Objective

This term insurance policy aims to provide financial stability to a family in the absence of the breadwinner. It will refund entire basic premium, paid till date, if the insured person survives policy term.

What does it do?

This plan returns entire basic premiums if the insured life outlives the policy term. In an unfortunate event of death of insured member, this policy pays sum assured to his nominees as death benefit. One can surrender the policy after completing three policy years. The surrender value will be calculated using a pre specified formula.

Pros

Basic premium is returned if insured survives the policy term.
Premiums paid under the policy qualify for deduction under section 80C of Income Tax Act 1961.

Cons

The grace period, to pay policy premium after due date, is limited to 15 days.
The policy doesn't offer any riders.

Suited for

This plan can be taken by those not convinced to pay for a pure term plan. However, the policy charges high premiums for the same.

Our View

Return of premium on maturity makes this policy expensive. A simple term policy that does with death benefit will cost less.

Eligibility

Entry Age (years)

Minimum

18

Maximum

55

Maximum Maturity Age (years)

65

Policy Term (years)

Minimum

10

Maximum

30

Sum Assured (Rs)

Minimum

300000

Maximum

No Limit

Minimum Premium (Rs)

2400

Premium Payment Frequency

Yearly; Half-yearly and Quarterly through ECS only.

Premium Payment Term

Equal to policy term

Policy Cover

Cover remains fixed for the tenure of the policy

Other Features

Free Look Cancellation

In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.

Grace Period

You are allowed to pay premiums within 15 days from the due date. If a due premium is not received within the grace period of 15 days, your policy will lapse and the life insurance cover, including the rider cover, if any, will be terminated.

Lapsed Policy Reinstatement

A lapsed policy can be revived subject to underwriting. For Revival the Policy Holder has to pay all premiums not paid from paid to date along with any premium due in the next 15 days.

Tax Benefits

Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply.

Exclusions

In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit

Maturity Value

On maturity, the risk cover ceases and the insurer will return all premiums paid over the term of the policy, excluding extra premium charged due to underwriting, revival fees if any, alteration charges if any, service tax and education cess.

Surrender Value

Policy can be surrendered after first three years of the policy. 75% X Premiums paid (excluding the first premium, any extra premiums and revival or alteration charges) X duration elapsed up to the date of surrender in completed years/policy term.

Customer Service

Address

HDFC Standard Life Insurance COmpany Limited, 13th Floor, Lodha Excelus, Apollo Mills Compound, N M Joshi Road, Mahalaxmi, Mumbai - 400011