For the coverage that your life insurance policy offers you, you need to pay a premium to the insurer. Depending on the type of policy you choose, the premium can be a one-time payment, or it can be paid on a limited or regular basis. Loyalty additions are given to policyholders who make all the due payments on time and do not terminate their insurance policy in the middle of the term. Simply put, through loyalty additions, your life insurance company recognises and encourages your loyalty. It offers you added benefits or incentives for your continued patronage.

Sometimes, insurance providers use different terms to describe loyalty additions. They are also called loyalty additions, premium/ wealth boosters, additional allocations, etc. Keep in mind that different insurance policies have different terms and conditions when it comes to loyalty additions. While it is a common benefit in ULIPs, make sure to go through your policy details in order to confirm the availability of the same. For instance, most policies offer loyalty benefits after the latter half of the policy year maybe after 10 years of policy purchase or only after the end of the premium paying term.

IN ULIP insurance, loyalty additions are either a percentage of the fund value or a proportion of the premiums that you have paid. So, when you retain the policy for the required term, this reward is added to your investment fund. It is essential to understand that loyalty benefits are not dependent on the performance of your portfolio. The percentage is fixed by the insurance company at the time of policy inception. So, while the percentage of loyalty additions that would be added to your fund value at the time of maturity is fixed, the amount will be based on the fund value.

Let us understand with the help of an example of the e-Wealth Royale insurance plan. The e-Wealth Royale insurance plan is a unit-linked non-participating life insurance policy. The policy comes in two plan options: Platinum and Platinum Plus. Along with life coverage, the policy allows you to create wealth by diverging your premium towards insurance and market-linked investments. Depending on your risk appetite and financial objectives, you can choose between 8 different funds. Your policy term can be between 10 to 40 years, making this a long-term plan.

Now let us see how staying invested for the entire policy term and not discontinuing or surrendering your policy before the policy matures can offer you additional advantages:

1. Wealth boosters
Once your e-Wealth Royale policy is 10 years old, every 5 years, that is, every 5th year, a wealth booster will be added to your fund by creating extra units. A wealth booster is equal to 3% of the average fund value in the last 2 years/ 24 months.

2. Loyalty additions
Loyalty additions are added every year to your fund by creating extra units starting. They start from the end of the 6th policy year and can continue up to the completion of the premium payment term. Loyalty addition is equal to 0.10% of the average fund value in the last 1 year/ 12 months

Loyalty additions are offered, provided all premiums have been paid, and the policy is in force. If your policy is paid up, surrendered or discontinued, the loyalty additions will not be added to your fund value in the future.

In case of the death of the insured during the term of the policy, the nominee will receive the payout. In such a scenario, at the end of the policy anniversaries, falling due on or before the date of intimation of death, the loyalty additions will be added to the fund value.

Thanks to their dual benefit advantage, unit-linked insurance plans have gained popularity, especially for India’s working class. Offering returns on investments along with life coverage, ULIPs also provide the opportunity to safeguard your family’s financial future. While investing in the right investment policy is essential, maintaining the policy is equally crucial.

Most ULIPs offer a flexible system of premium payment. You can choose a premium-paying term as well as a premium-paying frequency based on your financial standing. This is an important decision in your insurance journey, and you must make it carefully. e-Wealth Royale allows you to choose from 4 options under the regular or limited pay payment options. You can pay the premium on a yearly, half-yearly, quarterly or monthly basis. Not paying your policy premium on time can lead to:

1. If you stop your premiums during the 5-year lock-in period, then you will not receive the complete invested amount. You will have to pay discontinuation charges and/ or surrender charges, which vary from company to company.

2. Your life coverage will no longer be available, putting your loved ones’ financial future at risk

3. You will have to go through the process of policy revival if you want to continue an expired policy.

Loyalty additions make your life insurance policy more beneficial for you. You are rewarded for your long-term commitment to the policy and the insurance company. While loyalty additions are a lucrative benefit, you need to keep in mind your financial objectives and current financial standing when you plan to start your ULIP journey. Analyse your goals, understand the ULIP policy you wish to buy and then make a well-informed decision.

Reference: SUD Life e-Wealth Royale (UIN: 142L082V01)

1 Loyalty Addition will be added to the fund by way of creation of extra units and shall be equal to 0.10% of avg. fund value of last 12 months. The benefit will be added only if all due premiums under the policy are paid up to date and in case of revival, no addition will be made w.r.t past policy anniversary. The benefit also not payable post completion of PPT or surrendered or discontinued policies. Wealth Booster will be added to the fund by creation of extra units and shall be equal to 3% of avg. fund value of last 24 months. The benefit is not applicable for surrendered or discontinued policies.

Unit Linked Life Insurance Products are different from the traditional insurance products and are subject to risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. The policyholder can withdraw the invested amount only after the completion of five plan years. Star Union Dai-ichi Life Insurance Company is the name of the Insurance Company and SUD Life e-Wealth Royale is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their prospects and returns.

SUD Life e-Wealth Royale | UIN: 142L082V02 | A Unit–Linked Non-Participating Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472

Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.

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