Pramerica Life Smart Fee Protect Plan

• Ensure uninterrupted education of your child
• Increasing monthly income
• Annual Guaranteed Additions
• Loan against the Policy
• Add riders to customize coverage
• Enjoy limited premium payment
• Tax benefits

Death Benefit

At inception, the Policyholder has the option to choose the Monthly Income & Premium Payment Term. The Monthly Income chosen at inception, starting from 2^nd Policy Year and it increases by 5% p.a (simple rate) during payment. On the unfortunate demise of the policyholder during the policy term, the policy gets terminated and the Monthly Income is payable to the nominee/legal heir for rest of the policy term subject to a minimum payment for 48 Months. Additionally, Base Sum Assured along with accrued Annual Guaranteed Additions are payable at the scheduled maturity date.

The benefits payable on death is equal to Death Sum Assured plus Accrued Annual Guaranteed Additions. Here, Death Sum Assured is higher of 10 times of Annualized Premium, 105% of all the Premiums paid, Guaranteed Sum Assured on maturity, or the absolute amount assured to be payable on death.

Annual Guaranteed Additions

Annual Guaranteed Additions are applied as a percentage of cumulative annualized premium paid and is defined in terms of Monthly Income bands. In the event of death, Annual Guaranteed Additions continue to accrue till the date of maturity. The applicable rate of Annual Guaranteed Additions may vary from 5% to 6.75%, depending on the policy term and monthly income chosen at inception.

Maturity Benefit

In case of survival of the life insured till the maturity date, Base Sum Assured along with accrued Annual Guaranteed Additions is payable. Here, Base Sum Assured is equal to Monthly Income at inception * Premium Payment Term * 12.

Bonus

This policy does not offer any bonuses, as it is a non-participating insurance plan.

Loan Benefit

The loan amount that can be availed under this policy is up to a maximum of 75% of the acquired surrender value.

Surrender Value

The Surrender Value payable is higher of Guaranteed Surrender Value or Special Surrender Value. The Surrender Value can be acquired on payment of at least 2/3 full policy years’ premium, when premium payment term is less than 10 years/premium payment term is 10 years, respectively.

Tax Benefit

You can avail tax benefits under section 80C & 10 (10D) of the Income Tax Act. Tax benefits are applicable, as per the prevailing tax laws.

Following riders can be opted, on payment of additional rider premium.

• Pramerica Life Traditional Accidental Death Benefit Rider
• Pramerica Life Traditional Critical Illness Benefit Rider

Mr. Akash aged at 35 years, opts to buy  Pramerica Life Smart Fee Protect Plan to secure uninterrupted education for his child. He buys this plan with the policy term of 15 years, premium payment term of 10 years, monthly income chosen is Rs 6000, annual premium of Rs 50,000 and base sum assured is Rs 7,20,000.

Scenario A: Mr. Akash Survives the Policy Term

In case of survival of the life insured till the maturity date, Base Sum Assured along with accrued Annual Guaranteed Additions is payable as a lump sum benefit.

Scenario B: Mr. Akash dies during the Term of the Policy

In the event of unfortunate death of Mr. Akash, this policy will pay the beneficiary a monthly income benefit starting from the month of his death for the remaining policy term, subject to a minimum of 48 guaranteed monthly incomes. The monthly income will increase every year by 5% (simple interest) from 2^nd policy year onwards.

The benefits payable on death is equal to Death Sum Assured plus Accrued Annual Guaranteed Additions.