Frequently Asked Questions

Transcription

1 Frequently Asked Questions TRA/12/13-14/6537 Dec 30 th 2013 Prepared by Product Management 1 For Internal Training and Circulation only

2 Contents BSLI Waiver of Premium Rider Plan Summary What is BSLI Waiver of Premium (WOP) Rider? Am I eligible for this rider? What are the rider terms available?... 3 Premium What is the minimum / maximum premium under this rider? For how many years do I need to pay my premiums? How can I pay my premiums? Does the rider premium get invested?... 3 Benefits What are the benefits under this rider? When does the event have to occur for it to be covered under this WOP rider? Is there a waiting period involved before the WOP rider benefit can be claimed? What is Total Permanent Disability? Which Critical Illnesses are covered under this rider? Under what circumstances (exclusions) will the WOP rider benefit not be payable to the life insured / Proposer? When can this rider be added / deleted? Is there any surrender benefit or paid up value or loan available on this rider? Are rider premium rates guaranteed throughout the term? Can I avail of tax benefits under this plan? What are the benefits available?... 6 Termination How long will my rider continue?... 6 Prepared by Product Management 2 For Internal Training and Circulation only

3 Unexpected events can always occur in life and what better way could be, if you happen to be protected against such accidents or unexpected illnesses. BSLI Waiver of Premium rider ensures your insurance benefits continue if you are unable to pay the premiums in the event any unforeseen calamities. BSLI Waiver of Premium Rider Plan Summary 1. What is BSLI Waiver of Premium (WOP) Rider? BSLI Waiver of Premium (WOP) Rider is traditional rider that offers coverage towards waiver of future premiums in the event of unforeseen calamities by paying a nominal extra premium over and above the base premium. The event of unforeseen calamities are covered which are originating due to the following: the life insured incurs a disability due to an illness or accident Total Permanent Disability (TPD); or diagnosed with any of the specified critical illnesses Critical Illness (CI); or death of the proposer (only when life insured and proposer are different) - Death then we will waive off all the future premiums of the base plan and the attached riders throughout the rest of the policy term or until the termination of the policy or till the attained age 70 of the life insured whichever is earlier. The benefit under this rider is payable only when the base plan is in effect. The protection under this rider will cease after a claim under this rider is paid, however, the benefits under the base plan or other rider/s will continue. 2. Am I eligible for this rider? You are eligible if you are between age years. 3. What are the rider terms available? The term available under the plan is same as that of base plan s pay term or till the attained age 70 of the proposer, whichever is earlier. Premium 4. What is the minimum / maximum premium under this rider? Premium under this rider depends on age, gender and base premium. 5. For how many years do I need to pay my premiums? Premium paying term for rider premium is same as that of the base plan or till the attained age 70 of the proposer, whichever is earlier. 6. How can I pay my premiums? You need to pay your rider premium in the same mode as that of base plan. 7. Does the rider premium get invested? Rider premiums will not be invested. This rider is traditional in nature. Benefits Prepared by Product Management 3 For Internal Training and Circulation only

4 8. What are the benefits under this rider? In the event the proposer is unable to pay the premium arising due to the following: In case Life Insured and proposer are same - Proposer becomes completely disabled due to an illness or accident and the permanence of the disability shall last for 180 days following the date of the event - Proposer is diagnosed with any of the specified critical illnesses and survives for 30 days from date of diagnosis In case the Life Insured and proposer are different - Death of the proposer - Proposer becomes completely disabled due to an illness or accident and the permanence of the disability shall last for 180 days following the date of the event - Proposer is diagnosed with any of the specified critical illnesses and survives for 30 days from date of diagnosis, Then we will waive off all the future premiums of the base plan and the attached riders throughout the rest of the policy term or until the termination of the policy or till the proposer s attained age 70 whichever is earlier. However premiums due in waiting period or survival period will not be waived of. 9. When does the event have to occur for it to be covered under this WOP rider? Only if the covered events under TPD or CI occurs within the ages of 18 and 70 of the life insured and death happens within the age of 18 to 70 of the Proposer (if not the life insured), then the WOP rider will be in effect and all due future premiums of the policy will be waived off. 10. Is there a waiting period involved before the WOP rider benefit can be claimed? Yes, in case of WOP on TPD and CI, there is a waiting period of 90 days from the date of commencement of the life insurance policy or the reinstatement of the policy whichever is later. This means that anytime after the first 90 days of the commencement of the policy if the Insured contracts the CI covered or suffers from TPD, then all future due premiums will be waived, but incase the CI or TPD happens within 90 days, then WOP rider will terminate. 11. What is Total Permanent Disability? The proposer shall be regarded as disabled and entitled to this benefit if due to illness, disease, injury or surgical operations s/he is totally and permanently unable, even with reasonable training, rehabilitation and/or job accommodation to engage in gainful employment in any occupation whatsoever. This disability should last for at least 180 days before being eligible for Total and Permanent Disability benefits. 12. Which Critical Illnesses are covered under this rider? We cover 4 major illnesses under this benefit First Heart Attack of Specified Severity The death of a portion of the heart muscle as a result of inadequate blood supply to the relevant area. The diagnosis for this will be evidenced by all of the following criteria: A history of typical clinical symptoms consistent with the diagnosis of Acute Myocardial Infarction (for example typical chest pain), New characteristic electrocardiogram changes, Elevation of infarction specific enzymes, Troponins or other specific biochemical markers. Excluded are: Non-ST-segment elevation myocardial infarction (NSTEMI) with elevation of Troponin I or T; Other acute Coronary Syndromes; Any type of angina pectoris Prepared by Product Management 4 For Internal Training and Circulation only

