In all the Income Options, you pay premiums for a certain period and receive regular income till the end of the chosen policy term. The time at which income starts and the increase of income depends on the Income Option chosen.
The amount of income payable has two components:
- Base Income: Percentage of the Annualized Premium you will be eligible for at the start of the policy term. The Base Income shall vary based on Age at Entry, Gender, Premium amount, Premium Payment Term, Policy Term & Income Option chosen.
- Loyalty Income: The increases on the base income awarded each year on the payment of premiums, as per the Income Option and Premium Payment Term opted.
a. Immediate Income Option:
I. Survival Benefit
- Base Income starts at end of first policy year^ and continues till the end of the Policy term.
- The base income payable every year will be enhanced by the Loyalty Income as per the table provided below, provided all the due premiums for that respective year has been paid.
- Income payable will stop increasing once the policyholder stops paying his due premium or after the end of the Premium Payment Term (whichever is earlier).
Loyalty Income (% Increase in Base Income)
Premium Payment Term | Policy Year |
---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
6 | 0% | 6% | 12% | 18% | 24% | 30% | | | | |
8 | 0% | 8% | 16% | 24% | 32% | 40% | 48% | 56% | | |
10 | 0% | 10% | 20% | 30% | 40% | 50% | 60% | 70% | 80% | 90% |
II. Maturity Benefit
On survival till the end of the policy term provided all due premiums have been paid, Sum Assured on Maturity will be payable.
Where,
Sum Assured on Maturity is equal to the 100% of sum of all Annualized Premium payable under the policy.
Illustration
Savi, a healthy 30 year old and a new mother, wants a second income to cater to the needs of her growing family. She opts to purchase ‘Immediate Income’ Option of IndiaFirst Life Guarantee Of Life Dreams, and chooses to pay an Annual Premium of Rs 1,00,000 annually (excl taxes) for 10 years with a policy term of 30 years. She chooses an Annual Income Payment frequency.
Premium Payment Term | Policy term | Annual Premium | Base Income (annual) | % increase in Base Income from 2nd year onwards |
---|
10 years | 30 years | Rs 1,00,000 | Rs 22,153 | 10% every year |
Income payable to Savi will increase every year till the end of the Premium Payment Term (PPT), provided all the due premiums for that respective year have been paid. The table below shows income schedule
End of Policy year | Income | |
---|
1 | 22,153 | <--Income payable from this year |
2 | 24,369 | |
3 | 26,584 |
4 | 28,799 |
5 | 31,015 |
6 | 33,230 |
7 | 35,445 |
8 | 37,661 |
9 | 39,876 |
10 to 30 | 42,091 |
Maturity Benefit | 10,00,000 |
The table below shows the Base Income, for different combinations of premium payment term and policy term.
Premium Payment Term | Policy term |
---|
30 years | 40 years |
6 years | 16,887 | 17,609 |
8 years | 20,231 | 21,320 |
10 years | 22,153 | 23,475 |
The income depicted in table will increase as detailed in section 4.a.I above.
b. Intermediate Income Option:
I. Survival Benefit
- Income will be payable from the end of the 5th policy year^ and will continue till the end of the Policy Term.
- The base income will be enhanced by the Loyalty Income every year as per the table provided below, provided all the due premiums for that respective year has been paid. Even though the income will increase every year, the first income will be payable at the end of the fifth policy year.
- Income will stop increasing once the policyholder stops paying his due premium or after the end of the Premium Payment Term (whichever is earlier).
Loyalty Income (% Increase in Base Income)
Premium Payment Term | Policy Year |
---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
6 | 0% | 5% | 10% | 15% | 20% | 25% | | | | |
8 | 0% | 10% | 20% | 30% | 40% | 50% | 60% | 70% | | |
10 | 0% | 15% | 30% | 45% | 60% | 75% | 90% | 105% | 120% | 135% |
II. Maturity Benefit
On survival till the end of the policy term provided all due premiums have been paid, Sum Assured on Maturity will be payable.
Where,
Sum Assured on Maturity (SAM) is equal to 100% of sum of all Annualized Premium payable under the policy.
Illustration
Pranav, a healthy 35 years old man, buys IndiaFirst Life Guarantee Of Life Dreams Plan under the ‘Intermediate Income’ Option to by paying an Annual Premium of Rs. 2,00,000 (excl. taxes) for 10 years and choosing a policy term of 30 years. He chooses an Annual Income Payment frequency.
Premium Payment Term | Policy term | Annual Premium | Base Income (annual) | % Increase in Base Income from 2nd year onwards | Income payable from end of 5th policy year |
---|
10 years | 30 years | Rs 2,00,000 | Rs. 46,288 | 15% every year | Rs. 74,061 |
Income for Pranav will increase every year till the end of the Premium Payment Term (PPT), provided all the due premiums for that respective year have been paid. The table below shows income schedule:
End of Policy year | Income | |
---|
1 | - | |
2 | - | |
3 | - | |
4 | - | |
5 | 74,061 | <--Income payable from this year |
6 | 81,004 | |
7 | 87,947 | |
8 | 94,890 | |
9 | 1,01,834 | |
10 to 30 | 1,08,777 | |
Maturity Benefit | 20,00,000 | |
The table below shows the Income payable to Pranav at end of 5th Policy Year, for different combinations of premium payment term and policy term.
