Smart Future Income Plan

Let us understand this through the case study of Arun, who is 45 years old, has 2 kids, aged 10 and 7. Although his present income is sufficient to meet his and his family's current needs, he wants to ensure a guaranteed source of supplemental income of 10,000 per month in case his mainstream income is insufficient.

Step 1: He chooses Guaranteed Monthly Income =       10,000.
Sum Assured =      10 Lacs (100 times Guaranteed Monthly Income)

Step 2: He chooses to pay premiums Annually. Basis his age, Sum Assured and the mode of premium payment, he needs to pay     139,310 per annum (before applicable taxes).

Step 3: Arun has now safeguarded his family through a guaranteed Life Cover. His family is assured of receiving the following death benefit in case of his unfortunate demise.

Death Benefit Sum Assured, which is higher of

• Sum Assured or
• 10 times Annualized Premium

Plus Annual Bonuses added till date of death (and any interim bonus for the part of the year in which death occurs) along with the final bonus (if any)

The death benefit will be at least equal to 105% of {Total Premiums Paid till date of death less underwriting extra premiums, if any}. Please note that the above benefit is irrespective of any of the survival benefits already paid to Arun.

Step 4: Provided all the premiums are paid as and when due, regular Annual Bonuses added to the policy will be payable either on death or maturity, whichever is earlier. Further, Arun may be eligible for Final Bonus, if any.

Step 5: Provided premiums are paid as and when due and Arun survives, he will start receiving the chosen Guaranteed Monthly Income after completion of 10 policy years.

To summarize, the key dates (for example) he should keep in mind are:

HOW IS ARUN'S FAMILY PROTECTED?

In case of Arun's unfortunate demise (say in 3rd month of policy year 5), Smart Future Income Plan protects Arun's family as follows:

• Death Benefit Sum Assured of     13,93,100,which is higher of (Sum Assured:     1,000,000 and 10 times Annualized Premium:     13,93,100) plus Annual Bonuses added till policy year 5, final bonus (if any) and interim bonus (if any)
• 105% of {Total Premiums Paid till date of death less underwriting extra premiums, if any}

Please note:

• Post payment of death benefit, his policy stands terminated.
• Outstanding Loan Amount and interest thereon, if any, will be adjusted from death benefit payable to Arun's family.