• Star Union Dai-Ichi Life Immediate Annuity Plus

    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 money we earn is often insufficient to last all our life, which pushes us to work even during retirement. The Immediate Annuity Plus Plan from Star Union Dai-ichi (SUD) Life is designed to provide a regular source of income even when one decides to stop working, ensuring that retirement is free from financial worries. An immediate annuity scheme, it ensures that the policyholder has a steady stream of income throughout his/her life. SUD currently offers this plan in two options, helping one customise it based on his/her future financial expectations.

    Eligibility – Who is the Star Union Dai-ichi Life Immediate Annuity Plus Plan for?

    The eligibility criteria vary based on the plan option chosen, with the table below highlighting the basic parameters.

    Parameters Criteria for eligibility
    Plan type Non-linked, non-participating immediate annuity scheme
    Plan options to choose from Option A – This comes with ten annuity options Option B – This comes with two annuity options
    Minimum age at entry Option A:
    • 0 years – If policy is connected to deferred pension plan offered by Star Union Dai-ichi
    • 45 years – If policy is connected to other deferred pension/savings plans
    Option B:
    • 60 years
    Maximum age at entry Option A:
    • 99 years
    Option B:
    • 99 years
    Maximum age at maturity^ NA – lifetime annuity

    ^The annuity is paid for a specified period based on the option chosen by a policyholder. In case of annuity options 8, 9, and 10 under Option A, the annuity is paid for 10, 15, and 20 years respectively.

    Sum Assured and Premium Range – What you get and what it costs

    Sum Assured/Annuity – Being an annuity plan, the concept of sum assured is modified here. Star Union Dai-ichi will pay an annuity amount at intervals chosen by the policyholder, with this akin to the sum assured. The amount payable depends on the premium paid (purchase price), mode of payment chosen (annuity) and the type of pension plan held by a policyholder. The table below highlights the annuity amount payable by SUD.

    Minimum annuity  
    Annuity payout mode Payout for policyholders with pension plan from SUD Life (Rs.) Payout for individuals with other pension plans (Rs.)
    Annually 1,200 2,640
    Bi-annually 600 1,288
    Quarterly 300 637
    Monthly 100 210
    Maximum annuity No upper limit, based on premium paid

    Purchase price* - The purchase price is essentially the premium one pays in order to avail the benefits offered by this plan. This is a single premium policy, wherein the benefits are payable immediately. One can choose to pay a premium which offers sufficient annuity for life. This amount should be chosen after considering all the financial responsibilities a policyholder has.

    Term of the policy Lifetime
    Premium Payment Mode Single premium
    Minimum Single Premium Amount Rs.1 lakh In cases where policy is purchased through returns from pension plans offered by SUD this amount can be lowered, subject to certain terms and conditions.
    Maximum Single Premium Amount No upper limit

    *The purchase price varies based on the entry age of policyholder, annuity option chosen, frequency of annuity payout, etc.

    Plan Coverage – What the Star Union Dai-ichi Life Immediate Annuity Plus Plan covers

    An individual can choose from two plan options, with each offering different benefits. While Plan Option A has ten further annuity options to choose from, Plan Option B offers two such alternatives.

    Option A coverage:

    Individuals who opt for Option A are covered for a duration based on the annuity option chosen by them. The table below highlights the cover accorded under this option.

    Death Benefit The insurer will pay a death benefit to the nominee, based on whether or not the annuity option chosen by the policyholder has a provision for the same. The table highlights the benefits payable based on the annuity option chosen.
    Annuity Option Death Benefit
    Option 1 There is no provision for death benefit.
    Option 2 Nominee will be paid an amount equivalent to the full purchase price (minus taxes).
    Option 3 Nominee will be paid an amount equivalent to the full purchase price (minus taxes).
    Option 4 There is no provision for death benefit. However, the secondary annuitant will be paid half of the annuity amount until his/her death.
    Option 5 There is no provision for death benefit. However, the secondary annuitant will be paid the full annuity amount chosen at time of policy inception until his/her death
    Option 6 On demise of primary annuitant, the insurer will pay half the annuity amount chosen to the secondary annuitant. On demise of the secondary annuitant the insurer will pay the nominee an amount equal to the purchase price.
    Option 7 On demise of primary annuitant, the insurer will pay the full annuity amount chosen to the secondary annuitant. On demise of the secondary annuitant the insurer will pay the nominee an amount equal to the purchase price.
    Option 8 There is no provision for death benefit. If the policyholder passes away within 10 years of purchasing the policy, the nominee will continue to receive the annuity amount until completion of 10 years.
    Option 9 There is no provision for death benefit. If the policyholder passes away within 15 years of purchasing the policy, the nominee will continue to receive the annuity amount until completion of 15 years.
    Option 10 There is no provision for death benefit. If the policyholder passes away within 20 years of purchasing the policy, the nominee will continue to receive the annuity amount until completion of 20 years
    Survival Benefit The policyholder will be paid the annuity amount opted by him/her. The duration of payment depends on the annuity option chosen. While it is paid for the entire lifetime under options 1 through 7, in case of options 8 through 10 it is paid for the period specified under these options.
    Surrender Benefit A surrender benefit is payable to individuals who have chosen option 2, 3, or 7. For options 2 and 3, the benefit is paid if the annuitant is diagnosed with any of the 11 critical illnesses covered by the plan. For option 7, the benefit is payable if both/last surviving annuitant is diagnosed with any of the 11 critical illnesses covered by the plan.

