Note: Above charges are subject to applicable tax, if any, as fixed by the Government from time to time. Currently tax is applicable on all the charges deducted under the policy. However, the same may be changed as prescribed by the Government of India from time to time.

Riders

No Riders are available under this product.

Free Look period

• Policyholder has the option to cancel the policy within 30 days of receipt of the Policy Document (whether received electronically or otherwise) if the policyholder disagrees with any of the policy terms and conditions , or otherwise and has not made any claim, by giving a request for cancellation of the policy , stating the reasons for such objections.
• On cancellationcancelation of the policy after such request, the Fund Value as on the date of cancellation of the Policy plus non-allocated premium, if any plus charges levied by cancellation of units minus (Stamp duty + medical expenses, if any, + proportionate risk premium for the period on cover) minus extra allocation, if any added to the Policy will be payable to the Policyholder.
• If the Policy is opted through Insurance Repository (IR), the computation of the said Free Look Period will be as stated below:-
  • For existing e-Insurance Account: Computation of the said Free Look Period will commence from the date of delivery of the e mail confirming the credit of the Insurance Policy by the IR.
  • For New e-Insurance Account: If an application for e-Insurance Account accompanies the proposal for insurance, the date of receipt of the ‘welcome kit’ from the IR with the credentials to log on to the eInsurance Account(e IA) or the delivery date of the email confirming the grant of access to the eIA or the delivery date of the email confirming the credit of the Insurance Policy by the IR to the eIA, whichever is later shall be reckoned for the purpose of computation of the Free Look Period.
  • The email confirming the credit of the Insurance Policy by the IR to the eIA, whichever is later shall be reckoned for the purpose of computation of the Free Look Period.

Grace Period:
Grace period means the time granted by the insurer from the due date of payment of premium, without any penalty or late fee, during which time the policy is considered to be in-force with the risk cover without any interruption, as per the terms & conditions of the policy. The grace period for payment of the premium for all types of life insurance policies shall be fifteen days, where the policyholder pays the premium on a monthly basis and 30 days in all other cases.

Lock in Period means the period of 5 consecutive completed years from the date of policy commencement date, during which the proceeds of discontinued policy cannot be paid by the insurer to the insured / policy holder except in case of death or upon any contingency covered under the policy.

Revival Period means the period of three consecutive complete years from the Date of first unpaid premium.

Policy Discontinuance
“Discontinuance” means the state of a policy that could arise on account of surrender of the policy or non-payment of the premium due before the expiry of the grace period.

Provided that no policy shall be treated as discontinued on non-payment of the said premium if, within the grace period, the premium has not been paid due to the death of the insured or upon the happening of any other contingency covered under the policy.

Policy Discontinuance Within Lock-in Period

• Upon expiry of the grace period, in case of discontinuance of policy due to non-payment of premium during lock-in period, the fund value after deducting the applicable discontinuance charges shall be credited to the discontinued policy fund and the risk cover and rider cover, if any, shall cease.
• The policyholder has an option to revive such discontinued policies within three years from the date of first unpaid premium. On such discontinuance, the company shall communicate the status of the policy, within three months of the first unpaid premium, to the policyholder and provide the option to revive the policy within the revival period of three years.
  • In case the policyholder opts to revive but does not revive the policy during the revival period, the proceeds of the discontinued policy fund shall be paid to the policyholder at the end of the revival period or lock-in period whichever is later. In respect of revival period ending after lock-in period, the policy will remain in discontinuance fund till the end of revival period. The Fund management charges of discontinued fund will be applicable during this period and no other charges will be applied.
  • In case the policyholder does not exercise the option as set out above, the policy shall continue without any risk cover and rider cover, if any, and the policy fund shall remain invested in the discontinuance fund. At the end of the lock-in period, the proceeds of the discontinuance fund shall be paid to the policyholder and the policy shall terminate
  • However, the policyholder has an option to surrender the policy anytime and proceeds of the discontinued policy shall be payable at the end of lock-in period or date of surrender whichever is later.

Explanation: “Proceeds of the discontinued policies” means the fund value as on the date the policy was discontinued, after addition of interest computed at the interest rate stipulated under the section ‘Discontinued Policy Fund’.

In case of death of the Life Assured while the policy is in the Discontinuance Policy Fund, the lock-in period shall not be applicable and the proceeds under the Discontinuance Policy Fund shall be payable immediately to Nominee or Legal heirs as applicable.

