Pramerica Life Smart Assure

On survival to Maturity the following reduced benefit would be paid:

T (divided by) N (multiplied by) Base Sum Assured Plus Maturity Additions accrued, if any till the date of paid-up Plus Reduced Maturity Additions accrued after the date of paidup, if any

Where:

T = Number of premiums paid

N = Number of premiums payable under the policy

A Paid-up Policy would also be entitled for Reduced Maturity Additions after the Policy has been converted to Paid-up status provided the Policyholder has paid at least 50% of the total Premium payable during the Policy Term further subject to Premium for minimum of 5 complete Policy Years is paid. The reduced Maturity Additions will be calculated as follows:

Reduced Maturity Additions = Maturity Addition multiplied by (T/N) multiplied by Base Sum assured divided by 1000

Where:

T = Number of premiums paid

N = Number of premiums payable under the policy

• Revival of a Policy is available for up to five years from the date of first unpaid Premium.

• Payment of all unpaid Premium with interest is required to revive the Policy in all cases.

• The rate of interest shall be reset on an annual basis at the beginning of every financial year (April) and would be determined based on the average of 10-year G-Sec YTM plus 75 bps rounded down to 25 bps. The average of the benchmark would be taken from the previous financial year for the period 1st July to 31st Dec. The source of information for 10 year GSec rate would be “CCIL”.

• Revival of the policy is subject to underwriting requirements.

• Once the Policy is revived, all the benefits under the Policy would be revived.

In case the Premium for at least first three Policy Years have been paid in full and any subsequent Premium installment is not paid, the risk cover for full death benefit shall continue for a period of one successive year (Auto Cover Continuation Period) from the due date of first unpaid Premium even though the policy is in reduced Paid-Up status. If the Life Insured dies during this period, the Company will pay Death Sum Assured as applicable after deducting the Premium due, if any, on date of death.

During financial emergencies, you may require funds to meet some expenses. To fulfill this need, we allow you to avail loan against your Policy. Loan will be available after the Policy acquires surrender value, up to 80% of the surrender value. The outstanding loan amount and unpaid interest on the loan amount shall be deducted from any amount payable under your Policy. The rate of interest shall be reset on an annual basis at the beginning of every financial year. The rate of interest applicable on the loan will be declared by the Company on an annual basis at the beginning of every financial year. The loan rate of interest is based on yield on 10-years GSEC plus 150 bps rounded down to 25 bps. The average of the benchmark would be taken from the previous financial year for the period 1st July to 31st Dec. The source of information for 10 year GSec rate would be “CCIL”. The current applicable rate of interest for FY 2024-25 is 8.75% per annum. Policies in-force for full benefits or fully paid policies would not be foreclosed on the account of outstanding loan amount (including outstanding interest on loan, if any) exceeding the surrender value.

It is advisable to pay Premium for the entire Premium Payment Term to enjoy maximum benefits under the policy. The policy will acquire Surrender value after paying premium for the first complete policy year & will become payable after completion of first policy year. Thereafter, if you decide not to pay further Premiums, you would have the option to either surrender the Policy or let the Policy continue with reduced benefits.

You will be entitled to receive Surrender Value which will be higher of the Guaranteed Surrender Value (GSV), if applicable or Special Surrender Value (SSV) of the Policy. Please refer to our website or policy document for details.  

If you are unable to pay your premium by the due date, you will be given a grace period of 15 days for monthly premium payment mode or 30 days for all other modes. During the grace period the Policy shall continue to remain in-force along with all benefits under this policy and claim, if any, shall be payable subject to deduction of the unpaid due premium.

If death occurs due to suicide or attempted suicide, whether sane or insane, within twelve months of the Risk Commencement Date or within twelve months from the date of revival of the Policy, then the Company’s obligation under this Policy shall be to pay an amount equal to higher of 80% of total Premiums paid (excluding any rider premium and taxes thereon, if any) till the date of death, or Surrender Value, if any, available as on date of death, provided the policy is in force.