and rest of the balance as savings. Upon retirement, exit from the company or imminent death, the savings contributed were paid to the nominee along with interest. This particular plan also provided a rider or add-on plan called SUD Life Group Accidental Death, Dismemberment Benefit and Critical Illness Rider coverage for which only employees belonging to the organised sector were eligible.
    • Ashiana Suraksha- Group term insurance plan- This plan looked to provide cover to those availing a loan. The scheme cleared the immediate loan liabilities in the event of the insured’s death so as to protect his/her family from the loan shark. The sum assured was paid to the master policyholder who deducted the loan amount to be paid while paying the rest of it to the nominee. If there was any joint borrower than he/she was eligible to receive cover. The minimum sum assured under this was Rs.10,000 while there not being any limit on the maximum sum assured.
    • Ashiana Suraksha Plus plan- This plan also looked to provide cover to those who had taken a loan. In the event of the insured’s death, the immediate loan liabilities were cleared so as to protect the member’s family from the loan sharks. The master policyholder deducted the outstanding loan amount and paid the rest of the balance to the nominee. One of the features of this plan was return of single premium which was optional in nature. If the member who had availed this feature survived the term then the premium amount paid would be returned back to the insured. The minimum sum assured one can receive under this scheme was Rs.25,000 and there not being any limit on the maximum sum assured.
    • Shiksha Suraksha plan- This was a non-participating term plan looked to provide cover to those who had taken an education loan. The immediate loan liabilities were cleared in the event of the insured’s death. The sum assured was paid to the master policyholder who deducted the outstanding loan amount while crediting the remaining balance to the nominee’s account. The insurance cover provided would depend on the age of the insured member. The minimum sum assured under this plan was Rs.1 lakh and maximum sum assured being Rs.25 lakh. The minimum policy term as per this plan was 1 year and maximum being 15 years. The members under this plan were also eligible for tax benefits under Income Tax Act,1961.
    • Paraspar Suraksha plan- It was a 5 year micro insurance plan which looked to provide insurance cover to those who belong to economically weaker background. The minimum age and maximum age to become eligible under this scheme was 18 years and 50 years old respectively. The minimum sum assured was Rs.5,000 and maximum sum assured was Rs.50,000.
    • Reverse Mortgage Loan Annuity plan- This plan was designed to provide financial protection to those who were aged 60 years and above. Under this plan, an individual could approach the Central Bank of India, one of the partners of SUD Life Insurance for a reverse mortgage loan with respect to his/her property. The bank in return would provide annuity to the person for the rest of his/her life. The individual did not require to pay back the loan unless the legal heir to his/her property wanted to retain it, which in return they would had to pay back the loan amount.
    • Group term insurance scheme- It is a non-linked group insurance plan which was designed to provide cover at a relatively low cost to people belonging to a certain group. Individuals who were an employee of a company, credit card holder, bank customers or professionals like doctors, journalists, pilots etc. were eligible for this product. The minimum entry age in order to be eligible for this plan was 16 years. For those who belonged to the employer-employee group, the maximum entry age was 79 years and the maximum age limit for those who belonged to the non employer-employee group was 64 years. The minimum sum assured was Rs.1,000 for each member. The minimum group size for the employer-employee group was 10 and for the non employer-employee group the minimum size was to be of 50 people.
    • Shiksha Suraksha 2 plan- It was a group credit insurance plan which was designed to provide cover to those who had availed an education loan and were planning to go for higher studies. This particular plan looked to clear the immediate loan liabilities in the event of insured’s death so as to protect his/her’s family members from worrying about paying back the loan amount. The minimum sum assured under this plan was Rs.25,000 and maximum sum assured being Rs.5 crore. The insured was also eligible for discounts if the sum assured chosen by him/her was on the higher side.
    • Group term insurance plus- It was a one year renewable group insurance plan designed to provide cover to those belonging to a particular group at a very low cost. This product was ideal for those who were an employee of a welfare association, credit card holders of specific banks and financial institutions or were professionals like journalist, engineers, pilots etc. The minimum entry age to be eligible for this plan was 18 years. The maximum entry age of employer-employee group and non employer-employee group was 79 years and 64 years respectively. The premiums could be paid in four modes, .i.e. Yearly, half-yearly, quarterly and monthly. The maximum sum assured under this plan was Rs.50 crore for each member regardless of which group he/she belonged to.
    • New Aashiana Suraksha plan- This was a non-linked, non-participating group credit life insurance plan designed to provide cover to those availing loan against property and home loans. In the unfortunate event of the group member’s death, the sum assured was to be paid to the master policyholder who was to deduct the outstanding loan amount to be paid to the bank and credit the remaining balance to the nominee’s bank account. The minimum entry age in order to be eligible for this plan was 18 years and maximum age being 65 years. The minimum sum assured for this plan was Rs.5 lakh and maximum sum assured being Rs.100 crore.
    • Loan Suraksha plan- This was a single premium group credit life insurance plan. This product looked to provide cover to those who have availed a loan such as home loan, personal loan, vehicle loan etc. The plan looked to clear any immediate loan liability that may have surfaced due to the individual’s death. In the event of the insured’s death, the sum assured was paid to the master policyholder, who in turn deducted the outstanding loan amount while crediting the remaining balance to the nominee’s bank account. This plan, hence protected the insured’s family members from the loan sharks and help them not to worry about the payment of loan in case the member of the group would not be around in future. The minimum entry age was 18 years and maximum entry age being 65 years in order to be eligible for this plan. The minimum sum assured if the insured had taken a home loan was Rs.5 lakh, Rs.2 lakh for vehicle loan and Rs.1 lakh for personal loan. The maximum sum assured as per this plan was Rs.100 crore.

    Hence, these were some of the group plans introduced by SUD Life Insurance keeping in mind their customer’s various needs and financial goals. As mentioned earlier, due to changing trends in the requirements of the customers, these plans were rendered ineffective over a period of time and hence had to be withdrawn. These plans served their customers when in force and all of them catered to a diverse range of consumers based on their occupation and financial capabilities. The majority of the group plans which we came across aimed to provide cover to those who had taken different kind of loans and tried to help them clear their immediate loan liabilities in case something was to happen to the individual.

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