What does it do?
The policy pays sum assured to nominees on death of the policyholder. If policyholder dies in first 10 years, insurer will pay 100 per cent of sum assured as death benefit. The death benefit will increase to 110 per cent if death occurs between 11th and 20th year. Sum assured will further increase by 10 per cent if death takes place after completing 20 policy years.
If all goes well, on maturity, the insurer will return 110 per cent of total premiums paid excluding taxes and extra premiums.
If premiums are not paid after completing three years, the policy does not end but continues as a paid-up policy with reduced benefits. Policyholder is also allowed to surrender the policy anytime after completing three policy years if the first three year premiums were paid on time.
Pros
This policy can be bought online.
Policies with sum assured above Rs 20 lakh get premium discounts.
In case of an emergency, you can surrender the policy after completing three policy years.
Premiums paid under this policy qualify for tax benefits.
Cons
The minimum sum assured is fixed at Rs 15 lakh, which may not suit those looking for lesser coverage.
