The future of our world lies in the hands of our children, and the future of our children lies in our hands, making planning critical towards securing a bright tomorrow for them. DHFL Pramerica Rakshak Gold is a non-participating endowment insurance policy which works as a child protection cum savings plan, providing a strong financial platform, ensuring children can live their dreams without worrying about financial constraints.
Eligibility Criteria for DHFL Pramerica Rakshak Gold
Listed below are the basic eligibility requirements for this plan.
|Minimum entry age||18 years|
|Maximum entry age||
|Maximum age at maturity||65 years|
Rs 16,227 per annual payment
Rs 8,438 for half-yearly payment
Rs 1,460 for monthly payment
Key Features of DHFL Pramerica Rakshak Gold
Listed below are the key features of DHFL Pramerica Rakshak Gold.
|Plan type||Non-participating guaranteed endowment policy|
|Premium payment term||
|Maturity benefit||Maturity benefit equivalent to base sum assured plus bonus and guaranteed maturity multiple will be paid|
|Premium payment frequency||Yearly, half-yearly and monthly|
|Loan||Loan can be availed during emergencies, subject to certain conditions|
|Surrender value||Surrender value will be paid if the policy is surrendered after being active for a certain period|
|Free look period||
|Grace period||30 days|
|Revival/Renewal||Lapsed policies can be revived by paying all dues and fines within 2 years of first unpaid premium. The company can ask policyholders to meet other criteria to renew the policy, subject to its discretion|
Minimum – Rs 1 lakh
Maximum – Rs 5 crore
|Policy coverage||Death, Maturity Benefits|
Benefits/Advantages of DHFL Pramerica Rakshak Gold
Some of the main advantages of investing in DHFL Pramerica Rakshak Gold are highlighted below.
- Assured maturity benefit – Policyholders are entitled to a maturity benefit once the policy expires, ensuring they have funds at their disposal.
- Assured additions – A policy is entitled to earn bonus and guaranteed additions, offering better returns on an investment.
- Loan – Policyholders can avail loans against their policies, subject to the policy having acquired a surrender value.
- Tax gains – Premiums paid and benefits received are eligible for tax benefits, helping policyholders save tax.
- Death benefit – In the event of demise of a policyholder, his/her nominee will receive a death benefit equivalent to the sum assured plus guaranteed additions.
- Limited premiums – Policyholders enjoy protection for the entire policy term by paying premiums only for a limited time.
Working of DHFL Pramerica Rakshak Gold
Let us understand the working of DHFL Pramerica Rakshak Gold through the example of Mr. Joseph, a music teacher. Aged 40 years, Mr. Joseph is married with two kids. He works for a reputed music school and plans on securing the future of his children by investing in this plan. He chooses a policy with a term of 18 years, paying an annual premium for 10 years. The sum assured opted by him is Rs 15 lakh.
Let us consider the following scenarios.
Scenario 1: Mr. Joseph passes away 15 years after purchasing the plan. He paid all premiums on time, keeping the policy active. In this case, his nominee will receive an amount equivalent to the base sum assured plus the guaranteed addition. Apart from this, a monthly benefit equivalent to 2% of the base sum assured will be paid for 3 years. On maturity of the policy, an additional amount equivalent to the product of base sum assured and the guaranteed maturity multiple will also be paid.
Scenario 2: The policy matures at the end of 18 years, with Mr. Joseph staying healthy and active. In this case, he will receive a maturity benefit equivalent to the product of the base sum assured and guaranteed maturity multiple. In addition to this, all accrued annual additions will also be paid to Mr. Joseph.
|Premium payment frequency||Minimum amount|
This DHFL Pramerica Child plan doesn’t come with any riders currently. The company can choose to add riders at its own discretion and applicants should check the same before buying the policy.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017