Pramerica Life Group Total Protection

Under credit-linked schemes, if there is more than one borrower for the same loan, the cover can be offered on a ‘First Death Basis’ or ‘Loan Share Percentage Basis’.

a) First Death Basis:

In this option maximum of 2 members can be covered. Each borrower shall be insured for 100% of the Sum Assured. In the event of death of any one of the borrowers, the applicable benefits as per the benefit schedule shall be paid and the coverage for the surviving co-borrower shall cease thereafter. In the event of simultaneous death of both the co-borrowers, applicable benefits amount shall be payable only once as stated in Certificate of Insurance.

In case the claim of any of the borrowers under First Death Basis, is repudiated (including death due to suicide within one year of Coverage Commencement Date), the coverage of the surviving borrowers shall continue as per the Policy terms and conditions.

Discount of 15% is applicable on younger life in case of First Death Basis Coverage

b) Loan Share Percentage Basis:

In this option maximum of 5 members can be covered. Each borrower is insured up to his/her share of the Sum Assured in the proportion of their respective loan share percentage. On the death of one of the borrowers, the company will pay the applicable benefits as per the benefit schedule of the deceased borrower. On payment being made on the borrower’s Death, the insurance coverage of that borrower only shall terminate and the insurance coverage of the surviving co-borrowers shall continue.  

The option for Surrender lies with Master Policyholder as well as member.

i) Surrender by Master Policyholder

The Master Policyholder can terminate the Master Policy at any time by providing 90 days’ prior written notice to the company. Existing Insured Members will have the following options:

a. Continue their insurance coverage. Company will continue to service such members till their coverage is terminated.

b. Terminate the insurance coverage and take the surrender value.

ii) Surrender by Insured Member

On foreclosure or full prepayment of the loan in case of credit linked schemes, and anytime incase of other then credit linked schemes, the member may request for surrender of his membership anytime during the coverage term.

The surrender value would be applicable as per below mentioned formula:

60% of Single Premium * (Unexpired coverage term (in completed months)/ Total coverage term) * (Coverage In-force / Initial Coverage Amount)

Where, Single Premium is excluding underwriting extra, rider premiums and taxes, if any and Coverage In-force means original sum assured chosen at inception (in case of level cover) or the benefit amount as per the Benefit Schedule (in case of reducing cover option) as on the monthly plan anniversary immediately before the date of surrender of the policy. 

Tax benefits may be available as per prevailing tax laws. Tax laws are subject to change. Please consult the tax advisor for details.

On full pre-payment of the loan, the member can choose to continue the cover in the scheme as per existing terms and conditions. For other than credit linked schemes the member may continue the cover even after exiting the group till the expiry of coverage term.