Star Union Dai-ichi Life s Dhruv Tara Plan A Unit Linked Pension Plan Draft Marketing Brochure

Transcription

1 When I retire I will start living my life, or take up that hobby I love, I will visit this place that always wanted to go, or be completely relaxed, but right now, I'm busy, I need to work, I need to earn for my retirement'. Sounds familiar? At Star Union Daiichi we don't want you to postpone your happiness and miss out on the little joys of life. So we wish you a Happy Retirement, today with our Unit Linked Insurance Plan with a choice of 4 funds as investment options. And that is not all! You also have an option for life insurance cover while accumulating for your future pension. So you have a chance to provide financial security to your family as well as grow your investments at market rates. So go ahead, put your feet up and read the book you left halfway, go on a weekend vacation, take up a hobby you always wanted to; celebrate every moment from today till then, because we've taken care of the celebrations after you retire. How does the plan work? The plan works in two parts the initial build-up phase which is the policy term and the income period also called the annuity period. In the first phase, you build up a corpus or fund. Later this fund is used to buy an immediate annuity, also known as your pension. a) The plan works in two parts the initial build-up or accumulation phase which is the policy term and the income period also called the annuity period. In the first phase, you build up a corpus or fund. In the second or pension phase, this fund is used to buy a Star Union Dai-ichi s Immediate Annuity Plan. b) Premium paid by you, net of the premium allocation charge, if any, are invested in fund(s) of your Choice and units are allocated depending on the unit price of the fund(s). The fund value of your Policy is the total value of units that you hold in the fund(s). The insurance cover charges (if any), Policy administration charges and the additional rider benefit charges (if any) are deducted through monthly cancellation of units. Fund Management Charge is priced in the unit value. I. Eligibility Criteria: (a) Entry Age Minimum Age at Entry Maximum Age at Entry (b) Vesting Age Minimum Vesting Age Maximum Vesting Age (c) Policy Term Minimum Term Maximum Term 18 yrs last birthday 65 yrs last birthday under Option-I 60 yrs last birthday under Option-II 40 years 70 yrs 5 years 52 years 1 In this policy, the investment risk in investment portfolio is borne by the policyholder.

2 (d) Sum Assured Options: Age Regular Premium Single Premium Subject to the Maximum Sum Assured of 10 lakhs S.A. 18 to 35 yrs 36 to 45 yrs years 5 to 10 times the first annualized premium 125% of Single premium for policy term < 10 yrs. 110% of Single Premium for policy term >10 yrs. 5.0 lakhs S.A. 2.5 lakhs S.A. 56 to 60 yrs Fixed Sum Assured of Rs. 1.5 lakhs 1.5 lakhs S.A. (e) Basic Premium Regular Premium: Single Premium: Minimum Rs and in multiples of Rs.1000 Minimum Rs. 25,000 and in multiples of Rs.1000 (f)top Up Premium Minimum Rs Maximum No Maximum Limit II. PRODUCT FEATURES 1. Life Cover Options: Dhruv Tara Plan is a unit-linked pension product and provides two options: Option I: Option II: Pure Pension Plan for pure accumulations Pension cum life cover Plan for accumulation and life cover No switch between the 2 options is allowed once the policy is issued. Life Cover is available only in case of option II. The Life cover Sum Assured is fixed for the entire policy term and cannot be increased / decreased once the policy is issued. Increase in premium will not impact the Sum Assured. No Life cover is attached to Top Up premium. 2. Benefit Payable on Death: Option-I: In case the policyholder dies during the policy term, the Fund Value available to his credit will be payable to the nominee. Option-II: Higher of Fund Value or Basic Sum Assured under the policy. An amount equivalent to the fund value available to the credit of the policyholder or the basic sum assured under the policy whichever is higher is payable in the event of unfortunate death of the policyholder during the term of the policy. 2 In this policy, the investment risk in investment portfolio is borne by the policyholder.

