Benefit descriptions of Smart Term Plan Insurance
Death Benfit
On the death of the Life Insured anytime during the term of the policy, provided the policy is in-force, the Company will pay the Guaranteed Death Benefit under the Plan. Guaranteed Death Benefit is defined as higher of:
- For Single Pay variant - 1.25 times the Single Premium; For Other variants - 10 times the Annualised Premium
- 105% of all premiums paid as on the date of death
- Guaranteed Sum Assured on Maturity
- Any absolute amount assured to be paid on death
The insured can choose any one of the following seven Death Benefit variants and also select the Lump sum Life Cover amount or the Monthly income (and the income payout tenure) to be paid on death of Life Insured, in addition to the Policy Term and Premium Payment Term. The Death Benefit variant has to be chosen at policy inception and cannot be changed later.
| Death Benefit variants |
Death Benefit details (Provided policy is in force) |
| 1. Life Cover |
The Lump sum Life cover amount chosen at policy inception will be paid to the beneficiary, immediately on death of the Life Insured.
The Sum Assured under the option is the lump sum life cover amount chosen by the insured.
In case Accelerated Critical Illness (ACI) Benefit claim has been paid, the Life cover amount shall be reduced to the extent of the claim paid out on account of ACI Benefit.
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| 2. Income Protector |
A fixed level monthly income for payout duration of 10 years, 15 years or 20 years as chosen at policy inception will be paid to the beneficiary post the date of death of the Life Insured. The monthly income will be payable each month on the anniversary date, starting from the next monthly anniversary post the date of death of the Life Insured.
The Sum Assured under the option will be derived basis the monthly income and payout duration chosen based on applicable income factors.
Please note that the monthly income can be chosen only in intervals of ₹5,000
In case Accelerated Critical Illness (ACI) Benefit claim has been paid, the monthly incomes payable will be reduced proportionately to the extent of reduction in Sum Assured on account of ACI Benefit claim paid out. |
| 3. Income + Inflation Protector |
Increasing monthly income for payout duration of 10 years, 15 years or 20 years as chosen at policy inception will be paid to the beneficiary on death of the Life Insured. The first monthly income shall be equal to that chosen and thereafter income will increase every year by 10% p.a. (simple interest) of the first monthly income payable. The monthly income will be payable each month on the policy anniversary date, starting from the next monthly anniversary post the date of death of the Life Insured.
The Sum Assured under the option will be derived basis the monthly income and the payout duration chosen by you at policy inception based on applicable income factors.
Please note that the monthly income can be chosen only in intervals of ₹`5,000.
In case Accelerated Critical Illness (ACI) Benefit claim has been paid, the monthly incomes payable will be reduced proportionately to the extent of reduction in Sum Assured on account of ACI Benefit claim paid out.
Please note that the future increase (10% p.a. simple) in the income would be calculated basis the revised first monthly income.
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| 4. Life Cover + Income |
On death of the life insured the following will be paid:
- The Lump sum Life cover amount chosen by the Policyholder at policy inception will be paid to the beneficiary immediately on death of the Life Insured (plus)
- Level monthly income of 0.4% of the Lump sum Life cover amount will be paid for 10 years, such that the total of 120 regular monthly incomes will be equal to 48% of the policy Sum Assured.
The Sum Assured is the sum of the Lump sum Life cover amount and the first Monthly income payable times the applicable income factors.
Please note that the monthly income will be payable each month on the policy anniversary date, starting from the next monthly policy anniversary post the date of death of the Life Insured.
In case Accelerated Critical Illness (ACI) Benefit claim has been paid, the Lumpsum Life cover amount shall be reduced by the extent of the claim paid out on the account of ACI Benefit. However, the level monthly income shall remain unchanged.
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| 5. Life Cover + Increasing Income |
On death of the life insured the following will be paid:
- The Lump sum Life cover amount chosen by the Policyholder at policy inception will be paid to the beneficiary immediately on death of the Life Insured,
(plus)
- Increasing monthly income will be paid for 10 years, wherein the first year monthly income shall be equal to 0.4% of the Lump sum Life cover amount. The income will increase every year by 10% p.a. (simple interest) of monthly income payable in the first year.