Premium Payment Term | Policy term |
---|
30 years | 40 years |
6 years | 54,226 | 54,859 |
8 years | 67,206 | 69,084 |
10 years | 74,061 | 76,701 |
The income depicted in table will increase as detailed in section 4.b.I above.
c. Deferred Income Option:
I. Survival Benefit
- Income will be payable to you starting from the end of the 10th policy year^ and will continue till the end of the Policy Term.
- Loyalty Income enhances Base Income every 5 years (as per the table below), starting from the 16th policy year, till the end of the policy term, provided all due premiums have been paid.
Loyalty Income (% increase in Base Income) | Policy Term = 30 years | Policy Term = 40 years |
---|
Policy Year \ Premium Payment Term | 6 years | 8 years | 10 years | 6 years | 8 years | 10 years |
1-15 | 0% | 0% | 0% | 0% | 0% | 0% |
16-20 | 15% | 30% | 45% | 15% | 30% | 45% |
21-25 | 30% | 60% | 90% | 30% | 60% | 90% |
26-30 | 45% | 90% | 135% | 45% | 90% | 135% |
31-35 | NA | NA | NA | 60% | 120% | 180% |
36-40 | NA | NA | NA | 75% | 150% | 225% |
- Additionally,twoCashbacks shall also be payable; i.e.; 2 installments of lump sum benefit, both equalto 50% Annualized Premium,will be payable at the end of the 3rd policy year and at the end of Premium Payment Term.
Cashback Type | When will the Loyalty Cashback be paid? |
---|
Loyalty Cashback | Payable at the end of the 3rd Policy year |
Guaranteed Cashback | Payable at the end of the Premium Payment Term |
II. Maturity Benefit
On survival till the end of the policy term provided all due premiums have been paid, Sum Assured on Maturity will be payable.
Where,
Sum Assured on Maturity is equal to 150% of sum of all Annualized Premium payable under the policy.
Illustration
Vaibhav, a healthy 40 year old male, buys IndiaFirst Life Guarantee Of Life Dreams Plan under the Deferred Income Option by paying an Annual Premium of Rs. 5,00,000 (excl. taxes) for 10 years and choosing a policy term of 30 years. He chooses an Annual Income Payment frequency.
Premium Payment Term | Policy term | Annual Premium | Income payable from end of 10th policy year |
---|
10 years | 30 years | Rs 5,00,000 | Rs. 2,23,146 |
Regular Income will be payable to Vaibhav from the end of 10th policy year. In addition, Loyalty Income will also be payable. The table below show the income benefit payable
End of Policy year | Cashbacks | Income | |
---|
1 | | - |
2 | | - |
3 | 2,50,000 | - |
4 | | - |
5 | | - |
6 | | - |
7 | | - |
8 | | - |
9 | | - |
10 | 2,50,000 | 2,23,146 | <--Income payable from this year |
11-15 | | 2,23,146 | |
16-20 | | 3,23,562 |
21-25 | | 4,23,977 |
26-30 | | 5,24,393 |
Maturity Benefit | | 75,00,000 |
The table below shows the Income payable to Vaibhav at end of 10th Policy Year, for different combinations of premium payment term and policy term.
Premium Payment Term | Policy term |
---|
30 years | 40 years |
6 years | 1,11,699 | 1,24,236 |
8 years | 1,78,668 | 1,89,378 |
10 years | 2,23,146 | 2,29,824 |
The income depicted in table will increase as detailed in section 4.c.I above.
^If Income payment frequency chosen is annual. For other than annual income payment frequency all benefits will be
payable in arrears, i.e., at the end of specified frequency.
Death Benefit (applicable to all income options)
In case of death of the Life Assured during the policy term, when the policy is in force and all due premiums have been paid, the death benefit will be payable, and the policy will terminate.
Death Benefit will be highest of:
- Sum Assured on Death
- 105% of Total Premiums Paid till the date of death
- Sum Assured on Maturity, minus the survival benefits paid to date
- Surrender value as on the date of death
where Sum Assured on Death is 10 times of Annualized Premium Sum Assured on Maturity is X% of sum of all Annualized Premium payable under the policy where X% is 100% for Immediate and Intermediate Income options and 150% for Deferred Income option.
Where, Annualized Premium shall be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.
Where, Total Premiums Paid means total of all premiums received, excluding any extra premium, any rider premium and applicable taxes.
The death benefit defined above will be paid either as lump sum amount or in monthly instalments over the period of 5 years as opted by the policyholder/ nominee at any time during policy period / on death of Life Assured.