DHFL Pramerica Rakshak Gold Plan
Pramerica Life 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.
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.
Eligibility Criteria for Pramerica Life Rakshak Gold
Listed below are the basic eligibility requirements for this plan.
Minimum entry age | 18 years | ||||||||
Maximum entry age | 53 years for 12 year policy term47 years for 18 year policy term | ||||||||
Maximum age at maturity | 65 years | ||||||||
Minimum premium | Rs 12,170 per annual paymentRs 6,329 for half-yearly paymentRs 1,096 for monthly payment | ||||||||
Premium Payment Mode | Yearly, Half-yearly, and monthly | ||||||||
Premium Payment Term |
| ||||||||
Policy Term | Premium Payment Term | ||||||||
12 years | 7 years | ||||||||
15 years | 10 years | ||||||||
18 years | 10 years | ||||||||
Maximum Premium | Depends on your entry age, sum assured, premium payment term, policy term | ||||||||
Minimum Base Sum Assured | Rs.75,000 | ||||||||
Maximum Base Sum Assured | Rs.5 crore |
Benefits/Advantages of Pramerica Life Rakshak Gold
Some of the main advantages of investing in Pramerica Life Rakshak Gold are highlighted below.
Comprehensive/Enhanced Death Benefit: Provides financial support to meet the family's immediate, ongoing, and future needs in the unfortunate event of the life insured's death. It includes:
- A lump sum payment made immediately upon the life insured's death.
- A recurring monthly benefit paid from the date of death until the end of the policy term.
- A final lump sum payout at the policy's scheduled maturity.
Guaranteed Maturity Benefit: This benefit is predetermined at the start of the policy, ensuring there are no unexpected changes when the policy matures and the benefits are paid out.
- Increasing Annual Guaranteed Addition: For every policy year completed, an Annual Guaranteed Addition will accrue, increasing after every three policy years.
- Limited Premium Payment Term: Offers the convenience of paying premiums only for a set period rather than the entire policy duration.
- Loan Flexibility: Provides the option to take a loan against the policy.
Tax Benefits: You may be eligible for tax deductions on both the premiums paid and the benefits received, according to current tax laws.
How Does the Plan Work?
Choose a Base Sum Assured amount between 75,000 and5 Crores. Next, select the duration for paying premiums from the following options:
- Policy Term: 12 Years, Premium Payment Term: 7 Years
- Policy Term: 15 Years, Premium Payment Term: 10 Years
- Policy Term: 18 Years, Premium Payment Term: 10 Years
Your premium will depend on the age and gender of the insured individual, the chosen Base Sum Assured, policy term, and premium payment term, as determined by the underwriting norms of the Company.
Benefits of Pramerica Life Rakshak Gold
The benefits of Pramerica Life Rakshak Gold are given below:
Annual Guaranteed Addition | At the conclusion of each completed Policy Year, an Annual Guaranteed Addition will be added to the Policy, provided that full risk benefits are in effect. Every three policy years there will be a rise in the Annual Guaranteed Addition. |
Guaranteed Maturity Multiple | The coefficient that is added to Base Sum Assured to determine the benefit that will be paid out on the Maturity Date. This element depends on the selected policy term. |
Maturity Date Benefit | A lump sum payment equal to the Guaranteed Maturity Multiple (GMM) times the Base Sum Assured. |
Death Benefit | In the unfortunate event that the life insured passes away during the policy term and the policy is still in effect for full policy benefits, the nominee(s) or legal heir(s) will receive the death benefit from the company. |
Suicide Claim | The Company shall pay an amount equal to the greater of 80% of the total premium paid (excluding underwriting extra, if any) until the date of death, or Surrender Value, if any, available as on date of death, provided the policy is in force, if death results from suicide or attempted suicide, whether sane or insane, within twelve months of the Risk Commencement Date or within twelve months of the date of revival of the Policy. |
Maturity Benefit | Provided the policy remains in effect and the life insured survives until the maturity date, the company will pay the policyholder the sum of the Base Sum Assured multiplied by the Guaranteed Maturity Multiple (GMM) PLUS accumulated Annual Guaranteed Additions. |
What is the Meaning of Premium Payable?
Your premium amount will depend on the Sum Assured band your chosen coverage falls into. There are four Sum Assured bands under this plan:
Band | Sum Assured Range |
Band 1 | Rs.75,000 - Rs.1,49,999 |
Band 2 | Rs.1,50,000 - Rs.2,99,999 |
Band 3 | Rs.3,00,000 - Rs.4,99,999 |
Band 4 | Rs.5,00,000 and above |
The table below outlines the premium details for a healthy 35-year-old male life insured, with an 18-year policy term and a 10-year premium payment term:
Policy Term | Premium Payment Term | Sum Assured | Band | Premium Rate (per Rs.1,000 of Base Sum Assured) | Annual Premium (Excluding Taxes) |
18 Years | 10 Years | Rs.1 lakh | Band 1 | Rs.166.91 | Rs.16,691 |
18 Years | 10 Years | Rs.1.5 lakh | Band 2 | Rs.163.35 | Rs.24,503 |
18 Years | 10 Years | Rs.3 lakh | Band 3 | Rs.161.44 | Rs.48,432 |
18 Years | 10 Years | Rs.3 lakh | Band 3 | Rs.161.44 | Rs.48,432 |
18 Years | 10 Years | Rs.5 lakh | Band 4 | Rs.159.19 | Rs.79,595 |
Premium Payment Modes and Modal Factors:
Payment Mode | Modal Factor |
Annual | 1 |
Semi-Annual | 0.52 |
Monthly* | 0.09 |
*Note: Monthly payments are available only via credit card, direct debit, or ECS.
