Suitability
Life Long is a flexible whole life plan suitable for all stages of life.
Salient Features
Life Long is a whole life unitised protection cum savings plan.
Policy can be purchased on a single life or joint life (spouse only) on first death basis.
Policyholder has the option to either choose the sum assured or premium he wishes to pay. Further he has to choose the level of cover - Minimum, Standard, Maximum
Apart from the above, policyholder can specify the cover level subject to the restriction of minimum and maximum cover levels based on the age. The cover level can vary between 10 and 100 times the annual premium depending on the age at entry.
Premiums are payable till the age of 85 years or till death which ever is earlier. However risk cover expires at age 70 years. One can pay the premiums in yearly, half-yearly, quarterly or at monthly (direct debit only) intervals.
Premiums paid under the policy are used to purchase units. Policyholder can purchase units of either a With Profits Fund or a Unit Linked Fund.
Policyholder is provided with various investment options wherein he can invest 100% of investible funds either in a With Profits Fund or a Unit Linked Fund or he has the option to invest 50% into a With Profits fund and 50% into a Unit Linked fund.
The With Profits Fund provides a guarantee that the unit price will never fall. The unit value of this fund is increased by crediting bonuses at regular intervals. A final bonus, if any, may also be payable at maturity, death, or at the time of full or partial surrender.
The unit value in the Unit Linked Fund can fluctuate depending upon the performance of the assets held.
The policy offers flexibility of making lump sum investments through additional single premiums, apart from the regular premiums. This will increase the savings value (investment) of the policy and do not change the risk cover. This fund is maintained separately and can be withdrawn or surrendered subject to surrender penalty.
Policyholder can increase the sum insured up to the 27th policy anniversary or the policy anniversary at which the life insured attains 67 years of age, whichever is earlier.
Policyholder can increase the sum assured and rider benefits under the policy to protect the real value of the policy and guard against the inflation without any underwriting. However this is done based on the company determined indexation.
If policyholder is unable to pay premiums, he can opt to cash-in policy or make it paid-up, provided at least two years premium have been paid and the policy has accumulated sufficient policy value.
In case of paid-up policy, one can reduce the level of sum insured to zero or keep the sum insured at the same level. Also, rider coverage will continue provided that the sum insured under the base plan is not reduced to zero. A lapsed or paid-up policy can be reinstated to premium paying status within six months by paying all the due premiums, subject to prevailing underwriting requirements.
Benefits under the policy can be enhanced by opting for rider. Riders available under the policy are:
Accidental Death & Dismemberment (AD&D)
Critical Illness & Permanent Total Disability (CI&PTD
Hospital Cash Benefit (HCB)
Charges applicable under the policy are made by the way of deductions. Charges applicable are:
Initial management charge of 5% per annum on the initial units (units purchased with the first two years' regular premium or two years' incremental regular premium) of the policy
An administration charge of Rs.55 per month( this shall be adjusted annually for inflation).
A regular management charge of 1% per annum on both initial and accumulation units.
Risk charges based on age, sex, level of life cover and the rider(s) opted.
Premiums paid are eligible for a tax rebate as per Section 88 of the Income Tax Act. Policy proceeds are tax free under Section 10 (10D) of the Income Tax Act. Any investment return earned on the policy value will generally be subject to tax at a lower effective tax rate.
A free temporary accidental death cover equal to the proposed sum insured of all the proposals under consideration or Rs. 5 lakh, whichever is lower, is provided from the date of first premium payment to the issuance of the policy subject to a maximum of three months.
Benefits
There is no maturity for the policy. Full withdrawal of the policy is permitted after two policy years and partial withdrawal is permitted after three policy years. Policyholder will get back the number of units surrendered multiplied by their selling price, less early redemption charges, if any.
The minimum amount one can withdraw at any one time in case of partial cash-in of units is Rs. 5000/-, increasing from time to time (as stipulated by the Company). The minimum balance (value of units) in the account at any time should not be less than Rs. 10,000.
The units held in respect of lump sum investments through additional single premiums can be cashed-in at any time subject to surrender charges, if any.
On Death:
Lump sum equivalent to the higher of the value of units in respect of regular premiums or the sum insured is paid. This apart, the value of units in respect of lump sum investments through additional single premiums will be paid.
A final bonus, if any, may also be payable in case of a With Profits policy.
In the case of joint life insurance, death benefit is paid on the first death only and thereafter the policy will terminate.
If AD&D has been selected and death occurs from an accident, an additional sum equal to the sum insured is paid.
If death occurs after 70 years of age, only the policy value is paid.
Riders
Riders can be attached to the base coverage at inception only and rider cover expires at 60 years of age.
Accidental Death & Dismemberment (AD&D)
This rider pays an additional 100% sum assured or 50% sum assured in case policyholder or his/her spouse (if insured jointly) meets with a an accident leading to complete dismemberment or partial dismemberment respectively. Maximum amount payable is limited to Rs.50 lacs(subject to indexation increases).
The benefit under this rider is paid if death or dismemberment happens within 90 days of the date of accident.
If the total benefit payment since inception has not reached 100% of the sum insured, the rider coverage will remain in force for the balance amount. The risk cover under the base policy will remain unaffected.
Critical Illness & Permanent Total Disability (CI&PTD)
In the event of policyholder or his/his spouse(if insured jointly), contract any of the covered critical illnesses or become permanently and totally disabled, a lump sum equivalent to the higher of the value of units in respect of regular premium or the sum insured (subject to a maximum of Rs. 20 lacs), is paid and policy comes to an end.
The value of units in respect of additional single premium will be paid in addition to the above benefit without any deductions
Maximum benefit under this rider is subject to Rs. 20 lacs(subject to indexation increases).
A final bonus, if any, may also be payable in case of a With Profits policy.
The illnesses covered are: Heart attack, Cancer, Stroke, Major organ transplant, Kidney failure, Coronary artery bypass surgery, Blindness, Deafness, Benign brain tumor, Terminal iIlness, permanent total disability
Hospital Cash Benefit (HCB)
Fixed amount of cash is paid for each day of hospitalisation in case policyholder or his/his spouse(if insured jointly) is hospitalised for more than 48 hours.
A cash sum of Rs. 1000 per day for confinement in a General / Special Ward and Rs. 3000 per day for confinement in an Intensive Care Unit for every 24 hours of hospitalisation, calculated from the date and time of admission to the date and time of discharge will be paid irrespective of actual expenses incurred during the period of hospitalisation.
This benefit will be restricted to a maximum 30 days over a policy year and 180 days over the whole term of the risk cover.
This benefit will be available under those policies only where regular annual premium is at least Rs. 10,000.
Other Conditions
Minimum entry Age: 18 years
Maximum entry Age: 60 years
Maximum entry age for rider cover: 55 years.