Discontinued policy fund

If the fund value under the policy, subject to Discontinuance Charge (if any) is moved into the Discontinued Policy Fund no further charges except Fund management charge of 0.50% per annum will be levied on the Discontinued Policy Fund. The Discontinued Policy Fund would earn a minimum guaranteed interest as prescribed by IRDAI from time to time. The current minimum guaranteed interest rate applicable to the discontinued fund is 4% per annum. The excess income earned in the Discontinued Policy Fund over and above the minimum guaranteed interest rate will also be fully apportioned to the Discontinued Policy Fund in arriving at the proceeds of the discontinued policies and shall not be made available to the shareholders.

The details of the Discontinued Policy Fund is given below:

Discontinued Policy Fund (SFIN: ULIF013011111FUTDISCONT133)

The investment objective of this fund is to provide return, subject to minimum guaranteed interest, as prescribed by IRDAI from time to time.

The fund will be allocated as per the following asset allocation
Money Market instruments : 0% to 40%
Government Securities : 60% to 100%

Investment strategy: Low Risk Investment
Risk Profile: Low Risk
The fund management charge for the discontinued policy fund will be 0.5% per annum

Policy Discontinuance After Lock-in Period

• Upon expiry of the grace period, in case of discontinuance of policy due to non-payment of premium after lock-in period, the policy shall be converted into a reduced paid up policy with the paid-up sum assured i.e. original sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy. The policy shall continue to be in reduced paid-up status till the end of the revival period without rider cover, if any. All charges as per terms and conditions of the policy shall be deducted during the revival period. However, the mortality charges shall be deducted based on the reduced paid up sum assured only.
• On such discontinuance, the company shall communicate the status of the policy, within three months of the first unpaid premium, to the policyholder and provide the following options:
  • To revive the policy within the revival period of three years, or
  • Complete withdrawal of the policy.
• In case the policyholder opts for (1) i.e. “to revive the policy within the revival period of three years” but does not revive the policy during the revival period, the fund value shall be paid to the policyholder at the end of the revival period.
• In case the policyholder does not exercise any option as set out above, the policy shall continue to be in reduced paid up status. At the end of the revival period the proceeds of the policy fund shall be paid to the policyholder and the policy shall terminate.
• However, the policyholder has an option to surrender the policy anytime and proceeds of the policy fund shall be payable.

Paid Up Policy
Paid up sum assured can be determined as

                              (Number of premiums paid)

 Sum Assured x --------------------------------------------------

                              (Total number of premiums payable)

Under a paid-up policy, the policy administration charge, fund management charge will be deducted. Mortality charge will be deducted with respect to Sum at Risk considering paid-up sum assured.

If the death occurs during the policy term, death benefit considering the paid-up sum assured will be paid. . That is death claims will be settled on original terms and conditions replacing the “sum assured” by “Paid up sum assured”. At maturity or surrender during the policy term, fund value will be payable.

Revival
Revival Period means the period of three consecutive complete years from the date of first unpaid premium.

• Revival of a discontinued policy during the lock-in period
  A Policy that has become Discontinued during lock-in period may be revived during the Revival Period of 3 years from the date of first unpaid premium by giving a written notice to revive the Policy, provided that:
  • The Policy will be revived in accordance with board approved underwriting policy
  • The due Instalment Premiums are paid in full without charging any interest or fees.
  • On Revival, the Policy will continue with the risk cover, benefits and charges, along with the investments made in the Segregated Funds as chosen by the policyholder, as per the terms and conditions of the Policy
  • The policy administration charge and premium allocation charge as applicable during the discontinuance period. Guarantee charges, if applicable during the discontinuance period, may be deducted provided the guarantee continues to be applicable.
  • The Discontinuance Charges deducted at the time of Discontinuance of the Policy will be added back to the Segregated Funds.
  • Any revival shall only cover the loss or insured event which occurs after the Revival Date.
  • The rider if any,may also be revived at the option of the policyholder.
  • In case of revival, no extra allocation, if any will be made in respect of unpaid due premiums.
• Revival of a discontinued policy after lock-in period
  A Policy that has become Discontinued after lock-in period may be revived during the Revival Period of 3 years from the date of first unpaid premium by giving a written notice to revive the Policy, provided that:
  • The Policy will be revived in accordance with board approved underwriting policy
  • The due Instalment Premiums are paid in full without charging any interest or fees.
  • On Revival, the Policy will continue with the original risk cover, benefits and charges, as per the terms and conditions of the Policy
  • The Premium Allocation Charges and Policy Administration Charges, if any, which was not collected at the time of Discontinuance of the Policy, shall be levied.The guarantee charges may be deducted, if guarantee continues to be applicable. No other charge shall be levied.
  • Any revival shall only cover the loss or insured event which occurs after the Revival Date.
  • The rider if any,may also be revived at the option of the policyholder.
  • In case of revival, no extra allocation, if any will be made in respect of unpaid due premiums.

