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Frequently Asked Question (FAQ) – Shubh Samriddhi (Par)
1. What is the survival benefit in this product?
Ans: Survival Benefit in the form of Cash Bonus (if any) will be payable in arrears from the 1st
Policy Year until death of the Life Assured, surrender, or end of Policy term, whichever is earlier.
2. When will I receive my cash bonus?
Ans: You can opt to receive Cash Bonus at a monthly, quarterly, half yearly or yearly frequency.
Timing of cash bonus will be as follows:
Yearly: End of 1st Y | Half-yearly: End of 6M | Quarterly: End of 1st Q | Monthly: End of 1st M
Cash Bonus for frequencies other than annual shall be calculated as follows:
3. Can I change my cash bonus frequency?
Ans: Yes, you can choose to receive cash bonus payouts on a monthly/quarterly/halfyearly/annual basis. This change will be applicable from the next policy anniversary only. Once
such a request has been raised, the next request can be raised only after 90 days from the
previous request.
4. What will happen if I choose to accumulate a cash bonus?
Ans: At any point during policy term, you shall have the option to accumulate the Cash Bonus (if
any). If accumulation option is chosen, then the regular cash bonus payouts will be stopped,
and the cash bonus amount will be accumulated using lower of SBI savings bank interest rate +
1.50% p.a. and SBI savings bank interest rate x 1.5 times.
SBI savings bank interest rate will be reviewed at the end of every quarter (i.e. on 1st April 1st
July, 1st October and 1st January every year). The current rate applicable is 4.05% compounding
annually.
5. Can I withdraw my accumulated cash bonus during policy term?
Ans: You can withdraw the accumulated Cash Bonuses pool partly/fully at any time during the
policy term. This option can be availed under an in-force as well as a reduced paid-up Policy.
You will be allowed to withdraw up to 6 times in a Policy Year. The minimum withdrawal amount
shall be INR 2000 or balance accumulated cash bonus, whichever is lower. If the accumulated
Cash Bonuses (if any) are not taken by you during the policy term, the same shall be payable
along with benefits payable at the time of termination of the Policy due to death or maturity of
policy or surrender of policy.
6. I opted for regular cash bonus earlier. Can I switch to cash bonus accumulation now?
Ans: Yes, you can switch between regular cash bonus payouts and accumulation, and vice versa
any time during the policy term by informing us at least 15 days in advance of the next cash
bonus payout date for the change to be effective. Once such a request has been raised, the next
request can be raised only after 90 days from the previous request.
For internal training purpose only.
7. What is the maturity benefit in this product?
Ans. The maturity benefit shall be equal to the sum of Sum Assured on Maturity and Terminal
Bonus, if any. Sum Assured on Maturity shall be equal to the sum of Annualized Premiums
payable under the policy (100% Return of Premiums). Accumulated cash bonus (if any), if not
paid earlier will also be paid along with the Maturity Benefit.
8. What is the death benefit in this product?
Ans: Death Benefit shall be equal to:
• Sum Assured on Death; plus
• Interim Cash Bonus (if any); plus
• Terminal bonus, if any
where, Sum Assured on Death shall be the highest of:
• 11 times the Annualized Premium
• Sum Assured on Maturity
• Death Benefit multiple times Annualized Premium
The Death Benefit at no time shall be less than 105% of Total Premiums Paid until death of the
Life Assured or the prevailing surrender value. Accumulated cash bonus (if any), if not paid
earlier will also be paid along with the Death Benefit. On death of the life assured during the
policy term, the Death Benefit payable shall not be reduced by the cash bonus already paid till
date of death. Cash Bonus paid (if any) to the policyholder that pertains to period post date of
death shall be recovered by adjusting the above Death Benefit payable.
Death Benefit (DB) Multiplier:
9. What is the eligibility criteria for this plan?
*Proposed case is yet to be enabled in login journey. Hence life to be assured <18 years cannot be sourced as of now.
The same will be communicated to all once it’s enabled in system.
10. Is there any option to receive death benefit as annual income instead of lumpsum benefit?
Ans: No, there is no option to receive death benefit as annual income in the product
11. Is there any additional benefit for customers paying higher premiums?
Ans: there is an additional cash bonus for policies with Annualized Premium more than or equal
to Rs. 1 Lakh.
12. Can this policy be assigned? If yes, when?
Ans: Yes, this policy can be assigned. An absolute assignment can be done post policy issuance.
