Canara HSBC Oriental Bank of Commerce Life Insurance Smart Stage Money Back Plan

Transcription

1 Canara HSBC Oriental Bank of Commerce Life Insurance Smart Stage Money Back Plan 1. What is Smart Stage Money Back Plan? Smart Stage Money Back Plan is a traditional participating product, which provides regular money back (survival benefits) to the customer during the term of the policy. Smart Stage Money Back plan provides financial protection to your family by offering life cover and the milestone based payouts through guaranteed money backs and maturity benefit. 2. Explain the key benefits of the plan. Unique key benefits of Smart Stage Money Back Plan are as mentioned below; 3 Guaranteed Money Back payouts of 15% of the Sum Assured each in the 4th,8th and 12th policy year Guaranteed Maturity Benefit equal to 55% of the Sum Assured at the end of the policy term Family protection for 15 years through payout of death benefit Limited payment term of 11 years to suit your finances and preference Lump sum at maturity through Annual bonus and Final bonus (if any) 3. Explain the boundary conditions of the plan. The boundary conditions of Smart Stage Money Back Plan are as mentioned below; Parameter Entry Age Max Maturity Age Policy Term Premium Payment Term Premium Mode Min/ Max. Premium Sum Assured Description 8 years 55 years 70 years 15 years 11 years Annual and Monthly (Monthly Mode is available through SI/ECS only), Monthly mode factor is 0.09 Min: Depends on minimum entry age and minimum Sum Assured Max: No Limit Min: ` 1,00,000; (Min Premium = Min SA* Premium Rate as per age) Max: Subject to underwriting 4. Explain the rebate based on higher Sum Assured. If the Sum Assured is higher than or equal to `150,000, you will be eligible for this rebate in premiums Sum Assured (in `) Rebate (` per 1000 Sum Assured) 150,000 upto 199, ,000 upto 299, ,000 upto 499, ,000 upto 999, ,00,000 and above 13

2 5. Explain the calculation of annual premium with the help of an example. Parameters Calculation Age and Gender 35 male Sum Assured 10,00,000 Premium Rate 113 (as per applicable premium rate at this age) Premium Rebate 13 (as per rebate rate) Annual Premium (Base Premium Rate - High SA Rebate) * (SA / 1000) * (1 + Service Tax Rate) First Year Annual Premium (inclusive of ST & Cess) = (113-13) * (10,00,000/1000) * ( %) = ` 1,03,090 Parameters Calculation Age and Gender 45 male Sum Assured 10,00,000 Premium Rate 117 (as per applicable premium rate at this age) Premium Rebate 13 (as per rebate rate) Annual Premium (Base Premium Rate - High SA Rebate) * (SA / 1000) * (1 + Service Tax Rate) First Year Annual Premium (inclusive of ST & Cess) = (117-13) * (10,00,000/1000) * ( %) = ` 1,07,214 *At present, the Service Tax along with applicable cess will be charged at 3.09% in year 1 and 1.545% of premium from year 2 onwards. 6. Explain the money back schedule of the plan. Guaranteed Money Back (% of Sum Assured) payouts at the end of the 4 th, 8 th, 12 th and 15 th policy year as detailed below will be paid; 4 th Year: 15% 8 th Year: 15% 12 th Year: 15% 15 th Year: 55% 7. Explain the Maturity Benefit. Accumulated Annual Bonuses (for all 15 years in the policy) along with Final Bonus, if any will be paid. 8. Explain Bonus available in this plan. There are 2 types of bonuses are available in this plan. Annual Bonus Final Bonus Interim bonus may also be available for the part of the year, in which death occurs. 9. When the policyholders will get entitled for the bonuses? There will be a vesting period of 3 years for the Annual bonuses in case of survival. Thus, even if the Annual bonuses are added each year to the policy, the policyholder will get entitlement to receive the same only after completion of at least 3 policy years. Hence, in case the policy is terminated during the first 3 policy years, there will be no payment w.r.t. the Annual bonuses. However, in case of death anytime during the policy term,

