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

Transcription

1 Sales Brochure Star Union Dai-ichi Life s Dhruv Tara Plan A Unit Linked Pension Plan In this policy, the investment risk in investment portfolio is borne by the policyholder. When I retire I will start living my life, or take up that hobby I love, I will visit this place where I 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 Dai-ichi 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 Pension Plan with a choice of 4 funds as investment options. And that is not all! You also have an option of life insurance cover while accumulating funds for your future pension. Now you have a chance to provide financial security to your family as well as to 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 a) The initial accumulation phase which is the deferment period and the income phase 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 (UIN-142N006V01). b) Premium paid by you, net of the premium allocation charge, is 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 number of units that you hold in the fund(s) multiplied by NAV of the units in the respective funds at that point of time. The insurance cover charges (if any), Policy administration charges and the additional rider benefit charges (if any) are deducted through monthly cancellation of units. 1 I. Eligibility Criteria: (a) Entry Age Minimum Age at Entry 18 yrs last birthday Maximum Age at Entry 65 yrs last birthday under Option-I 60 yrs last birthday under Option-II (b) Vesting Age Minimum Vesting Age 40 years Maximum Vesting Age 70 years

2 (c) Deferment period Minimum Term Maximum Term 5 years 52 years (d) Sum Assured Options: Age Regular Premium 18 to 35 yrs 36 to 45 yrs 5 to 10 times the first annualized premium. Single Premium 125% of Single premium for policy term < 10 yrs. 46 to 55 yrs 110% of Single Premium 56 to 60 for policy term >10 yrs. yrs Subject to the Maximum Sum Assured of 10 lakhs. 5.0 lakhs. 2.5 lakhs. 1.5 lakhs. (e) Premium Payment Options Single Premium Regular Premium Mode of Payment One lump sum payment to be made upfront. Yearly, Half-Yearly, Quarterly or Monthly. Monthly mode is available only under ECS option. Minimum Premium Rs. 25,000 (higher premiums in multiples of Rs.1000) Rs. 12,000 (higher premiums in multiples of Rs.1000) Maximum Premium No limit No limit Minimum Top Up Premium Rs (higher premiums in multiples of Rs (higher premiums in multiples of Maximum Top Up Premium Rs.1000) No Maximum Limit(for Option 1) 25% of Total Basic Regular/Single Premium Paid as on Top Up payment date(for option II). Rs.1000) No Maximum Limit(for Option 1) 25% of Total Basic Regular/Single Premium Paid as on Top Up payment date(for option II). 2 II. FEATURES & Benefits: 1. Life Cover Options: Dhruv Tara Plan is a unit-linked pension product and provides two options: Option I: Pure Pension Plan for pure accumulations Option II: Pension cum life cover Plan for accumulation and life

3 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. Top Up premium does not provide for any life cover. 2. Benefit Payable on Death: In the unfortunate event of death of the life assured under the policy, the spouse/nominee will receive death benefit as follows- A) Death Benefit payable during the Accumulation Phase (i.e. In case of death up to vesting age) For In force policies: a) In case the policyholder dies during the policy term, the following benefits are payable to the nominee: Option I: Pure Pension The Fund Value is payable. Option II: Pension with life cover Higher of: o The Fund value OR o The Life cover sum assured effective at the time of death, less any partial withdrawals made within 12 calendar months preceding the death of the life assured excluding partial withdrawals from top up amount. However, on attainment of 60 years of age of the life assured, all the partial withdrawals made in the last 12 calendar months before attaining the age of 60 and all withdrawals made after attaining the age of 60 will be set off against the Sum Assured excluding partial withdrawals from Top Up amount. Plus rider benefit, if any. Less mortality charges and rider charges (if any)due but not paid during the policy year in which death occurs. For both the options I and II, as per the current income tax rules, in case of death of the Life Assured, the spouse / nominee will have a choice to commute up to one third of the Death Benefit )which is tax-free. 3