13. Can I change my premium payment frequency?
Ans: First year will be annually & Second year onwards-customers can switch premium payment
frequency between annual/half-yearly/quarterly/monthly. Policy servicing requests including
premium frequency change, can be raised by customer on iAssist (Customer Service Portal of
Bandhan Life) through the registered mobile number. iAssist Link:
14. What are the policy benefits payable if the policyholder stops paying the premium?
Ans: If you have not paid the first year’s premium in full: Your Policy will automatically lapse at
the expiry of the grace period and no benefit will be payable under the Policy.
For internal training purpose only.
If you have paid first year’s premium in full and subsequent premiums have not been paid: Your
Policy shall not lapse but will be automatically converted to a reduced paid-up policy and the
maturity benefit and death benefit under the policy will automatically be reduced as explained
below:
a) Survival Benefit:
Once the policy becomes reduced paid-up, the Cash Bonus payouts shall be stopped
immediately until the end of the premium payment term. Cash bonus applicable for reduced
paid-up policies may start again after the end of the premium payment term.
b) Maturity Benefit:
The Maturity Benefit for a reduced paid-up Policy shall be the equal to the sum of:
Paid-up Sum Assured on Maturity & Terminal Bonus, if any
Where, Paid-up Sum Assured on Maturity = Base Sum Assured * (Total no. of premiums paid/
Total no. of premiums payable over the policy term)
Base Sum Assured = Annualized Premium * Premium Payment Term.
Accumulated cash bonus (if any), if not paid earlier will also be paid along with Maturity Benefit.
c) Death Benefit:
In case of reduced paid-up policy if the life assured dies before the date of maturity, we will pay
to the claimant an amount equal to:
Paid-up Sum Assured on Death + Interim Cash Bonus (if any) +Terminal bonus, if any
Where, Paid-up Sum Assured on Death = Sum Assured on Death * (Total Number of Premiums
Paid/ Total Number of Premiums Payable over the policy term)
Accumulated cash bonus (if any), if not paid earlier will also be paid along with above Death
Benefit. The Death Benefit for reduced paid-up policies at no time shall be less than 105% of
Total Premiums Paiduntil death or the prevailing surrender value.
15. What happens if the proposer dies during the payment term or policy term?
Ans: Death benefit is payable to Nominee in case of death of life assured.
16. Can I avail loan under this policy?
Ans: Yes, you may avail loan under the policy, provided that your policy has acquired a surrender
value. Maximum amount of loan granted cannot exceed 80% of the surrender value as on the
date of loan. Rate of interest will be 10-year G-Sec + 200 bps rounded to nearest 50 bps.
17. Can I surrender my policy?
Ans: Yes, you can surrender the policy any time during the policy term. Surrender value shall
become payable after completion of first policy year provided one full years’ premium has been
received. Surrender value shall be calculated as higher of Guaranteed Surrender Value (GSV)
and Special Surrender Value (SSV) as on date of surrender. Upon surrender, interim bonus if any
shall be paid. SSV, i.e. Special Surrender Value is calculated as higher of
• Expected Present Value of paid-up benefits
• (Applicable SSV factor * Total Premiums Paid) less Cash Bonus applicable till date
We strongly recommend you continue your policy for the complete tenure to enjoy all the
benefits of this plan.
For internal training purpose only.
18. What are the tax benefit under this policy
Ans: Benefit of premium paid u/s 80C of Income Tax Act, 1961
Policyholder is eligible to get deduction under Section 80C of Income Tax Act, 1961 for premium
paid during the year to the extent premium does not exceed 10% of Sum Assured. As per
Explanation to subsection 3A of Section 80C “Actual capital sum assured" in relation to a life
insurance policy shall mean the minimum amount assured under the policy on happening of the
insured event at any time during the term of the policy.
Exemption u/s 10(10D) of Income Tax Act, 1961
Sum paid at the time of death is explicitly exempted u/s 10(10D). Sum paid at the time of maturity
or cash bonus paid every year is exempted u/s 10(10D) of Income Tax Act 1961, if following
conditions are satisfied:
1. Annualized Premium to Sum Assured is 10% or less.
2. Annualized Premium on policies issued on or after 1 April 2023 does not exceed Rs.
5,00,000/-.
Actual capital sum assured has the same meaning as mentioned above.
If the above conditions as mentioned above are not satisfied, exemption is not available u/s
10(10D). Accordingly, TDS will be deducted by insurance company u/s 194DA @ 2%.
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