In the unfortunate event of life assured’s demise during the term of the policy, Death Benefit is paid out to nominee either as lumpsum or as a monthly income over next 5 years.
Events | How and when benefits are payable | Size of such benefits |
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Death | Payable on Death during the policy term given the policy is in force. | Guaranteed Sum Assured on death + Accrued Simple Reversionary Bonus (if any) and Terminal Bonus (if any). However, the minimum death benefit shall be atleast 105% of all premiums paid till date of death. |
Accidental Death | Payable on Accidental Death during the policy term given the policyis inforce and given Accidental Death Benefit is opted. | Guaranteed Sum Assured on Death as additional benefit over and above death benefit. |
Guaranteed Sum Assured on Death is 10 times of Annualized Premium
In case of death benefit payout in instalments; the monthly instalment amount will be calculated by multiplying the death benefit by annuity factor, where annuity factor will be arrived on the basis of prevailing SBI savings bank interest rate as on date of death. Once the instalment payment starts, this payment remains level throughout the instalment period. The prevailing SBI savings bank interest rate is subject to review atthe end of every financial year. The prevailing interest rate will be decided on 31st March every year.
Definitions
“Accident” shall mean an event or contiguous series of events, which are violent, unforeseen, involuntary, external and visible in nature, which causes Bodily Injury.
“Bodily Injury” means Injury must be evidenced by external signs such as contusion, bruise and wound except in cases of drowning and internal injury.
“Accidental Death” shall mean death:
- which is caused by Bodily Injury resulting from an Accident and
- which occurs due to the said Bodily Injury solely, directly and independently of any other causes and
- which occurs within 180 days of the occurrence of such Accident irrespective of the expiry of policy term provided date of accident is within the policy term