Smart Retirement Income with Sustained Earnings Plan

Note: Policyholders have to choose one of the above options at inception and an option once chosen cannot be changed later.

• In case where date of intimation of death and date of death is different, total annuity payments made after date of death will be deducted from death benefit (wherever applicable).
• Annuity Amount shall be payable in arrears as per chosen Annuity payment mode, for example, at the end of year for annual pay-out mode and end of month for monthly pay-out mode.
• In case of Limited Pay, if the overdue Premium is not paid and the Payor dies then annuitant(s) will be required to continue paying the remaining premiums otherwise the Policy will become Lapsed Policy or Reduced Paid Up Policy.

• In case of Joint Life, the Primary Annuitant will be the primary person entitled to receive the Annuity Payouts, while the Secondary Annuitant will be entitled to receive the Annuity Payouts in the event of death of the Primary Annuitant, as applicable.
• In the event of death of the Primary Annuitant during the premium payment term, the remaining due premiums shall be payable by the Secondary Annuitant. In case the remaining premiums are not paid, the non‑forfeiture provisions shall be applicable.
• The Secondary Annuitant can be the spouse/ child/ parent/ parent-in-law or sibling of the Primary Annuitant. Other relationships shall be considered provided insurable interest exists.
• Insurable interest between the Primary Annuitant and Secondary Annuitant shall be established at the time of issuance of policy as per Board Approved Underwriting Policy.

During the Deferment Period, Guaranteed Additions shall accrue at the end of each completed Policy Month, subject to all due premiums being paid and shall form a part of the Death Benefit during deferment period. The Guaranteed Additions shall be equal to 1/12th of 4% of the Total Premiums Paid (excluding loading for modal premiums). No further Guaranteed Additions shall accrue once the Policy has lapsed or been converted to a Reduced Paid-up Policy.

In case of Single Life: On the death of annuitant provided all due premiums have been paid and the policy is in-force.

In case of Joint Life: On the death of last survivor(s) provided all due premiums have been paid and the policy is in-force.

The policy shall terminate on payment of death benefit and no further benefits shall be payable.

The benefit is payable provided all due premiums have been paid and the policy is in-force.

The annuity amount shall be payable at the end of the annuity payment mode chosen till the death of annuitant in case of Single Life and Last Survivor in case of Joint Life Policy.

Survival Benefit is payable on submission of a “proof of living."

In case the policyholder has opted for “Variable Annuity Payout option”, the annuity payouts shall be determined as described in the Variable Annuity Payout Option explained below.

There is no maturity benefit payable under this plan.

The policyholder can surrender the policy any time after it has acquired a surrender value.

In case of premium discontinuance, provided that one year full premiums are not paid, the policy will lapse and no benefits shall be payable. Once the policy has lapsed, it can only be revived within a revival period of five years from the due date of first unpaid premium, subject to conditions mentioned under the Revival section.

Non-forfeiture benefits are not applicable for Variant 1- Immediate Life Annuity.

For Single Pay policies under Variant 2 and Variant 3, the policy can be surrendered any time after the expiry of free look cancellation period.

For Limited Pay policies under Variant 3, the policy shall acquire

• Guaranteed Surrender Value (GSV) on payment of premium for at least two consecutive years.
• A Special Surrender Value (SSV) after receipt of one full year premium provided the free look cancellation period has expired, and the premium payment term is less than five (5) years. Special Surrender Value shall become payable after the free look cancellation period has expired, provided one full year premium has been received.
• Special Surrender Value shall become payable after completion of first policy year provided one full year premium has been received.

On payment of surrender value, the policy stands terminated and cannot be reinstated. The surrender value will be Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV), whichever is higher.

For Variant 3 and limited pay policies, once the policy acquires a surrender value as mentioned above, by default the policy will become RPU in case of non-payment of any further premium.

RPU Annuity amount = RPU Factor X Annuity amount payable to fully paid-up policy

“RPU Factor” shall be the ratio of the “total period for which premiums have already been paid” to the “maximum period for which premiums were originally payable”.

Surrender value in RPU policy

The surrender value of RPU policy will be determined using the same methodology of surrender value computation mentioned above.

If the total annuity amount under RPU policy (RPU Annuity amount) is less than the minimum modal Annuity amount allowed under the product, the surrender value as at the end of the revival period will be paid as a lump sum and the policy will be terminated, immediately and automatically.

Higher of:

• Total Premiums paid up to date of death including modal loading, if any + Accrued Guaranteed Additions
• 105% of the Total Premiums Paid including modal loading, if any

• 105% of the Total Premiums Paid including modal loading, if any

In case the policyholder has opted for “Variable Annuity Payout option”, the Reduced Paid-up Benefit shall be determined as described in “Variable Annuity Payout Option” Section below.