    Option B coverage:

    The cover provided under Option B is highlighted below:

    Death Benefit The death benefit payable depends on the annuity option chosen. In case of annuity option 2, the nominee will be paid the full purchase price on demise of the annuitant. In case of annuity option 7, the insurer will pay the annuity amount to the secondary annuitant (till his/her death). On demise of the secondary annuitant, the nominee will be paid the full purchase price.
    Survival Benefit The annuitant will receive a survival benefit throughout his/her life.
    Surrender Benefit A surrender benefit is payable based on the annuity option chosen by the annuitant.
    • In case of option 2, this will be paid if the annuitant is diagnosed with any of the 11 critical illnesses covered under the plan.
    • In case of option 7, this will be paid if both the annuitants are diagnosed with any of the critical illnesses. It is applicable even if the last surviving annuitant is diagnosed with any critical illness.
    The surrender benefit is payable if the policyholder/annuitant forecloses the reverse mortgage loan.

    Critical illnesses covered under this plan:

    There are 11 critical illnesses covered under this plan, as highlighted below:

    1. Cancer
    2. Heart attack (first)
    3. Stroke which results in any permanent condition
    4. Open chest coronary artery bypass grafting
    5. Organ/bone marrow transplant
    6. Kidney failure
    7. Coma
    8. Multiple sclerosis
    9. Open heart replacement
    10. Motor neurone disease
    11. Paralysis of limbs

    Note: The severity of any condition will be taken into account before the surrender value is paid.

    Riders/Add-on plans – Additional coverage under the Star Union Dai-ichi Life Immediate Annuity Plus Plan

    There is no rider offered with this plan.

    Exclusions – What the Star Union Dai-ichi Life Immediate Annuity Plus Plan does not cover

    There is no exclusion under this plan. Unlike other plans which have a suicide exclusion clause, this scheme does not differentiate between death by suicide and death by other means. This stems from the fact that this is an annuity scheme, wherein benefits are payable only till the demise of annuitant.

    Other Key Features – Surrender Value, Grace Period, Revival, etc.

    Grace period There is no provision for grace period under this plan. This stems from the fact that this is a single premium plan.
    Free look period An annuitant can choose to return the policy within 15 days of purchase if he/she disagrees with the terms and conditions of the plan. This period is extended to 30 days if the policy was purchased through distance marketing modes.
    Revival The policy doesn’t lapse, since the premium/purchase price is paid at the inception of policy.
    Surrender value Surrender benefit is payable depending on the plan option chosen.
    Loan NA
    Purchase price benefit In case of an individual paying a high purchase price, he/she is entitled to a high purchase price benefit. This benefit increases the annual annuity payout by a certain percentage.

    Tax Benefits – How you can save with the Star Union Dai-ichi Life Immediate Annuity Plus Plan

    The Immediate Annuity Plus Plan provides income tax benefits under two sections of the Income Tax Act. As per Section 80C of the act, the premium paid (purchase price) is eligible for tax deductions in the financial year in which this amount is paid. The quantum of deduction permitted is Rs.1.5 lakh currently (FY 2017-18). Additionally, the amount received as a benefit is also eligible for tax benefits under Section 10(10D) of the same act.

    Note that the tax benefits provided are subject to change and these should be verified before purchasing a policy.

    Why you should buy the Star Union Dai-ichi Life Immediate Annuity Plus Plan?

    There are a number of reasons which make the Immediate Annuity Plus Plan a smart investment option for our future. While the plan in itself provides financial protection for our lifetime, it also comes with an exhaustive list of customisations. Certain options also cover the spouse of an annuitant, helping him/her perform the duties of a partner even after his/her demise. One can choose an option which returns their premium on death, ensuring that the nominee is provided a certain financial net in such cases.

    With regards to the insurer, Star Union Dai-ichi Life Insurance is regarded as one of the leading insurers in the country. With over 11,000 branches of Union Bank of India and Bank of India at their disposal, the insurer has managed to provide affordable insurance solutions to millions across the country. Currently, over 64 million customers utilise the products of SUD Life. The insurer also sponsors a number of regional rural banks, capitalising on their presence to provide insurance to individuals in rural India.

    While Bank of India and Union Bank of India bring a local flavour to the organisation, Dai-ichi Life is recognised as one of the top insurers globally, having over a century of experience in this field. The products and services match the ideals of the partners, with the company having a high grievances solved ratio of 95.42% as of 2015-16.

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