3 3. Rider Benefits: The policyholder can choose either or both of Accidental Death & Permanent Disability Rider and Critical Illness Riders. However, the rider facility is available only if the policyholder has chosen Option-II, i.e. the life cover option. Rider Features Accidental Death & PDB Critical Illness Minimum Age at entry Maximum Age at Entry Age at maturity Minimum Term 5 5 Maximum Term Term of Basic cover/65 years of age, whichever is earlier Term of Basic cover/60 years of age, whichever is earlier Minimum Sum Assured Rs.50,000 Rs.10,000 Maximum Sum Assured (subject to overall ceiling) Basic SA at inception subject to an overall ceiling of Rs.50 lakhs.(under all Overall ceiling across all Individual products SUD Life Policies). Rs.50 lakhs 50% of Basic SA at inception subject to an overall ceiling of Rs.20 lakhs (under all SUD Life Policies). Rs.20 lakhs 4. Risk Commencement Date: The risk (applicable only in respect of Option-II) commences on the date later of (1) underwriting acceptance of the proposal; (2) the date of its clearance of cheque/draft for proposal deposit payment. 5. Benefit Payable on Vesting: On reaching the vesting age, policyholder will have a choice to commute up to one third of the Fund Value in a lump sum, tax-free (or as per the income tax rules applicable from time to time). The balance amount of the fund cannot be withdrawn. It has to be used to purchase an immediate annuity from STAR UNION DAI-ICHI Life or any other IRDA approved annuity provider. If the annuity is not purchased from STAR UNION DAI-ICHI Life, the balance amount after the deduction of commuted value will be paid through a draft in favour of the annuity provider. If the fund value is used to purchase the STAR UNION DAI- ICHI Life s annuity, the annuity rates applicable will be the immediate annuity rates of STAR UNION DAI-ICHI Life, prevailing at the time of purchasing the annuity. 6. Surrender Benefit: The policy will acquire surrender value after at least one full year s premiums are paid. However, the surrender value will be payable only after 3 In this policy, the investment risk in investment portfolio is borne by the policyholder.

4 completion of 3 years. It is important to note that no surrender benefit is available for life cover and riders and hence surrender is applicable only to the Fund value. 7. Partial Withdrawal Benefit: Partial withdrawal is allowed from the 4 th policy year onwards subject to certain conditions. For more details on partial withdrawals, please refer to the section under Investment of Funds. 8. Top Up Facility: Top-up premiums are allowed at any point in time during the policy term, subject to minimum of Rs.5000/- (in multiples of Rs.1000). However the cumulative top-ups during the term of the policy are limited to 25% of the single premium or cumulative regular premium paid as on the date of Top-up. Top-ups will go entirely for savings and will not impact the amount of the Life cover sum assured. 9. Policy Loan: No loan provision will be granted by the Company against this policy. 10. Option to Vary the Premium: Available subject to certain terms and conditions I. ULIP Pension: Grace Period & Discontinuance of Premiums: (A) Grace Period: A grace period of 30 days is allowed for payment of quarterly/half-yearly and yearly premiums, and a 15 days grace period for monthly premium options. After the grace period, the status of the policy will depend if first unpaid premiums pertain to the first three policy years or to the fourth and subsequent year. (B) Unpaid premium pertains to the first three policy years: a. For Option II Pension with life cover: If the premiums are not paid within the grace period, the life cover and rider covers cease or lapse immediately and future mortality and rider charges will not be deducted. b. However, in respect of both the Options I & II, Fund Management Charges and Policy Administration charges continue to be deducted. No new premium or top up premium shall be accepted. Only revival facility is available. c. If not revived within the revival period, (within 3 years from the first unpaid premium) Surrender Value, if any, after deduction of applicable surrender charges, is paid to the policyholder and the policy is terminated. (C) Unpaid premium pertains to the fourth or subsequent policy year: (a) For Option I If the Fund Value reaches an amount equivalent to one full year s premium plus applicable 4 In this policy, the investment risk in investment portfolio is borne by the policyholder.