5 Cancer of Specified Severity A malignant tumor characterized by the uncontrolled growth and spread of malignant cells with the invasion & destruction of normal tissues. The diagnosis must be supported by histological evidence of malignancy & confirmed by a pathologist. The term cancer includes leukemia, lymphoma and sarcoma. Excluded are Tumours showing the malignant changes of carcinoma in situ & tumours which are histologically described as premalignant or non invasive, including but not limited to: Carcinoma in situ of breasts, Cervical dysplasia CIN- 1, CIN-2 &CIN-3; Any skin cancer other than invasive malignant melanoma; All tumours of the prostate unless histologically classified as having a Gleason score greater than 6 or having progressed to at least clinical TNM classification T2N0M0; Pailliary micro-carcinoma of the thyroid less than 1cm in diameter; Chronic lymphocytic leukaemia less than RAI stage 3; Microcarcinoma of the bladder; All tumours in the presence of HIV infection. Stroke Resulting in Permanent Symptoms Any cerebrovascular incident producing neurological sequelae. This includes infarction of brain tissue, thrombosis in an intracranial vessel, haemorrhage and embolisation from an extra-cranial source. The diagnosis has to be confirmed by a specialist medical practitioner and evidenced by typical clinical symptoms as well as typical findings in CT scan or MRI of the brain. Evidence of neurological deficit for at least 3 months has to be produced.. Excluded are - Transient ischemic attacks (TIA) Traumatic injury of the brain Vascular disease affecting only the eye or optic nerve or vestibular functions. Major Organ / Bone Marrow Transplant Actual undergoing of a transplant of: Human bone marrow using haematopoietic stem cells. The undergoing of a transplant has to be confirmed by a specialist medical practitioner, or One of the following human organs: heart, lung, liver, kidney, pancreas that resulted from irreversible end - stage failure of the relevant organ. Excluded are: - Other stem-cell transplants. - Where only islets or langerhans are transplanted. This life insured should survive for at least 30 days before being eligible for critical illness benefits. 13. Under what circumstances (exclusions) will the WOP rider benefit not be payable to the life insured / Proposer? The life insured will not be entitled to any benefits if a covered critical illness or disability results either directly or indirectly from any of the following causes: any pre-existing condition (disease, illness or injury) which manifested itself prior to the effective date of the rider or its latest revival date, whichever is later; any condition (disease, illness or injury) manifesting itself within 90 days from the effective date of the rider or its latest revival date, whichever is later; any congenital condition; AIDS, HIV related complications or any sexually transmitted diseases; Prepared by Product Management 5 For Internal Training and Circulation only

6 attempted suicide or self-inflicted injury, irrespective of mental condition; participation in a criminal, unlawful or illegal activity; taking or absorbing, accidentally or otherwise, any intoxicating liquor, drug, narcotic, medicine, sedative or poison, except as prescribed by a registered medical practitioner acceptable to us; nuclear contamination, the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature; entering, exiting, operating, servicing, or being transported by any aerial device or conveyance except when on a commercial passenger airline on a regular scheduled passenger trip over its established passenger route; engaging in or taking part in professional sport(s) or any hazardous pursuits, including but not limited to, diving or riding or any kind of race, underwater activities involving the use of breathing apparatus or not, martial arts, hunting, mountaineering, parachuting, bungee jumping; war (whether declared or not), terrorism, invasion, act of foreign enemy, hostilities, civil war, martial law, rebellion, revolution, insurrection, military or usurper power, riot or civil commotion; taking part in any naval, military or air force operation during peace time; no payment will be made by the Company for any claim directly or indirectly caused by, based on, arising out of, or howsoever, to any Illness or accident for which care, treatment, or advice was recommended by or received from a Physician, or which first manifested itself or was contracted before the start of the Policy Period, or for which a claim has or could have been made under any earlier policy. 14. When can this rider be added / deleted? This rider can be added only at inception. Once added, deletion of this rider is not allowed. 15. Is there any surrender benefit or paid up value or loan available on this rider? No, there is no surrender benefit or paid up value or loan available on this rider. 16. Are rider premium rates guaranteed throughout the term? No, rider premium rates are guaranteed for the first three years in case of in force policies. Rates may be reviewed thereafter subject to IRDA approval. 17. Can I avail of tax benefits under this plan? What are the benefits available? As per current tax laws you will be eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, Under Section 80C, premiums up to Rs.1,00,000 are allowed as a deduction from your taxable income each year. Under Section 10(10D), the benefits received from this plan are exempt from tax, subject to mentioned exclusions. Termination 18. How long will my rider continue? The rider will be terminated at the earliest of: the coverage maturity date for this rider coverage; or the date on which a claim is paid under this rider for Death or Total and Permanent Disability or Critical Illness whichever occurs first under this rider coverage; or the date the policy to which this rider is attached terminates; or the date the reinstatement period ends as per the premium discontinuance provision of base plan; where premium paying term is equal to the rider term. No rider benefits shall be payable during the reinstatement period of such policies. Prepared by Product Management 6 For Internal Training and Circulation only