2024-05-14 8 Min read
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Sustainable financial planning is key to long-lasting financial stability, even during your retirement phase of life. A retirement picture with your dear ones around and a peaceful evening with a cup of tea has to be planned today. While you must live today, planning for tomorrow is also a part of your present. When it comes to wealth legacy planning, a strong retirement financial cushion has to be created. The complexity of finalising the best deal from the multiple options available is a tough one. Along with this, ongoing financial commitments and limitations are also things to consider. For a sound retirement, the foundation has to begin during your working days.
If you are someone seeking short-term premium commitments in lieu of a lifelong income source, you have landed at the right place. Star Union Dai-ichi brings you the ideal plan with limited premium commitment: Century Royale Plan. Unlock the idea of a peaceful retirement life with limited investment today. In this article, we will discuss the art of short-term premium commitment that can yield you lifelong income so you don’t have to compromise your ongoing lifestyle and expenses. So, let’s unveil details of the Star Union Dai-ichi Century Royale Plan.
Lifelong income planning with short-term premium commitments: SUD Century Royale Plan
Yes. You read that right. With a short-term premium commitment, you can enjoy lifelong income. Wondering how? The answer is the SUD Century Royale Plan. This life insurance plan is a non-linked, non-participating savings plan that offers much more than a life insurance cover.
Crafted with care to meet your retirement goals, Century Royale involves short-term premium payments of 7 and 10 years, with a life cover for up to 40 and 45 years respectively. From the end of the 10th year, you can enjoy a source of regular income until the end of the plan. Unlike a typical life cover, Century Royale also offers a guaranteed maturity benefit in the form of a lump-sum amount upon the end of the policy tenure. On the other hand, in case the policyholder passes away during the policy tenure, the family receives the death benefit.
Crafted with care to meet your retirement goals, Century Royale involves short-term premium payments of 7 and 10 years, with a life cover for up to 40 and 45 years respectively. From the end of the 10th year, you can enjoy a source of regular income until the end of the plan. Unlike a typical life cover, Century Royale also offers a guaranteed maturity benefit in the form of a lump-sum amount upon the end of the policy tenure. On the other hand, in case the policyholder passes away during the policy tenure, the family receives the death benefit.
Premium payment terms
Retirement planning may have different meanings to different people. This is why, SUD has a different short-term premium payment model to suit different needs. Let’s understand them all:
● Single pay
Under a single-pay premium model, you have to pay all the premiums at once. While it may sound like a sorted option where you do not have to bear the burden of premium payment more than once, a single-pay premium can be an expensive deal. Since you have to pay all the premiums at once, it may not be affordable for everyone.
● Regular pay
Regular pay requires a long-term premium commitment, till the policy ends. Not everyone can assure long-term premium payment commitment which often leads to policy lapses over time. However, regular pay substantially decreases the premium burden.
● Short-term pay/limited pay
Leaving both the extreme ends of single pay and regular pay, here comes the option of limited pay. Under the short-term premium payment model, you neither have to bear the burden of a one-time hefty premium payment nor the long-term premium commitment.
With a short-term premium payment option, you have to pay the premium only for a limited tenure, post which you can enjoy the coverage of the life insurance without having to pay the premium. This model is a mid-way for premium management and an ideal investment strategy for a worry-free retirement income.
● Single pay
Under a single-pay premium model, you have to pay all the premiums at once. While it may sound like a sorted option where you do not have to bear the burden of premium payment more than once, a single-pay premium can be an expensive deal. Since you have to pay all the premiums at once, it may not be affordable for everyone.
● Regular pay
Regular pay requires a long-term premium commitment, till the policy ends. Not everyone can assure long-term premium payment commitment which often leads to policy lapses over time. However, regular pay substantially decreases the premium burden.
● Short-term pay/limited pay
Leaving both the extreme ends of single pay and regular pay, here comes the option of limited pay. Under the short-term premium payment model, you neither have to bear the burden of a one-time hefty premium payment nor the long-term premium commitment.
With a short-term premium payment option, you have to pay the premium only for a limited tenure, post which you can enjoy the coverage of the life insurance without having to pay the premium. This model is a mid-way for premium management and an ideal investment strategy for a worry-free retirement income.
How short-term premium payment can fulfil lifelong income needs?
