SUD Life Group Retirement Benefit Plan A Non-Participating Group Unit Linked Insurance Plan Annexure E () "IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER Gratuity and/or Leave Encashment liabilities increase over time, with the increase in an employee's years of service and salary and could be a huge liability to the employers. Gratuity is not just a statutory obligation but also a very important tool today to retain and attract talented employees and as per the Accounting Standard [AS-15 (Revised) ], it has become necessary for the employers to provide for the accrued liabilities in respect of Leave Encashment benefits available to all the employees in the books of accounts. An effective fund management plan can reduce the financial strain on the employer and release resources for core business activities by helping the employer fund for the gratuity obligation and/or manage funds for the leave encashment benefits systematically & effectively. Now put all your concerns to rest. Presenting SUD Life Group Retirement Benefit Plan to all Employer-Employee groups to effectively manage your employees gratuity and/or leave encashment. Key Features: Get market-linked returns through a choice of 4 investment funds Nominal Charges to ensure that you make the most of the returns from the investment funds Get complete flexibility in payment of contributions. Tax benefits as applicable How does it Work: The Master Policyholder has to pay the contributions towards the Gratuity/Leave Encashment liability The Master Policyholder invests the contributions in the chosen funds out of the 4 investment fund options offered under SUD Life Group Retirement Benefit Plan. The units are allocated post the receipt of contributions. On retirement/resignation we will redeem the units in the investment funds to pay the gratuity/leave encashment benefit. In case of death of an insured member a fixed sum assured will be paid along with gratuity/leave encashment benefit. Benefits: Death Benefit: On death of the Insured Member during the term of the policy, provided the policy is in force, Sum Assured of Rs 1,000 will be paid immediately to the Master Policyholder. In addition to the Sum Assured, the Gratuity / Leave Encashment benefit as per the scheme rules will also be paid to the Master Policyholder. Non Death Benefit In case of retirement, resignation or termination of employment, the Gratuity / Leave Encashment benefit as per the scheme rules will be paid to the Master Policyholder from the available fund value. Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 1 of 7
Funds Offered: Under this policy, the Master Policyholder has the option to invest in four funds viz. Group Growth Fund, Group Balanced Fund, Group Debt Fund and Group Money Market Fund. imum allocation percentage per selected fund selected shall be 10% with maximum of 100%. Group Growth Fund (SFIN: ULGF 001 20/03/15 SUD-GN-GR1 142) 30% 60% Debt Instruments To generate long term capital appreciation by investing in high 30% 70% between stability and growth. Money Market Instruments & Net quality fixed income securities and Current Assets equity, striking optimum balance 0% 30% Mutual Fund Investments 0% 15% High Fixed Deposit with Banks 0% 10% Group Balanced Fund (SFIN : ULGF 002 20/03/15 SUD-GN-BL1 142) 10% 30% Debt Instruments To generate capital appreciation with attractive returns, over medium to 50% 90% long term, with moderate exposure to Money Market Instruments & Equity and judicious mix of Net Current Assets Government securities and high 0% 30% Mutual Fund Investments quality corporate debt. 0% 15% Medium Fixed Deposit with Banks 0% 10% Group Debt Fund (SFIN : ULGF 003 20/03/15 SUD-GN-BN1 142) 0% 0% Debt Instruments To generate stable returns over medium to long term with full exposure in debt market instruments 70% 100% debt and also in money market Money Market Instruments & by judicious mix of Government Net Current Assets Securities and high quality corporate 0% 30% Mutual Fund Investments instruments. 0% 15% Low to Medium Fixed Deposit with Banks 0% 15% Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 2 of 7
Group Money Market Fund (SFIN : ULGF 004 20/03/15 SUD-GN-MM1 142) 0% 0% Debt Instruments 0% 0% To manage the funds with safety of capital and to generate money market Money Market Instruments & related returns with minimum credit 70% 100% Net Current Assets and interest rate risk. Mutual Fund Investments 0% 15% Low Fixed Deposit with Banks 0% 15% SUD Life reserves the right to add, modify or close any of the above mentioned funds subject to prior approval of IRDAI. Features and Options: Contribution: The Master Policyholder may make contribution to the Master Policy in respect of past service gratuity liability /leave encashment liability of each insured member or to cover the present value of the benefits payable(gratuity Liability / Leave Encashment Liability) to the Insured Members on exit. The benefits (as mentioned earlier in this document) shall be as per the rules of the scheme. Where the fund is overfunded / in surplus as per the certificate, we may allow NIL contributions under the scheme and in such cases, the Master Policy shall not be treated as discontinued Eligibility: Group imum Entry Age (Last Birthday) imum Entry Age(Last Birthday) imum Maturity Age(Last Birthday) Policy Term Employer-Employee groups 18 years 79 years 80 years 1 year. At the end of one-year term, the master policy can be renewed Contribution : Rs. 1,00,000/- : No Limit However, the maximum contribution shall be as per AS15 (Revised) certificate issued by the Actuary Group Size : 10 members : No Limit Sum Assured Fixed Sum Assured of Rs.1,000/- per Insured Member Contribution Frequencyp Yearly, Half yearly, Quarterly or Monthly Redirection of Contribution: Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 3 of 7
The Master policyholder has the option of redirection of future contributions subject to the below conditions, provided the policy is in-force. The Master Policyholder may alter the allocation percentages under various fund for future contributions subject to the minimum allocation percentage per selected fund being 10% The Master Policyholder can make unlimited redirection Switching: Any amount of fund value can be switched out subject to a minimum amount of Rs.5,000. Switch request may be for an absolute amount or a percentage of the Fund Value. Switching is subject to condition that the minimum allocation percentage per selected fund shall be 10%. The Master Policyholder can make unlimited switches Top-Ups: Top-ups are not allowed, unless required as per the Actuary s Certificate in accordance with AS15 (Revised), to address the underfunding of the scheme. Partial Withdrawal: Partial withdrawals are not allowed under the plan Charges: Allocation Charges: Each time the contribution is paid, Allocation Charge, as a percentage of contribution received is deducted from the contribution and the balance is allocated to the funds chosen by the Master policyholder. The allocation charge will be 0.5% of the contribution subject to a maximum of Rs.1 Lakh for the entire policy year except for polices sourced through Direct Marketing Channel. Fund Management Charges: The Fund Management charge (FMC) under various funds as a percentage of fund value is given below. The FMC will be priced in the unit price of each Fund on a daily basis. This will result in the adjustment of NAV. Fund Name SFIN Annual Rate of FMC Group Growth Fund ULGF 001 20/03/15 SUD-GN-GR1 142 0.60% Group Balanced Fund ULGF 002 20/03/15 SUD-GN-BL1 142 0.50% Group Debt Fund ULGF 003 20/03/15 SUD-GN-BN1 142 0.40% Group Money Market Fund ULGF 004 20/03/15 SUD-GN-MM1 142 0.30% Mortality Charges: 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. A mortality charge of Re 1 p.a. per member for Rs. 1000 Sum Assured will be levied. Surrender/Discontinuance charges: There is no Surrender/Discontinuance Charge. Contribution Redirection Charges: There is no charge for redirection of contributions. Switching Charges: There is no Switching Charge. Terms & Conditions: Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 4 of 7
Policy Loan: Suicide Exclusion: imum Charge Level: The Company reserves the right to impose charges not beyond the prescribed levels, subject to IRDA approval New Members: New members will be allowed to join at any time during the tenure of the policy. The life cover in respect of the new members will start from the date of joining the scheme. Revival of the Policy: Grace Period: NAV Computation: The NAV of the segregated fund shall be computed as given below: (Market value of investment held by the fund + value of current assets Value of current liabilities and provisions, if any) NAV = ------------------------------------------------------------------------------------------------- Number of units existing on Valuation Date (before creation / redemption of units) The company applies contribution to allocate units in the unit linked funds chosen by the Master policyholder. The allotment of units to the Master policyholders will be done only after the receipt of contribution proceeds as stated below: a) In respect of contribution received up to 3 p.m. along with a local cheque or a demand draft payable at par at the place where the contribution is received, the closing NAV of the day on which contribution is received shall be applicable. b) In respect of contribution received after 3 p.m. along with a local cheque or a demand draft payable at par at the place where the contribution is received, the closing NAV of the next business day shall be applicable. c) In respect of contributions received with outstation demand drafts at the place where the contribution is received, the closing NAV of the day on which demand draft is credited shall be applicable. d) In respect of contributions received through Standing