In case of death of the Life Assured, the following death benefit will be paid to the nominee(s) given the policy is in force or fully paid-up. The defined death benefit is paid out and the policy terminates.
The nominee(s) will receive higher of:
a. Sum Assured on Death (SAD) PLUS plus accrued guaranteed additions (if any till date of death) or
b. 105% of total premiums paid till date of death.
c. Surrender value as at the date of death.”
Where Sum Assured on Death (SAD) is higher of X times of annualized premium or an absolute amount (Basic Sum Assured) assured to be paid on death. X is 10 for ages 3 to 45 years and 7 for ages 46 and above.
You can also opt for Waiver of Premium (WOP) rider as specified in Section 6. Please refer rider brochure for more details.
In the unfortunate event of life assured’s demise during the term of the policy, Death Benefit is paid out to nominee(s) either as lumpsum or as a monthly income over next 5 years.
Note: Death benefit will be paid either as lump sum amount or in monthly instalments over the period of 5 years as opted by the policyholder/nominee(s) at any time during policy period or on death of Life Assured. In case of death benefit 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 at the end of every financial year.
In addition to above, an amount equal to Sum Assured on Death (SAD) will be payable in case of death due to accident in the first policy year.
In case the policy is sourced through POS Channel, there is a waiting period of first 90 days from the date of acceptance of risk.
Death Benefit for policy sourced through POS Channel:
If death takes place (other than accidental):
i) During waiting period- 100% of premium paid
ii) On expiry of waiting period- Sum Assured on Death
Waiting period is not applicable in case of death due to an accident or in case of policy revival.
Funeral Cover: 10% of the Sum Assured on Death or Rs. 25,000 (whichever is lower) will be accelerated and paid in advance on intimation of death of the Life Assured. This is not an additional benefit. The amount paid as Funeral Cover will be deducted from the death benefit amount payable.