4 The balance amount of the Death Benefit cannot be withdrawn in lump sum. It has to be used to purchase annuity from STAR UNION DAI-ICHI Life or any other 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 the name of the annuity provider. However, at the time of death of the Life Assured, if the spouse/nominee is aged less than 40 years last birthday, the nominee will have the option to choose the lump sum amount of death benefit or annuity from STAR UNION DAI-ICHI Life or any other annuity provider. b) In the event of death during the grace period, and if the claim is admitted, the death benefit as stated above will be paid to the nominee after deduction of the mortality charges and rider charges (if any)due for the particular policy year. In case of discontinuance of premiums i) Within first 3 years - If death occurs after the grace period but before the end of revival period and there are unpaid premiums pertaining to the first three policy years, Option I: Pure Pension & Option II: Pension with life cover - Only the Fund value will be payable to the nominee. ii) After first 3 years - If death occurs after the grace period but before the end of revival period and if there is a discontinuance of due premiums after paying at least three consecutive years premium OR after the revival period when the policyholder asked specifically for continuation of the policy with the life cover and rider cover, if any; Same death benefit as given for in force policies under a). 3. Guaranteed Additions: It is applicable for both regular premium & single premium policies, with policy term of 15 years and above. The guaranteed additions are added at the end of 5 th, 10 th, 15 th, 20 th and 25 th policy year, by way of free allocation of units, provided there are no premiums due, and the policy is in full force. These units will be allocated as per allocation percentages for the initial premium, in case of Single premium policy, and as per the prevailing Regular premium allocation percentages, in case of Regular premium policy. For Regular Premiums: The total value of the free allocated units in case of regular premium will be as follows: 4

5 i) Year 5 : 5% of the annualized average regular premium during 1 st 5 policy years ii)year 10 : 10% of the annualized average regular premium during 1 st 10 policy years iii)year 15: 15% of the annualized average regular premium during 1 st 15 policy years iv)year 20: 20% of the annualized average regular premium during 1 st 20 policy years v) Year 25 :50% of the annualized average regular premium during 1 st 25 policy years For Single Premiums: The total value of the free allocated units in case of single premium will be as follows: i) Year 5 : 0.5% of the single premium ii)year 10 : 1.0% of the single premium iii)year 15: 1.5% of the single premium iv)year 20: 2.0% of the single premium v) Year 25: 5.0% of the single premium 4. Rider Benefits: The policyholder can choose either or both of SUD Life Accidental Death & Total and Permanent Disability Benefit Rider and SUD life Critical Illness Benefit Riders. However, the rider facility is available only if the policyholder has chosen Option-II, i.e. the life cover option. There should be a 30-day survival period between the diagnosis of a critical illness and eligibility for a benefit payment Rider Features SUD Life Accidental Death & Total and Permanent Disability Benefit Rider SUD Life Critical Illness Benefit Rider Minimum Age at entry Maximum Age at Entry Maximum Age at maturity Minimum Term 5 5 Maximum Term Term of Basic cover/65 years of age, whichever is earlier. Minimum Sum Assured Rs.10,000 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 SUD Life Policies). Overall ceiling across all Rs.50 lakhs Individual products *The maximum limit with respect to Multiple Sclerosis is Rs.10 lakhs. Term of Basic cover/60 years of age, whichever is earlier. 50% of Basic SA at inception subject to an overall ceiling of Rs.20 lakhs (under all SUD Life Policies). Rs.20 lakhs* 5

6 5. 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 clearance of cheque/draft for proposal deposit payment. 6. Benefit Payable on Vesting: On the vesting date, 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 SUD Life or any other IRDA approved annuity provider. If the annuity is not purchased from SUD Life, the balance amount after the deduction of commuted value (if opted for) will be paid through a draft in favour of the annuity provider. If the fund value is used to purchase the SUD Life annuity, the annuity rates applicable will be the immediate annuity rates of SUD Life, prevailing at the time of purchasing the annuity. 7. Surrender Benefit: The Policy will acquire a surrender value only after payment of full premium for the first policy year, but its payment will be made only after the completion of 3 policy years.. However, the surrender value i.e fund value minus applicable surrender charges will be payable only after completion of 3 years. It is important to note that no surrender benefit is available either for the basic life cover or for the riders and hence surrender is applicable only to the Fund value. 8. Partial Withdrawal Benefit: Partial withdrawal is allowed from the 4 th policy year onwards subject to following conditions. The partial withdrawals will be allowed from the top up account first, as long as the top up account allows for partial withdrawals. First 2 partial withdrawals in a policy year are free. Further additional withdrawals will be charged at Rs.100 for each such withdrawal. There is no carry forward of free unused partial withdrawals to the subsequent policy year. Partial withdrawals made within last 12 calendar months preceding the death of the life assured excluding partial withdrawal from top up amount will be deducted from the death benefit. However, on attainment of 60 years of age of the life assured, all the partial withdrawals made in the last 12 calendar months before attaining the age of 60 and all withdrawal made after attaining the age of 60 will be set off against the Sum Assured excluding partial withdrawal from Top Up amount. During the fourth and fifth policy year the maximum amount for cumulated partial withdrawal allowed is 25% of the fund value (calculated as on beginning of 4 th or 5 th policy year) less cumulative nominal Top Up amount received in the last 36 calendar months) From the 6th policy year onwards, general partial withdrawal rules apply which are as follows: 6