Instruction on Bank / Credit Card account/ ECS/SI facility, outstation cheque, the closing NAV of the day on which the credit is realized shall be applicable. Units shall be allocated at the NAV as on the date of clearance of the instrument or date of issue of the policy, whichever is later. Force Majeure Condition: The company will value the funds on each day that the financial market are open. However, the company may value the funds less frequently in extreme circumstances external to the company, where the value of the assets is too uncertain. In such circumstances, the company may defer the valuation of assets for up to 30 days until the company feels that certainty as to the value of assets has been resumed. The deferment of the valuation of assets will be with prior consultation with the IRDAI. Some examples of such extreme circumstances are given below: Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 5 of 7
a) When one or more stock exchanges which provides a basis for valuation for a substantial portion of the assets of the fund are closed otherwise than on ordinary holidays. b) When, as a result of political, economic, monetary or any circumstances out of the control of the Company, the disposal of the assets of the fund are not reasonable or would not reasonably be practicable without being detrimental to the interest of the remaining Policyholders.. c) During periods of extreme market volatility during which surrenders and switched would be detrimental to the interest of the remaining Policyholders. d) In case of natural calamities, strikes, wars, civil unrest, riots and bandhs e) In the event of any force majeure or disaster that affect the normal functioning of the company. f) If so directed by the IRDAI. Surrender: The policy may be terminated / surrendered by the Master Policyholder giving one month prior notice in writing to the Company. On the expiration of the notice period, the Company will pay the Surrender Value i.e. the Fund Value as on the date of surrender. However, for policies with fund value up to Rs.5 crores as on the date of request of surrender, the notice period will not apply. The fund value at the prevailing NAV will be paid to the Master Policyholder immediately. Once the policy is surrendered, the contract terminates. Free Look Period: The Master 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 Master 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. The amount payable on free look cancellations is: Fund Value, Plus (Allocation Charges + Mortality Charges), already deducted, us (Stamp Duty+ Proportionate Premium for the period of cover) Nomination: Nomination is allowed as per the Section 39 of the Insurance Act, 1938 as amended from time to time. Assignment: Assignment will be allowed as per Section 38 of the Insurance Act 1938, as amended from time to time. PROHIBITION OF REBATES Section 41 of the Insurance Act, 1938 as amended from time to time (1) 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 prospectus or tables of the insurer: (2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to ten lakh rupees. Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 6 of 7
Tax Benefit will applicable as per the prevailing tax laws. GST (Goods & Services Tax): GST (Goods & Services Tax) and any charges levied by the government in future shall be levied as per. the prevailing tax laws and/or any other laws. SUD Life Group Retirement Benefit Plan () Insurance is the subject matter of solicitation. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factor. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured are responsible for his/her decisions. The various funds offered under this contract are the names of the funds and do not in any way the quality of these plans, their future prospects and returns. Star Union Dai-ichi Life Insurance Co. Ltd. is only the name of the Insurance Company and SUD Life Retirement Benefit Plan is only the name of the linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know that associated risks and the applicable charges from the Insurance Agent or the Intermediary or policy document issued by the Insurance Co. BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS / FRADULENT OFFERS: IRDA clarifies to public that IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums. IRDAI does not announce any bonus. Public receiving such phone calls are requested to lodge a police complaint along with details of phone call, number (URN: SUD-BR-10/15/27) Trademark used under license from respec ve owners. Star Union Dai-ichi Life Insurance Company Limited IRDAI Regn: 142 CIN: U66010MH2007PLC174472 Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai 400 703. Contact No: 022 39546300 (charges apply), 1800 200 8833 (Toll Free) Timing 8:00 am 8:00 pm (Mon-Sat) Email ID: customercare@sudlife.in For more details visit: www.sudlife.in Sales Literature SUD Life Group Retirement Benefit Plan V.3.0 Page 7 of 7