Regardless of your current age, retirement planning must be a part of your financial portfolio. Pre-planning is the only way out to a sufficient retirement income that sustains your ongoing lifestyle expenses.
While it is wise to start investing early for retirement, it is also true that the ongoing financial commitments in life may become a hindrance to long-term premium commitment. This is when plans with limited premium pay like the SUD Century Royale Plan become a great deal. Let’s understand how a short-term premium payment plan sustains your lifelong income:
● Premiums are charged for a limited period
Unlike regular pay, you do not have to commit the entire policy tenure for premium payment. You may choose a few frequencies and get done with the premium payment task. Once the premium is paid, you can relax and enjoy the benefits of the insurance.
● Lifelong income commitments
Short-term premium payment doesn’t mean you have a short-term income. It offers lifelong income which is why such a life insurance plan makes an ideal retirement income source.
● Easy on your pocket
Unlike single-pay premiums, you do not have to arrange all the premium amounts at once. You may take your time and choose a premium payment frequency as per your preference. This is why the limited pay option is easy on your pocket.
● Low policy lapse probability
With a regular premium pay life insurance policy, the chances of policy lapse are high. This is because not everyone can keep up with the premium payment commitments and lose the policy. With limited pay, you do not have to dedicate the entire policy tenure for the premium payment and hence, chances of policy lapse are quite low.
● Tax benefits broadened
In return for the premium payment, you can enjoy tax benefits. Under Section 80C of the Income Tax Act of 1961, you can avail up to ₹1.5 lakhs of tax benefits for the premiums paid towards life insurance plans.
While it is wise to start investing early for retirement, it is also true that the ongoing financial commitments in life may become a hindrance to long-term premium commitment. This is when plans with limited premium pay like the SUD Century Royale Plan become a great deal. Let’s understand how a short-term premium payment plan sustains your lifelong income:
● Premiums are charged for a limited period
Unlike regular pay, you do not have to commit the entire policy tenure for premium payment. You may choose a few frequencies and get done with the premium payment task. Once the premium is paid, you can relax and enjoy the benefits of the insurance.
● Lifelong income commitments
Short-term premium payment doesn’t mean you have a short-term income. It offers lifelong income which is why such a life insurance plan makes an ideal retirement income source.
● Easy on your pocket
Unlike single-pay premiums, you do not have to arrange all the premium amounts at once. You may take your time and choose a premium payment frequency as per your preference. This is why the limited pay option is easy on your pocket.
● Low policy lapse probability
With a regular premium pay life insurance policy, the chances of policy lapse are high. This is because not everyone can keep up with the premium payment commitments and lose the policy. With limited pay, you do not have to dedicate the entire policy tenure for the premium payment and hence, chances of policy lapse are quite low.
● Tax benefits broadened
In return for the premium payment, you can enjoy tax benefits. Under Section 80C of the Income Tax Act of 1961, you can avail up to ₹1.5 lakhs of tax benefits for the premiums paid towards life insurance plans.
Features of Star Union Century Royale Plan
Star Union Century Royale offers a limited-pay premium model that hat can be included in your financial portfolio as a retirement investment. The various striking features of the plan ensure you have enough to build a wealth legacy:
● Policy term: Your choice
With Century Royale Plan of SUD, policy term flexibility gives you the freedom to plan for your retirement on your terms. Here are the various options available:
● Under 7-pay premium
There are four policy term options under the 7-pay premium model:
● 25 years
● 30 years
● 35 years
● 40 years
● Under 12-pay premium
Under the 12-pay premium model, you have the following policy term options:
● 30 years
● 35 years
● 40 years
● 45 years
● Premium term: Your choice
As discussed earlier, the Star Union Century Royale Plan offers limited pay options along with regular and single pay options as well. When it comes to smart retirement wealth planning, short-term premium commitment can be a game changer. Here are the premium term options that you can choose from:
● 7-pay premium
In this option, you have to pay the premium in 7 payment instalments
● 12-pay premium
Under 12-pay, the entire premium has to be paid in 12 instalments.
● Premium frequency: Your choice
The frequency at which the premium has to be paid is also a decision up to you. You have two options; monthly and yearly payment. Depending on your preferences and comfort, you may pick the option.