5 surrender charges before the end of the revival period, the policy ceases immediately and Fund value is payable. (b) For Option II i. Automatic Life Cover maintenance continues till the end of the revival period (3 years from the first unpaid premium) subject to (ii) below and all charges such as mortality charges, rider charges, if any, Fund Management Charge and Policy Administration Charge continue to be deducted. No new premium or top up shall be accepted. Only revival facility is available. ii. However if the Fund Value reaches an amount equivalent to one full year s premium plus applicable surrender charges before the end of the revival period, the policy ceases immediately and Fund value is payable. (c) Under both the options, if the policy has not been revived before the end of the revival period, the policyholder has the option to either: i. Obtain the Surrender value immediately, or ii. Request for continuance of the policy with the life cover and rider cover, if any. The policy will continue either till the date of maturity or till the Fund Value reaches a minimum of one full year s premium and surrender charges, if any, whichever is earlier. However no further premiums would be accepted during this period. No new premium or Top Up payment shall be accepted during the discontinuance period. iii. in both the cases mentioned in (ii) above, the company will pay the Fund value available to the policyholder and the policy terminates. There are no extra charges for availing this facility. Policy Revival The policyholder or assignee may revive the lapsed policy by making a written application within a period of 3 years from the due date of the first unpaid premium subject to proof of continued good health and other terms and conditions to the satisfaction of the company. However, the decision to revive a policy will be in absolute discretion of the company. Option II: If there are unpaid premium(s) during first three policy years and the policy is revived, then the life cover and rider cover will recommence from the date of revival of the policy and the mortality/rider charges will be collected only from the date of revival. Unpaid basic premiums will be recovered on the revival and will be invested based on the NAV as on the date of revival. Cost of medical expenses incurred for revival facility (if any) will be borne by the Life Assured / Assignee, as the case may be, through cancellation of units subject to maximum of Rs 3,000/-. 5 In this policy, the investment risk in investment portfolio is borne by the policyholder.

6 11. Beneficiaries under this plan: Maturity Benefit: The policyholder/life assured under the policy would receive the proceeds on maturity date. If the policy has been assigned, the proceeds would be payable to the assignee(s) under the policy. Death Benefits: In the unfortunate event of the life assured under the policy, the nominee will receive the proceeds due to him or her under the policy. Nomination: Nomination is compulsory under this plan. Where the nominee is a minor, an Appointee must be compulsorily appointed. III. Investment of Funds This is a unit-linked product, wherein the policyholder chooses from 4 funds and remits either a single premium or an annualized premium at the proposal stage. When the proposal is accepted the premium will be adjusted for all charges, mortality charges and extra-mortality charges. The balance amount will be available for allocation amongst the four funds viz. Equity Fund, Bond Fund, Growth Fund and Balanced Fund. Where life cover option (Option-II) has been exercised, if at any time during the term of the policy, if the Fund value is greater than the life cover (basic sum assured), there will be no mortality charges. On the close of business of every business day, Star Union Dai-ichi Life will declare the Net Asset Value (NAV) of the four funds separately. The policy holder chooses the funds and their allocation percentages. The minimum allocation rate is 10% per fund with maximum of 100%. If the allocation percentages are not specified or the percentage is less than 100%, the same will be ascertained before allocating the premiums (regular premiums or Top-up premiums). INVESTMENT TYPE/ASSETS Equity & Equity Related instruments Money Market Instruments Debt Instruments FUND TYPE Equity Growth Bond Balanced % % (70%)* 0-20% 0-60% 0-20% (30%)* % % (30%)* % (30%)* 6 In this policy, the investment risk in investment portfolio is borne by the policyholder.

