Pramerica Life Smart Income

It is advisable to pay premiums for the entire premium payment term to enjoy maximum benefits under the policy.

The Policy will acquire Surrender Value on payment of premium for first complete policy year and 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 in accordance with the conditions mentioned in the Premium Discontinuance section above. If you choose to discontinue your policy, you will be entitled to receive Surrender Value which will be the higher of Guaranteed Surrender Value (GSV), if applicable or Special Surrender Value (SSV) of the policy. Please refer to our website or policy document for details. 

On survival to maturity, the following benefit would be payable at the end of each year during Payout Period:

T (divided by) N (multiplied by) Annual Payout

Where:

T = Number of premiums paid under the policy

N = Number of premiums payable under the policy

However, if Premium for first complete Policy Year have been received and complete second policy year’s premium is not received, then the Company would pay an amount equal to higher of 15% of Premium paid or Special Surrender Value on subsequent death or on the expiry of revival period or immediately on receiving a written request from the policyholder, whichever is earlier.

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. Any 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 (April) and would be determined based on the average 10-year G-Sec YTM 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 G-Sec rate would be “CCIL”. The current applicable rate of interest applicable on the policy will be 8.75% per annum for FY 2024-25

• Revival of a Policy is available within the policy term up to 5 years from the date of first unpaid premium.

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

• Revival of the policy is subject to Board approved underwriting policy.

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

The revival 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 basis points rounded down to 25 basis points. 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 on policy reinstatement is 8.00% p.a. compounding monthly which would be applicable for the FY 2024-25.

If you are unable to pay your premium by the due date, you will be given a grace period of 30 days. 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 underwriting extra if any) till the date of death, or Surrender Value, if any, as on date of death, provided the policy is in force.