The Sum Assured is the sum of the Lump sum Life cover amount and the first Monthly income payable times the applicable income factor.
Please note that the monthly income will be payable each month on the policy anniversary date, starting from the next monthly anniversary post the date of death of the Life Insured.
In case Accelerated Critical Illness (ACI) Benefit claim has been paid, the Lumpsum Lifecover amount payable shall be reduced to the extent of the claim paid out on the account of ACI Benefit. However, the increasing monthly income shall remain unchanged.
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| 6. Increasing Cover |
Under this variant, the Sum Assured payable increases by 5% p.a. (simple interest) of the Lump sum Lifecover amount at the policy inception on each policy anniversary.
Immediately on death of the Life Insured, Sum Assured effective as on the last policy anniversary will be paid to the beneficiary as lump sum.
Please note that under this variant, the Sum Assured will increase only till completion of 21st policy year. The Sum Assured will not increase from 22nd policy year onwards and will be the same as Sum Assured effective as on the last policy anniversary.
The Sum Assured under this variant is the Lump sum Life cover amount chosen by the Policyholder at policy inception.
Please note that Accelerated Critical Illness benefit and Life Stage Add on benefit options are not available with this death benefit variant.
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| 7. Reducing Cover |
Under this variant, the Sum Assured payable decreases by 5% p.a. (simple interest) of the Lumpsum Lifecover amount, on completion of every 5th policy year. Immediately on death of the Life Insured, Sum Assured effective as on the last Policy Anniversary will be paid to the beneficiary as lump sum.
The Sum Assured under this variant is the Lump sum Life cover amount chosen by the Policyholder at policy inception.
Please note that:
- This variant is available if Lumpsum Lifecover amount chosen at inception is greater than or equal to ₹1 Crore.
- Maximum Accident Cover Sum Assured available under the variant is lower of 25% of Lumpsum Lifecover amount chosen at inception or ₹50 lacs.
- Please note that Accelerated Critical Illness benefit and Life Stage Add on benefit options are not available with this death benefit variant.
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In Summary, the coverages under the Death Benefit are as per the table below:
| Death Benefit Variant |
Benefits under the Variant |
| Lumpsum Life cover Amount |
Monthly Income |
If ACI and Lifestage add on benefit option can be availed |
If Accident cover option can be availed |
Premium Back Option |
Optional Riders |
| Life Cover |
Yes |
No |
Yes |
Yes |
Yes |
Yes |
| Income Protector |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
| Income + Inflation Protector |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
| Life Cover + Income |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Life Cover + Increasing Income |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Increasing Cover |
Yes |
No |
No |
Yes |
Yes |
Yes |
| Reducing Cover |
Yes |
No |
No |
Yes |
Yes |
Yes |
Accelerated Critical Illness (ACI) Benefit
Accelerated Critical Illness (ACI) benefit is payable on diagnosis of any of the specified Critical Illness during the CI Benefit cover period, provided the policy is in-force and meets the terms and conditions.
There are two options available under Accelerated Critical Illness (ACI) cover to choose from:
- Level ACI Benefit: The ACI Sum Assured is fixed and level throughout the ACI policy term. The insuredcan choose any ACI Sum Assured in intervals of 5 lakhs subject to boundary:
- Minimum ACI Sum Assured that can be chosen : ₹lakhs
- Maximum ACI Sum Assured that can be chosen : 50% of base policy Sum Assured chosen at inception or ₹50 lakhs, whichever is lower
- Increasing ACI Benefit: The ACI Sum Assured will increase at a simple rate of 5% p.a. of ACI Sum Assured chosen at inception. The insured can choose any ACI Sum Assured in intervals of ₹5 lakhs subject to boundary condition:
- Minimum ACI Sum Assured that can be chosen : ₹ 5 lakhs
- Maximum ACI Sum Assured that can be chosen : 25% of base policy Sum Assured chosen at inception or ₹25 lakhs, whichever is lower
The maximum increase in ACI Sum Assured allowed is:
- ₹50 lacs, or
- 50% of base policy Sum Assured chosen at inception, or
- 200% of the ACI SA chosen at incepti
The ACI benefit will stop increasing once an ACI claim has been made (including Angioplasty).