7 Risk Profile High Medium-High Low-Medium Medium *A Target Ratio in respect of Growth and Balanced Funds will be maintained by automatic rebalancing of the portfolio of funds as soon as ratio deviates from the target by ±10% as mentioned in the parentheses. Switching: Switching will be available at any point of time. However, the facility is not available if there are unpaid premiums and during the settlement option after maturity. Any amount of fund or any percentage of fund value can be switched out. While reinvesting a minimum of 10% of the amount switched out must be reinvested in each of the selected funds. Minimum amount of switch is Rs. 10,000. All switches are free of cost. There are no restrictions of the number of switches. Premium Redirection: The policyholder has the choice of altering the allocation percentages (redirection of funds) for future premiums and top-up premiums starting from the second policy year onwards by giving a notice in writing to the Company at least two months prior to the date of the premium payment. Redirection will not affect the existing units. Redirection facility is available free of cost and is available once in a policy year. Charges under the Policy All charges are subject to revision with prior approval of IRDA a) Premium Allocation charges: Regular premiums will be charged as depending upon the premium amount, as follows: Annualised Premium Charge First & Second policy year 10% Year 3 5% Year 4 onwards 2% Single Premium will be charged Top-up will be charged 5% of the single premium 2% of the top up premium 7 In this policy, the investment risk in investment portfolio is borne by the policyholder.

8 b) Policy Administrative charges Policy Administrative charges equal to Rs.50/- per month for the financial year increasing by 2% per annum on the first business day of the policy month following after 1 st April of each year. Policy Administrative charges are calculated on the first business day of each policy month and deducted from the Fund value by cancelling appropriate number of units of each fund. The redemption of units of each fund shall be in the same proportion as the value of units held in that fund is to the total value of units held across all funds. The units shall be redeemed at the prevailing unit price. c) Fund management charges The annual fund management charges for each fund are as follows: Equity fund: 1.5% of the Fund value Bond fund: 1% of the Fund value Growth fund: 1.4% of the Fund value Balanced fund: 1.2% of the Fund value These charges may be increased with prior notice to the Policyholder up to a maximum of 2% of the Fund value subject to the approval from the regulator. Fund management charges are calculated and recovered on a daily basis from Fund value. d) Surrender charges No surrender benefits are payable during the first 3 policy years. Policy Year Surrender Value payable Single Premium Regular Premium First 3years Nil Nil 4 th year 99% of Fund Value 100% of Fund Value 5 th year 99% of Fund Value less surrender charges 6 th year onwards 100% of Fund Value e) Switching charges All switches are free of cost. There are no restrictions on the number of switches. f) Partial Withdrawal charges First 2 withdrawals in a policy year are free of cost, subsequent withdrawals are Rs The amount will be recovered from the withdrawal amount and not by redemption of units. c) Mortality Charges 8 In this policy, the investment risk in investment portfolio is borne by the policyholder.

9 Mortality charges are recovered on a monthly basis, on the first working day of the each policy month by the way of cancellation of appropriate number of units. Mortality charges are worked out in accordance with the age of the life assured and the definition of sum at risk. h) Rider Charges The charges for riders opted under the policy viz. Accidental Death and Accidental Total and Permanent disability rider and/or Critical Illness rider will be by the way of cancellation of appropriate number of units. Terms & Conditions A. UNIT Price The unit pricing (calculation of the NAV, Net Asset Value) shall be computed as per the IRDA guidelines based on whether the company is purchasing (appropriation price) or selling (expropriation price) the assets in order to meet the day to day transactions of unit allocations and unit redemptions: When Appropriation price is applied: The NAV of funds shall be computed as: Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. When Expropriation price is applied: The NAV of funds shall be computed as: Market Value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. B. Exclusions a) Suicide Claim provisions. If the Life Assured, whether sane or insane, commits suicide, within one year from the Date of Issue of the Policy, the Policy shall be void. In such event, the Fund Value, shall be payable, and all benefits under the policy will cease. b) Exclusions under Riders: 9 In this policy, the investment risk in investment portfolio is borne by the policyholder.

