Frequently Asked Questions EASY PROTECT PLAN TRA/9/13-14/6191. October 10, Prepared by Product Management 1 For Internal Circulation only

Transcription

1 Frequently Asked Questions EASY PROTECT PLAN TRA/9/13-14/6191 October 10, 2013 Prepared by Product Management 1 For Internal Circulation only

2 Contents 1. What is BSLI Easy Protect Plan? What are the significant features of BSLI Easy Protect Plan? Am I eligible for this plan? How can I buy this plan?... 3 Section B What are the categories offered under this plan? Can I choose the amount of Sum Assured? Can I increase or reduce my Sum Assured? Can I change the Increasing Term Assurance percentage anytime during the term? What is the term of the policy?... 4 Section C... 4 Premium How many years do I need to pay my premium? What is the minimum and maximum premium to be paid? How can I pay my premiums? Do I pay less if I choose to pay my premiums annually? Can I increase or reduce my premium amount?... 5 Benefits What are the benefits offered under this plan? Is there any rider benefit in this plan? Do I have a loan facility under this plan? Can I avail of tax benefits under this plan? What are the benefits available?... 5 Premium Discontinuance and Revival What happens if I do not pay my premium on time? What happens if I do not pay my premium within the grace period? How can I revive my policy?... 6 Termination How long will my policy continue?... 6 Operational / Underwriting Guidelines How will the client be identified as non-smoker? Can I take a policy for my spouse/children? Is there any change in the underwriting guidelines for this plan? Do I need to upload the KYC documents again even if I have already submitted documents for earlier proposals with BSLI? What application form is required for BSLI Easy Protect? What is a process for submission of documents under BSLI Easy Protect? Explain the sales process for BSLI Easy Protect Plan Can this plan be taken by NRIs?... 7 Prepared by Product Management 2 For Internal Circulation only

3 Section A BSLI Easy Protect Plan Summary 1. What is BSLI Easy Protect Plan? BSLI Easy Protect Plan is pure term insurance plan. 2. What are the significant features of BSLI Easy Protect Plan? BSLI Easy Protect is a pure term insurance plan providing financial security to the family of the life insured in his absence. Complete financial protection at an affordable cost Options of Level and Increasing Term Assurance Premium discount for female lives Rewards for a healthy lifestyle Income Tax benefits as per prevailing norms under the Income Tax Act, Am I eligible for this plan? You are eligible if you are: Between age years having valid id Require a minimum Sum Assured of Rs. 50 lakhs and Looking for a policy term of 5 to 30 years provided you are 80 years of age or younger at the end of the term 4. How can I buy this plan? At present this plan is only available on E application platform through advisors intervention. Advisor will have to login to the advisor login section and follow the process of creating illustration, capturing client details and processing payment. Section B Plan Structure At inception you choose - 1. Sum Assured 2. Sum Assured Option 3. Policy Term 5. What are the categories offered under this plan? This plan offers premium rebate for female lives. Further, depending upon the smoking status of the life insured, s/he will be classified as Non-Smoker or Smoker. The Non-smoker life insured will be further classified as a Preferred Non-Smoker depending upon self / family health background. The client will be classified as non-smoker, if s/he has not consumed tobacco products in the last 60 months. This includes any nicotine products like cigarette, cigars, chewable tobacco or any other classified stimulants. 6. Can I choose the amount of Sum Assured? Yes. You can choose your Sum Assured to suit your particular insurance needs at policy inception The minimum Sum Assured is Rs.50 lakhs and there is no maximum limit Prepared by Product Management 3 For Internal Circulation only

4 7. Can I increase or reduce my Sum Assured? BSLI Easy Protect Plan offers you the freedom to choose your sum assured options at inception depending on your needs. a) Level Term Assurance With this option, you choose the amount of protection you need at inception. Once chosen, your sum assured will remain constant for the entire policy term. b) Increasing Term Assurance To meet the rising cost of living, it is apparent to have a plan that ensures that your insurance cover increases with your increasing responsibilities. With this option, your sum assured increases with your increasing responsibility. You can choose to enhance your sum assured by 5% or 10% at inception depending upon your needs. On every policy anniversary, your sum assured will increase by 5% or 10% of the initial sum assured without any increase in your premium amount. However there is no option to reduce your Sum Assured. Example: Ansh a smoker, aged 30 years chooses a Sum Assured for Rs. 1,00,00,000 with an Increasing option of 10% p.a. and policy term of 25 years. He chooses to pay his premium annually. Premium payable is Rs. 26,966 (incl. of service tax and cess) The Sum Assured will increase by Rs. 10,00,000 on every policy anniversary. Age (in years) Policy Anniversary (in years) Sum Assured (in Rs.) ,00,00, ,10,00, ,20,00, ,30,00, ,40,00, ,50,00, Can I change the Increasing Term Assurance percentage anytime during the term? No, the Increasing Term Assurance percentage chosen at policy inception cannot be increased or reduced. 9. What is the term of the policy? The plan offers a choice of policy term to choose for based on your needs and the Plan Option chosen by you. You can choose the policy term from 5 to 30 years provided you are 80 years of age or younger at the end of the policy term Section C Premium 10. How many years do I need to pay my premium? This plan offers premium paying option of Regular Pay and Single Pay. Prepared by Product Management 4 For Internal Circulation only

