1. What kind of a plan is Aajeevan Samriddhi?
Aajeevan Samriddhi is a Participating Traditional Whole Life Insurance cum savings Plan. This plan has guaranteed additions along with accrued reversionary bonuses and financial protection till Policyholder attains age 99.
2. What is a participating plan?
The policyholder is eligible to participate in the profits arising from the portfolio of such policies. The Company will carry out an annual valuation (as per the current IRDA regulations) at the end of each financial year and may declare the following bonuses:
Compounded Reversionary Bonus
3. What type of reversionary bonus does Aajeevan Samriddhi offer?
Aajeevan Samriddhi offers compounded reversionary bonus.
4. What are the guaranteed additions in this plan?
For the initial 5 years of the policy, the policyholder will be eligible for guaranteed additions, provided the Policy is in force for full risk benefits. These additions will be paid either on death or on attaining age 65 of Life Insured, whichever is earlier. The Guaranteed Addition will be Rs.40 per 1000 Sum Assured for each completed policy year and will accrue at the end of the policy year.
5. What is compounded reversionary bonus?
This is a regular bonus expressed as a percentage of the total of basic Sum Assured and the reversionary bonus amount already attached to the policy. The reversionary bonus, once declared, shall vest in the policy immediately and is guaranteed to be payable as part of death benefit or survival benefit.
6. What is Final bonus?
Final bonus is a one time bonus paid on the termination of the policy due to death, surrender or maturity.
7. What is the minimum and maximum entry age?
Min Entry Age: 8 years (Age Last Birthday)
Maximum Entry Age depends on the premium payment term (PPT)
For PPT 15: 50 Years (Age Last Birthday)
For PPT 20: 45 Years (Age Last Birthday)
8. What are the policy terms available?
Policy Terms available (99 - Entry Age) in complete years
9. What are the premium payment terms?
Premium Payment Term of 15 years and 20 years are available
10. What are the premium modes available?
The customer can pay premium by Monthly, Half Yearly and Yearly modes.
11. What is the minimum annual premium?
The minimum annual premium is Rs.5,500/- (excluding Service Tax & Education Cess, and underwriting extras or modal premium, if applicable).
12. What is the minimum basic Sum Assured available?
The minimum basic Sum Assured available is Rs.75,000/-.
13. How does the plan work?
Select a basic Sum Assured, subject to a minimum of Rs.75,000
Choose the duration for which you want to pay the premiums from 15 years or 20 years
Pay the premium based on the age, basic Sum Assured and the premium payment term chosen
14. Can the premium payment term be changed at a later date?
No, premium payment term, once chosen, cannot be changed at a later date.
15. Can the policy be surrendered?
Yes, the policy can be surrendered after paying premium for first 3 policy years in full.
16. In case of surrender of policy, will the customer get any surrender value?
Yes, the customer will get the surrender value and the policy will terminate and no further benefits would be paid on death or maturity. On surrender, Surrender Value equal to higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) would be paid. The Guaranteed Surrender Value is X% of total premiums paid(exclusive of any underwriting extra, if any), where X is as defined below plus the guaranteed surrender value of accrued guaranteed additions and accrued bonuses in case the policyholder surrenders a policy before attaining age 65 years
Year in which policy is surrendered
GSV as a percentage of premiums paid (X)
3 - 10
Increasing every year by 1.5% subject to maximum of 70%
The Special Surrender Value is not guaranteed and may change depending on the prevailing market conditions.
17. What happens if I am unable to pay premium in the first 3 policy years?
The policy will lapse without any value and no benefits would be payable. Such lapsed policies can be revived within a period of two years from the date of first unpaid premium by paying all due premiums with interest.
18. What happens in case of paying premium for first 3 full policy years, the policyholder does not pay subsequent premium within grace period?
The policy will be converted into a Paid-Up policy with following paid-up value:
Paid-Up Value = Paid-Up Sum Assured + Accrued Guaranteed Additions till the date of paid up + Accrued Reversionary Bonuses till the date of paid up + Final Paid-up Bonus, if any;
Paid-Up Sum Assured = (T/N * Basic Sum Assured) Where, T = Number of premiums paid N = Number of premiums payable
The Paid-up value (less any survival benefit already paid) would be paid on subsequent death or on maturity of the policy. The sum of Accrued Reversionary Bonuses and Guaranteed Additions would be paid as survival benefit on attaining the age of 65.
19. Can I reinstate the policy at a later stage?
Revival of a lapsed or paid-up policy is available up to 2 years from the date of first unpaid premium
Payment of all unpaid premiums with applicable interest is required to revive the policy in all cases
Once the policy is revived, all the benefits and bonuses under the policy would be reinstated
Further, any final paid-up bonus added at the time of conversion of a policy to paid-up would get also reversed.
20. Can a customer take a loan on this policy?
Yes, loans are available under the Aajeevan Samriddhi policy after the policy acquires surrender value, up to 90% of the surrender value. The rate of interest applicable on the loans will be declared by the Company from time to time.
21. What if the life insured commits suicide?
If the life insured commits suicide within 12 months from the coverage commencement date the company would pay an amount equal to 80% of the premiums paid (excluding any underwriting extra, service tax, education cess and survival benefit already paid, if any) as death benefit. In case of suicide within one year of the date of revival, surrender value would be paid as death benefit.
22. What is the Grace period available under the Aajeevan Samriddhi plan?
30 days from the premium due date is allowed for payment of premiums through all modes.
23. Can extra loading on premium be applied under any circumstance?
Yes, if the life insured is associated with any specific hazard as mentioned in the application form, or in case of adverse medical condition loading on the premium may be applied as per underwriting discretion, for eg risky occupation.
24. What are the tax benefits available under the Aajeevan Samriddhi plan?
Tax benefits will be applicable as per prevailing tax laws. Tax laws are subject to change. Please consult your tax advisor for details