Product Review: Exide Life Mera Aashirvad Plan
Plan Summary
Exide Life Mera Aashirvad Plan is a Limited Pay Participating Endowment Plan. It is a Traditional Plan with Bonus facility. In this plan, premium needs to be paid for the tenure as per the table and the policy continues for a period of 5 years after the completion of the premium paying term.
Thus, Policy Term = Premium Paying Term + 5 years
This policy offers 2 Options for Maturity Benefit:
- Option A: % of Sum Assured taken every year after the completion of the Premium Paying Term and the remaining 65% of the Sum Assured taken as Maturity Benefit on completion of the policy tenure
- Option B: Entire Sum Assured paid in Lumpsum on completion of the policy tenure
This policy offers 5% Additional Maturity Benefit if Option B or Lumpsum Maturity Benefit is opted for
Thus, at the end of the policy tenure, irrespective of whether the Life Insured is alive or not, the Maturity Benefit is paid and the policy terminates.
However, if the Life Insured dies within the policy tenure, the nominee gets 100% of the Sum Assured on Death as the Death Benefit, irrespective of the Guaranteed Staggered Benefits already paid and the future premiums are waived off and the policy continues to pay the Maturity Benefit.
Key Features
- This is a Limited Payment Endowment Plan with Money Back options in the last 5 policy years
- If the Life Insured dies within the policy tenure, Sum Assured on Death is paid and the policy continues
- If the Life Insured dies within the policy tenure, all future premiums are waived off
- There are 2 options of taking Maturity Benefit:
- Option A:
% of Sum Assured taken every year after the completion of the Premium Paying Term and the remaining 65% of the Sum Assured taken as Maturity Benefit on completion of the policy tenure
- Option B:
Entire Sum Assured paid in Lumpsum on completion of the policy tenure
- This policy offers 5% Additional Maturity Benefit if Option B or Lumpsum Maturity Benefit is opted for
- There is premium discount for high sum assured in this plan
Benefits
Death Benefit
In case of death of the Life Insured within the Policy Tenure, the nominee gets 100% of the Sum Assured on Death as the Death Benefit, irrespective of the Guaranteed Staggered Benefits already paid and the future premiums are waived off and the policy continues to pay the Maturity Benefit.
The Sum Assured on Death is higher of:
- Base Sum Assured
- 10 times the Annualized Premium
Subject to 105% of total premiums paid till date
Staggered Guaranteed Payout Benefit:
The Sum Assured can be taken in either of the 2 options:
- Option A:
Staggered Benefit over 4 years after completion of the Premium Paying Term or PPT as per the table mentioned
- Option B: Lumpsum Benefit on Policy Maturity
Maturity Benefit – At the end of the Policy Tenure, irrespective of whether the Life Insured is alive or not, the Maturity Benefit is paid and the policy terminates.
* This plan gives a 5% of Sum Assured as Guaranteed Addition on Policy Maturity if Lumpsum Benefit is chosen
Income Tax Benefit
- Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
- Also the maturity proceeds received by the family will be exempted from tax
Policy cancellation
- If a cancellation is requested before the issuance of the policy, the Company shall refund the application money after deduction of the expenses incurred on medical examination, if applicable
- If a cancellation is requested post the issuance of the policy, the Company shall refund the premium amount after deduction of the expenses incurred on medical examination and/or stamp duty, as applicable
Eligibility
What will happen in case of non-payment of regular premium during first three policy years?
If the policy holder stops paying the premium, the policy lapses and all benefits cease. However, if at 3 years premiums have been paid, the policy gets converted to Paid Up Value and then the coverage continues with reduced coverage. The policy can be revived within 2 years from the due date of the first unpaid premium.
Loan
There is option to avail loan under this policy.
Surrender benefit
There are Surrender Benefits in this plan after at least 1 year’s premiums have been paid. For policies that have paid at least three full years' premiums the amount payable on Surrender is higher of the Special Surrender Value (SSV) or the Guaranteed Surrender Value (GSV).
Guaranteed Surrender Value = is a % of the premiums paid less Staggered Benefits already paid
There is Special Surrender Value in this plan as well.