Pramerica Life Rakshak Smart

What is Pramerica Life Rakshak Smart? 

Pramerica Life Rakshak Smart is a life insurance plan designed to offer guaranteed benefits and financial security for your loved ones. It's a non-linked, non-participating individual life insurance savings plan, meaning the returns are not tied to the market performance and are fixed by the insurer.

This plan focuses on providing guaranteed benefits so you can be certain about the payout in case of an unfortunate event. This allows you to pursue your goals with confidence, knowing your loved ones will be protected if life takes an unexpected turn.

Features of Pramerica Life Rakshak Smart

The features of Pramerica Life Rakshak Smart are: 

1. Choose Your Coverage:

   • Get life insurance cover to protect your loved ones financially in case of your demise.

2. Pick Your Plan:

   • Life Option: Supplement your savings and fulfill financial goals.

   • Enhanced Life Option: Get comprehensive protection for your family's immediate, recurring, and future needs.

3. Flexibility:

   • Choose your policy term and premium payment term.

   • Receive guaranteed income in annual or monthly installments during the payout period.

4. Guaranteed Benefits:

   • Receive guaranteed benefits upon maturity or death benefit payout (if all premiums are paid).

5. Tax Advantages:

   • Potential tax benefits on premiums paid and benefits received (subject to current tax laws).

Comparison Between

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.5% ^(TAX-FREE)

Returns After Tax

7.5%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Still Better than FD’s and Debt Mutual Fund

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

No

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

No

Life Cover

No

Tax on Profit

Taxable

Risk

High Risk

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*For annual premium upto ₹5 Lacs

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Eligibility Criteria for the Pramerica Life Rakshak Smart

Benefits of the Pramerica Life Rakshak Smart

1. Death Benefit:

   • Provides financial security for your loved ones in case of your unfortunate demise during the policy term.

   • You can choose from two plan options to fit your needs:

     • Life Option: Offers a lump sum payout to help your family manage immediate expenses.

     • Enhanced Life Option: Provides a comprehensive safety net with benefits including:

       • Lump sum payout of the base sum assured.

       • Recurring monthly income for your family for the remaining policy term.

       • Additional payout at the end of the policy term.

2. Flexibility:

   • Choose a policy term (10, 12, 15, or 20 years) to align with your financial goals.

   • Pay premiums for a shorter term (5, 7, 10, or 12 years) depending on the chosen policy term.

   • Receive guaranteed income payouts in annual or monthly instalments during the payout period.

3. Guaranteed Benefits:

   • Offers guaranteed payouts on death and maturity, providing peace of mind and financial security for your family.

   • Benefits are guaranteed as long as the policy is active and premiums are paid in full.

4. Tax Benefits:

   • You may receive tax benefits on premiums paid and benefits received, subject to prevailing income tax laws.

   • It's important to consult a tax advisor for the latest tax implications.

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Policy Details of the Pramerica Life Rakshak Smart

• Grace Period: 30 days to pay the premium after the due date. Policy remains in force with benefits during this period.

• Maturity Benefit: Guaranteed income benefit (annual/monthly) for 5 years + savings booster at payout period end.

• Surrender Value: Available after paying premiums for at least 2 years. Higher of Guaranteed or Special Surrender Value is paid.

• Loan: Up to 75% of Surrender Value available. Interest rate resets annually based on 10-year GSEC yield + 150 bps.

• Revival: Possible within 5 years of lapsed premium with interest and medical check (if required).

• Free Look Cancellation: 15 days (30 days for Distance Marketing) to review and cancel policy.

• Waiting Period (POSP): 90 days. Only 100% premium paid is returned in case of death (except accidental) during this period.

*Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st august 2023
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Exclusions Under the Pramerica Life Rakshak Smart

Suicide Exclusions

If the Life Insured passes away due to suicide within 12 months from the risk commencement date of the policy or from its revival date, the Company will pay the nominee or beneficiary 80% of the total premiums paid (excluding underwriting extras, any rider premiums, and applicable taxes) until the date of death. Alternatively, the payment will be the surrender value as of the date of death, whichever is greater, as long as the policy remains active.

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