A grace period of 30 days is available to pay the due premium. This period starts from the due date of each premium payment. In case of death during grace period, the Death Benefit under the policy will be payable after deductions of the premium then due. However, if you fail to pay your premium before the expiry of the grace period: • Where your policy has not acquired Surrender Value: Your policy will Lapse. • Where your policy has acquired Surrender Value: Your policy will continue with reduced benefits (as a Reduced Paid-Up policy). • Your life cover will continue during the grace period. If death occurs during the grace period, the death benefit under the policy will be paid after the deductions of premiums then due and all premiums falling due and unpaid during the policy year of death
Lapse: If the due premiums for first full policy year have not been paid within the grace period, the policy will lapse. Life cover ceases and no benefits will be paid under the lapsed policy till the policy is revived.
Reduced Paid-Up: If the premiums have been paid for first full policy year and subsequent premiums are not paid, then the policy will acquire Reduced Paid-Up status.
Life insurance works best if you pay regularly and for the long-term. However in case of an emergency/ contingency, you can surrender your policy anytime after completion of first policy year.
You can avail loan from SUD Life during Policy Term, provided your policy has acquired Surrender Value. You will need to assign your policy document as a collateral security subject to terms and conditions of the Company applicable from time to time. The loan can be availed for up to 70% of Surrender Value at the applicable interest rate levied. The interest rate is calculated as equal to 10 year G-sec benchmark interest rate as on last working day of the previous financial year +1.50%, rounded up to the next multiple of 25 basis points and shall be compounded half yearly. The rate of interest on loan for FY 24-25 is 8.75% (i.e. 7.05 + 1.50% + rounding to next multiple of 25 bps). Any change in basis shall be with prior approval of the Authority. The company would review the loan interest rate every 1st April and the revised loan interest rate will also be applicable from 1st April. The loan outstanding along with accumulated interest will be adjusted towards the benefit payable. At any point in time, if the loan outstanding along with accumulated interest under the Reduced Paid-Up policies exceed the applicable Surrender Value, the Policy will be foreclosed immediately and no benefits will be payable. Policies which are in-force will not be foreclosed on account of loan balance exceeding the Surrender Value.
In case of death due to suicide within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, as applicable, the Policyholder/ Nominee / Beneficiary shall be entitled to an amount which is higher of 80% of the total premiums paid till the date of death of the Life Assured or the Surrender Value available as on the date of death of the Life Assured provided the policy is in-force
Yes. You have the option of availing the following Riders:
1. SUD Life Accidental Death and Total & Permanent Disability Benefit Rider – Traditional (UIN: 142B005V01) Benefits payable under the rider: a. On death due to Accident – On death of the Life Assured due to Accident, 100% of Rider Sum Assured will be paid, provided the policy is in-force as on the date of death of the Life Assured and the contract ceases thereafter. b. On Accidental Total and Permanent disability – Rider Sum Assured will be paid in 10 equal half-yearly instalments wherein each instalment amount will be equal to Rider Sum Assured multiplied by 10%, provided the policy is in-force (as on the date of occurrence of event) and the Rider contract will cease after payment of the last instalment. In case of death of the Life Assured while receiving Accidental Total and Permanent Disability Benefit, the remaining total of all outstanding instalments under this Rider will be paid to the nominee/beneficiary and the contract ceases. Note: Once any policyholder is declared eligible to receive the benefits under Accidental Total and Permanent Disability, the Coverage under this rider will immediately cease
2. SUD Life Family Income Benefit Rider - Traditional (UIN: 142B007V01) Benefits payable under the rider: Death Benefit: On death of the Life Assured, provided the rider benefit is in-force, the Nominee/Legal heir will be paid a Monthly Income Benefit for a fixed period of 10 Years. The Monthly Income Benefit is equal to (10% of Rider Sum Assured)/12 and will be paid at the end of every policy month following the date of death of the Life Assured and will continue to be paid for fixed period of 10 Years.
