The Sadabahar Plan is an anticipated endowment type with-profit life insurance policy offered by State Life Insurance Corporation (assuming this information is from State Life Insurance Corporation). It is designed to provide a lump sum benefit at certain stages during the premium-paying term or in the event of the policyholder's earlier death. Here are some key features and details of the Sadabahar Plan:
Available to all members of the general public aged from 20 to 60 years nearest birthday.
Both males and females can purchase this plan.
Terms offered under this plan are 12, 15, 18, 21, 24, 27, and 30 years. Policyholders can choose the term that suits their needs.
On completion of one-third of the policy term (for example, if the policy term is 30 years, this would be after 10 years), the policyholder can receive 20% of the basic sum assured.
Another 20% of the sum assured can be taken on completion of two-thirds of the policy term (for example, after 20 years).
The remaining 60% of the basic sum assured plus any accrued bonuses (if any) will be payable at the end of the policy term if the assured survives.
If the option to withdraw an installment of 20% sum assured is not exercised on the due date or within 6 months after the due date, a special bonus will be automatically added to the policy. This special bonus has implications for both death benefits and maturity benefits:
On the death of the assured while the policy is in force, the special bonus will be payable in addition to the basic sum assured, other reversionary bonuses accrued on the policy, and the amount of any installment left with State Life.
As long as the policy remains in force, the policyholder may surrender the unclaimed installment of the sum assured together with the related special bonus. The aggregate cash surrender value of the two shall not be less than the amount of the said unclaimed installment.
In the event of the insured's death while the policy is in force, the full basic sum insured plus accrued bonuses are payable. Additionally, if death occurs as a result of an accident, an additional amount equal to one basic sum assured (subject to a maximum limit) will be paid. The maximum limit on the Accidental Death Benefit (ADB) is typically specified in the policy, and premium calculations are adjusted accordingly.
The policy participates in State Life's surplus, and the rates of bonus applicable are 25% higher than those on the anticipated endowment plan. Bonuses are typically declared each year on the basic sum assured, but the unclaimed installments of the sum assured and related special bonus do not participate in State Life's Actuarial Surplus.
In summary, the Sadabahar Plan offers a combination of savings and protection with the added benefit of an Accidental Death Benefit rider. It provides policyholders with options to receive partial payouts during the policy term and additional benefits in the event of death due to an accident. The policy also participates in State Life's surplus, which can result in higher bonus rates compared to some other plans.
Death claim is usually payable to the nominee/ assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable to the holder of a succession certificate or such evidence of title from a Court of Law.
State Life distributes its profits @ 97.5% (highest in the insurance industry) among it policyholders every year in the form of bonuses. Bonuses are credited to the account of the policyholders and paid at the time of maturity or at the time of death (if earlier). Bonus is declared as a certain amount per thousand of sum assured.
Life insurance is normally offered after a medical examination of the life to be insured. However, to facilitate greater spread of insurance and also as a measure of relaxation, State Life has been extending insurance cover without any medical examination, subject to certain conditions. This facility is called Non-medical Scheme.
Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
The amount payable by State Life on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy.
It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.
The calculation of life insurance premiums is primarily based on age of the person to be insured, sum insured and term of the policy.
The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.
A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.
If the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period, the policyholder will entitled to benefits under one of the following two options given hereinafter, depending on the option exercised (if any) in his Proposal for this policy:
A – Automatic paid-up Option
This policy will be converted into a paid-up policy. The paid-up Sum Insured will be specially calculated to allow for the clearance of all outstanding dues of State Life against the policy.
B – Automatic Premium Loan Option
So long as the net surrender value of the policy equals or exceeds any due premium remaining unpaid beyond its grace period, State Life will continue to keep this policy in full force, and treat the said premium as paid by creating an automatic premium loan against the net surrender value of the policy.