7 i. Minimum Partial withdrawal amount allowed is Rs. 5,000 (higher amounts in multiple of Rs.1,000). ii. Maximum Partial withdrawal: Fund Value less (125% of Annualized Premium amount + cumulative nominal Top Up amount received in the last 36 calendar months) in case of Option 2. iii. Maximum Partial withdrawal: Fund Value less (105% of Annualized Premium amount + cumulative nominal Top Up amount received in the last 36 calendar months) in case of Option Top Up Facility: Top-up premiums are allowed at any point in time during the deferment term, subject to minimum of Rs.5000/- (higher amounts in multiples of Rs.1000). However, in case of option II, 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 for savings and will not impact the amount of the Life cover sum assured. Each nominal top-up amount has a lock-in period of three years from the date on which top up is made. This condition will not be applicable to the top-ups received during the last three years of the policy term. 10. Policy Loan: No loan will be granted by the Company against this policy. 11. Option to increase/decrease the Premium: This facility is available from the second policy year onwards provided the policy is in force. There is no restriction on the number of times the policyholder can increase or decrease the regular premium during the term of the policy. a. Increasing the regular premium : The subsequent increase in regular premiums will not impact the Sum Assured. Increase will be effective from the premium payment date following the date of receipt of request, subject to two months prior notice. Minimum increase in regular premium Minimum increase 7

8 in regular In multiples premiums of For Mode Rs.6000 Rs.1000 Annual Rs.3000 Rs.500 Half yearly Rs.1500 Rs.250 Quarterly Rs.500 Rs.100 Monthly b. Decreasing the regular premium: The premium from the second year onwards shall not be less than 75% of the first year premium. This floor condition is applicable only up to the third policy anniversary. The decrease in regular premium will impact the sum assured subject to terms and conditions of minimum and maximum sum assured. However, the subsequent increase in regular premiums will not impact the Sum Assured. Decrease will be effective from the premium payment date following the date of receipt of request, subject to two months prior notice. 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. d. However if before the end of the revival period, the fund value reaches one annualized premium and applicable surrender charges, the policy will be cancelled and the fund value after deduction of applicable surrender charges will be paid at the end of third policy anniversary. (C) Unpaid premium pertains to the fourth or subsequent policy year: 8

9 . (a) For Option I If the Fund Value becomes equal to one full year s premium and applicable surrender charges before the end of the revival period, the policy ceases immediately and Fund value after deduction of applicable surrender charges 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 becomes equal to one full year s premium and applicable surrender charges before the end of the revival period, the policy ceases immediately and Fund value after deduction of applicable surrender charges 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 (i) & (ii) above, the company will pay the Fund value available after deduction of applicable surrender charges 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 by paying all the due but unpaid premium(s) along with the(currently applicable interest 9% p.a) and on submission of satisfactory medical evidence as per the underwriting rules applicable at that time 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. 9

10 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. 12. 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 one or more of the below mentioned 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 in case of option II. 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. At the close of business of every business day, SUD 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). 10 INVESTMENT FUND TYPE TYPE/ASSETS Equity Growth Bond Balanced Equity & Equity % 0-60% Related % 0 (70%)* (30%)* instruments Money Market 0-20% 0-60% 0-20% Instruments % (30%)* Debt (70%)* % Instruments 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.

11 Switching: Switching will be available at any point of time. However, the facility is not available if there are unpaid premiums. 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 depending upon the premium amount, as follows: Annualised Premium Charge First & Second policy 10% year 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 b) Policy Administration charges Monthly administration charges are equal to Rs. 50/- in the financial year and and will of 2% p.a. The increase will be effective from 1st of April 2010, each subsequent financial year. Maximum monthly charges will be Rs 100/= 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. 11

12 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 The Policy will acquire a surrender value only after payment of full premium for the first policy year, but its payment will be made only after the completion of 3 policy years after deduction of the following applicable surrender charges: Policy Year Surrender Value as a percentage of Fund Value % 4 98% % 11 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. g) Mortality Charges (in case of option II) 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. Age Annual Mortality Charges per Rs.1000/- SAR exclusive of service tax

13 h) Rider Charges (in case of option II) 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 recovered on the first working day of each policy month by the way of cancellation of appropriate number of units. Service tax will be applied on Mortality charges and Rider charges. 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: i. Exclusions for SUD Life Accidental death and total and permanent disability benefit rider: The rates in this schedule assume that a life assured shall be regarded as Totally and Permanently Disabled only if, as a result of accidental bodily injury, the life assured has been rendered unable to perform independently (even with the use of assistive devices) at least 3 of the following 6 Activities of Daily Living : Activities of Daily Living: - Washing: the ability to wash in the bath or shower (including getting into and 13

