Safeguarding his/her family’s financial situation is what every individual aspires to do. This is especially necessary in the unpredictable world that we live in today. One of the best ways to do so, is to avail a life insurance plan. Additionally, if individuals wish to enhance their cover, they have the option of procuring a rider. Riders provide additional cover to an existing insurance plan so that there is additional protection and benefits.
One of the foremost providers of insurance in the country, Star Union Dai-Ichi Life presents the Family Income Benefit Rider - Traditional which provides additional financial cover to the policyholder’s family in case of the Life Insured’s untimely demise. This rider acts as a protection against all liabilities that arise out of such a situation. Through the Income Benefit Rider - Traditional, the policyholder’s family can avail a monthly income for a fixed tenure of 10 years.
This plan is offered in the form of an add-on benefit to the base policy and can be attached to the policy either at policy commencement or on a policy anniversary.
In order to avail the above insurance plan, policyholders will have to meet the following eligibility criteria:
|Minimum Age of Entry (in years)||18|
|Maximum Age of Entry (in years)||60|
|Maximum Age of Maturity (in years)||65 or maturity age of the base plan, whichever is lower.|
|Minimum Policy Tenure||
|Maximum Policy Tenure||30 years|
All ages are as on the last birthday of the policyholder.
Rider Sum Assured:
Sum Assured is dependent on a number of factors such as premium that is paid, location and so on. Customers should note that the Rider benefit will not exceed the Sum Assured under the base policy to which this particular rider has been attached.
Additionally, the maximum amount of Sum Assured that is allowed under this particular rider is based on the condition that all premiums for every rider that is not health related, that has been attached to the base policy, will not be over 30% of the base plan’s premium.
The Rider Sum Assured amount will have to mandatorily be in multiples of Rs.1,000.
|Minimum Rider Sum Assured||Rs.1,00,000 per policy|
|Maximum Rider Sum Assured||Rs.50,00,000 per policy|
The premium range varies based on the Rider Sum Assured chosen, policy tenure and so on.
|Premium Payment Tenure||
|Premium Payment Mode||Single/Annual/Semi-Annual/Quarterly/Monthly (only under SI/ECS mode)|
Customers will have to note that premiums may vary based on policy tenure, location and age of the policyholder, among other factors.
|Rider Benefit||Under this option, 10% of the Rider Sum Assured amount will be paid to the nominee as long as the rider is in force on the death date of the Life Assured. This amount will be paid each year for a period of 10 years. 10% of the Rider Sum Assured amount will be paid at the end of each policy month after date of death of Life Assured and will be paid continuously for a period of 10 years. This benefit will be paid over and above all benefits that will paid via the base plan.|
|Maturity Benefit||This benefit is not payable under this rider.|
There are no exclusions under this plan per say. However, if the policyholder commits suicide within a period of 12 months from rider inception, whether sane or insane, the cover of the rider will be null and void and the policyholder’s nominee will receive a sum of 80% of all the premiums that have been paid, as long as the policy is in force. This does not include taxes and additional premiums.
In case the policyholder commits suicide within a period of 12 months from date of reinstatement of the policy, whether sane or insane, the cover of the rider will be null and void and the policyholder’s nominee will receive a sum of 80% of all the premiums that have been paid, as long as the policy is in force. This does not include taxes and additional premiums.
|Free look period||In case the policyholder is not satisfied with the terms and conditions of the plan, he/she has the option to return the same along with stated reasons, within a period of days from date of receipt of the rider. In case the policy has been acquired through distance marketing methods, policyholders will have a period of 30 days to return the policy. Distance marketing refers to a method of selling that does not involve face-to-face communication.|
|Policy Loan||This option is not available under this rider.|
|Rider Cover Termination||In case any of the following events occur, the Rider cover will terminate-
|Rider Policy Termination||In case any of the following events occur, Rider policy will terminate -
|Assignment||Assignment is allowed as per provisions of Section 38 of the Insurance Act of 1938, as changed from time to time.|
|Nomination||Nomination is allowed as per provisions of Section 39 of the Insurance Act of 1938, as changed from time to time.|
|Service Tax||Cess and Service Tax are charged based on the rules imposed by the Government of India.|
Based on ongoing laws, policyholders can avail income tax benefits on this plan based on Section 80C and Section 10(10D) of the Income Tax Act of the 1961. However as these laws are liable to change from time to time, customers are advised to talk to their tax advisors prior to availing this rider.
In addition to the sheer number of advantages offered by this rider plan, there are additional benefits that Star Union Dai-Ichi Life provides its customers. Some of these include:
The Family Income Benefit Rider plan provides a number of advantages in addition to those provided by the base plan. Additional coverage, additional protection and numerous other benefits imply that this rider is one of the best options available to top up the coverage of the base plan.
One of the top and renowned providers of insurance in the country, Star Union Dai-Ichi Life has its presence in more than 1,000 branches across the country. Affordable and hassle-free insurance policies are two of the many reasons why a large number of individuals procure policies from this company. A large number of regional rural banks are also sponsored by this company.
This company combines the best features of Union Bank of India, Bank of India as well as Dai-Ichi Life and boasts of a high claim-settlement ratio of around 95% as of the years 2015-16.
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