Accident Cover option
If the Life Insured dies due to an accident, 100% of Accident Cover Sum Assured will be payable as lump sum irrespective of the death benefit variant chosen, upon approval of claim. This benefit shall be payable in addition to the death benefit Sum Assured.
Any increase in the base death benefit Sum Assured due to any of the product features shall not affect the Accident Cover Sum Assured.
Please note, the option can be added to the premium paying policy at any time during the policy term. A pro-rata basis premium will be charged in case the benefit is added during the middle of the policy term and full premium will be charged starting next policy anniversary. This option is not available for Single Pay premium payment term.
Premium back variant
There is a Premium Back variant available under this product which is available at policy inception and cannot be selected at later stage during the policy term. Under the Premium Back variant, if the Life Insured survives throughout the policy term, 100% of the total annualised premiums paid (i.e. total premiums paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies and modal extra) under the base policy only (corresponding to base Sum Assured and any Life Stage Add on Sum Assured) will be paid at end of policy term and the policy will terminate. Please note that any additional premium charged for optional benefits (ACI benefit and Accident cover option) or riders will not be returned back at maturity under this variant. This benefit is available with all Death Benefit variants and across all Premium Payment Terms and Policy Terms.
Life Stage Add on Sum Assured Option
The insured has the option to take an add on ‘Life Stage Add on Sum Assured’ in future basis ‘Life Stage’ events like marriage, child birth or house loan. This option has to be selected at the time of inception of the policy. The increase will only be applicable once you inform the company about the ‘Life Stage’ change (along with the requisite proofs).
The Life Stage events covered along with the applicable Life Stage Add on Sum Assured limits are mentioned in the table below:
| Event |
Additional Sum Assured as % of Original Death Benefit Sum Assured |
Marriage (One Marriage Only)
Child Birth (applicable for 2 children only)
House loan(only 1 instance during the lifetime of the policy)
|
50% of the Sum Assured exceeding not ₹50 lakhs
50% of the Sum Assured not exceeding not ₹25 lakhs
25% of the Sum Assured exceeding not ₹50 lakhs
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Surrender benefit/Exit Value Benefit
Under the variants other than Premium Back variant,
- Within the Premium Payment Term: Provided the policyholder discontinues paying premium or surrenders the policy, an Early Exit Value shall become applicable.
- Post the Premium Payment Term: Provided the policyholder has paid all due premiums, a Surrender Value will be applicable under the policy in case the policyholder surrenders the policy.
The policy shall acquire a Surrender Value (or Early Exit Value, as the case may be) subject to the criteria given below:
- Single Premium variant: After payment of single premium.
- Limited Pay variant:
- On payment of two full years’ premium, where the Premium Payment Term is less than 10 years.
- On payment of three full years’ premium, where the Premium Payment Term is 10 years or more.
- Regular Pay variant: No Surrender Benefit or Early Exit Value is applicable.
Reduced Paid Up (RPU) policy (only applicable under the Premium back option)
Reduced Paid Up value will be acquired by a policy only in case of Premium Back variant and once the policy has acquired a Surrender value.
Once the policy acquires a surrender value, by default the policy will become Reduced Paid-Up (RPU) in case of nonpayment of any further premium(s).
On the policy becoming RPU, the Sum Assured applicable under the respective death benefit variant will be reduced using the proportionate premiums method as mentioned below.
RPU Sum Assured = ((Total premiums paid for base policy less extra premium (if any)) / (Total premiums payable under base policy less extra premium (if any))) * Sum Assured applicable before policy moved to RPU.
Rider Benefit
One can now make your term cover more comprehensive by adding the below mentioned riders:
- Max Life Waiver of Premium Plus Rider: This rider provides waiver of all future premiums under a policy and all other attaching riders on earlier happening of either of the following events provided the base policy and attaching riders are in force:
- Critical Illness; or
- Dismemberment; or
- Death (only when Life Insured and Policyholder are different individuals, riderbenefit will be paid on death of the Policyholder)
The waiver of premium will happen for base benefit premium as well as for additional optional benefits selected. If the policyholder is same as life insured and the policyholder suffers from any of the listed critical illness under ACI benefit as well as WOP+ benefits, then both ACI and WOP+ benefits will get triggered.
