Objective

This term insurance policy offers dual benefit of life cover and return of premiums on survival.

What does it do?

This policy pays sum assured in case of unfortunate demise of the life assured and refunds premium on survival.
On survival, the premiums are returned in two parts:
a) Mid term benefit: If insured person survives half the policy tenure, the insurance company returns 40 per cent of regular premium or 20 per cent of single and limited premium, excluding any extra premiums paid for riders.
b) Maturity benefit: If policyholder outlives the policy term, the insurance company refunds the remaining premium excluding any extra premiums paid for riders.
The policy also offers accidental rider for an added coverage. Policyholder is free to surrender the policy after specific number of policy years that depend on the premium payment mode.
If policyholder does not pay premiums after 3 years under regular premium mode or after 2 policy years under limited premium mode policy, the policy will not lapse but acquire a paid-up value.
This paid-up value is paid to the nominee on death of the policyholder or to the policyholder if he survives to maturity.

Pros

Policyholder is allowed to surrender the policy.
This plan refunds premiums paid to the policyholder.
The policy acquires a paid up value on non-payment of premiums.
It gives premium discount to female applicants.
It offers riders to enhance coverage.
Premiums qualify for taxation benefits.

Cons

Return of premium option comes at a higher cost.

Suited for

This policy is suitable for those who insist on returns from an insurance policy, even though at higher cost.

Our View

Return of premiums option attracts buyers but such policies usually cost much higher than a plain term policy.
A positive feature is that the policy does not lapse if policyholder is not in a state of paying premiums. It continues as a paid up policy, with a reduced value, which assures his family to some extent.

Eligibility

Entry Age (years)

Minimum

18

Maximum

65

Maximum Maturity Age (years)

75

Policy Term (years)

Minimum

10

Maximum

30

Sum Assured (Rs)

Minimum

500000

Maximum

No limit

Premium Payment Frequency

Single, Yearly and Half-yearly. Quarterly and Monthly

Premium Payment Term

Single, Limited premium for 3 or 5 years and regular equal to policy tenure

Premium Factor (multiply with annual premium)

NA

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

You can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums and undergoing underwriting requirements, if any.

Tax Benefits

Section 80C and Section 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

Surrender Value

Policyholder is free to surrender the policy after certain number of policy years have expired. Surrender values under different Premium Payment terms is as under:
Regular premium: Can surrender after three years premium have been paid in full with surrender value of 40% of the premiums paid.
Limited premium 3-year pay: Can surrender after two years premium have been paid in full with surrender value of 60% of the premiums paid.
Limited premium 5-year pay: Can surrender after two years premium have been paid in full with surrender value of 50% of the premiums paid.
Single premium: Can surrender after completion of two policy years with surrender value of 70% of the premiums paid.

Customer Service

Address

ING Life Insurance Company, No 690, 1st floor, Gold Hill Square, Begur Hobli, Hosur Road. Bangalore – 560068