14 out of the bath or shower) or wash satisfactorily by other means; - Dressing: the ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or other surgical appliances; - Transferring: the ability to move from a bed to an upright chair or wheelchair and vice versa; - Mobility: the ability to move indoors from room to room on level surfaces; - Toileting: the ability to use the lavatory or otherwise manage bowel and bladder functions so as to maintain a satisfactory level of personal hygiene; - Feeding: the ability to feed oneself once food has been prepared and made available 1. For a benefit to be payable, such disability must have persisted for a continuous period of at least 6 months and must, in the opinion of a registered medical practitioner appointed by the Company, be deemed permanent. No Accidental Death Benefit or Total and Permanent Disability Benefit shall be payable if death is caused directly or indirectly by any of the following: 2. The life assured taking part in any hazardous sport or pastimes (including hunting, mountaineering, racing, steeple chasing, bungee jumping, etc) 3. Accident or injury while flying in any kind of aircraft, other than as a fare paying passenger on an aircraft of a licensed airline 4. Self-inflicted injury, suicide or attempted suicide within one year from the date of commencement of the policy 5. Drug, alcohol or solvent abuse 6. Service in any military, police, paramilitary or similar organisation 7. War, civil commotion, invasion, terrorism, hostilities (whether war be declared or not) 8. Active participation by the Life Assured in strikes, industrial dispute, riots, etc. 9. Criminal or illegal activity 10. Nuclear reaction, radiation or nuclear or chemical contamination For the purpose of the above benefit payments, the definitions are as given below: Accidental Death means the death of the Insured which results directly, solely and independently of any other causes from Bodily Injury AND occurs within 180 days of the date of Accident. Accidental Injuries means death or Bodily Injury of the Insured which results directly, solely and independently of any other causes from an Accident AND which occurs within 180 days of the Accident. Accident refers to a sudden, unforeseen and involuntary event caused by external, violent and visible means which occurs while the relevant Supplementary Contract is in force and during the lifetime of the Insured. 14

15 Bodily Injury means an abnormal bodily condition of the Insured which occurs while the relevant Supplementary Contract is in force and within 180 days of Accident, and caused directly and solely by Accident independent of any other cause and not therefore due to illness or disease. Such Bodily Injury must be evidenced by external signs such as contusion, bruise and wound except in cases of drowning and internal injury. ii. Exclusions for SUD Life Critical Illness Benefit Rider: Persons working in hazardous occupations will be screened suitably or will be offered the product at higher premium rates commensurate with the extra mortality risk. The following are the minimum exclusions for the Critical Illness cover. Additional exclusions may be disease-specific and are incorporated into the definition of the disease given in rider sales brochure. The Benefits under the Rider shall not be paid upon claims occurring as a result of (any of the following): Claims arising directly or indirectly from any of the following are specifically excluded: any medical condition which first manifests itself within 90 days of the risk acceptance date or within 90 days of reinstatement date of the Benefit Any pre-existing medical condition*; AIDS or HIV; Intentional, self-inflicted injury or attempted suicide, irrespective of mental condition, within one year from the date of commencement of the policy; Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner; Service in any military, police, paramilitary or similar organisation; Unreasonable failure to seek medical advice; Taking part in any act of a criminal nature; Radioactive contamination due to nuclear accident; diagnosis or treatment outside of India *"Pre-existing medical condition" means a condition (illness or bodily injury) for which, prior to the receipt of proposal for this policy or prior to the date of reinstatement of this policy: The life assured had signs or symptoms which would have caused any ordinary prudent person to seek treatment, diagnosis or care, or Medical advice or treatment was recommended by or received from a physician, or The life assured had undergone medical tests or investigations. Any congenital disorder, or related illness or complication arising out of or in connection with a pre-existing medical condition, shall be considered part of that preexisting medical condition. 15

16 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) SECTION 41 OF INSURANCE ACT 1938-PROHIBITION OF REBATES 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 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. 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 16

17 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 company. Income Tax Benefits: As per the current laws, income tax benefits are available under Section 80 C of Income Tax Act, ALL UNIT LINKED LIFE INSURANCE PLANS ARE DIFFERENT FROM TRADITIONAL INSURANCE PLANS AND ARE SUBJECT TO DIFFERENT RISK FACTORS. Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and Star Union Dai-ichi Life s Dhan Suraksha is the name of this plan. Neither the name of the insurance company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns. SUD Life Dhruv Tara Plan: UIN :142L010V01 SUD Life Immediate Annuity Plan: UIN: 142N006V01 SUD Life Accidental and Total & Permanent Disability Benefit Rider Plan: UIN: 142C003V01 SUD Life Critical Illness Benefit Rider Plan: UIN: 142B004V01 17