5 11. What is the minimum and maximum premium to be paid? The plan is Sum Assured based where you can choose your Sum Assured. Based on the Sum Assured and policy term chosen, your age and your gender and the smoker, non-smoker and preferred non-smoker category we will determine the premium. I. Below are sample annual premiums for Level and Increasing Term Assurance for a male aged 35 purchasing Rs.1 crore sum assured with regular premium paying term. Policy Term 10 years 20 years 30 years 10 years 20 years 30 years 10 years 20 years 30 years Sum Assured Smoker Non-Smoker Preferred Non-Smoker Option Level 10,400 13,850 19,450 8,050 9,950 13,650 7,450 8,850 12,000 5% 12,150 20,150 34,100 9,050 14,100 23,450 8,250 12,400 20,450 10% 13,950 26,500 48,750 10,250 18,250 33,300 9,250 16,000 28,950 Service Tax and Education Cess and any other applicable taxes will be added to your premium and levied as per extant tax laws. 12. How can I pay my premiums? You can pay your policy premium annually and monthly (Only ECS) through net-banking, credit card or debit card only, currently no other modes of payment are allowed under this plan. 13. Do I pay less if I choose to pay my premiums annually? No, there is no discount if you choose to pay your premiums by annual mode. You will pay same premium for both monthly and annual modes of premium payment. 14. Can I increase or reduce my premium amount? No, you cannot increase or reduce your premiums during the policy tenure. Benefits 15. What are the benefits offered under this plan? Death Benefit In case of the unfortunate demise of the life insured during the policy term, the sum assured applicable at that time will be paid to the nominee. Surrender Benefit There is no surrender benefit offered for regular pay under this plan. However, your policy will acquire a surrender value immediately after policy issuance for single pay. Maturity Benefit This plan does not provide for any maturity benefit. 16. Is there any rider benefit in this plan? No, there are no riders offered under this policy. 17. Do I have a loan facility under this plan? No, there is no loan facility against your policy. 18. Can I avail of tax benefits under this plan? What are the benefits available? As per extant tax laws, this plan offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, subject to fulfillment of the other conditions of the respective sections prescribed therein. Prepared by Product Management 5 For Internal Circulation only

6 You are advised to consult your tax advisor for details. Premium Discontinuance and Revival 19. What happens if I do not pay my premium on time? If you are unable to pay your policy premium by the due date, you will be given 30-day grace period, to pay your due premiums, during which your coverage will continue. 20. What happens if I do not pay my premium within the grace period? If you do not pay your premium within the grace period, your policy will lapse and all insurance will cease immediately. 21. How can I revive my policy? You can reinstate your policy for its full coverage within two years from the due date of the first unpaid premium by paying all outstanding premiums together with interest as declared by us from time to time and by providing evidence of insurability satisfactory to us. The effective date of the revival is when these requirements are met and approved by us. Termination 22. How long will my policy continue? The policy will be terminated at the earliest of: a. The date of settlement of the death benefit; or b. The date of payment of the surrender value, if any; or c. The date of maturity of the policy; or d. If the policy has not acquired a surrender value, the date on which the reinstatement period ends ; Operational / Underwriting Guidelines 23. How will the client be identified as non-smoker? Depending on the smoking habits, the client will be classified into smoker or non-smoker category. An applicant will be classified as non-smoker, if s/he has not consumed tobacco products in the last 60 months. This includes any nicotine products like cigarette, cigars, chewable tobacco or any other classified stimulants. The client will have to provide with the non-smoker declaration. At any time during the policy term, if we are able to establish that the client had intentionally concealed the facts about smoking status of the Life Insured at the time of issuance of policy, we will treat this contract to be void and forfeit all the premiums paid under the policy The Non-smoker life insured will be further classified as a Preferred Non-Smoker depending upon self / family health background. 24. Can I take a policy for my spouse/children? No- Proposer and Life Insured have to be same under this plan. 25. Is there any change in the underwriting guidelines for this plan? No change except in case of increasing term assurance, the test will be done based on the initial sum assured chosen at inception, without making any allowance for the future increase. Prepared by Product Management 6 For Internal Circulation only

7 26. Do I need to upload the KYC documents again even if I have already submitted documents for earlier proposals with BSLI? Yes, you need to resubmit the KYC documents 27. What application form is required for BSLI Easy Protect? A separate online application (E app) form for BSLI Easy Protect needs to be filled 28. Do I need to Sign the application form No you have to sign and submit only physical declaration about this plan 29. What is a process for submission of documents under BSLI Easy Protect? You can submit the document by way of uploading the same online 30. Explain the sales process for BSLI Easy Protect Plan Following is the sales process for BSLI Easy Protect Plan - Login to advisor portal: - Go to ichamp - Select Easy Protect under Protection Solutions & generate illustration - Select option-proceed to E-app & complete the application - Payment link will be sent on the customer id - Pay the premium and upload the documents 31. Can this plan be taken by NRI, PIO, FNIO & OCI? No - This plan cannot be taken by NRI, PIO, FNIO & OCI. Prepared by Product Management 7 For Internal Circulation only