● A combo package plan
Star Union Century Royale Plan is a big benefit package. You can enjoy life cover, guaranteed maturity benefits, and lifelong income for retirement life, all under one plan. Check out the table below for more details:
● Availability of additional liquid funds
The guaranteed income offered under the plan acts as an additional retirement income. You can use this immediate liquid fund to meet various expenses during your retirement phase of life.
● Tax benefits
Tax benefits are an obvious part of life insurance plans. Earlier, premium, earning, and maturity benefits were all tax exempted. However, after 1st April 2023, under the new budget plan, tax benefits have changed. Now, the tax exemptions are only offered if your total life insurance premium paid is less than ₹5 lakhs in a financial year.
On the other hand, death benefits continue to be tax-free under Section 10(10D) of the Income Tax Act of 1961. Also, you can claim tax deductions of up to ₹1,50,000 u/s 80C of the Income Tax Act of 1961 for the premiums towards insurance policies.
● Policy term: Your choice
With Century Royale Plan of SUD, policy term flexibility gives you the freedom to plan for your retirement on your terms. Here are the various options available:
● Under 7-pay premium
There are four policy term options under the 7-pay premium model:
● 25 years
● 30 years
● 35 years
● 40 years
● Under 12-pay premium
Under the 12-pay premium model, you have the following policy term options:
● 30 years
● 35 years
● 40 years
● 45 years
● Premium term: Your choice
As discussed earlier, the Star Union Century Royale Plan offers limited pay options along with regular and single pay options as well. When it comes to smart retirement wealth planning, short-term premium commitment can be a game changer. Here are the premium term options that you can choose from:
● 7-pay premium
In this option, you have to pay the premium in 7 payment instalments
● 12-pay premium
Under 12-pay, the entire premium has to be paid in 12 instalments.
● Premium frequency: Your choice
The frequency at which the premium has to be paid is also a decision up to you. You have two options; monthly and yearly payment. Depending on your preferences and comfort, you may pick the option.
● A combo package plan
Star Union Century Royale Plan is a big benefit package. You can enjoy life cover, guaranteed maturity benefits, and lifelong income for retirement life, all under one plan. Check out the table below for more details:
| Benefit | Description |
|---|---|
| Life Cover | SUD Century Royale Plan has a life cover. The life insurance cover ensures compensation to the nominee/family in case the life assured passes away during the policy tenure |
| Guaranteed Maturity Benefit | Upon surviving this endowment plan of SUD Century Royale, the life assured gets a guaranteed maturity benefit in the form of a lump sum |
| Lifelong Income Benefit – 7-pay premium | Under a 7-pay premium, income benefit is payable after the 10th year of the policy. The insured gets 8 times the annual premium as a regular income benefit |
| Lifelong Income Benefit – 12-pay premium | Under the 12-pay premium, the income benefits are payable after the 15th policy year. It is 15 times the annual premium paid for the insurance policy |
● Availability of additional liquid funds
The guaranteed income offered under the plan acts as an additional retirement income. You can use this immediate liquid fund to meet various expenses during your retirement phase of life.
● Tax benefits
Tax benefits are an obvious part of life insurance plans. Earlier, premium, earning, and maturity benefits were all tax exempted. However, after 1st April 2023, under the new budget plan, tax benefits have changed. Now, the tax exemptions are only offered if your total life insurance premium paid is less than ₹5 lakhs in a financial year.
On the other hand, death benefits continue to be tax-free under Section 10(10D) of the Income Tax Act of 1961. Also, you can claim tax deductions of up to ₹1,50,000 u/s 80C of the Income Tax Act of 1961 for the premiums towards insurance policies.
Conclusion
Life insurance plans are often a long-term commitment where you need to pay for a long term, or else you are at risk of losing out on the benefits. A limited premium commitment is often a welcome change, especially for those insurance seekers who want long-term benefits without having to pay the premium for the whole term. One such suitable option is the Century Royale plan, which helps you secure not only your family but also your wealth legacy planning.
Reference: SUD Life Century Royale | UIN: 142N083V01
● https://www.sudlife.in/products/life-insurance/savings-wealth-plans/sud-life-century-royale
● https://incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
Reference: SUD Life Century Royale | UIN: 142N083V01
● https://www.sudlife.in/products/life-insurance/savings-wealth-plans/sud-life-century-royale
● https://incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
Disclaimer
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.
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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