Nearly every adult is under some or the other form of financial obligation - a loan they need to repay. But, despite the demographic being so high and despite there being plenty of established insurance providers in the country, there are very few plans that cater to people with loans. However, the Star Union Dai-Ichi Life Loan Suraksha Plan is all set to change that. To begin with, this plan operates just like any other insurance plan but with a slight difference. While other life insurance policies offer a sum assured when the policyholder dies, this plan clears any outstanding loan amount the person has.
The Star Union Dai-Ichi Life Loan Suraksha Plan is ideal for those who have a major loan to repay. To avail this plan, the borrower need to meet the following criteria:
|Minimum Entry Age||18 years|
|Maximum Entry Age||65 years|
Sum Assured: The concept of sum assured works differently under this policy. Here, sum assured is the total outstanding loan amount at the beginning of a month when the death of the person insured occurs.
|Premium Payment Mode||Single|
|Policy Coverage Term||2 years - 30 years|
The Star Union Dai-Ichi Life Loan Suraksha Plan comes with some truly unique coverage features. They are as follows:
|Death Benefit||In the event of the person insured’s death, the sum assured specified in the certificate of insurance is payable to the beneficiaries/nominees. This transition can be overseen by the master policyholder (loan provider). The sum assured will be provided based on the certificate of insurance irrespective of the actual outstanding loan amount.|
|Surrender Value||Surrender value is payable under this policy when the loan is completely repaid or when the master policyholder surrenders the policy. When the policy is surrendered, the value is paid in favour of the person insured. The maximum surrender value will be 90% of the person insured’s policy value at the time of surrender.
Also, the master policyholder can surrender the master policy at any given point. When this occurs, the person insured will be given the option to continue or exit from the policy.
The Star Union Dai-Ichi Life Loan Suraksha Plan comes with just one exclusion and it relates to suicide. In the case of the person insured committing suicide, whether sane or insane, within one year of the policy’s commencement, 80% of the basic premiums paid will be returned to the nominees and the policy will be terminated. Note, this amount excludes extra premiums and applicable taxes.
Besides the ones mentioned above, the Star Union Dai-Ichi Life Loan Suraksha Plan comes with several other key features. These are as follows:
|Free-look period||A free-look period of 15 days is provided to the master policyholder/person insured after the issuance of the policy document/certificate of insurance within which the participating members need to decide whether they are satisfied with the policy. If they aren’t, they need to state the reason for the same in order to receive refunds for the premiums paid. The refund amount, however, will be minus the taxes and any risk premiums for the period of coverage.|
|Nomination||Nomination is compulsory under this policy.|
|Joint-life Discount||In the case of joint borrowers, where each of them is covered for the entire loan amount, a discount of 2.5% is provided based on the tabular premiums.|
The Star Union Dai-Ichi Life Loan Suraksha Plan, like many other life insurance policies come with a few tax benefits. These are mentioned below:
Note: These are the tax benefits under the current tax regime and the exact rates are subject to change depending on policy changes by the government.
Star Union Dai-Ichi Life Loan Suraksha Plan allows a policyholder to save their money in a number of ways. They are:
|Sum Assured||Up to Rs.5 lakh||Rs.5 lakh to Rs.10 lakh||Rs.10 lakh to Rs.25 lakh||Rs.25 lakh and above|
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