Benefit descriptions of Premium Return Protection Insurance
Death Benfit
The Death Benefit under Max Life Premium Return Protection is higher of
On death during the term of the policy, a Death Benefit will be paid to the nominee of the life insured.The death benefit is equal to the death sum assured, which is defined as the higher of:
- 10 times the Annualised Premium*
- 105% of total premiums** paid
- Guaranteed Maturity Sum Assured (GMSA)***
- Guaranteed Death Sum Assured (GDSA)****
* Annual Premium is the amount payable under the annual premium payment mode under this Policy excluding Extra Premium, if any, and excluding all applicable taxes, cesses and levies as imposed by the government from time to time; Annualised Premium is Annual Premium including extra premium but excluding all applicable taxes, cesses and levies as imposed by the government from time to time.
** Total Premium is defined as all premiums paid including extra premiums and loaded for modal factors but excluding all applicable taxes, cesses and levies as imposed by the government from time to time
*** Guaranteed Maturity Sum Assured (GMSA) is defined as the Total Premium payable over the Premium Payment Term.
**** Guaranteed Death Sum Assured (GDSA) is 100% of Sum Assured for nonaccidental claims and 150% of Sum Assured for accidental claims.
Maturity Benefit
If the Policyholder has paid all the premiums as and when due and the life insured has survived the policy term, then he/she is entitled to the Guaranteed Maturity Sum Assured on maturity of the policy. Maturity benefit is payable at the end of the Policy Term.
Surrender Benefit
The policy can only be surrendered once it acquires a surrender value. The policy acquires a surrender value immediately on payment of first three full years premium.Surrender value is defined as the higher of Guaranteed Surrender Value or Special Surrender Value.
Non Forfeiture Options: Reduced Paid Up (RPU) Benefit
Once the policy acquires a surrender value, by default the policy will become Reduced Paid Up in case of non-payment of any further premium. The policy will continue with reduced benefits as follows.
- RPU Death Benefit will be reduced in proportion to the total premiums paid in relation to total premiums payable RPU Death Benefit = (Total Premiums Paid less Extra Premium (if any) less Rider Premium (if any) / Total Premiums Payable less Extra Premium (if any) less Rider Premium (if any)) X Death Benefit
- RPU Maturity Benefit: Total premiums paid during the policy term, are returned at maturity.
