Do you want to earn bonuses and also save on taxes because what you earn is a waste if you can’t save anything? Exide Life star Saver plan might be a good idea in such a case since it gives you maximum income benefits of a non-linked participating plan which helps you save on some of your income tax as you invest for your life cover. There are also other bonuses that can be earned at the same time. If you want added coverage, you can use the riders applicable to this Exide Life Insurance plan. So, check out the eligibility, features, benefits, how the plan works, the riders and much more information, from here on.
Eligibility and Premiums payable for the Exide Life Star Saver Plan:
Note that the eligibility terms are based on the policy premium term chosen by the policyholder:
|Parameters for Eligibility||Policy Term|
|10 years||12 years||15 years|
|Premium Payment Terms||5 years||5 years||5 years|
|Minimum Age at Entry (based on the last birthday)||8 years||6 years||3 years|
|Maximum Age of Entry (based on the last birthday)||60 years||60 years||60 years|
|Minimum Age at Maturity||18 years||18 years||18 years|
|Maximum Age of Maturity||70 years||70 years||70 years|
|Minimum Premium (Annual)||Rs.24,000|
|Maximum Premium (Annual)||There is no limit as long as it has been agreed by the policyholder and Exide Life insurance board.|
|Minimum Sum Assured||Rs.76,220|
|Maximum Sum Assured||There is no limit as long as it has been agreed by the policyholder and Exide Life insurance board.|
Key Features of the Exide Life Star Saver Plan:
|Type of Plan||Non-linked participating life insurance plan|
|Premium Payment options||Monthly and annually|
|Tax Benefits||Applicable under the Income Tax Act of 1961, under the following sections:
|Free Look Period||Within 15 days|
|Grace Period||It has a grace period of 30 days on non-payment of the unpaid premium. 15 days in the case of monthly mode.|
|Loan Against Policy||Available for this policy after paying premiums for the policy for 2 years at least, which means Rs.48,000.|
|Alteration||No alteration on benefits are allowed post commencement of the plan.|
|Surrendering Policy||It has the provision but there will be deductions deducted for the surrender such mortality fees, from the premiums paid and the income earned up to that point.|
|Reinstatement||Policy can be reinstatement based on certain terms and conditions.|
Benefits of the Exide Life Star Saver Plan:
Death Benefits: The individual’s nominee will get the sum assured and accrued guaranteed additions on Death of policyholder. Also the same will be applicable for accidental death which is otherwise not covered in other life insurance plans.
Maturity Benefits: The individual will get assured and accrued guaranteed additions along with the loyalty benefit, which is explained, separately:
Additional Guaranteed Benefits:
This is how the benefits are accrued:
|Policy Term with Sum Assured Ranges||Guaranteed Additions Percentage Based on Sum Assured|
|Rs.24,000 to Rs.59,999 per annum||60,000 and 179,999 per annum||Rs.180,000 and over per annum|
|10 years||7 percent||7.5 percent||8 percent|
|12 years||7 percent||7.5 percent||8 percent|
|15 years||7 percent||7.5 percent||8 percent|
Loyalty Benefits:This is a further added benefit, which is paid out as a percentage on the sum assured amount:
10 years Plan: 10 percent
12 years Plan: 12 percent
15 years plan: 15 percent
Tax Benefits: Applicable under the Income Tax Act of 1961, under the following sections:
- Section 80C
- Section 10(10D) on maturity and survival benefits accrued(subject to change in income tax laws)
- Section 80 D if critical illness rider chosen only (subject to change in income tax laws)
How Does the Exide Life Star Saver Plan Work?
All you need to do is choose the following and follow the steps for making the Exide Life Star Saver Plan work for you:
You need to first choose the Policy term as well as the premium, which has been explained in the above explanations.
- Once you have chosen the policy term and premium your age the sum assured for the plan will be arrived at.
- When your policy matures you will be paid the Sum Assured on along with the accrued Guaranteed Additional sum as well as Loyalty Benefit will be paid.
- In the case of the policy holder’s death the nominee will receive Sum Assured on Death along with accrued Guaranteed Additions if applicable.
Riders That Can Be opted for Exide Life Star Saver Plan:
The following riders can be taken for added coverage on this product:
• Protection against Critical Illnesses: Exide Life Critical Illness Rider
• Additional Life Cover: Exide Life Term Rider
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017