SUD Life Aashirwaad Child Plan

What is SUD Life Aashirwaad Plan Child Plan?

SUD Life Aashirwaad is a non-linked, non-participating endowment plan offered by Star Union Dai-ichi Life Insurance Company. It is designed specifically for child protection and future financial needs. This investment plan offers benefits if the policyholder dies during the policy term and ensures a maturity benefit for the child.

Features of SUD Life Aashirwaad Child Plan

• Ensures funds for your child's future: The plan guarantees a payout to your child on maturity, even if you're not around.

• Waiver of premium benefit: If you die during the policy term, all future premiums are waived off, but the plan continues to receive benefits.

• Maturity benefit: On policy maturity, your child receives a lump sum amount that includes the sum assured and guaranteed additions.

• Flexibility in choosing the policy term: You can choose a policy term of 5, 10, 15, or 20 years.

• Riders availability: You can add optional riders like accidental death benefit and family income benefit for additional coverage.

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Eligibility Criteria for SUD Life Aashirwaad Plan

Benefits of SUD Life Aashirwaad Child Plan

• Maturity Benefit: Guaranteed sum assured along with a bonus calculated as 4% of the sum assured multiplied by the policy term. You can choose from 5 payout options for the maturity benefit.

• Death Benefit: In case of your unfortunate demise, the plan ensures your child's financial future. The death benefit payout is the highest of 10 times the annualized premium, 105% of total premiums paid till death, the guaranteed maturity benefit, or the absolute sum assured on death.

• Flexibility in Payout Options: You can choose from various payout options at maturity to best suit your child's future needs.

• Tax Benefits: The premiums paid towards this plan qualify for tax deductions under Section 80C and Section 10(10D) of the Income Tax Act of India.

• Policy Continuation: Even if you are not around, the policy continues as planned, ensuring your child receives the benefits.

• Optional Riders: You can add riders (additional benefits) to the base plan for further financial protection, like providing a monthly income for your family in case of your death.

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Rider Benefits in SUD Life Aashirwaad Child Plan

The SUD Life Aashirwaad Child Plan allows you to attach optional riders to enhance coverage for your child. These riders provide additional financial protection in case of specific events.

1. SUD Life Accidental Death & Disability Rider (Traditional)

   • Pays 100% Rider Sum Assured if the Life Assured dies in an accident.

   • Pays Rider Sum Assured in 10 equal half-yearly instalments for Accidental Total & Permanent Disability.

   • If the Life Assured dies during disability benefits, the remaining instalments go to the nominee.

   • Coverage stops once disability benefits are claimed.

2. SUD Life Family Income Benefit Rider (Traditional)

   • Pays Monthly Income Benefit for 10 Years to the nominee upon the Life Assured's death.

   • Income Benefit equals (10% of Rider Sum Assured)/12, paid monthly.

Policy Details of SUD Life Aashirwaad Child Plan

1. Grace Period:

   • You have 30 days (quarterly/half-yearly/yearly) or 15 days (monthly) grace period for overdue premiums.

   • Your life cover stays active during this time.

   • If you pass away during the grace period, the policy remains in effect, but the Death Benefit is paid after deducting the unpaid premium.

   • If you miss the payment before the grace period ends:

     • Without Surrender Value: Policy lapses.

     • With Surrender Value: Continues with reduced benefits as a Reduced Paid-Up policy.

2. Policy Lapse:

   • If premiums aren't paid for the first two full years, the policy lapses and no benefits are paid until they are revived.

3. Reduced Paid-Up:

   • If premiums are paid for at least the first two full years but subsequent premiums are missed, the policy becomes Reduced Paid-Up.

   • Provides immediate payment of Paid-Up Death Sum Assured upon death.

   • Pays Paid-Up Guaranteed Maturity Sum Assured and Guaranteed Additions at the Policy Term's end.

   • Beneficiaries can opt for a lump sum of discounted benefits.

4. Restoring Lapsed/Reduced Paid-Up Policy:

   Revive your policy within five years from the first unpaid premium's due date but before the Policy Term ends by:

   • Submitting written request and proof of continued insurability.

   • Paying outstanding premium with applicable interest (currently 7.75% p.a.).

   • Resuming regular premium payments.

   • Meeting medical and financial requirements per the company's underwriting policy.

5. Discontinuing the Plan:

   • Surrender policy anytime during the Policy Term if it has Surrender Value (after the first two full policy years).

   • Surrender Value payable is higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).

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How Does the SUD Life Aashirwaad Plan Work?

• Choose your plan: Decide on the Sum Assured amount - the payout your beneficiary will receive. This amount can range from Rs. 4 lakhs onwards.
• Select your policy term: Pick the duration for which you'll pay premiums. Options include 5, 10, 15, or 20 years.
• Pay your premiums: Regularly pay premiums throughout your chosen policy term.
• Maturity Benefit: Upon reaching the policy term:

  • You or your beneficiary will receive the Sum Assured amount.

  • You'll also get a Guaranteed Maturity Benefit. This benefit is calculated as 4% of the Sum Assured multiplied by the Policy Term.

• Death benefit: In case of your unfortunate demise during the policy term:

  • The Sum Assured amount will be paid to your nominee.

  • All future premiums will be waived off.

  • You can optionally add riders like SUD Life Accidental Death and Total & Permanent Disability rider for additional benefits.

• Flexibility: You can choose from 5 different maturity payout options to best suit your needs.

Essentially, you pay premiums for a chosen term to secure a guaranteed payout for your child's future,  even if you're not around.

Suicide Exclusion

• Within a specific period (e.g., 1st year): If the policyholder dies by suicide within the first year, the beneficiary will only receive a return of 80% of the premiums paid.

• After the exclusion period: After the initial exclusion period is over (e.g., after the first year), the full death benefit will be paid out, even if the death is by suicide.

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