The Exide Life Insurance’s is a pure protection insurance plan, or term plan, as they are more popularly known. The plan allows you to ensure your family’s financial base is strong, and this will be at a nominal price. The plan offers you a high sum assured at low premiums. These premiums can be paid throughout the life of the policy or even for a limited period of time. It also offers a terminal illness benefit, but doesn’t provide a survival or maturity benefit since, it is a pure protection plan. With the My Term Insurance Plan, you also have the option to add 3 additional riders namely, Accidental Death Benefit, Accidental Death, Disability and Dismemberment, and Critical Illness Riders.
The key features and benefits of the My Term Insurance Plan is:
The plan offers you the choice of premium payments, you can either pay the premiums for the entire term of the policy or for a limited period under the limited pay option.e limited period option can be chosen for a period 5, 7, or 10 years.
With this plan you get a death benefit with two options to choose from:
Option A - wherein you get the death benefit of the entire sum assured paid in one lump sum.
Option B - wherein you get the death benefit, of providing your family with a sum assured percentage, as well as, an income. The benefit is called family income benefit.
Under option B of the death benefit, you can choose four different payment options, this payments will consist of the percentage you would like your family to receive as a lump sum amount, and as a monthly income.
Lump sum %
EMI = 110% of the remaining balance/60
will equal (110% of 20% of the sum assured )/60
will equal (110% of 50% of the sum assured )/60
will equal (110% of 60% of the sum assured )/60
will equal (110% of 70% of the sum assured )/60
The plan also offers you a terminal illness benefit, wherein if you are diagnosed with a terminal illness during the policy term, 25% of the sum assured will be paid to you as a lump sum on death up to a maximum of Rs.50 lakhs, and all future premiums will be paid by the insurer. The policy will continue for the entire term as well.
This term insurance plan also offers discounts for women who would like to opt for this plan. Discounts are also provided to non-smokers.
Tax benefits are offered as well, under section 80C of the Income Tax Act 1961.
If the insured would like to opt for higher sum assured amounts, then the insurer will provide them with premiums rebates as well.
Since this is a pure term plan, there is no survival or maturity benefit.
A grace period of 15 days will be provided for premium payments.
The policy also offers you a free-look period of 15 days, within which, if you are not satisfied with the policy, you always have the option to cancel the same.
How does the plan work?
Let’s say that Naveen, aged 35 years, opts to take up the My Term Insurance Plan, with a sum assured of Rs. 50 lakhs. The policy term is 20 years, and Naveen has decided to pay premiums throughout the policy term. The premium he’ll pay on a yearly basis is Rs. 8, 643. For the death benefit he has chosen, option B so he can provide his family with an income as well. Under this death benefit option B, he has chosen payment option 2 - where 50% of the sum assured will be paid as a lump sum and the other 50% in EMIs.
In the case wherein Naveen is diagnosed with a terminal illness, he will receive 25% of the sum assured, since Naveen has chosen option B, he will receive Rs.6.25 lakhs.
If Naveen passes away during the life of the policy, his family will receive 50% of the Rs.50 lakhs, i.e. Rs.25 lakhs, and the remaining Rs. 25 lakhs will be divided into EMIs which will be Rs.45,833 per months for the next 60 months.
Please note: This above mentioned example is taken exclusive of service tax and for a healthy, non-smoker individual
Eligibility conditions required for this policy:
The minimum entry age required for this policy is 18 years, and the maximum age allowed will be 65 years.
The maturity age of the insured will be a maximum of 75 years.
The policy can be taken for a period of 10 - 35 years.
The premium paying term will be either regular pay throughout the life of the policy, or limited option pay wherein the insured can make premium payments for a period of either 5, 7 or 10 years.
The minimum sum assured will be a sum of Rs.25 lakhs, while the maximum sum assured is Rs.25 crores.
The payment of premiums can be done either annually or monthly.
Exide Life Term Insurance FAQs
What are the exclusions for the policy?
A.If the insured takes his/her own life the death benefit will not be paid. In case of the terminal illness benefit, there will be no payment, in the event of self-inflicted injuries, failure to take medical advice, alcohol or drug abuse, and HIV and or AIDS.
Are non-smokers given any premium benefits under this plan?
A.Yes, non-smokers will enjoy premium discounts under the plan.
What is the minimum sum assured for the My Insurance Term Plan?
A.The minimum sum assured will be Rs.25 lakhs.
Q. Is there a possibility for surrendering the plan?
A.Yes, if the limited premium payment option is chosen. If all payments have been paid, a surrender value will be acquired. The formula followed will be Surrender Value = Total premiums paid * 70% * number of years remaining in the policy/ policy term in years. Once the surrender value is paid the policy will be terminated.
Q. Do I have the option to return the policy if unhappy?
A.Yes, the policy offers you a free-look period of 15 days, until which you have the option to withdraw your policy.
Q. What is the minimum and maximum entry age for the policy?
A.For this policy the minimum entry age will be 18 years, and the maximum age will be 65 years.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017