Page 17 - Life Insurance Today OCTOBER 2017

benefit from this term insurance policy is paid to the payout of 20% of Death Benefit at the time of claim
nominee of the plan. It is calculated as the sum assured settlement, PLUS the remaining Death Benefit is paid
on death minus previously paid terminal illness benefit. as an annual income. An annual income as a fixed
The term insurance policy is terminated after the death percentage of Death Benefit on each death
benefit is paid. anniversary of the life insured for the chosen pay out
term (10 or 15 years) will be payable as shown in the
Sum Assured on Death for regular | limited table given below:
pay will be an amount that is the highest of : Payout term (in years) 10 15
10 times the annualised premium for all ages, or % of Death Benefit 11% 8.37%
105% of all the premiums paid as on the date of
death, or Or
iii. Staggered payment with increasing annual income @
Minimum guaranteed sum assured on maturity; or
5% p.a. In this option the Death Benefit will be paid
Absolute amount assured to be paid on death as
a) One time payout of 20% of Death Benefit at the
Sum Assured on Death for single pay will be time of claim settlement plus;
an amount that is the highest of : b) The remaining Death Benefit is paid as an annual
125% of single premium for all ages, or income. An annual income as a fixed percentage
Minimum guaranteed sum assured on maturity, or of Death Benefit at the time of claim settlement
and then increasing at the rate of 5% per annum
Absolute amount assured to be paid on death
simple on each death anniversary of the life
There is no 'minimum guaranteed sum assured on insured for the chosen payout term (10 or 15
maturity' under this plan. years) will be payable as shown in the table given
Sum assured payable on death is Effective Sum below:
Assured as on the date of demise. Payout term (in years) 10 15
Level Term Assurance Option: The Effective Sum % of Death Benefit 9.16% 6.47%
Assured is the sum assured at inception. It is constant
throughout the policy term.
Terminal Illness Benefit
Increasing Term Assurance Option: The Effective Sum In case you are diagnosed with a terminal illness, 50% of
Assured is the sum assured at inception increasing on
the applicable Sum Assured on Death, subject to a
every policy anniversary by 5% or 10% as chosen by maximum of Rs. 2.5 crore, will be paid immediately. On
you at inception. subsequent death of the Life Insured during the policy
term, the Sum Assured on death shall be reduced by the
Under Level Term Assurance Option, the Effective Sum
amount of Terminal Illness Benefit already paid. Future
Assured shall include any change in Sum Assured arising due premiums are liable to be paid on their premium due
from exercising the Enhanced Life Stage Protection option.
dates. Terminal Illness Benefit is payable only on the first
Pay out options
diagnosis of any terminal illness of the policy holder during
the policy term.
The nominee can take the Death Benefit by
choosing one of the following options Joint Life Protection:
i. Lump sum payment or Under this option, your and your spouse's lives are covered
ii. Staggered payment with fixed annual income. In this under the same term insurance policy. You are the primary
option the Death Benefit will be paid as one time insured and your spouse is the secondary insured. The

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Life Insurance Today October 2017 17

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