• Star Union Dai-Ichi Life Loan Suraksha Plan

    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

    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.

    Eligibility - Who the Star Union Dai-Ichi Life Loan Suraksha Plan is for

    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 and Premium Range - What you get and what it costs

    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.

    Premiums:

    Particulars Details
    Premium Payment Mode Single
    Policy Coverage Term 2 years - 30 years

    Plan coverage - What the Star Union Dai-Ichi Life Loan Suraksha Plan covers

    The Star Union Dai-Ichi Life Loan Suraksha Plan comes with some truly unique coverage features. They are as follows:

    Particulars Details
    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.
    • If he/she chooses to continue, coverage will continue it is terminated.
    • If the person insured chooses to exit, the surrender value for the person insured will be paid and the policy will be terminated.

    Exclusions - What the Star Union Dai-Ichi Life Loan Suraksha Plan doesn’t cover

    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.

    Other key features - Free-look Period, Nomination, etc.

    Besides the ones mentioned above, the Star Union Dai-Ichi Life Loan Suraksha Plan comes with several other key features. These are as follows:

    Particulars Details
    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.

    Tax Benefits - How you can save with the Star Union Dai-Ichi Life Loan Suraksha Plan

    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:

    • Premium paid for the procurement of the policy is eligible for tax benefits based on Section 80C of the Income Tax Act.
    • Likewise, benefits received from the policy is eligible for tax exemptions based on Section 10 (10D) of the Income Tax Act.

    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.

    Why you should buy the Loan Suraksha Plan from Star Union Dai-Ichi Life?

    Star Union Dai-Ichi Life Loan Suraksha Plan allows a policyholder to save their money in a number of ways. They are:

    • High sum assured rebates: This policy comes with high sum assured rebates which helps the policyholder save quite a bit of money. Here’s what the rebates looks like for different sum assured:
    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
    Rebate Nil 1% 1.5% 2%
    • Claim settlement ratio: Since the company started business, Star Union Dai-Ichi has had a commendable claim settlement ratios in the industry. Over the last 6 years, SUD’s settlement ratio has been on the upwards of 80% with the numbers recorded at 81%, 86%, 91%, 93%, 94%, 81% in 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 respectively. The date, which was provided by Insurance Regulatory and Development Authority of India (IRDAI) suggest that the firm has settled claims worth Rs.32.5 crores in the previous financial year alone.
    • Large, expanding network: At the time of writing this page, the company claims to have over 11,000 branches around the country and caters to over 64 million customers. Besides, the insurer has 1950 offices in rural areas alone, making it more accessible for people from various cities, town, and villages in India.

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