10 i. Exclusions for Accidental death and total and permanent disability rider: STAR UNION DAI-ICHI Life shall not be liable to pay the Benefits to the Life assured, who opts for accidental death and TPD/ Pure Term rider, if death/tpd of life assured is caused due to any of the following events: a) intentional self injury, attempted suicide, insanity or immorality or whilst the Life assured is under the influence of intoxicating liquor, drug or narcotic substances; b) injuries resulting from riots, civil commotion, rebellion, war (whether war be declared or not), invasion, hunting, mountaineering, steeple chasing or racing of any kind, bungee jumping, river rafting, scuba diving, paragliding or any such adventurous sports. c) accident while the life assured is engaged in aviation or aeronautics in any capacity other than that of a fare paying or part paying or nonpaying passenger in any air craft which is authorized by the relevant regulation to carry such passengers & flying between established aerodromes, the life assured having at that time no duty on board the air craft or requiring descent there form d) any breach of law by the Life assured. e) arising from employment of the life assured in the armed forces or military service of any country at war (whether war be declared or not) or from being engaged in duties of any para-military, security, naval or police organization ii. Exclusions for Critical Illness Rider: STAR UNION DAI-ICHI Life shall not be liable to pay the Benefits to the Life Assured, who opts for critical illness rider in the following events: a) The illnesses which are not included as critical illnesses or in respect of any of those illnesses the symptoms of which have occurred or would have been diagnosed for which the insured person received treatment during the first six months from the date of commencement of risk. b) Pre existing injuries or illnesses, treatment for which is not taken from recognized hospitals or doctors. 10 In this policy, the investment risk in investment portfolio is borne by the policyholder.

11 c) The illnesses/diseases has resulted from any other illnesses/diseases for which the insured persons has previously received treatment, or which had previously been diagnosed or which he was aware of, at the commencement of the Policy or within the first six months from the date of policy. d) be caused by intentional self injury, attempted suicide, insanity or immorality or whilst the Life Assured is under the influence of intoxicating liquor, drug or narcotic substances; or, e) take place as a result of accident while the Life Assured is engaged in aviation or aeronautics in any capacity other than that of a fare-paying passenger in any aircraft which is authorised by the relevant regulations to carry passengers and flying between established destinations, or, f) be caused by injuries resulting from riots, civil commotion, rebellion, war (whether war be declared or not), invasion, hunting, mountaineering, steeplechasing or racing of any kind; or, g) result from the Life Assured committing any breach of law. The benefit under the Critical Illness Benefit Rider will be paid only on the Life Assured surviving 30 days from the date of diagnosis of the Critical Illness 1. Free look period: The Policyholder has a period of 15 days from the date of the receipt of the policy document to review the terms and conditions of the policy and where the Policyholder disagrees to any of the terms and conditions, he/she has the option to return the policy stating the reasons for his/her objection, when he/she shall be entitled to a refund of the amount in accordance with prevalent law: Fund Value + (Premium Allocation Charges + Mortality Charges, if any + Rider Charges, if any + Policy Administration charges) already deducted MINUS (Stamp Duty + Medical expenses + Payment Instrument Collection charges) 2. PROHIBITION OF REBATES (SECTION 41 OF INSURANCE ACT 1938) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such 11 In this policy, the investment risk in investment portfolio is borne by the policyholder.

12 rebate as may be allowed in accordance with the published prospectuses or tables of the insurer: Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees. 3. SECTION 45 OF INSURANCE ACT 1938 INDISPUTABILITY CLAUSE No policy of Life Insurance shall, after the expiry of two years from the date on which it was effected, be called in question by an Insurer on the ground that a statement made in the proposal for insurance or any report of a medical officer or referee or friend of the Insurer or in any other document leading to the issue of the Policy, was inaccurate or false, unless the insurer shows such statement Was on material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy holder and that the policy holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose. Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms and conditions of the policy are adjusted on subsequent proof that that the age of the life insured was incorrectly stated in the proposal. Note: Material shall mean and include all important, essential and relevant information in the context of underwriting the risk to be covered by the corporation. 4. Income Tax Benefits: As per the current laws, income tax benefits are available under Section 80CCCC of Income Tax Act, In this policy, the investment risk in investment portfolio is borne by the policyholder.