Extra Life and Health Option
This option pays the same benefits as the Life and Health Option but, should death occur within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid.
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What levels of protection are available?
Depending on your age at entry, you may choose between 3 levels of cover – Low, Medium or High. For each level the Sum Assured is based on the amount of premium you pay each year.
| Age at Entry |
Levels of Cover |
| Low |
Medium |
High |
| 18 to 40 |
5 x Premium |
10 x Premium |
20 x Premium |
| 41 to 50 |
5 x Premium |
10 x Premium |
|
| Over 51 |
5 x Premium |
|
|
The Sum Assured can not be changed during the term of the contract.
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How are my benefits paid?
Your basic benefits will be paid by cheque.
Am I eligible?
The age and term limits for taking out a Unit Linked Endowment Plan are: (years)
| |
Minimum
Term |
Maximum
Term |
Minimum Age
at Entry |
Maximum Age
at Entry |
Maximum Age
at Expiry |
| Life |
10 |
30 |
18 |
60 |
75 |
| Life and Health |
10 |
30 |
18 |
55 |
65 |
| Extra Life |
10 |
30 |
18 |
55 |
70 |
| Extra Life and Health |
10 |
30 |
18 |
55 |
65 |
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Can I alter the level of my premiums?
Regular premiums can be increased at any time. If needed, the policyholder can reduce the regular premium levels (even to zero ie the policy is converted to paid up status) provided:
3 years of regular premiums have been paid
The monetary value of the unit holding across all funds is at least Rs 15,000.
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What happens if I surrender the policy?
The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitised fund value after applying additional surrender charges mentioned below.
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When can I access my money?
You can make lump sum withdrawals from you funds provided the fund balance after withdrawal and charges does not fall below the Sum Assured. The minimum withdrawal amount is Rs. 10,000.
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What happens if I stop paying premiums?
This product has a grace period of 15 days for the payment of each premium after the initial premium.
If you stop paying premiums, before you have paid 3 years of annual premiums, we will cancel you policy and return to you the value of your unitised fund, less cancellation charges.
If, after three years, you are unable to pay the premiums, you have the option to make the policy paid-up, provided the policy has accumulated sufficient policy value. Currently, this amount will be Rs. 15,000.
If you make your policy paid up you will continue to be protected according to the benefits you selected. To provide this cover, we will continue to collect our usual charges on each monthly charge date. It is important to note that if no further premiums are paid, this may reduce the value of your fund over time, or even exhaust it completely.
A paid-up policy can be reinstated to premium paying status at any point of time in the future.
If the fund value of a paid-up policy falls below Rs. 15,000 we will cancel the policy and return to you the fund value, less cancellation charges.
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Does this Plan offer me Tax Benefits?
Premiums paid under this plan are eligible for tax benefits under Section 88 of the Income Tax Act, 1961.
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Charges
We will deduct charges from the policy to cover our costs.
A percentage of each premium is invested to buy units, this percentage is called the Investment Content Rate.
The rates are as follows:
| Premium paid |
Investment Content
Rate (ICR) |
| Regular - Year 1 |
73% |
| Regular - Year 2 |
73% |
| Regular - Year 3+ |
99% |
| Regular Premium Increases |
99% |
| Single Premium Top-Up |
99% |
The unit price each day will include a fund management charge. This charge is 0.80% of the fund value per annum taken on a daily basis.
A flat fee of Rs 15 per month will be deducted by cancellation of units on each monthly charge date. This will be proportioned across funds according to the fund holdings at the time of cancellation of units.
Risk benefits (for death sum assured, critical illness, and accidental death) will be charged for by cancelling units on each monthly charge date, based on the person’s age at that time.
We charge neither for premium redirections nor for switches but we may do so in the future.
We do not charge for altering the regular premium amount (including making a policy paid-up and reinstating a paid-up policy), but we may do so in the future.
On cancellation of the policy before 3 years of regular premiums have been paid, we will charge 25% of the outstanding premiums due during this 3-year period.
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Alteration to Charges
No changes can be made to our current charges without prior approval from the Insurance Regulatory and Development Authority.
In any case, the fund management charge will not exceed 2% per annum.
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Exclusions
No benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy.
We will not pay health benefits if the critical illness has occurred within 6 months of the start of the contract.
We may not pay health benefits if we do not receive a duly completed claim form within 26 weeks of the illness, disability, operation or other circumstances giving rise to the claim.
We will not pay health benefits if the critical illness is caused directly or indirectly by any of the following:
Suicide within one year of the Date of Commencement or the date of issue of the Policy, if later
Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner.
Taking part or practising for any hazardous hobby, pursuit or race unless previously agreed to by us in writing
War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion.
Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft.
Taking part in any act of a criminal nature.
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General Information
Unit Prices
We will set the unit price of a fund by dividing the value of the assets in the fund at the valuation time by the number of units in existence for the fund. The resulting price will be rounded to the nearest Rs. 0.0001. The value of the assets will be calculated as the Market or Fair Value of the fund’s Investments plus Current Assets (including accrued income) less Current Liabilities and Provisions (including accrued expenses).
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Prohibition of rebates
Section 41 of the Insurance Act, 1938 states:
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.
Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.
Whom should you contact?
If you are interested in the endowment plan from HDFC Standard Life, please register here. Our consultants will get in touch with you as soon as we receive your contact details.
Address :
Personalfn Insurance Services India Ltd.,
404, Damji Shamji Business Center,
Vidhyavihar (W),
Mumbai - 400 086, India.
Phone: 91-22-5599 1234 / 5599 7536
Email: insurance@personalfn.com
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