Other Features and Benefits of Pramerica Life Rakshak Gold Scheme are:
Loan Availability Against the Policy | In case of an emergency, you may need quick access to funds. To accommodate this, you can borrow against your policy once it has accumulated a surrender value. Loans can be taken for up to 75% of the policy's surrender value. The interest rate on loans will be determined by the company annually at the start of each financial year. |
Surrender | To maximize the benefits of your policy, it is recommended to pay premiums for the entire Premium Payment Term to receive Annual Guaranteed Additions throughout the policy's duration. However, if needed, you can surrender your policy any time after it has been active for at least two consecutive years with full premium payments. Upon surrender, the policyholder will receive the surrender value, which will be the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). The GSV consists of a percentage of the total premiums paid, along with the GSV of the accrued Annual Guaranteed Additions. |
Tax Benefits | Benefits from taxes can apply based on current tax legislation. Laws pertaining to taxes can alter. For specifics, please speak with your tax advisor. |
Free Look Cancellation | After receiving the policy bond, you will have 15 days (30 days if the policy is sold through distance marketing) to review the terms and conditions of the policy. If you disagree with any of these terms and conditions, you may return the policy with a note explaining your reasons. |
Grace Period | There will be a grace period of 30 days if you are unable to pay your premium before the due date. The policy, along with all of its benefits, will remain in effect throughout the grace period. Any claims made during this time will be reimbursed after the unpaid premium has been subtracted. |
Nominee | You can choose your nominee who will receive the claim benefits in case of you suffering from any injury caused due to an accident, or your expiration. |
Assignment Policy | Assignment under this policy is carried out in accordance with Insurance Act of 1938, as amended from time to time. |
Can this Policy Be Reviewed at a Later Date?
Everything you need to know about the revival of the Pramerica Life Rakshak Gold Scheme are given below:
- Revival of a policy is permitted up to 5 years from the date of first unpaid premium.
- To reinstate the policy in any situation, all outstanding premiums must be paid, including with any applicable interest.
- If the policy never lapsed or converted to paid-up, the policyholder will be entitled to all benefits upon revival, including any applicable Annual Guaranteed Additions. The policy's revival is subject to the Company's underwriting requirements as they may apply from time to time.
Early Termination Value for policies which have not acquired Surrender Value
In circumstances where a policy has not accrued a surrender value due to non-payment of premiums in the first two years of the policy and assuming that the premium in the first policy year was fully paid, the insurer shall remit fifteen percent (15%) of the premiums paid* to the policyholder’s nominated beneficiaries upon the death of the policyholder, which is the expiry of the renewal time, or upon receipt of a written notice, whichever occurs first.
Death: In the case of a death of the Life Insured prior to the Maturity Date while the Policy is reduced to a paid-up status with further premiums waived, the Company will pay the following benefits to the Nominee.
- T/N × Death Sum Assured plus
- AGA accrued till paid-up
Where:
- T = Number of premiums paid
- N = Number of premiums payable under the policy
Maturity: In the event of the paying up policy, the Life Insured survives until the maturity date of the paid-up Policy, the Company will pay the Policy holder:
- T/N × Base Sum Assured × Guaranteed Maturity Multiple (GMM) + AGA accrued till paid-up
Where:
- T = Number of premiums paid
- N = Number of premiums payable under the policy
Surrender: A paid-up policy can be surrendered for a cash surrender value.
FAQs on DHFL Pramerica Rakshak Gold Plan
- Pramerica Life Rakshak Gold: What is it?
The child-focused, non-linked Pramerica Life Rakshak Gold Plan is an endowment plan offered by Pramerica Life Insurance. It offers assured advantages, such as a death benefit and maturity benefit, to protect your child's finances in the future.
- Who is the owner of Pramerica Insurance?
A joint venture between Prudential International Insurance Holdings, Ltd. (PIIH), a completely owned subsidiary of Prudential Financial, Inc., and DHFL Investments Limited (DIL), a wholly-owned subsidiary of Piramal Capital and Housing Finance Limited ("PCHFL"), is Pramerica Life Insurance.
- What occurs if someone passes away within the policy's term?
The nominee receives monthly income payouts until the end of the policy term in addition to a death benefit, which is usually a sum assured amount plus guaranteed enhancements.
- Does the Pramerica Life Rakshak Gold Plan offer a variety of payment options?
Monthly, quarterly, and annual payment options for the Pramerica Life Rakshak Gold Plan can be discovered on the insurer's website or by speaking with an agent.
- Is giving up a life insurance coverage a wise idea?
You cease to have coverage when you surrender an insurance. You could have to pay taxes if you do it. The other effect of giving up your insurance is that, should you pass away while the policy is still in effect, your beneficiaries will no longer be eligible for a death payment.
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