3 Annual bonus and Final bonus if any will be paid along with Death benefit and policy terminates. Please note that an interim bonus for the part of the year in which death occurs 10. How the company will declare the bonuses? Declaration of bonus (Annual and Final, if any) will be dependent on the performance of the with-profit Par fund managed by Choice. The bonus rates for a particular year will be put up on the website at the end of every financial year. 11. Explain death benefit of the plan. Death benefit Sum Assured is higher of i. Sum Assured, ii. 10 times Annualised Premium In case of death of the Life Assured, a death benefit equal to Death benefit Sum Assured along with added Annual Bonuses (and interim bonus for the part of the year in which death occurs) and Final Bonus, if any is paid. Death benefit is subject to a minimum death benefit equaling 105% of the premiums paid (excluding extra premiums paid, if any) till date. 12. Explain the death benefit during the policy term, in case of unpaid premium(s) If death occurs during the grace period: Death benefits are payable after deducting the premiums then due. If death occurs after the grace period and before/after end of revival period: In case the policy has not acquired paid-up value, then no benefit is paid In case the policy has acquired paid up value, then: o Paid up Value is paid on claim admission. o Final Bonus, if any will not be available once a policy becomes paid-up 13. Explain the clause and conditions of discontinuance of premium. A grace period of 30 days will be allowed in this policy for Annual & Monthly premium mode, after the grace period, the status of the policy will be: I. Discontinuance of Premiums in first 3 policy years: In this case, policy will lapse at the expiry of the grace period of 30 days and will not be eligible for any benefit. II. Discontinuance of Premiums after first 3 policy years:: a) Policy will acquire a Paid-up value at the expiry of the grace period of 30 days and continue with such Paid-up value till maturity or death, whichever is earlier. b) Policy will not be eligible for future bonuses and any future Guaranteed Money Back payouts as long as the policy is in Paid-up state. However, the bonuses already added to the policy before policy going Paid-up will remain guaranteed. 14. Explain the Paid-up value in case of survival and death. After payment of at least three years full premiums if any subsequent due premium is not paid further, the policy becomes paid up and acquires paid up value at the end of the grace period. The policyholder will receive a paid up benefit on death or on maturity, whichever the case may be. Once policy becomes paid up, it will not be entitled to any bonuses in future, until revived. The paid up benefit payable is as follows: In case of Death Paid up value = Death Benefit Sum Assured * (No of premiums paid / No of premiums payable) + accrued Bonuses, less survival benefits already paid

4 In case of Maturity Paid up value = Sum Assured * (No of premiums paid / No of premiums payable) plus accrued bonus less survival benefits already paid Note: o In case of survival all added bonuses (before policy going paid-up) will be payable at maturity only. o No bonuses will be added (including the final bonus) to the policy in future unless policy is revived. 16. When the policy acquires a guaranteed surrender value in this plan? This is a traditional plan intended for long term savings and benefits. We strongly advise that the policy should be continued throughout the defined policy term to realise the full benefits. Early surrender should not be opted for unless there is no other alternative available, as it will impact the policy value and intended goals may not be realised. The Guaranteed Surrender Value is defined below: A*(Sum of Premiums Paid excluding extra premium, if any) + B*(Sum of Bonuses accrued before acquiring paid up status) - C Where A & B are as provided in the table below C is defined as the total survival benefits already paid, if any. Year of Surrender Guaranteed Surrender Value (as % of sum of premiums paid if any) GSV factor for bonus (to be multiplied with sum of bonuses accrued before acquiring paid-up status) 3 30% 18.69% 4 50% 21.49% 5 50% 24.72% 6 50% 28.43% 7 50% 32.69% 8 52% 37.59% 9 54% 43.23% 10 56% 49.72% 11 58% 57.18% 12 60% 65.75% 13 62% 75.61% 14 64% 86.96% 15 66% % The company shall provide a special surrender value, which can be revised at the discretion of the company. At any point of time, the special surrender value shall be at least as high as the guaranteed surrender value. Special Surrender Value is equal to: SSV Factor * [Sum Assured * (No of premiums paid / No of premiums payable)+accrued Bonus] - total survival benefits already paid, if any + Terminal Bonus (if any) declared by the Company.

5 The SSV factors will be declared subsequently. It may change basis company s experience On receipt of surrender request from the policyholder, the higher of Guaranteed Surrender Value and Special Surrender Value shall be payable to the policyholder. 17. Provide the Premium rates per `1,000 Sum Assured (annual premium) for males and females. Premium rates per `1,000 Sum Assured (annual premiums payable annually) for both males and females are as follows: Age (l.b.d.) Premium Rate per `1,000 SA Age (l.b.d.) Premium Rate per `1,000 SA