Decrease in Premium

• Anytime after payment of premium for first five completed policy years, you have an option to decrease the premium up to 50% of the original Annualized Premium.
• The decrease in premium is subject to the following conditions. Decrease in premium:
  • Shall be restricted up to 50% of the original Annualized Premium as paid during the inception of the policy
  • Is subject to minimum premium conditions as defined under the plan
  • Shall not be allowed when the policy is in discontinuance status i.e. decrease in premium is allowed only when all due premiums have been paid
  • Shall be applicable only on policy anniversary
• Once reduced, the premiums cannot be subsequently increased.
• The decrease in premium will lead to reduction in Sum Assured as defined under the plan. The revised Sum Assured applicable shall be based on reduced premium.
• Premium Allocation charges and Policy Administration charges shall be accordingly based on revised reduced Premium. Surrender

Surrender :
Policy can be surrendered any time during the policy term. The Surrender Value will be the Fund Value less Discontinuance charge, if any, as mentioned below.

Surrender before completion of 5 policy years
If policy is surrendered before the completion of lock in period of 5 policy years from the policy commencement date, the surrender value equal to fund value less applicable discontinuance charge will be kept in Discontinued Policy Fund & no subsequent charges other than fund management charges for discontinued policy fund will be deducted The surrender value will accrue a minimum guaranteed return as specified by IRDAI, from time to time. Such accumulated surrender value will be paid immediately after the lock in period. In case of death of the life assured during this period, the proceeds will be payable to the nominee / legal heirs as applicable.

Surrender after completion of 5 policy years
If the policy is surrendered after the lock-in period, then the Surrender Value is the Fund Value at the prevailing NAV. It becomes payable immediately.

Vesting of the Policy in Case of Policies Issued to Minor Lives
The policy vests on the life assured on the policy anniversary coinciding with or immediately following the 18th birthday of the life assured. Upon such vesting, the Policy will be deemed to be a contract between the Life Assured (also the policyholder there forth) as the owner of the policy and the Company. The erstwhile policyholder or his estate shall cease to have any right or interest therein.

In case of death of the Policyholder while the Life Assured is a minor, the surviving parent/ legal guardian may be appointed as a new Policyholder. In case the policy is in Paid-Up status or upon non-payment of future premiums, provisions of discontinuance of the policy and paid-up clause shall apply.

Nomination & Assignment
Nomination and Assignment as per Sec 39 and Sec 38 of the Insurance Act, 1938, as amended from time to time, shall be allowed under the plan.

Net Asset Value (NAV) calculation:

Unit Price:
A unit in each fund has its own price called the Net Asset Value (NAV). The NAV of each segregated fund is calculated on daily basis with the following formula:

Market value of investments held by the fund plus the value of any current assets less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before creation /redemption of units.

In case the valuation day falls on a holiday, then the exercise will be done the following working day

Allocation / redemption of units:
In respect of premiums received up to 3.00 p.m. bussiness day (or such other time as IRDAI may direct in the future) under a local cheque or a demand draft payable at par or by way of cash, the closing NAV of the day on which the premium is received shall be applicable. In respect of premiums received after 3.00 p.m., the closing NAV of the next business day shall be applicable.

In respect of premiums received under outstation cheques/demand drafts, the closing NAV of the day on which the cheques/demand draft is realized shall be applicable

All valid requests e.g. switch, surrender or maturity claim etc. received up to 3.00 p.m. business day (or such other time as IRDAI may direct in the future) will be processed at the closing NAV of the day on which the request is received. All such requests received after 3:00 p.m. (or such other time as IRDAI may direct in the future) will be processed at the closing NAV of the next business day.

Tax Benefits
Premium(s) paid are eligible for tax benefit as may be available under the provisions of Section(s) 80C and 10(10D) as applicable. Please consult your tax advisor for the same