Page 22 - Life Insurance Today February 2018

minus 150 basis points. Where, 5 year G-Sec Rate After the commencement of Installment
shall be as at 31st March preceding the date of payments under Settlement Option against
exercise of deferment option. This rate shall be Maturity Benefit:
fixed for the entire duration of deferment of that
Y If a Life Assured, who has exercised
Survival Benefit.
Settlement Option against Maturity Benefit,
This option can be exercised for either or both of desires to withdraw this option and commute
the Survival Benefits separately and is to be the outstanding instalments the same shall be
intimated in writing to the servicing branch office allowed on receipt of written request from
of the Corporation at least six months before the the Life Assured. In such case, the lumpsum
due date of the Survival Benefit. Else the survival amount, which is higher of the following shall
benefits would be paid on their due dates as per be paid and the policy shall terminate.
the terms of the policy. - discounted value of all the future
installments due; or
III. Settlement Option (for Maturity Benefit):
Settlement Option is an option to receive Maturity - (the original amount for which settlement
Benefit in installments over the chosen period of option was exercised) less (sum of total
5 or 10 or 15 years instead of lump sum amount. installments already paid);
This option can be opted for full or part of the
Y The interest rates applicable for discounting
maturity proceeds payable under the policy. The the future installment payments shall be as
amount opted for this option by the Life Assured
fixed by the Corporation from time to time.
can be either in absolute value or as a percentage
Y After the Date of Maturity, in case of death
of the total claim proceeds payable (including the
of the Life Assured, who has exercised
payment of deferred Survival Benefit(s), if any).
Settlement Option, the outstanding
The installments shall be paid in advance at yearly installments will continue to be paid to the
or half-yearly or quarterly or monthly intervals, as nominee as per the option exercised by the
opted for, subject to minimum installment amount Life Assured and no alteration whatsoever
as under:
shall be allowed to be made by the nominee.
Mode of Installment Minimum installment IV. Option to take Death benefit in installments:
payment amount This is an option to receive Death Benefit in
Monthly Rs. 5000/- installments over the chosen period of 5 or 10 or
Quarterly Rs. 15000/- 15 years instead of lump sum amount. This option
can be opted for full or part of the Death proceeds
Half-Yearly Rs. 25000/-
payable under the policy. The amount opted for
Yearly Rs. 50000/-
this option by the Life Assured can be either in
absolute value or as a percentage of the total
If the net claim amount is less than the required claim proceeds payable (including the payment of
amount to provide the minimum installment deferred Survival Benefit(s), if any).
amount as per the option exercised by the Life
Assured, the claim proceed shall be paid in lump The installments shall be paid in advance at yearly
sum only. or half-yearly or quarterly or monthly intervals, as
opted for, subject to minimum installment amount
The interest rates applicable for arriving at the
as under:
installment payments under Settlement Option
shall be as fixed by the Corporation from time to Mode of Installment Minimum installment
time. payment amount
For exercising the settlement option against Monthly Rs. 5000/-
Maturity Benefit, the Life Assured shall be Quarterly Rs. 15000/-
required to exercise option for payment of net Half-Yearly Rs. 25000/-
claim amount in installments at least 3 months
Yearly Rs. 50000/-
before the due date of maturity claim.

22 February 2018 Life Insurance Today

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